Budgeting season is tedious but necessary for your firm’s operation as well as to forecast your profitability for the next year. So real estate software, are constantly striving to better this process.
For instance, Yardi’s FLO – Forecast Lease Options – streamlines the approach to forecasting leasing revenues. It uses a colour-coded grid to let you sort, filter and group units so that you retrieve useful information from the data visualisations to take better business decisions. Overall it expedites the budgeting process while increasing accuracy and efficiency.
Budgeting obviously means taking every facet of expenses into consideration. Accounting software like Yardi and MRI are quite comprehensive where property and asset operations are concerned. They handle capital expenditures like CAM and tax consistently and smoothly by deriving the data from operating ledgers. Moreover, it saves time and manual errors by using the formulae and set-up for recoveries that are already in place. Additionally, Yardi pulls data on your construction projects and mortgages or debts, for a wholesome expense budget.
Next comes corporate budgets – payroll and benefits, marketing, brokers’ fees, shared services (e.g. IT), and legal fees. This is as important albeit not separate from asset management budgeting. RealPage is particularly useful here as it does this quite well on the residential side, too.
Yardi and MRI have many built-in corporate expense worksheets, with the option to separate them when required. So when processing payrolls, expense workbooks can be pulled up and worked on without having to wait for them to be submitted by the other teams. In this way, different aspects of the budgeting can be delegated and worked on separately and integrated to the final forecast.
Budgeting tools can work their magic after the budgeting process has been streamlined. But generating a single annual report is a bothersome task. However, with all the information in the system you can create multiple forecasts that consider different scenarios, like estimates around tenancy changes, seasonal and weather impacted variations and so on. These forecasts can be done more frequently, thereby allowing real estate folks the chance to adjust without overhauling.
So there you have it. Pick the right software for the important undertaking of the budgeting process!