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Managing A Property Budget 101

May 18, 2018

Property manager services being conducted between property manager and tenantAs a property manager, you’re well aware of the challenges you face every day and the overwhelming feeling of getting pulled in twenty different directions at once. The best way to stay on top of things is to be well-organized, delegate tasks, maintain a strong property manager budget, and be sure that you’re saving money in the right ways.

Being a property manager means you have to know about most things that involve your property. From inspection and maintenance to dealing with tenants and figuring out employee wages, you have a lot on your hands. For areas you’re not an expert in, consider hiring a Property Manager service to take care of those tasks effectively and efficiently.

Below are some techniques and strategies that can help you manage your budget. Having a strong budget will help you manage your property more effectively and successfully, saving you loads of stress.stress.

Hire A Property Management Service

The best property managers can recognize when they are not an expert on something. Deciding to hire professional help to take care of a particular task can be a smart idea. For example, things like facility maintenance and thorough inspections can make their way down to the bottom of your priority list because they may be areas in which you lack expertise. You also may not even know what problems to look for if you have no knowledge in these areas.

To help you identify maintenance and inspection issues, you can hire a Property Manager service to perform regular maintenance and inspection. If you select the right service, these property managers will be highly trained and specialized in their particular field so that they can catch any problems before they arise. These services can include inspection and maintenance of facility waterproofing, roofing, foundations, concrete paving, and asphalt. If these areas of your property are neglected, they will ruin the appearance of the entire property, making for unhappy tenants and increasing damage, and expensive repairs.

Concentrate on things that are your strong suit and hire a Property Manager service to help you out with the others. While it might cost you a little more upfront, it will ultimately save you lots of money in your property manager budget because you will be able to deal with, or even avoid potential problems quickly before they get out of hand.

Lease Management

Image of lease depicting lease management through property manager servicesStaying on top of your leases is extremely important to the overall success of your property manager budget. Implementing a property management program can help make this an easy task. All you have to do is input important information into the program to track important areas such as tenant responsibilities, owner responsibilities, and critical dates.

Dates in leases such as escalations, concessions, and lease renewal need to be monitored closely. Utilizing a property management program can remind you of these critical dates. When you’re worrying about a million other things on your property, you may be so busy that you ignore or forget these important days. Incorporating a strong property management program into your operations will ensure this doesn’t happen.

A property management program can also keep track of when rent and fees are due. The program can alert you and the tenant that the upcoming bill is due. The tenant would also have the opportunity to pay an easy online payment of their bills. Your notification of an upcoming bill is also just as important as notifying the tenant because the owners deserve to collect all of their rent and fees on time. Relying on a steady, reliable inflow of cash will make managing your budget much easier.

Operating Cost Management

Property manager managing a property budgetWhen making repairs or improvements to your property you must consider two things; tenant retention, and tenant acquisition. This creates a tricky line between balancing how much to spend on repairs against the long-term occupancy investment in your building. You want to hire contractors that are going to get the job done right, but not break the bank while doing it. Take the time to find the right contractor that has good recommendations, and fits within your budget.

When planning out your budget, you need to make sure you have plenty of funds allocated to repairs and improvements. Neglecting these and spending the money elsewhere is only going to come back and hurt you, and most likely cost you more money.

Operating costs go beyond just taking care of the physical aspects of your property, they also have to do with office supply costs, bank charges, and accounting and legal fees, to name a few. You should always know the minimum amount of money it takes for your property to run on a day-to-day basis. However, the minimum amount isn’t there to help you save money and cut costs, it’s so you can make sure you have more funds than just the minimum amount for when things outside of day-to-day management occur. If your budget is super tight and doesn’t account for the unexpected, you could face some serious problems when they arise.

Vacancy Management

It’s no secret that having a vacancy isn’t a good thing. You are wasting money, time, and energy on upkeep, while you receive no return on investment with a tenant’s rent and fees. The current market suggests that there are more vacant spaces then there are tenants. This means you really have to put some effort into filling those empty spaces. You can do this by offering competitive prices paired with an easy leasing process. The easier it is to find out about your space, to contact you, and to apply for a lease, the easier it will be for you to find a tenant.

To avoid vacancies focus on tenant retention. Strong communication, investing in good repairs, connecting with the tenants, and giving them business referrals are all great ways to make your tenant happy and encourage them to stay. Building personal relationships is probably the most important aspect of business. While this may not directly translate to numbers in your budget, ensuring tenant happiness is crucial to their retention. Unhappy tenants are going to pack up and leave, taking their rent money with them and away from your pocket, and making it more challenging for you to fill their vacant space. Bringing in more tenants is going to bring more money into your budget.

Manage The Flow Of Money

One of the most important tasks you have as a property manager is to stay on top of money. You need to be aware of when you expect an inflow of money and where/who it’s coming from. Additionally, and you need to be careful to establish allocated funds for expected and unexpected expenses. Your property manager budget should be very detailed and highly organized so you can clearly see your operations cost, your cash inflows, and reserves for unexpected expenses.

Property management also requires diligence. You can’t afford to be losing money anywhere, so you need to make sure that money isn’t left unaccounted for and that you’re not over-spending on certain things. This can mean using a program to manage your budget, or thoroughly reviewing your work to eliminate mistakes.

A great rule of thumb to remember when it comes to budgeting is that you always want to have more money coming in then you are spending. However, that can get tricky because sometimes you have to spend money to make money, such as investing in improvements that make your property more desirable to tenants. In times where this is the case, you have to be even more diligent with your bookkeeping and spending so you don’t run into any problems.

It’s always a good idea to plan for the unexpected. As previously mentioned, this usually means allocating funds for emergencies. You also must make sure that expected expenses don’t sneak up on you either. This happens a lot of times when tax season rolls around. Many forgotten expenses can cause property managers to scramble for cash to cover these unplanned-for costs. You should always be aware of upcoming expenses so that you’re ready to deal with them on their arrival. The proper budget program can help you avoid common mistakes that occur from unexpected expenses.

Employee Wages

When it comes to employee management, there’s a lot to consider. The decision to hire an employee is a big one and should be made with careful consideration of the current budget. You need to decide whether the potential employee is going to bring in money and pay for themselves, such as a salesperson, or if they will play a vital role that will ultimately save you money, such as a receptionist. Hiring a new employee should not be a hasty decision, it needs to be made with the idea in mind that it’s good for the business and that the budget can afford for it.

Once you’ve decided to bring on a new member to your team, you have to determine how much you’re going to pay them. You don’t want to pay so little that you can’t get anyone with the talent and qualifications for the job, but you also don’t want to overpay and potentially hurt your budget more than necessary. When considering what pay you’re going to offer, you must also consider how much their employment is worth to you and what value they will bring to your operations. This means you have to think about whether or not they’re going to bring in money, whether they’re going to play a vital role that makes other tasks easier, and how essential it is to be delegating responsibilities to them (i.e. if you no longer have time for certain tasks and need someone to take care of them). The offered salary should take all of this into account, and be competitive with salaries of similar jobs in other companies. Most importantly, it needs to fit within your budget.

Office Resources

If your office is pretty well established, spending money on office resources may not be a huge priority. In this case, you should make smart investments over a long period of time to maintain your office, rather than waiting until you need all new computers and have to drop a large chunk of cash on new capital. Much like the maintenance of your property, your office should be maintained in the same fashion.

You also have to consider smaller office resources like paper, pens, or a filing system. A great way to save here is to go completely digital so you’re not routinely spending money on printer ink and other things. Many people fear going completely digital because it can seem less reliable, but it’s quite the opposite. As long as your information is well-protected and backed up, you should have no problems. The likelihood of something happening to digital papers is the same likelihood of your office flooding and destroying your hard copy documents. Investing in information systems that help you manage more effectively now, will have you save money on office resources in the long run. Before you make any decisions like this, carefully consult your budget to see if you can make the change and how much money the change could save you.

General Tips For Budgeting

Your budget should always be kept updated and organized. This can mean keeping careful track of it in a notebook, using a spreadsheet, or using a budgeting program that is set up to help guide you through the process. Each one has it benefits so you should pick the one that is most suitable for you.

As the property manager, you need to make sure the property management budget makes sense to you. Organize it in a way that allows you to easily keep track of key information that is always visible and able to be updated if needed. Remember that delegating tasks is always a good idea, so seek out a Property Manager service provider for more information and services.

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Fairfax, VA 22030

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Google Rating
4.5
Dirt Connections
Dirt Connections
4.5
C Hannon
C Hannon
16:27 02 Jan 19
Chuck is a master communicator. Great quality dirt, quick responses to all my inquiries. highly recommended. Will be using Dirt Connections again in the future for more fill/top soil needs.
Daniel Chaney
Daniel Chaney
20:57 22 Nov 17
Chuck Moore at Dirt Connections really goes above and beyond to help his customers with all their trucking needs! My company, Benchmark Utility Services, has used Dirt Connections for many jobs and they always deliver for us!
Chris Mihm
Chris Mihm
20:49 08 Sep 16
Dirt Connections is amazing. I had a few people string me along promising good quality fill dirt but never delivering. Dirt Connections showed up at 7am the next morning! We discussed my unique needs. He told me I needed twice as much as my contractor suggested. He was correct. Dirt showed up same day! Would strongly recommend.
John D
John D
22:45 16 Sep 16
Chuck did a great job getting fill dirt for my project. He was able to help me meet a deadline. Highly recommend.
DJ Sweater
DJ Sweater
15:54 23 Feb 16
Chuck does a great job at taking care of customers. He walked us through the whole process, and made us feel at home about our siding and brick repair. I am going to call Chuck and Dirt Connections about our future bathroom and concrete driveway remodeling as well. Great guy, great company, thanks Chuck!
Jonathan Gessert
Jonathan Gessert
18:01 17 Dec 15
I gave Dirt Connections a call about a week ago to see what they could do about remodeling the bathroom at my house. Chuck answered the phone, was extremely polite and knowledgeable, and pointed me in the right direction! I thought the quote was very affordable, and will be recommending him to my friends. 5 out of 5 stars.
Sandra Maxey
Sandra Maxey
21:50 03 Feb 16
If you are looking for quality home improvements, this is the company for you. They were on time, courteous and went beyond our expectations with the addition they did for us. Would recommend them highly and definitely use them again!
David C. Roseman
David C. Roseman
15:16 29 May 18
My experience with Dirt Connections has been excellent. Chuck Moore is quite professional, and his personal service and attention to detail in arranging the right fill material is impressive.
mpgary21090
mpgary21090
14:10 04 Jun 18
We used this company to haul dirt for a pool dig out of Bethesda Md. They did an outstanding job. Thank you Chuck for making this work on short notice.
Michael Loper
Michael Loper
23:03 16 Jun 18
On behalf of the Trustees of Bruen Chapel United Methodist Church, I see hallmarks of this project (filling a 6 foot sinkhole) by Dirt Connections as the contractor's extremely prompt response and the thorough accomplishment of the work. The project was wrapped up much faster than I had estimated, given the issues that heavy rain has caused all over Fairfax County.
Miri Birk
Miri Birk
21:35 16 Jul 18
Excellent service. Quick delivery. good clean fill dirt. And the price was right.
Laura Bryan
Laura Bryan
17:38 01 Aug 18
I worked with Chuck who was VERY accommodating. He worked hard to get me clean fill which is not guaranteed. He was easy to get a hold of and quick to respond. If I ever need dirt again this is where I will go.
Brett Gerard
Brett Gerard
15:02 15 Aug 18
This is the second time I've worked with Chuck. The service is stellar A+, very organized, on-time and they are flexible on delivery. The fill dirt is clean. Chuck goes above and beyond to service his clients and most of all I appreciate they level of communication. This level of service is difficult to find in NOVA.
Chuck Jones
Chuck Jones
13:48 24 Aug 18
LandArt Associates, LLC utilizes Dirt Connections services whenever performing projects in the Northern VA/DC area. We have used them on small and large projects and the service is always outstanding. It is always a welcome relief when you have a company that is consistently dependable.
Shannon Frazier
Shannon Frazier
23:18 04 Sep 18
Our delivery was placed in the wrong location. Chuck made sure the mistake was corrected quickly and went the extra mile. Very responsive and professional. Highly recommend.
VIRGINIA TICER BAECHLER
VIRGINIA TICER BAECHLER
16:19 29 Sep 18
Chuck Moore and his staff have helped our family with multiple projects, including moving, snow removal, and water remediation! They're always willing to help, and they do so quickly and professionally! We would strongly recommend them to anyone needing any of their services! Thank you for everything, Chuck!!
Chris Myers
Chris Myers
14:00 09 Dec 18
Great service, great dirt, all around great experience! They even helped me think through what I needed to do after the dirt arrived.
Christian Chopitea
Christian Chopitea
22:31 11 Dec 18
Working with them was a remarkable experience, starting with the communication, punctuality, the delivery and the quality of soil. Everything was coordinated precisely to my expectations. Highly recommend if you are in need of soil.
Taylor Pereira
Taylor Pereira
14:25 12 Dec 18
Chuck is the man! He’s been working with my husband and our trucking business for months and has never let us down! Awesome guy, great businessman, and a great connection to have.
mike row
mike row
14:47 09 Jan 19
Chuck took the time to walk me through the entire process. He met with me multiple times and was on site the first day the dirt was delivered to help coordinate dirt placement. I would not hesitate to use him in the future.
Thomas Mathew
Thomas Mathew
19:18 13 Feb 19
Chuck was great to work with! Responds quickly and very flexible to meet any request. Highly recommend!
Heather Lowell
Heather Lowell
14:37 06 Mar 19
I had such a fantastic experience working with Chuck at Dirt Connections, and I would wholeheartedly recommend him to anyone for any project. I contracted with Chuck to remove an old pool at our new home. During our first call, he clearly explained both options for the project, and he was the first contractor I brought out after we closed on the home. Chuck was so helpful and informative, and the price he quoted me so reasonable, that I didn't meet with anyone else. I honestly didn't (and still don't) think there could be anyone more customer-oriented or easier to work with than Chuck and his workers/subcontractors. The guys who came to the project site were so kind, helpful, respectful, and communicative. They checked in with me on each step, and at the beginning and end of each day. They cleaned the site thoroughly at the end, including pressure washing my driveway, and even my husband (who'd wanted to keep the pool) had to admit they did an amazing job and graded the yard so well afterward. I even found out after they'd left on the last day that the guys had hauled my empty trashcans back up from the curb for me just to be nice! Chuck knows his stuff, hires great people, and is so kind and easy to work with. If I had the opportunity again, I would definitely work with him on any project his company handles. Highly recommended!
James Imoehl
James Imoehl
12:05 12 Mar 19
Dirt Connections is great! Chuck is reliable and responsive and was able to get me all the dirt I needed for my job. Also willing to discuss other projects and reasonably priced. Overall great team and plan on using them again!
Dean
Dean
12:50 25 Mar 19
If you're looking for affordable fill dirt/top soil, excellent customer service, and responsiveness - Chuck at Dirt Connections is your guy! Our dirt needs made our project stressful, but Chuck was there to walk us thru the whole process and ensured we were taken case of, and he was available to answer any questions - even during evening hours and on Sundays. If you come across Dirt Connections during your search - look no further, Chuck is your guy. Thanks Chuck!
Bill Dawson
Bill Dawson
12:32 27 Mar 19
Chuck was great and very friendly. He worked with me to get an order filled quickly and the dirt was delivered as promised. Chuck kept me in the loop during each step of the way. Definitely recommend working with him.
Alfonso Guillen
Alfonso Guillen
22:14 15 Apr 19
Great professional company, contracted for for some gravel and grading to extend driveway and did an outstanding job. Thank you very much for the work done!!!
Sue Noe
Sue Noe
18:09 02 May 19
I didn't need as much dirt as the driver brought. He was so nice and friendly and delivered just the amount I needed. Very easy to work with from start to finish!!
Nick Rosenau
Nick Rosenau
16:14 24 May 19
I had a wonderful experience with Dirt Connections. It couldn't have been any easier or faster. Chuck contacted me immediately after I placed my order and had the dirt delivered to me in less than 24 hours. I would highly recommend this service!
Michael Burkhardt
Michael Burkhardt
11:47 11 Jun 19
We hired Dirt Connections for an inground pool demolition and they were fantastic. These are good folks that made us feel confident that the job would be done well and it was. It wasn't cheap but it was definitely money well spent.They came out to survey the job for an estimate within a couple days of my request. Chuck was very personable and professional, clearly describing everything they would be doing and answering many questions I hadn't even thought of. The next day I had the proposal in my inbox with the cost and, again, clearly describing the job and what I could expect from them and it was very easy to read and understand. Very shortly after I accepted the proposal Martir called and we arranged payment (made very convenient) and he got the permit request in right away. As for the crew, they were on time or early, answered any questions I had, were a pleasure to have around, and were right on schedule completing the job. They were thoughtful as well, among other touches making sure to grade the new dirt (soon to be new yard) so rain water would flow correctly to avoid pooling and when they left on the last day everything was cleaned up including sweeping the dirt off of the end of the driveway.
Daniel Tanner
Daniel Tanner
17:04 06 Aug 19
I contacted Chuck because I needed 15 loads of dirt for a rather large project in my backyard. I can’t say enough good things about my experience. Not only did he save me thousands off what I was quoted by local companies in Stafford County. His follow up in making sure everything was on time and completed is a rarity in today’s world. If you need dirt and you live in northern Virginia I highly suggest calling them.
Matt Plunkett
Matt Plunkett
15:45 17 Nov 19
I had a great overall experience working with Chuck. I spent weeks searching for a company that could strengthen and raise my foundation approx. 2 inch. Dirt connections was able to execute this job on time, beyond expectations, and at a fair price. Chuck is very knowledgable and has a ton of experience in the industry. He cares about the success of the customer and is honest with expectations. I would definitely recommend Dirt Connections for your foundation/structural needs. I plan to work with them on future projects.
Frank Herring
Frank Herring
14:21 28 Feb 20
Chuck and Co. were responsive and careful to help develop the scope of the need for my project. The instructions to receive the load were explicit and they made sure I knew what I was getting. The delivery (1/2 truckload) was timely and as promised.
Jackson Taylor
Jackson Taylor
01:11 07 Apr 20
Chuck and his team were simply great. I needed fill dirt for repairing some torn up pastures. I got 30 truck loads and Chuck was always responsive and informative about the process and details. I will definitely use Dirt Connections again.
Matthew Gill
Matthew Gill
17:53 15 May 20
Chuck over at Dirt Connections is excellent. He quickly arranged for a drop off of fill dirt, and was courteous all the while. On the day of the drop off, I requested an alteration to the original order, which he took in stride. Chuck is not only honest, but he comes across as a good person - the opposite of which I had read about fill dirt movers. I highly recommend anyone needing dirt for their yards/jobs to use Dirt Connections.
Thomas Kagan
Thomas Kagan
17:06 16 Jun 20
Special thanks to Chuck for helping me plan my patio project, He took time out of his day to e-mail me the details of what it would take for me to build a DIY brick patio. This was all at no cost, he was just trying to be helpful. I'm saving his contact info and will be using him for all furture services.
Brad Bauer
Brad Bauer
15:43 28 Jun 20
Worked with Chuck to get 3 loads of fill dirt delivered in short notice. Drivers were good and dumped exactly where I asked. No issues. Will be ordering more!
Wilfido Gonzalez
Wilfido Gonzalez
00:40 11 Aug 20
I meet Chuck and he is a very professional person he let me know how to do my project with professionalism I am very happy to find him and I can recommended him to anyone who needs his services he will direct you on the right path ones again thank you chuck for your help I will call you again for any future service.
David Snyder
David Snyder
16:51 01 Sep 20
This review concerns my use of Dirt Connections, 11325 Random Hills Rd #360, Fairfax, VA 22030. I first them in 2018. I spoke to Chuck Moore and have dealt with him on various projects over the past two years. In all, I have received 60 truckloads of fill dirt. After spreading all that fill dirt, I also ended up with a pile of ricks that I couldn’t use. I then called two different places for estimates to remove the rocks. One estimate was foe $2500 and the other was for nearly $3000. No Thank You!At that point - around the first week of August, 2020 I contacted Chuck Moore as I was in need of about 10 more truckloads of fill dirt. As I was discussing this with him I snarked that I didn’t need to add to my $3000 pile of rocks. From that moment on my life just got a lot better. Chuck expressed his concern and asked if he could come to my house and look at the rock pile. I agreed and when he saw the rocks he said he would take care of the problem. On Sunday, August 30, 2020 Chuck showed up at my house with a bobcat and a rock bucket and completely solved my rock problem.It is so very rare to encounter people like Chuck any more. It seems that many if not most businesses have carried “caveat emptor“ to the extreme. Not so here. It has been my privilege to deal with an honorable human being - Chuck Moore. Thank you.
Gary Van Horn
Gary Van Horn
22:10 21 Oct 20
Dirt Connections was a pleasure to do business with. Their customers service was outstanding. I needed 25 truck loads of backfill and couldn’t be happier with the experience. Highly recommended.
fiona mahar
fiona mahar
15:52 21 Aug 20
Price competitive and good customer service. They coordinated with our crews to make sure they delivered the dirt we ordered right when we needed it.
David Edwards
David Edwards
13:28 22 Jan 21
My wife and I are in the process of building our forever home and I wanted some professional help / education on our driveway. Chuck did exactly that! The guy was like talking to one of my buddies. He was very knowledgeable and very professional. He told me what to do and what not to do from what I'd been told by others. Chuck is about doing the job correctly and that doesn't always mean overspending for unnecessary steps. If you need help with your project, I would suggest talking with Chuck.
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