Your Budgeting Survival Guide Reduce Costs & Increase Cash Flow

Transcription

1 Your Budgeting Survival Guide Reduce Costs & Increase Cash Flow

2 Jackie Ramstedt, CAM, CAPS, CAS National Speaker, Consultant Ramstedt Enterprises, Inc. Ryan Connors National Sales Manager PayLease

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5 Creating an effective business plan indicating goals for all stakeholders involved

6 What preparation should you do to make the budget process more seamless?

7 Who can you involve on your team with the budget responsibilities?

8 How can analyzing your current status help with predictions for your future trends?

9 The importance of doing your homework before you start!

10 Preparing yourself for the process: mentally, emotionally, and physically!

11 People Person vs. Number Cruncher

12 Controlling the Controllables!

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14 Preparation Plan Tips Property Budget Preparation Requires 12 Months of Historical Documentation Plan for a Series of Critiques Prove Your Points by Including Very Specific & Descriptive Narratives Prepare Your Plan Carefully The Numbers MUST Balance Out!!!

15 Polish Your Presentation Skills. Be Confident in Your Explanations. Provide the Reader with Tangible Evidence that the Plan is Based on Facts not Fiction Know the Receiver of Your Presentation What Are Their Hot Buttons? Ask for Feedback to Challenge Points So You Can Clarify. It Prevents Credibility Gaps!

16 Defining the Owner s Goals Creating the Company Road Maps Goal # 1. Obtain Budgeted Net Rental Income Goal # 2. Obtain Budgeted Net Operating Income Goal # 3. Obtain Budgeted Maintenance Expenses Goal # 4. Obtain Budgeted Net Operating Income

17 Income Drives the Value of the Real Estate!

18 Questions for Rental Increases Why Do You Still Raise Rents in a Soft Economy? How Often Do You Raise Rents? What Time of the Month? Which Floor Plans Do You Raise? How Much Do You Raise Them? Who Gets Increases on Renewals? Where Does That Rental Increase Money Go?

19 Lease Rent Optimization Software LRO

20 Maximizing Rents Daily!!! Apt # Size Floor # Vacant Ready Marketing Advantage Market 202 A1x Show NE Exposure; Fireplace, Front Door Parking A1x No Extra Large Patio, Southern Exposure, Carport B2x YES Washer/Dryer Conn, Overlooks Courtyard B2x2 2 7 Show New Carpet, New Dishwasher 880 Value Added Value Added Selling!!!

21 Making More With What You Have! GPR Gross Potential Rents Leases Over and Under Market Vacancy Loss Management Units, Models, Down Units, & Concessions! NRI Net Rental Income Bad Debt from Previous Residents Resident Profile Delinquency / Evictions Current Market & Sub Market Conditions

22 Unit Amenity Improvement Enhancements Washers and Dryers Built In Units Microwaves Lighting, Appliances, Sinks, Etc. Alarm Systems Decorator Accents

23 Review your ancillary income for more creative ways to gain income.

24 Application Fees Business Related Income Late Charges Including Daily Late Fees Bank Charges / NSF Fees Service Fees from On Line Payments Non Refundable Pet Fees Clubhouse Rentals / Deposits Lease Termination / Cancellation Fees Damages to Units for Current Residents Security Deposit Refunds Bad Debt Collections from Write Offs

25 Analyzing research with questions Are we getting the best price for the quality of service or product? Does the price fit into the budget? Do we have a sales representative that can be easily reached if we have problems? For us and our residents!

26 Create a Compari$on Grid price quantity price break return or cancellation policies warranties / guarantees local representative customer service

27 If You Can t Increase Your Income You Have to Cut Your Expenses! What Categories Are In The RED? When Are Your Contract Services Up For Renewal? Are There Any Major Projects Still In Progress or Pending?

28 The Maintenance Perspective Products? Services?

29 So How Are You Doing?

30 What we think or what we know, or what we believe is in the end of little consequence as is what we do!

31 Jackie Ramstedt, CAM, CAPS, CAS Ramstedt Enterprises, Inc. Ryan Connors National Sales Manager Thank You!