Tips & Tricks for Successful Multifamily Budgeting

If the thought of budget season makes you break out in a sweat, we’ve got good news for you: it’s easier than you think! With just a little forethought and planning, operational efficiency is coming your way – no eye rolling necessary.

In this guide, we’ll explore best practices for multifamily budgeting, discuss the importance of considering employee and resident satisfaction, and provide practical tips that set you up for success.

Budgeting Best Practices

Give Yourself (and Your Team) Ample Time to Prepare

When it comes to budgeting, everything takes longer than you think it will. Start early to allow you, your team, and any of your vendor partners enough time to submit accurate forecasts. As you’ll probably be working on this budget in addition to your day-to-day job, add a cushion to your timeline to account for any necessary reviews or changes. Having the time to review last year’s numbers, find opportunities for cost savings, and discover operational inefficiencies paves the way for a stress-free budgeting process.

Delegate Responsibilities

You don’t have to create your budget all on our own. Delegate responsibilities among your team members based on their expertise. For example, have someone focus on maintenance expenses while another member handles utilities and amenities. Ensure that market data, including vacancy rates, demographics, and economic forecasts, are considered.

Track Changes as You Go

Keeping a record of changes and updates to your budget provides valuable insights for future planning. Documenting the reasons for any adjustments helps you understand spending patterns and areas where you may need to cut costs or allocate more funds.

Ask Supplier Partners for Help

As you look at property improvements, search for reliable suppliers with a solid track record in the multifamily industry. Or, as one property manager cautions: “Cheaper isn’t always better!”

Don’t forget to ask for pricing support. For instance, if you are looking to convince your operations team to add package management into your budget, we can provide you with more ammunition. At Parcel Pending by Quadient, we offer both purchase pricing as well as a subscription plan that allows you to lease our smart locker solutions by paying one low, all-inclusive fee for a 60-month term — with no up-front cost. This predictable monthly fee covers all expenses related to the lockers, including maintenance, service, and shipping fees. We can also work with you to provide information for any budget boot camps you may have.

The bottom line: establishing solid relationships with supplier partners can lead to better deals and more accurate budget forecasting.

Budget for Employee and Resident Satisfaction

Employee Satisfaction

The rising cost of labor, materials, and insurance means many operational budgets are under pressure heading into 2025. While saving money is essential, so is keeping your staff happy and retaining them.

If your team members are still manually sorting, receiving, tracking, and delivering packages, it’s time to invest in parcel lockers. When Optima Camelview, an upscale 700-unit resident-owned condominium community in Scottsdale, Arizona, invested in our smart lockers, the results included a 66% reduction in staff time spent on parcel management, fewer lost or misplaced packages, and 24/7 package access for residents. After Brickell on the River, a luxury condominium community in Miami, replaced manual package management with our solution, they were able to free up staff time, and even reduced headcount.

Resident Satisfaction, Retention, and Renewal Rates

Do you know if your competition has amenities you don’t, like parcel lockers? Parcel lockers are an amenity known to boost resident satisfaction and renewal rates. In short, happy residents are more likely to renew leases and recommend the property to others. Some communities have seen renewal rates surge by as much as 40% after installing parcel lockers.

Investing in smart lockers also has a positive return on satisfaction because lockers are widely used across the community, unlike dog parks or electric charging stations. Almost 90% of residents use them in their buildings, and 73% receive 1-3 weekly deliveries.¹

Setting Yourself Up for Success Next Year

Budgeting is a Year-Long Process

If you remember that budgeting is an ongoing project (like laundry), you’ll set yourself up for success. Continuously monitoring your budget throughout the year allows you to adjust as needed and be better prepared for the next cycle.

Set Clear Objectives and Targets

Establishing clear financial goals and targets helps guide your budgeting decisions. Whether it’s reducing operational costs or increasing resident satisfaction, having specific objectives keeps you focused and accountable.

Take Detailed Notes/Track Variances

Tracking variances between your budgeted amounts and actual expenses provides valuable insights for future planning. Understanding where discrepancies occur can help you make more accurate predictions and adjustments in the next budget cycle.

Identify and Log Your CapEx Dreams

If you’re familiar with Management By Walking Around (MBWA), now is the time to apply that concept to your property: thoroughly analyze areas showing wear and tear and note doors, garage gates, lighting, and walkways that need replacement or repair. Also, take out your CapEx (Capital Expenditures) wish list so you can put real numbers behind the budgeting process. And don’t forget that sometimes turning your dream improvement into reality requires a picture or rendering to get management to “see” the future.

Invest in Team Training

Although well-trained employees are essential for efficient property management, investing in team training also improves morale. A recent study demonstrates the relationship between training and retention, with data showing that 76% of employees are more likely to stay with a company that offers ongoing training.²

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Budgeting can be stressful, but with proper planning, you can turn it into a streamlined process that leads your property to financial success while also delivering employee and resident satisfaction and retention. Here’s to your budgeting success!

Need help incorporating package management in next year’s budget? Speak to a Parcel Pending representative today to learn more about our pricing options.

Want to know what your residents are looking for from their community experience? Download our 2024 Resident Preferences Report:

Sources:

1. Parcel Pending by Quadient. 2024 Resident Preferences Report. www.parcelpending.com. August 2, 2024. https://www.parcelpending.com/en-us/resources/2024-resident-preferences-report/
2. Kumar, Neethi. The Influence Of Employee Training Programs On Retention And Recruitment. elearningindustry.com. February 25, 2024. https://elearningindustry.com/the-influence-of-employee-training-programs-on-retention-and-recruitment