It’s so easy to get caught up in the everyday logistics of property management. Focusing on rent and fee collection, marketing to attract tenants, and communication with owners can take the spotlight off the health of your core asset: your business.
“At the end of the day, if you’re the CEO of a property management business, your number one job is to own the financial outcome of the business,” says Daniel Craig, CEO of ProfitCoach and lead author of the NARPM Accounting Standards.
After the uncertainty of, well, everything during the pandemic, property managers are keeping a closer eye on their budgets and using them to set tighter goals for the future. Going through a proper forecasting process is an essential part of that process.
Forecasting helps you own the financial future of your business and justify your business decisions. It makes it easier for you to move from a reactive to a proactive position, which has proven to be particularly valuable since the pandemic. By planning for worst-case scenarios, your business can bounce back from setbacks faster. Forecasting can help property management businesses get on a stable growth track.
Given the anomalous nature of the last two years, however, you may be at a loss as to how to put together a reliable forecast. After all, how can you base your future plans on numbers and situations that were out of the ordinary?
By using a simple forecasting method that combines pre-pandemic numbers with current market analysis, property managers can forecast for 2022, no matter what their goals are. They can then set targets and create a monthly plan to hit them.