Making Places Better...One Building at a Time

Looking in our Crystal Ball…Again | August 23, 2010

It may seem early to be planning what’s going to happen in 2011, but for us gnomes in the back rooms of real estate operating companies, it’s that time of year again.  In commercial real estate particularly, it’s not just a good idea to do your best at budgeting, it’s essential.

Billing tenants for their share of expense increases is why.  If you wag a number, and you’re wrong, the tenant gets billed either too much or too little, you maybe have to credit the overage at the end of the year or have a big number to collect from a tenant who might not be too happy to pay it, or have to explain to the owner why you’re shorting his distribution check.

Much better to spend a little more time on the front end and try to nail it the first time.  You just need to start earlier.  Like now.

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