Budget Preparation

Right 2 Manage prepares a detailed service charge budget for each individual block of flats or property that we manage.

Property Management Budget Structure

For new properties that we manage, the estimate is based on our experience of managing similar properties.

After the first year of management, when the actual cost of services and running the property is available, the budget is then revised to ensure that the most cost effective contractors have been employed and the owners are receiving all the property management services that they desire.

Please note that some services, for example, lift or entry systems, will be covered under the Property Management warranty for the first year. Charges for these items will commence once the warranty has expired.  

Revising the Property Management Budget   

A month before the end of the financial year, the annual budget is prepared using historic costs from throughout the year. The budget is then circulated amongst property owners, inviting constructive comments for possible adjustments prior to invoicing.

Please remember this remains an estimate and any unforeseen deficits may call for an excess levy. Owners will be advised of any deficit as soon as it is known. Funds not spent in any category will remain in the bank account for the property and will either be set off against future charges or be placed in reserves.

Property Management Practise

Right 2 Manage always endeavour good management practise to maintain reserve funds for Commercial and Residential developments and blocks of flats.

As a result, finance is always available for long term maintenance and major items of expenditure. This is extremely IMPORTANT for the long term preservation of your managed property.

Budgets also include a Reserve Section, separate from the Service Charges. This allows clients and Commercial and Residential Property Owners to differentiate between the day-to-day running costs and the reserve funds.

Five Year Budget Forecast

A Five Year Budget Forecast is also prepared and presented at the Annual General Meeting, if the lessees require or hold an AGM.

We will also prepare a five year budget forecast which is normally presented at the Annual General Meeting if the lessees require or hold an AGM. Industry life expectancies are used to prepare a life time dilapidations schedule for each managed property, ensuring the likely cost of running a block of flats is know to the owners.

The forecast includes both regular services and long term planned maintenance for each block or housing estate. It enables the block owners, Property Manager’s lessees and lessors to plan ahead for future expenditure. The forecast is reviewed each year and forms the basis of the annual budget.

Contact Us

Right 2 Manage Dorset Ltd
Company Number 7134334
10 Albany Business Park
Cabot Lane, Poole, Dorset, BH17 7 BX
Tel: 01202 640336
Email: enquiries@right2manageltd.co.uk