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, may be covered under the Buildmark Warranty for the first few years after construction.
Charges for these items will commence once any Warranty has expired.
Revising the Property Management Budget year on year. A month before the end of the financial year, the annual budget is prepared using historic costs from throughout the year to establish if there has been an over or under spend on the estimated budget. The forthcoming years estimated budget is then prepared and 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 specific category will remain in the designated bank account for the individual property and will either be set off against future charges or be placed in reserves for future expenditure.

Property Management Practise

Right 2 Manage always endeavour to maintain good management practise to build 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 as well as spreading the costs so you are not hit with a large unexpected bill. 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 held for Section 20 works.

Five Year and long-term Budget Forecasting.

Right 2 Manage can prepare, A Five, Ten or Twenty Five Year Budget expenditure Forecast for you. This will tend to be prepared and presented at the Annual General Meeting, or if the lessees require we can instigate an EGM even if there is no Residents Association or RTM.
It is important to consider the long-term costs of maintaining your property. Industry life expectancies are used to prepare a life time dilapidations schedules. This then allows each managed property to have a reasonable, likely cost of running that block so the owners are better able to budget their future costs of ownership. 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 can be reviewed each year to ensure it remains reasonable and to take into account any unforeseen issues that may arise.