BLOCK MANAGEMENT BUDGETING EXPLAINED!
Block Management is often a mindfield but at Benjamin Stevens Block Managment we are experts and want to explain some the processes to you.
Block Management is often a mindfield but at Benjamin Stevens Block Managment we are experts and want to explain some the processes to you.
At Benjamin Stevens Block Management, our team are constantly keeping an on and where necessary, revising the budgets for their blocks which we cover in Edgware, Bushey and the surround areas of greater London.
The budget process is time consuming so a lot of their time has been spent working on this.
We thought we’d give you in insight of what the process looks like.
Compare and Contrast
The first step is to have a look at last years’ budget and produce the year to date expenditure and compare it. This needs to be analysed for any large increases from last’s year budget vs. actual spend and really delve into why this was; Was it a one off? Was it due to inflation? Was last year genuinely underbudgeted?
Price Checks
Once you look at that and decide which nominal heading can be increased or decreased, the next step is to contact your cyclical maintenance providers, such as your cleaners gardeners, fire safety etc, and ask if they have price increases planned for next year – if they do then we look at presenting our clients with retendering options and alternate quotes.
Client Approval
Once that is all agreed and in place and you have accounted for any major works planned in the next financial year we can send the draft to our client. Depending on the number of people involved in approving the budget and how responsive they are, this can take some time to agree, and a meeting may need to be scheduled with the client to discuss.
Finalised Budget
Once the budget is finalised with the client, we write a cover letter to accompany the budget, which details what is enclosed, the areas that have increased/decreased and why, payment details and rights and obligations.
The budget os then added to the system and all relevant documents are sent to the Accounts Team to bill and send out.
Due to the work and length of time this can take, we always like to start the process 3 months early to allow enough time for our budgets to be on time and agreed as it is very important for a blocks cash flow and ensure we acting in accordance with our responsibilities as per our Management Agreement.
If you are unhappy with your current managing agent and would like some help or advise on how to improve thing then get in touch today on 020 8958 5501 or CLICK HERE