Property Management: Budgeting Income
Hey everyone!
I recently closed on my 2nd property. This is the first property that we have rented (as our first is currently our primary and will soon become a rental when we move out).
I do my own Property Management and am currently using Innago as a the management software and Stessa for financial analysis. Only have been a property manger for 2 months so still learning the ropes with each software.
During the deal analysis stage, I projected 10% set aside for each of the following: Vacancy, CapEx, and Maintenance. My hope is to have separate 'money buckets' for each of these categories. Similar to how in my personal finances I use the software YNAB to setup a budget and allocate each dollar to a purpose. I imagined Stessa would allow me to do this, but have not found this feature yet.
So my question is - how do you handle this in your business?
I'd like to know at any time how much money is allocated to the following:
- Vacancy
- Maintenance
- CapEx
- Profit (money to put in my pocket....or in actuality, re-invest in other properties)
Thanks!
Nicholas