The Daisy budget process: A proactive, data-driven approach

Creating a building budget for your condo or co-op has long been a game of guesswork and estimations. Traditional property management often operates under a veil of uncertainty. With copy-pasted budgets from the year before and minimal guidance, board members are left navigating murky waters. But that approach just doesn't cut it anymore.

At Daisy we’ve designed a proactive budgeting approach that combines smart data analysis with real-world insights that champions clarity, strategy, and collaboration. 

Step 1: Understanding your building's financial story

We start by taking a close look at your building's financial history:

• Major expense review: We identify the major expenses that have impacted your budget. This could be anything from unexpected repairs to rising utility costs. Understanding these significant expenditures helps us plan more effectively for the future.
  
  
• Overrun detection: We pinpoint areas where costs exceeded projections. Maybe snow removal cost more than expected last year, or a plumbing issue led to higher water bills. Identifying these overruns helps us budget more accurately going forward.
  
  
• Savings opportunities: We look for opportunities where changes could lead to
  significant savings. This might involve renegotiating contracts, investing in energy-efficient upgrades, or finding more cost-effective service providers.

This step isn't just about numbers. It's about understanding the context behind your building's finances and using that knowledge to plan more effectively. We're not just looking at what was spent, but why it was spent and whether that spending aligns with your building's goals.

Step 2: Planning for a strong financial future

With a clear picture of the past, we focus on what's ahead. We combine hard data with real-world insights.‍

1. Real-world input: We talk to your onsite team to understand day-to-day challenges and resident needs. This might reveal issues like recurring maintenance problems or amenities that residents want improved. These insights help us allocate funds where they're most needed and valued.
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2. Fair compensation: We work with the board to ensure staff are paid fairly, using detailed performance reports to guide these decisions. This helps retain quality employees and maintains high standards of service in your building.
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3. Data-driven decisions: We use data from all Daisy-managed buildings to spot trends, set realistic benchmarks, and give your budget a solid foundation. For example, we might identify that buildings with updated elevator systems tend to have lower maintenance costs, informing decisions about future upgrades.
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4. Economic foresight: We factor in broader economic trends from inflation to changes in utility costs and insurance premiums to make sure your budget is prepared for what's coming. This might involve setting aside extra funds for anticipated increases or exploring ways to mitigate rising costs.
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Step 3: Creating a budget that works

This is where everything comes together:

• We create a tailored financial plan that addresses your building's unique needs. We consider various factors, from the age of your property to its specific amenities, ensuring a customized approach rather than a one-size-fits-all solution. For more details on our method, you can explore our comprehensive budgeting approach for condos and co-ops.
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• Board involvement is key throughout this process. We value collaboration and ensure that your vision and priorities are reflected in every aspect of the budget. Your input shapes the final product.
  
  

• We present the completed budget through our user-friendly Daisy dashboard. This intuitive interface allows board members to easily review and interact with the budget, facilitating a smooth and informed approval process.

Once the budget is approved, we prioritize transparent communication with all owners. We clearly outline the building's financial objectives and explain any adjustments to fees or charges. This sometimes includes hosting informational sessions, sending out detailed newsletters, or addressing owners' questions individually.

Our goal is to cultivate understanding and backing for the building's financial strategy among all owners. By keeping everyone informed, we help ensure that the entire condo or co-op is aligned with and even excited about the financial plan and future of the building.