Managing building budgets 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 what if there's a better way? At Daisy, instead of being reactive, we've designed a proactive, data-driven, holistic approach to budgeting that champions clarity, strategy, and collaboration.
Daisy’s data-driven budgeting process
Phase one: Reflecting on history
Diving deep into a building’s financial past ensures a more informed future. We analyze the historical financials to understand what happened in the last year - what were the building’s spending habits? Were there any under-budgeted items? Are there any places where we can reduce spend in the future?
Phase two: Looking ahead
Building a resilient future requires a nuanced balance of qualitative and quantitative data. Here’s how we construct our budget blueprint:
- Direct insights: Starting with the immediate, we review open maintenance issues and gather firsthand insights from the building’s onsite team. We also align with board priorities to ensure the budget reflects the community's vision.
- Compensation considerations: In collaboration with the board, we discuss potential salary increases for the onsite team, grounding these discussions in performance reports.
- Harnessing data: We leverage data from our network of Daisy-run buildings. This allows us to identify benchmarks and discern trends. By merging this data with broader industry insights and market trend analyses, it empowers us to craft a budget with a forward-facing perspective.
Phase three: Bringing the budget to life
Crafting the Budget: Using all the insights we've gathered, we shape a budget that truly suits the building. The board is involved throughout, ensuring their valuable input shapes the outcome. The result? A clear, actionable budget that is presented in a simple and easy presentation for the board to review and approve through the Daisy Dashboard. Once it's approved, it's key to keep everyone - shareholders and owners in the loop. We outline the building's goals and clarify any changes in maintenance fees or common charges. By shedding light on why some costs might shift, we help owners embrace the vision for the building’s future.
In partnering with Daisy, boards receive more than just a budget. They get a strategic blueprint for a thriving, vibrant building. Let's work together to create a healthy and sustainable financial future.