Budgeting, budgeting and more budgeting – a daunting but necessary evil for multifamily owners and operators when it comes to ensuring financial success of a portfolio. And typically after every budget season, owners and operators ask themselves “isn’t there a better way?” Thankfully, at this year’s 2013 NAA Education Conference and Expo, budgeting and revenue management will be tackled head-on in an engaging and insightful session titled “Bottoms Up: A Top Down Look at Revenue Management and Budgeting.”
The 2:15 pm session on Friday June 21 will be packed with leaders in multifamily revenue management including Kevin Huss of Resource Residential, Barney Pullam of Waterton Residential and Simpson Housing’s Bryan Hilton. This power panel of thought leaders will detail how the same mathematical sophistication and greater forecasting accuracy found in software-based revenue management systems can simplify, streamline and enhance the budget process.
“It is our goal to educate attendees on the significant benefits available to them by modifying budgeting practices to include revenue management strategies,” said session moderator Amar Duggasani, executive vice president of strategic initiatives for Rainmaker LRO. “Currently the industry operates with a top down approach to budgeting and our panel will demonstrate how a ‘bottoms up’ approach is much more effective and efficient.”
So what are these “top down” and “bottoms up” budgeting practices all about?? Put simply, budgeting with “top down” means using recent revenue numbers and applying a growth factor or percentage to trend the numbers up or down. This practice is not only error-prone but frankly archaic and requires a great deal of time from already uber busy regional or district managers (and really why would you do that to them?!).
Utilizing a “bottoms up” method to budgeting requires the distillation of revenue forecasting into two fundamental areas: occupancy and rent growth. Focusing on these areas and using the mathematically driven data from your revenue management system, budget assumptions can be built out faster and with greater precision.
Basically, panelists are answering the question: why aren’t you using your pricing, leasing and rent to determine your yearly budgets? Other learning objectives you can anticipate include:
Simply put, this is a can’t miss session. Why would you want to miss a session dedicated to delivering you a proven method to streamline your budgeting practices and enhance your overall financial success? So yes, cheers to that! See you there!