AboutMike Fortunato Expertise Can answer questions on all aspects of commercial real estate management, including lease administration, eviction issues, financial reporting and budgeting, asset valuation/enhancement, marketing & leasing, and site maintenance and repairs. 20+ years of real estate management.
Experience 20+ years in commercial management. Current own and operate property management company in southern California.
Question Hi Mike,
Let's say your company purchases a new property and there is no history or files....what's the best way to go about creating the budget? How do you budget for capital improvemens?
Answer We prepare budgets for new properties without historical data frequently, and we do so based on our experience with similar projects (and of course, some assumptions have to be made and some of the figures are best guesses). Capital improvements are sometimes included (depending on what the property owner wants), mostly in the form of monthly reserves for major components.
