Budget Your Priorities

Show me your budget, and I’ll show you what’s important to you. It’s a principle that applies not only to personal finances but also to multifamily property management. Budgets tell a story; not just about where money is spent, but about priorities, values, and strategies. Yet, it’s surprisingly common to see a disconnect between stated goals and financial allocations, especially when it comes to controllable expenses.

Controllable expenses like marketing, repairs, maintenance, and staffing are often the line items where you have the most flexibility to make impactful decisions. For example, you might say resident retention is a top priority, but if your budget is light on proactive maintenance or community-building activities, the numbers reveal a different reality. Many budgets I review spend 10x more on new customer acquisition than on customer retention. While the vision of the company is to be resident focused, the reality of the spending sets a different priority.

Here are a couple more examples:

1.     A top goal is to hire the best talent, but the budget is status quo.

2.     A top goal is community curb appeal, but the landscaping budget is minimal.

This misalignment isn’t always intentional. It’s easy to get caught up in last year’s budget or fall into the trap of prioritizing cost-cutting over strategy. That’s why it’s critical to start every budget cycle by defining your vision and goals. Rank what’s most important to your property’s success and align your spending accordingly. If everything is a priority, then nothing is a priority. When your budget reflects your priorities, you’re not just managing money, you’re managing with purpose.