A well-structured and well-planned capital expenditure approval process are keys to minimizing cost while optimizing your project.
RowCal’s project management services are designed for property owners and self-managed communities. We can help you design, build, use, and modify capital expenditure request processes within a highly intuitive user interface. You have access to all the necessary tools for thorough expenses management.
To find out more about how we can help you, contact us today.
Understanding Capital Expenditures and Improvements
Capital expenditures are generally broken down into two categories: maintenance and improvements. Maintenance costs keep your property’s assets in their original condition; these typically fall under repairs and maintenance in your operating budget. Capital expenditures/improvements are investments you make to increase the value of your asset.
Although the two can overlap, the distinction is important. Maintenance is generally classified as a budget expense, while capital expenditures or improvements enhance the asset’s market value and benefit your community or association.
How to Manage Your Capital Expenditures
Capital expenditures typically involve significant amounts of planning and funding. Mishandled capital projects have the potential to cost your HOA more money than is necessary. Effective planning and project management are possible, however, if you have a property management company that can provide a capital expenditure forecast and help you with contractor bidding when the time comes to launch a project
As you start to plan for an expenditure, here are some items to consider:
Before beginning any project, you need to identify the project scope, figure out realistic deadlines, and make sure the entire plan is approved. You should account for the internal resources the project will require. This will help you generate a realistic budget.
Are you going set aside money for purchasing a capital asset or add debt to your balance sheet? Saving up for the project can take you weeks or months to accomplish. Securing a loan will get the job done quicker, but your organization will amass debt. Knowing what the long-term benefits or consequences will be, can help you make an informed decision.
Hire a Property Management Company
RowCal can help you provide structure and security for your capital expenditures. We can sit down with you to develop a plan of action that will maintain stability throughout the process. We can also project future expenditures that you can expect down the road. Our experts can simplify the process, submit reports of your progress, and monitor your budget and accounting through our services.
Keep Accurate Records and Data
It’s impossible to manage capital projects efficiently without accurate data. Without reliable information, you can’t create a realistic budget, generate useful reports, or see how well the project is actually progressing. Our property management services provide detailed on your capital projects, updates in real-time, and provides complete spend visibility.
Establish Clear Policies and Procedures
Managing capital project expenses involve processes, documentation, budgets, and spending caps. You’ll be hiring contractors and companies to execute the project from start to finish. Without structure, managing capital expenses will become difficult and lead to multiple problems.
Stay On Top of Everything
With a reliable property management company, you have the tools you need to start your capital project off right and keep things on track. RowCal offers accurate, real-time reporting on capital budgets and capital expenditures. The ability to quickly search for any project, open or closed, and view project details with just a few clicks provides you with complete visibility into the financial side of capital project management.
Project Management Services in Minneapolis, Minnesota
If you are launching a project for your property or HOA contact RowCal today. We offer a wide range of services to help your project succeed without draining your budget. You can take advantage of our convenient services.
To schedule a consultation with one of our property management experts, call us at 651-233-1307, or you can message us on our contact page.