Assetti’s budgeting functionality allows you to create budgets on a property level directly from Assetti’s user interface. For example, a budget can be created based on last year’s actual or you can select the budgeted income from the rent roll. In addition to the actual budget, you can create different scenarios and compare those to the actual during the year.
The budgeting functionality is available for everybody with Professional or Enterprise subscription plans. Please contact your Assetti account manager or our Sales team for more information.
To create a budget from the user interface, you need to have existing financial information and leases that use rent types in place. If you are going to create a budget for a new asset, you can utilise the “Financial Information” import file.
Create a new budget
Select the property and navigate to the Financial info tab. Click the three dots on the right side of the time selector and select Add budget. From this menu, you can also delete budgets.
Define your data source and add the information for your budget.
1. Name of the budget
- If you create an operative budget, use the title "budget". For alternative budgets you can choose whatever names suit your needs. Budget will be shown as a tab in the Financial info tab.
2. Year for the budget
- Select the desired year for this budget.
3. Base information
- From the dropdown menu, choose to copy the data from the actual or an existing budget.
4. Select the year which has the data you want to copy.
5. If you select “copy last 12 months”, the data will be copied from the previous 12 months, starting with the latest full month.
6. For the income, you can choose one of the options below.
a. If you select “multiply income with inflation rate” the entire income is multiplied with a percentage value, which you can set in the “Inflation rate” field.
b. If you select “set increase percentage per income group” you can set a different percentage for each income group.
c. Select “use lease agreement information for income” if you want the income to come from the rent roll. When you select this option, you must define in the “use rent roll based on leases” dropdown menu if you want the income to be “as it is” (based on the current status) or “based on notice term” (all the leases that have an end date will end on that date and notice term or first possible end date are taken into account with ‘until further notice leases’).
7. The description text appears when you hover your mouse over the tab title in the Financial info view.
8. Here you can select an inflation rate. Define a percentage value to be used as a multiplier for the income and costs.
9. Create a budget for 12 months, 5 or 10 years. At the moment you can only select 12 months.
10. For the income, you can choose one of the options below.
a. If you select “multiply costs with inflation rate” all the income groups are multiplied with a percentage value you set in the “Inflation rate” field
b. If you select “set increase percentage per cost group” you can set a different percentage value for each cost and income group.
11. Save this budget.
After this, you will see the alternative budget as a new tab and operative budget under the budget tab for the selected year.