Habitat Preview June 2012 : Page 3

The vice president suspected hanky-panky. The former manager says it was actually a matter of juggling bills. He says that the building’s maintenance was insufficient to cover all the costs and that when he relayed that information to the president he was told to take care of it. That meant some bills weren’t paid. “We see that happen in buildings we interview for or have taken over,” notes Fred Rudd, president of Rudd Realty. “Juggling funds is not a good way to run a building. You must have a balanced budget.” Rudd adds that many buildings balance the budget by raiding the reserves. “Because of that, when it comes to a rainy day, they don’t have adequate funds to deal with the problems as they arise.” “That’s not the right way to manage,” adds David Goodman, a senior management executive at Tudor Realty. “These buildings are delusional if they don’t have a balanced budget. Because the problem does not go away.” Maintenance Tricks “A balanced budget” is the key phrase all boards must embrace when putting their fiscal house in order. “You should always have a balanced budget,” notes Goodman, “and if that means setting up extra storage lockers, charging for bike storage, or -PCCZBOE )BMMXBZ3FOPWBUJPO $PNQBOZ 4FSWJOH#PBSETPG/FX:PSL $JUZµT1SFNJFS$PPQFSBUJWFTBOE $POEPTTJODF&#1a;&#1a; C ALL TO DAY FOR A FREE CONSULTATION AND BUDGET 





 JOHN MARINO – PRINCIPAL XXX&#0f;KNQCFOUFSQSJTFT&#0f;DPN WWW.HABITATMAG.COM JUNE 2012 HABITAT 15

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