When renting an industrial property, there are many expenses to consider and take into account for your budget. A property manager will have their own budget based on rent and utilities, but you will most likely want to create your own budget to track your own expenses.
Budgeting Purpose
Keeping track of your income and expenses will give you a specific idea of how much money you have to spend, or how much revenue you will make. This may sound rudimentary, but it is an important piece you should not overlook or take lightly. Your budget is likely to change as you run your business, so it’s crucial to keep it updated so that you always have a clear idea of your expenses.
Expenditure
Again, it’s important to be aware of your expenses in order to have an adequate budget. There may be things you might not have considered as expenses, or something you don’t consider important enough to include in your budget, such as staff lunches or special treats. Even if it’s not a recurring expense, you should still find a place for it within your budget, even if it’s just labelled “miscellaneous expenses.”
Utilities
Keep track of the utility bills that come with industrial rental properties. If a certain service increases its price, make sure to update your budget so you don’t forget. You don’t want to forget about something so simple and be in the red by next month.
Rent
If you sign a lease contract with the landlord or property manager, your rent isn’t likely to unexpectedly change during your time there. However, as obvious as it sounds, don’t forget about your rent as part of your expenses. Yet, an additional step you can take is to compare the rent of any of your current industrial rental properties to potential locations you might relocate to after your current lease is up. This way, you will have already done most of the work before your time to leave, and won’t have to worry about property hunting right at the end of your lease.
Payroll
Be sure to update your budget whenever you gain or lose an employee. This money can be easy to lose track of and forget about if you are busy during the hiring process. If you don’t expect to replace an employee soon, make sure you don’t forget about that extra money. You may be able to relocate those funds to another expense, or might want to hold on to the money in case you do hire a new employee.
Maintenance and Other Expenses
There may be times during your rental property lease when unexpected expenses arise. You should plan for these in your budget by having some money set aside for emergencies. One example might be maintenance expenses. If you are manufacturing anything in your industrial rental properties, and one of your machines breaks, you’ll want to get it back up and running as quickly as possible, despite the cost. If you have money set aside for this type of instance, it will hurt less than pulling funds from somewhere else in the budget.
Income
You should also be aware of your income when creating your budget. This will allow you to compare your incoming money to your expenses and have a better understanding of your revenue and profits. This way, you can be aware of any extra money you might have so that you can move it elsewhere, like into savings or growing the business further.
Industrial Rental Properties with Schwarz Properties
Schwarz Properties can help find industrial rental properties for you and your business! If you’re looking for a property in North Carolina, South Carolina, or Virginia, contact us today! Visit our website or call (336) 625-6076 for more information!
