Kardin Budget System

 

What is Kardin Budget System (KBS)?

KBS is specifically designed for commercial real estate professionals that manage many different types of properties. KBS makes it easy to create detailed operating budgets, perform reforecasts throughout the year, calculate operating expense recoveries and perform year-end expense reconciliations.

Which Kardin Budget System Best Fits Your Needs?

  • Kardin Budget for Commercial Single Building Properties
    Handles budgeting, reforecasting and recoveries calculations for standalone office, retail and industrial properties.

  • Kardin Budget for Multi-Building Properties
    Handles multi-building properties like office and industrial parks. Expenses can be allocated to multiple buildings and expense recoveries can be setup based on building or project-level expenses.

  • Kardin Budget for Multi-Family Properties
    Quickly and easily calculates Gross Potential Rent, Loss-to-Lease, Turnover and Payroll costs.

  • Kardin Consolidation System (KCS) for Portfolio Consolidation
    KCS allows owners and asset managers to consolidate budgets or reforecast for the entire portfolio.

Key Features and Advantages

Kardin Budget System is designed to perform four specific functions for the property manager:

•  Set-up a detailed operating budget
•  Perform reforecasts throughout the year
•  Calculate operating expense recoveries
•  Perform year-end expense reconciliations

KBS is designed to accommodate the specific operational needs of various property types including Office, Industrial, Retail and Multi-Family. The basic Single Building application handles standalone properties. The KBS Multi-Building “add-on” module allows users to setup multiple buildings within a budget. This is ideal for properties in a campus-style environment. Users can setup expense allocations and view reports at the building level or on a project level.

KBS integrates with most accounting systems allowing you to download existing budgets, YTD actuals and leasing data so it doesn’t have to be reinput. The finalized budget created in KBS can be imported into those same systems. This is a huge benefit for third party managers, as they can use KBS for multiple owners across many accounting system platforms and minimize on-going training and support costs.

Once a budget file is setup, all of the calculated items are dynamically linked. So, if there is a change to expenses or occupancy, KBS automatically updates the expense pools, re-calculates the pro-rata shares for each tenant, posts to recoveries GL account and updates management fees based on percentage of revenue.

The Rent Roll in KBS is populated with “contract” leases and “speculative” leases. Contract leases are generally imported from the accounting system or rolled forward from a previous KBS file. The “speculative” leases are assumptions applied to vacancies and expiring spaces. For each lease, you can enter base rent steps, free rent, CPI rent, recoveries, % sales rent, tenant improvement allowances and leasing commissions. On speculative leases, if a commencement/expiration date changes, all supporting schedules for that lease automatically update.

KBS has extensive recoveries capabilities. Users may setup as many expense pools as needed and are able to exclude accounts, cap amounts on multiple accounts, gross-up expenses and apply administrative fees, just to name a few. These pools are then applied to tenants and typically need little to no maintenance over the life of the lease. If you are in budget mode, expense pools are based on future expense estimates. When in reforecast mode, KBS allows you to upload year-to-date actuals for quick, efficient expense reconciliation as desired on a monthly, quarterly, and/or annual basis.

KBS Budget Analysis reports are designed to help owners view big picture trends by comparing year-over-year performance with variance and explanations. KBS Budget Summary and Detail reports provide owners and managers their operating plan in a standardized format. The leasing reports serve as backup schedules to the budget and operational task list. The recoveries reports are designed to withstand any tenant audit and provide tenants with their estimates and reconciliation letter.

Owners who need to perform regular valuation updates may consider using the KBS Multi-Year Cash Flow. You may leverage the data already entered in the budget, add 10-Year expense escalations %, and apply Market Leasing Assumptions based on renewal probability to generate a 10-Year forecast.

KCS is a separate application that allows owners and advisors to easily roll-up and consolidate the various budget files submitted by managers. In addition to financial reports, it has many leasing reports that can be viewed for the entire portfolio.