Few responsibilities carry more weight for an asset manager than building the annual budget. It sets the course for each property’s performance in the year ahead.
At Metonic, the process begins as early as July and can run into November as teams finalize and approve each property’s strategy, market positioning, and major capital projects. It involves people at every level across organizations, from Metonic leadership and asset managers to the regional managers, on-site community managers, and facilities directors. Because a comprehensive, well-considered budget sets the stage for success, it is worth the effort.
Evan Andrews, Senior Asset Manager and Asset Management Team Lead, has guided Metonic properties through more than five budget cycles. He shares his perspective on how the process comes together.
Q: How are you approaching budgeting for 2027 given current Omaha market conditions?
A: “Omaha has been in a strong development cycle that began in 2022, peaked in 2024, and is expected to wind down through 2027. That growth reflects investor confidence in the market, but it also means a wave of new Class A supply is still being absorbed. At the same time, demand for attainable housing remains strong. The result is a two-speed market, and our strategy reflects that.
Our approach to 2027 is conservative where it counts. Our Class A budgets assume softness early in the year, which limits the risk of downside surprises while the market absorbs new supply. Meanwhile, our Class B and C assets continue to anchor portfolio performance, and our focus there is on protecting the momentum built in 2026. As the development cycle fades, we expect 2027 to be a year of stabilization that sets the stage for stronger results in 2028.”
Q: How does Metonic work with its property management partners on budgeting?
A: “In October, Metonic held a strategic budget workshop with each of our property management partners. Instead of passing budgets back and forth, we brought our construction, operations, and investment teams into the same room to build the plan together. Capital projects were planned alongside operating realities, revenue assumptions reflected what site teams see on the ground, and every decision was weighed against the long-term investment strategy for each asset. The result is a set of budgets that are more realistic, more aligned, and better positioned to perform.
Just as important, the workshops strengthened our relationships with our management partners. When everyone shares the same goals and understands the reasoning behind the numbers, execution throughout the year is much stronger, and that ultimately benefits our investors.”
Q: Where do you see the biggest gap between an average-managed asset and a well-managed one?
A: “On-site management. Two properties in the same submarket with similar age and amenities can perform very differently, and the difference almost always comes down to the team on site. Strong site teams have a direct impact on revenue. They follow up on leads quickly, convert tours into leases, and know their competition well enough to price with confidence.
On the expense side, a strong team catches small problems before they become capital projects, manages vendors carefully, and keeps collections and delinquency in check. An average-managed asset tends to react to issues; a well-managed asset gets ahead of them. Over time, the asset with the stronger team will consistently outperform, regardless of where it sits in the market cycle.”