Why is accurate "CapEx" tracking vital for property management?

Accurate tracking of Capital Expenditures (CapEx) is vital for property management because it significantly influences future investment strategies. When property managers have a well-documented account of past and current capital expenditures, they can make informed predictions about future spending, identify areas requiring investment, and evaluate the return on investment for various improvements or renovations. This information is crucial for strategic planning and resource allocation, allowing property managers to prioritize capital spending that maximizes the property's value and profitability over time. Understanding past CapEx also aids in assessing the overall financial health of the property, paving the way for effective decision-making regarding future investments.