Housing Corporation
Best Practices

 
 

  1. Operate like a business

    1. File for incorporation under local and state tax laws

    2. Keep lines of communication open between university offices of Greek Affairs and the local house corporation

    3. Conduct regular meetings; Prepare written reports for all meetings and mail annual reports to appropriate members

    4. Conduct monthly property inspections

    5. Prepare and follow an annual budget, as well as a five year finance and expenditure plan

    6. File all government reports required of non-­‐profit entities

    7. Outsource critical functions and review all expenses annually to determine where costs and revenues can be adjusted

    8. Coordinate with the alumni membership and undergraduates

    9. Have a check-­‐in and check-­‐out procedure for member suites and a minimum of annual professional cleanings

  2. Execute a Lease/Use Agreement

    1. Specify the amount of rent for each pay period

    2. Outline role and responsibility of the individual member, chapter, and house corporation

    3. Have a set of house rules and policies

    4. Specify the right of the house corporation to terminate the agreement and serve notice of eviction for tenants not meeting expectations of agreement

  3. Charge Fair Market Rent

    1. Do this based on apartments, dorms, and other fraternities within the local environment. Research these numbers every two years.

    2. Rent should cover all facility related expenses

    3. Involve collegiate in the review of fair market values and establishment of rent

  4. Establish a Maintenance Reserve Fund

    1. Rule of thumb is 10% of gross revenue

    2. Complete a maintenance reserve analysis at a minimum of every 5 years

    3. Complete maintenance and replacement every summer

  5. Reduce the Debt

    1. Normal rule is $10,000 per bed but many may be higher or lower depending on locality

    2. Continue to charge fair market rent even when the debt is paid off

  6. Fill the House

    1. Require that the chapter pay full rent, regardless of if every bed is rented or not

    2. Require the chapter to follow a priority point system which will be used for room selection and immediate move-­‐in if house is not at capacity

    3. Shutdown the house in the summer unless it can be close to being filled

  7. Develop a sense of Ownership by the Undergraduates

    1. Invite key chapter leaders to participate in the discussion process of the corporation

    2. Solicit recommendations and identified needs from the chapter members to better provide a facility that will be competitive.

    3. Make sure that there is an undergraduate House Manager and that he is a working partner with the house corporations

    4. Keep open books on the finances and keep the chapter updated on the status of debts and current budgets