Seven Steps For A Successful House Corporation

1. Operate Like a Business

• Incorporate
• Communicate and stay involved with University House Corporation committees and your national House Corporation if appropriate
• Conduct regular meetings (quarterly for the entire board, monthly calls & emails for the executive committee)
• Prepare written reports for all meetings and mail an annual report to your membership
• Conduct monthly property inspections for cleanliness & maintenance (if can afford professional property management have inspections weekly to biweekly)
• Prepare and follow an annual budget and 5-year plan
• File all required government, campus and national reports
• Outsource critical functions and review all expenses annually to see, if they can be lowered (hire a professional property manager)
• Develop a well-balanced board (age and experience)
• Coordinate with the Alumni, Chapter and undergraduates to ensure that an effective alumni / parent program is in place
• Have a check-in, check-out procedure and a minimum of semi-annual professional cleanings
• Conduct a facility analysis to determine needs and costs (structural, mechanical. Technological, durability, energy efficiency, functionality, interior design needs, safety, etc.)
• Determine the best location for the house (current or new location)
• Determine if the chapter is a good candidate for a capital campaign to renovate or build a new house (hire a professional firm to complete a feasibility study followed by a campaign if the study is successful)

• Specify the amount of rent and who is responsible (include rent, kitchen, reserve fund, maintenance fund, parlor fee, security deposits )
• Ensure that your master lease is based on a fixed amount and not the number of renters (base it on 90% occupancy)
• Have a set of house rules & policies (post at the house, post on the website, and review at least annually)
• Specify the right of the House Corporation to terminate the agreement
• Require individual leases/room contracts between the chapter and its tenants with security deposits
• Require the chapter to provide monthly accounting reports to the house corporation

• charge market rent based on apartments, dorms and other fraternities (research the numbers at least every two years) if your facility is among the best on campus, your rent should be among the highest on campus
• Use a flat annual rate and note one based on the number of renters
• Ensure that the chapter is charging “parlor fees” to members that do not live in the house
• Rent should cover all facility/land related expenses
• Involve the undergraduates in setting of the rent

• Establish and fund maintenance reserve & replacement fund
• Rule of thumb is 10% of gross revenues
• Complete a maintenance reserve analysis every five years
• Complete maintenance and replacement every summer

• Rule of thumb is no more than $10,000 of debt per bed (but may be higher or lower depending on revenue sources)
• Continue to charge market rent even when debt is paid off

• Require the chapter to follow a priority placement point system (will be used for room selection and required move-in the house if it is not full)
• Require the chapter to pay full rent even if the house is not full
• Close the house during the summer unless it is marketable for the summer or if it plays a significant role in summer rush

• Instill a sense of ownership and team-play by letting undergraduates participate in decisions and attending all board meetings
• Speak at a chapter meeting once per semester
• Make Sure the chapter had a House Manager with a written job description who attends most House Corporation meetings
• Ensure that the chapter has a live-in requirement if at all possible