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Habits
of Highly Successful House Corporations
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
- Conduct monthly property inspections (both for cleanliness
and maintenance)
- Prepare and follow an annual budget, as well as a five-year
plan
- File all required government reports
- Outsource critical functions and review all expenses
annually to see if they can be lowered
- Develop a well-balanced board (age and experience)
- Coordinate with the Alumni Chapter and undergraduates
to ensure that an effective alumni program is in place
- Have a check-in, check-out procedure and a minimum of
annual professional cleanings
2. Execute a use
agreement
- Specify the amount of rent and who is responsible (include
rent, kitchen, reserve fund, parlor fee, security deposits)
- Have a set of house rules and policies
- Specify the right of the House Corporation to terminate
the agreement
- Require the chapter to obtain written housing contracts
with security deposits
- Require the chapter to provide monthly accounting reports
to the House Corporation
3. Charge market
rent
- Charge market rent based on apartments, dorms and other
fraternities (research these numbers at least every two
years) - if your facility is among the best on campus,
your rent should be among the highest
- Rent should cover all facility related expenses
- Involve the undergraduates in the setting of the rent
4. Establish a maintenance
reserve fund
- Establish and fund maintenance reserve and replacement
funds
- Rule of thumb is 10 percent of gross revenues
- Complete a maintenance reserve analysis every five years
- Complete maintenance and replacement every summer
5. Reduce the debt
- Rule of thumb is $10,000 per bed, but may be higher
or lower depending on revenue sources
- Continue to charge market rent even when debt is paid
off
6. Fill the house
- Require that the chapter pay full rent even if every
bed is not rented. Set the line in the sand and stick
to it
- Require the chapter to follow a priority placement point
system (will be used for room selection and required move-in
if the house is not full)
- Close the house in the summer unless it is marketable
for the summer or if it plays a significant role in summer
rush
7. Develop a sense
of ownership in the undergraduates
- 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
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