House Corporation
Warning Signs

 
 

BAD PRACTICES

  • Significant Deferred maintenance

  • If the house looks bad the members will treat it Bad

  • No Housing agreements or housing agreements are out of date

  • The house is used for parties more than for members to live in

  • Low Occupancy rates

  • Poor chapter GPA

  • Housing Corporation members are not acting as if they are running a business

  • Alumni and house corporation are at odds with the chapter

  • Low manpower- alumni and active chapter

BAD RESULTS

  • Fewer alumni volunteers

  • Disillusioned alumni who are sitting on their checkbooks

  • Poor behavior by chapter members - especially those not living in the house

  • Alumni visiting the chapter are reliving their “fraternity fun” instead of being mentors

  • Poor housekeeping by the chapter

  • Low expectations and poor rush performance by the chapter

  • Financial arrears

  • Local university and code enforcement issues

  • Property losses due to poor condition of the property (all leading to higher insurance rates)

THE SOLUTION

  • Develop and implement standards

  • Always use updated housing agreements, including provisions for violating fraternity, university, federal, and state local laws and rules.

  • Require room deposits

  • Have a common area maintenance agreement with the chapter, including expectations and penalties

  • Use an accounting firm to handle all accounting and tax reports. This is for transparency and make sure all reports are filed as required

  • Hire a property manager

  • Provide a live in advisor or Housemother (it is not a coincidence that houses with Housemothers stay in better shape that those that do not)

  • Set and enforce expectations for the live in and live out chapter members

  • Keep up with deferred maintenance - If you create a house environment worthy of being taken care of the chapter will take more ownership and pride in the house.

  • If you have collection problems get help, there are many services that can help you with collections.

  • Have move in/out procedures and follow them, document change or damages

  • Develop both short term and long term capital improvement plans

  • Run the chapter house as a business and not as a charity

  • Have separate alumni entities for the chapter:

    • The house corporation manages the property

    • The alumni advisory board helps manage the chapter, deals with scholarships, and acts as mentors

    • DO NOT mix the two - The two entities have entirely separate roles