Presentation is loading. Please wait.

Presentation is loading. Please wait.

Books to Bricks A home buying program for student residents Presented by: Brian Hellwig, Security and Apartment Manager Rick Schneiderman,

Similar presentations


Presentation on theme: "Books to Bricks A home buying program for student residents Presented by: Brian Hellwig, Security and Apartment Manager Rick Schneiderman,"— Presentation transcript:

1 Books to Bricks A home buying program for student residents Presented by: Brian Hellwig, Security and Apartment Manager Rick Schneiderman, Sr. Fiscal Manager November 2008

2 Brief History of Allerton 224 Garden Style Apartments built in two phases in 1963 and Garden Style Apartments built in two phases in 1963 and Buildings 12 Buildings Built in response to changing demographics of college students in the 1960s Built in response to changing demographics of college students in the 1960s Intended purpose was to house students with families Intended purpose was to house students with families

3

4

5

6

7 Years KSU Residence Services, utilizing bond funds, invested over $136,000,000 to build eight new residence halls and refurbish all other existing traditional halls KSU Residence Services, utilizing bond funds, invested over $136,000,000 to build eight new residence halls and refurbish all other existing traditional halls Allerton was not included Allerton was not included Continuing decline in occupancy, PLUS real and perceived deficiencies at the complex (price, amenities, facilities, intangibles) Continuing decline in occupancy, PLUS real and perceived deficiencies at the complex (price, amenities, facilities, intangibles)

8 Allerton Task Force In 2006, a task force was appointed by the Director of Residence Services In 2006, a task force was appointed by the Director of Residence Services The Charge of the task force was to research the issues surrounding Allerton and seek ways to stabilize occupancy The Charge of the task force was to research the issues surrounding Allerton and seek ways to stabilize occupancy Task Force used a SWOTS analysis and a survey of residents to gain baseline data and generate a plan of action Task Force used a SWOTS analysis and a survey of residents to gain baseline data and generate a plan of action Also surveyed local apartment complexes for prices, amenities, lease terms, etc. Also surveyed local apartment complexes for prices, amenities, lease terms, etc.

9 Task Force Findings The price and value of Allerton was by far the biggest drawback and concern of residents The price and value of Allerton was by far the biggest drawback and concern of residents Facilities, including outdoor maintenance were also identified as needing attention Facilities, including outdoor maintenance were also identified as needing attention Programming and Safety and Security were rated highly by residents Programming and Safety and Security were rated highly by residents Needed more detailed data from Allerton regarding occupancy levels Needed more detailed data from Allerton regarding occupancy levels

10 Action Plan Strategy Focus on Value Focus on Value Focus on high visibility, lower cost repairs and refurbishments Focus on high visibility, lower cost repairs and refurbishments Build on strengths of programming to enhance community Build on strengths of programming to enhance community Develop enhanced reporting tool to analyze Allerton occupancy Develop enhanced reporting tool to analyze Allerton occupancy

11 Action Plan Implementation – FY07 Price Freeze on rent at $690 for 2BR and $660 for 1 BR Price Freeze on rent at $690 for 2BR and $660 for 1 BR Huge increase in marketing via Departmental View Book, and Web Page presence (focus on value, community, and convenience) Huge increase in marketing via Departmental View Book, and Web Page presence (focus on value, community, and convenience) New signage, basketball court refresh, new model room, advocate to university for increased attention to grounds ($30k), painting and rust abatement. New signage, basketball court refresh, new model room, advocate to university for increased attention to grounds ($30k), painting and rust abatement. Monthly Unit (MU) reporting for enhanced data analysis Monthly Unit (MU) reporting for enhanced data analysis Reduce heating costs through education Reduce heating costs through education

12 Results – FY 2007 Occupancy Rate – 74.8% Occupancy Rate – 74.8% Highest Monthly Occupancy Rate – 84.4% Highest Monthly Occupancy Rate – 84.4% Lowest Monthly Occupancy Rate – 57.4% Lowest Monthly Occupancy Rate – 57.4% Total Revenue - $1.012 Million Total Revenue - $1.012 Million Highest Monthly Revenue - $98,327 Highest Monthly Revenue - $98,327 Occupancy change from FY06 – (2.8%) Occupancy change from FY06 – (2.8%) However, the decline was lowest in past 3 years However, the decline was lowest in past 3 years

13 Additional Value Task Force already had ended Task Force already had ended Still focusing on the value equation Still focusing on the value equation Wanted to reduce turnover and increase occupancy; how to get people to stay? Wanted to reduce turnover and increase occupancy; how to get people to stay? Provide monetary incentives for renting at Allerton but Residence Services couldnt afford to reduce rent; therefore idea for home equity program evolved Provide monetary incentives for renting at Allerton but Residence Services couldnt afford to reduce rent; therefore idea for home equity program evolved

14 Books to Bricks Program Home Buying program for Allerton Residents Home Buying program for Allerton Residents Partnership with Century 21 Prestige Realty – large presence in NE Ohio Partnership with Century 21 Prestige Realty – large presence in NE Ohio Residents earn equity credits by signing and renewing a lease, and also earn monthly credits Residents earn equity credits by signing and renewing a lease, and also earn monthly credits After residents graduate or leave Allerton Apartments, they may exchange their accrued equity credits towards the down payment on a home After residents graduate or leave Allerton Apartments, they may exchange their accrued equity credits towards the down payment on a home Must use Century 21 Prestige Realty as their buying agent Must use Century 21 Prestige Realty as their buying agent

15 What is Books to Bricks? Up to $1,000 towards purchase of home Up to $1,000 towards purchase of home Good for up to 4 years after moving out Good for up to 4 years after moving out Reduction of brain drain of NE Ohio Reduction of brain drain of NE Ohio Discounts for moving Discounts for moving Educational Home Buying Programs: Educational Home Buying Programs: –Mortgage Basics –Title Basics –Home Inspection Basics

16 How It Works… 1 credit = $1 1 credit = $1 300 credits for signing/renewing lease 300 credits for signing/renewing lease 20 credit for each month of residency 20 credit for each month of residency 540 credits earned after one year 540 credits earned after one year Credits good for four (4) years after moving out Credits good for four (4) years after moving out

17 Home Buying Credit Scale Home Sales Price $0 - $49,999 $50,000 - $89,999 $90,000 - $139,999 $140,000 - $189,999 $190,000 - $249,999 $250,000 & up Allowable B2B Credits $0$300$500$700$850$1,000

18 Benefits to Real Estate Partner Steady pipeline of potential buyers (over 200 leases signed per year at Allerton) Steady pipeline of potential buyers (over 200 leases signed per year at Allerton) Develop relationships with residents now (home buying seminars at Allerton) and in future (long- term relationships, referrals) Develop relationships with residents now (home buying seminars at Allerton) and in future (long- term relationships, referrals) Exclusive realtor for Allerton Apartments Exclusive realtor for Allerton Apartments SMART BUSINESS – Commissions on a $150,000 house total approximately $4,500 - $9,000 for the agent/broker (split evenly). After equity credit of $700 there are still significant earnings SMART BUSINESS – Commissions on a $150,000 house total approximately $4,500 - $9,000 for the agent/broker (split evenly). After equity credit of $700 there are still significant earnings

19 Benefits to KSU and Residents Residents earning important dollars for home purchase Residents earning important dollars for home purchase Rent money isnt being thrown away Rent money isnt being thrown away Residents stay in area to stem brain drain in Ohio. (important strategic initiative by KSU President) Residents stay in area to stem brain drain in Ohio. (important strategic initiative by KSU President) Stabilize and potentially grow Allerton occupancy Stabilize and potentially grow Allerton occupancy

20 July 2007 – Great Expectations Rent frozen again at $690 for 2 BR and $660 for 1 BR Rent frozen again at $690 for 2 BR and $660 for 1 BR Two new large apartment complexes begin construction near Kent campus Two new large apartment complexes begin construction near Kent campus Books to Bricks program implemented July 1, 2007 Books to Bricks program implemented July 1, 2007 Occupancy at Allerton plummets to 2 year low of 54% Occupancy at Allerton plummets to 2 year low of 54%

21 Onward – FY08 August Occupancy – 66.8%; this was 5.9% less than August 2006 August Occupancy – 66.8%; this was 5.9% less than August 2006 September Occupancy – 91.7%; this was the highest monthly rate in over 2 years September Occupancy – 91.7%; this was the highest monthly rate in over 2 years September revenue eclipsed $100,000; first time in over 2 years September revenue eclipsed $100,000; first time in over 2 years First time any building was 100% occupied in a month First time any building was 100% occupied in a month

22 Books-to-Bricks Kick-Off Virginia Edwards of Century 21 Realty talks with Allerton residents about the new program designed to help them purchase homes of their own at the "Books to Bricks" picnic last night. Photo by Leslie Cusano | Daily Kent Stater September 5, 2007 Official Kick-Off to Books to Bricks was introduced to Allerton residents. Covered by campus Newspaper Covered by campus TV-2 Reps from Century 21 Prestige Realty Group Reps from Residence Services

23 Educational Programming Century 21 and their Associates Presented Century 21 and their Associates Presented –Anything and everything to know about buying a home Mortgages Mortgages Title Company Title Company Home Inspections Home Inspections 1st Program held on Thursday, March 27 th 1st Program held on Thursday, March 27 th

24 Results through April 2008 YTD Occupancy – 85.9%; this is 8.5% higher YTD than FY07 YTD Occupancy – 85.9%; this is 8.5% higher YTD than FY07 Individual Bldg Occupancy ranges from 80.7% to 91% Individual Bldg Occupancy ranges from 80.7% to 91% Seven straight months of over $100k revenue Seven straight months of over $100k revenue Estimated FY08 Revenue is $1.15 million vs. $1.012 million last year. Estimated FY08 Revenue is $1.15 million vs. $1.012 million last year.

25 Books to Bricks Data Over 250 residents enrolled Over 250 residents enrolled Approximately $110,000 in credits have been earned by residents Approximately $110,000 in credits have been earned by residents Interest in program appears strong as at least 4 residents have met with C21 Reps to discuss home buying options Interest in program appears strong as at least 4 residents have met with C21 Reps to discuss home buying options It will take a few years to quantify actual conversions of student residents transitioning from Books to Bricks It will take a few years to quantify actual conversions of student residents transitioning from Books to Bricks

26 Establishing a Realty Partnership Our focus was keeping residents in NE Ohio; so it was important to select company with strong local ties Our focus was keeping residents in NE Ohio; so it was important to select company with strong local ties Wanted a well-respected company with national affiliations if possible Wanted a well-respected company with national affiliations if possible Have a business plan; demonstrate the benefits of a partnership with detailed financial analyses Have a business plan; demonstrate the benefits of a partnership with detailed financial analyses Know what you want and expect out of the relationship, but be open to the expertise that the realty firm offers Know what you want and expect out of the relationship, but be open to the expertise that the realty firm offers

27 Costs of Books to Bricks Basically just the labor costs of two Residence Services employees to set up and administer the program Basically just the labor costs of two Residence Services employees to set up and administer the program Only hard costs were the printing expenses for brochures - $1,500; and refreshments for home buying seminar Only hard costs were the printing expenses for brochures - $1,500; and refreshments for home buying seminar C21 paid for all marketing design costs, food and drink for kick-off party; time and labor of real estate experts C21 paid for all marketing design costs, food and drink for kick-off party; time and labor of real estate experts

28 Key Points Obtain administrative permission inside and outside of your housing program Obtain administrative permission inside and outside of your housing program Obtain the blessing of your general counsel/legal officer before entering into an agreement or offering this program Obtain the blessing of your general counsel/legal officer before entering into an agreement or offering this program Marketing – sooner the better, and keep interest piqued with periodic award certificates, seminars, newsletter pieces, reciprocal web site links, etc. Marketing – sooner the better, and keep interest piqued with periodic award certificates, seminars, newsletter pieces, reciprocal web site links, etc.

29 Key Points Structure program to encourage lease renewals; it takes 2 years to earn $1,000 B2B equity credits Structure program to encourage lease renewals; it takes 2 years to earn $1,000 B2B equity credits Maintain regular communication with your realty partner; invite them to present a program on home buying basics to residents Maintain regular communication with your realty partner; invite them to present a program on home buying basics to residents Select a partner who is genuinely interested in the program and understands that a multi-year commitment is necessary (e.g. – B2B credits are good 4 years from date of Allerton departure) Select a partner who is genuinely interested in the program and understands that a multi-year commitment is necessary (e.g. – B2B credits are good 4 years from date of Allerton departure)

30 Future Possibilities…? Expanding to Traditional Residence Halls (students and their parents?) Expanding to Traditional Residence Halls (students and their parents?) Expanding to University faculty and staff Expanding to University faculty and staff

31 Submitted by: Brian Hellwig received his undergraduate degree in Political Science from Heidelberg College and earned his Masters in Higher Education Administration and Student Personnel from Kent State University where he is currently employed in the dual roles of Apartment Manager for family and student Rick Schneiderman received his undergraduate degree in Accounting from the University of Akron and earned his Masters in Public Administration from The Ohio State University. He has over 13 years in Higher Education Budgeting and Finance, including the last four years spent as the Senior Fiscal Manager in the Department of Residence Services at Kent State University Submitted by: Brian Hellwig received his undergraduate degree in Political Science from Heidelberg College and earned his Masters in Higher Education Administration and Student Personnel from Kent State University where he is currently employed in the dual roles of Apartment Manager for family and student Rick Schneiderman received his undergraduate degree in Accounting from the University of Akron and earned his Masters in Public Administration from The Ohio State University. He has over 13 years in Higher Education Budgeting and Finance, including the last four years spent as the Senior Fiscal Manager in the Department of Residence Services at Kent State University

32 Books-to-Bricks Any Questions? Brian and Rick would be happy to answer any questions you may have regarding this program.


Download ppt "Books to Bricks A home buying program for student residents Presented by: Brian Hellwig, Security and Apartment Manager Rick Schneiderman,"

Similar presentations


Ads by Google