Books to Bricks
A home buying program for
student residents
Presented by:
Brian Hellwig, Security and Apartment Manager
([email protected])
Rick Schneiderman, Sr. Fiscal Manager
([email protected])
www.Reslife.net
November 2008
Brief History of Allerton
• 224 Garden Style Apartments built in two
phases in 1963 and 1966
• 12 Buildings
• Built in response to changing
demographics of college students in the
1960’s
• Intended purpose was to house students
with families
Years 2000 - 2006
• KSU Residence Services, utilizing bond funds,
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invested over $136,000,000 to build eight new
residence halls and refurbish all other existing
traditional halls
Allerton was not included
Continuing decline in occupancy, PLUS real and
perceived deficiencies at the complex (price,
amenities, facilities, intangibles)
Allerton Task Force
• In 2006, a task force was appointed by the
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Director of Residence Services
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
Also surveyed local apartment complexes for
prices, amenities, lease terms, etc.
Task Force Findings
• The “price and value” of Allerton was by far the
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biggest drawback and concern of residents
Facilities, including outdoor maintenance were
also identified as needing attention
Programming and Safety and Security were
rated highly by residents
Needed more detailed data from Allerton
regarding occupancy levels
Action Plan
Strategy
• Focus on Value
• Focus on high visibility, lower cost repairs
and refurbishments
• Build on strengths of programming to
enhance community
• Develop enhanced reporting tool to
analyze Allerton occupancy
Action Plan Implementation – FY07
• Price Freeze on rent at $690 for 2BR and $660 for 1 BR
• Huge increase in marketing via Departmental View Book,
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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.
Monthly Unit (MU) reporting for enhanced data analysis
Reduce heating costs through education
Results – FY 2007
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Occupancy Rate – 74.8%
Highest Monthly Occupancy Rate – 84.4%
Lowest Monthly Occupancy Rate – 57.4%
Total Revenue - $1.012 Million
Highest Monthly Revenue - $98,327
Occupancy change from FY06 – (2.8%)
However, the decline was lowest in past 3 years
Additional Value
• Task Force already had ended
• Still focusing on the value equation
• Wanted to reduce turnover and increase
occupancy; how to get people to stay?
• Provide monetary incentives for renting at
Allerton but Residence Services couldn’t
afford to reduce rent; therefore idea for
home equity program evolved
Books to Bricks Program
• Home Buying program for Allerton Residents
• Partnership with Century 21 Prestige Realty – large
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presence in NE Ohio
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
Must use Century 21 Prestige Realty as their buying
agent
What is Books to Bricks?
• Up to $1,000 towards
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purchase of home
Good for up to 4
years after moving
out
Reduction of “brain
drain” of NE Ohio
Discounts for moving
• Educational Home
Buying Programs:
– Mortgage Basics
– Title Basics
– Home Inspection
Basics
How It Works…
• 1 credit = $1
• 300 credits for signing/renewing lease
• 20 credit for each month of residency
• 540 credits earned after one year
• Credits good for four (4) years after
moving out
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
Benefits to Real Estate Partner
• Steady pipeline of potential buyers (over 200
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leases signed per year at Allerton)
Develop relationships with residents now (home
buying seminars at Allerton) and in future (longterm relationships, referrals)
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
Benefits to KSU and Residents
• Residents earning important dollars for
home purchase
• Rent money isn’t being “thrown away”
• Residents stay in area to stem “brain
drain” in Ohio. (important strategic
initiative by KSU President)
• Stabilize and potentially grow Allerton
occupancy
July 2007 – Great Expectations
• Rent frozen again at $690 for 2 BR and
$660 for 1 BR
• Two new large apartment complexes
begin construction near Kent campus
• Books to Bricks program implemented July
1, 2007
• Occupancy at Allerton plummets to 2 year
low of 54%
Onward – FY08
• 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 revenue eclipsed $100,000;
first time in over 2 years
• First time any building was 100%
occupied in a month
Books-to-Bricks Kick-Off
September 5, 2007
Official Kick-Off to
Books to Bricks was
introduced to
Allerton residents.
•Covered by campus Newspaper
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
•Covered by campus TV-2
•Reps from Century 21 Prestige
Realty Group
•Reps from Residence Services
Educational Programming
• Century 21 and their Associates Presented
– Anything and everything to know about
buying a home
• Mortgages
• Title Company
• Home Inspections
• 1st Program held on Thursday, March 27th
Results through April 2008
• YTD Occupancy – 85.9%; this is 8.5%
higher YTD than FY07
• Individual Bldg Occupancy ranges from
80.7% to 91%
• Seven straight months of over $100k
revenue
• Estimated FY08 Revenue is $1.15 million
vs. $1.012 million last year.
Books to Bricks Data
• Over 250 residents enrolled
• Approximately $110,000 in credits have been
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earned by residents
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
Establishing a Realty Partnership
• Our focus was keeping residents in NE Ohio; so
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it was important to select company with strong
local ties
Wanted a well-respected company with national
affiliations if possible
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
Costs of Books to Bricks
• Basically just the labor costs of two Residence
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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
C21 paid for all marketing design costs, food
and drink for kick-off party; time and labor of
real estate experts
Key Points
• Obtain administrative permission inside and
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outside of your housing 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.
Key Points
• Structure program to encourage lease renewals;
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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
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)
Future Possibilities…?
• Expanding to Traditional Residence Halls
(students and their parents?)
• Expanding to University faculty and staff
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
Books-to-Bricks
Any Questions?
Brian and Rick would be happy to
answer any questions you may have
regarding this program.
[email protected]
[email protected]