Books to Bricks

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Books to Bricks A home buying program for student
residents
Presented by Brian Hellwig, Security and
Apartment Manager (bhellwig_at_kent.edu) Rick
Schneiderman, Sr. Fiscal Manager
(rschnei3_at_kent.edu)
www.Reslife.net November 2008
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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 1960s
• Intended purpose was to house students with
  families

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Years 2000 - 2006

• 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
• Continuing decline in occupancy, PLUS real and
  perceived deficiencies at the complex (price,
  amenities, facilities, intangibles)

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Allerton Task Force

• 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
• 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.

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Task Force Findings

• 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
• Programming and Safety and Security were rated
  highly by residents
• Needed more detailed data from Allerton regarding
  occupancy levels

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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

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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, 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

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Results FY 2007

• 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

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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 couldnt afford
  to reduce rent therefore idea for home equity
  program evolved

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Books to Bricks Program

• Home Buying program for Allerton Residents
• 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
• 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

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What is Books to Bricks?

• Up to 1,000 towards 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

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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

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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

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Benefits to Real Estate Partner

• 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)
• 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

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Benefits to KSU and Residents

• Residents earning important dollars for home
  purchase
• Rent money isnt 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

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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

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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

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Books-to-Bricks Kick-Off
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

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
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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

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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.

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Books to Bricks Data

• Over 250 residents enrolled
• 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
• It will take a few years to quantify actual
  conversions of student residents transitioning
  from Books to Bricks

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Establishing a Realty Partnership

• 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
• 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

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Costs of Books to Bricks

• 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
• C21 paid for all marketing design costs, food and
  drink for kick-off party time and labor of real
  estate experts

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Key Points

• 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
• Marketing sooner the better, and keep interest
  piqued with periodic award certificates,
  seminars, newsletter pieces, reciprocal web site
  links, etc.

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Key Points

• 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
• 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)

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Future Possibilities?

• Expanding to Traditional Residence Halls
  (students and their parents?)
• Expanding to University faculty and staff

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Submitted byBrian 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  
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Books-to-Bricks

• Any Questions?
• Brian and Rick would be happy to answer any
  questions you may have regarding this program.
• bhellwig_at_kent.edu
• rschnei3_at_kent.edu