We all know that Student Housing can be a source of revenue for College and University campuses. If the beds are all filled, and the daily costs are managed in an effective way, there is potential to invest in non-operating opportunities. This webinar explored the different ways institutions are allocating their net revenues within Student Housing. We reviewed 2 different housing operations and explored how they performed to their targets and what resources they have to further their programs.

1. 1
The Real Cost of Housing
Date: June 21, 2012
Presented by: Gabby Rosas, Project Manager
University of California – Irvine
University of Cincinnati
University of California San Francisco Medical Center
University of Chicago
University of Colorado at Boulder
University of Denver
University of Hartford
University of Idaho
University of Illinois at Urbana‐Champaign
University of Kentucky
University of Maine at Augusta
University of Maine at Farmington
University of Maine at Fort Kent
University of Maine at Machias
University of Maine at Presque Isle
University of Maryland
University of Massachusetts Amherst
University of Massachusetts Dartmouth
University of Massachusetts Lowell
University of Michigan
University of Minnesota
University of Mississippi Medical Center
University of Missouri
University of Missouri ‐ Kansas City
University of Missouri ‐ St. Louis
University of Nebraska at Kearney
University of New Hampshire
University of New Haven
University of North Texas
University of Notre Dame
University of Oregon
University of Pennsylvania
University of Portland
University of Redlands
University of Rochester
University of San Diego
University of San Francisco
University of St. Thomas (TX)
University of Southern Maine
University of Southern Mississippi
University of Tennessee, Knoxville
University of the Pacific
University of the Sciences in Philadelphia
University of Vermont
Upper Iowa University

2. 2
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webinar
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3. 3
The Real Cost of Housing
The financial impact of on‐campus student housing
AGENDA:
• Quick introduction of Sightlines and what Housing Measurement, Benchmarking and
Analysis is.
• Explore how different programs use student revenues generated through on‐campus
student housing to support the day‐to‐day activities of the program.
• Examine 2 case studies to see how they are using the information & benchmarks
from Housing MB&A to grow their on‐campus student housing programs:
 Institution A: With a strong historical housing program, the department needs
to advocate for financial resources to reach their goal of growing to keep pace
with the enrollment increases.
 Institution B: With a number of vacancies in their student housing, this
program is looking to make changes to housing policies in order to meet their
participation & occupancy targets.

4. 4
Sightlines – an introduction
A vocabulary for measurement
Common vocabulary, Consistent methodology,
Credibility through benchmarking
Facilities MB&A
Go Green MB&A
Housing MB&A
 11 year old company based in Guilford, CT
 Common vocabulary and consistent methodology
 95% Annual retention rate
 Tracking $5.9 billion in operations budgets and $4.2 billion
in capital projects
 Database of 23,500 buildings and 825 million GSF

5. 5
Student housing is an evolving market
Residence Halls
Dormitories
Student Life /
Communities
Changes from year to year
• Demographics
• Student preferences
• Market rates
• Mission

6. 6
Service vocabulary
Difference between Facilities MB&A and Housing MB&A
Facilities MB&A Vs. Housing MB&A
“Treat the building like a building” “Treat the building like housing”

7. 7
Families of Metrics for Housing
A focused strategic planning tool providing the knowledge to take action
Market
Demographics
Rates
Assets
Inventory
Attributes
Construction
Operations
Operating
Costs
Staffing
Housing MB&A Members
Located within 12 states
Covering more than 13M
GSF in 300+ Residential
Facilities
Housing more than 45,000
students
Over $225M in revenue in
FY2011

8. 8
HOUSING TRENDS IN HIGHER EDUCATION

9. 9
Varying rates across our members

10. 10
Housing costs are increasing annually
US Department of Housing & Urban Development’s Fair Market Rent
150%
140%
130%
120%
110%
100%
90%
80%
70%
60%
50%
FY2007 FY2008 FY2009 FY2010 FY2011
Rate of Increase
National HUD FMR
150%
140%
130%
120%
110%
100%
90%
80%
70%
60%
50%
Housing MB&A Members’ Mean Rates
FY2007 FY2008 FY2009 FY2010 FY2011

11. 11
Rates ‐ Student Housing Fees
What are students paying for?
What students think
they are buying
What else students
are buying
Res Life Expenses Daily Operating Expenses

12. 12
How student fees are utilized
Split between the Res Life program and the cost of keeping the doors open
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
A B C D E F G H I J K L M N O P
$/Bed
Res Life Expenses
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
A B C D E F G H I J K L M N O P
$/Bed
Daily Operating Expenses
Average $413 Average $2,440
Arrayed in order of increasing Undergraduate Participation in Housing

13. 13
Total of day to day expenses
Average Mix of Expenses
86%
14%
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Total Operating Expenses
A B C D E F G H I J K L M N O P
Res Life Expenses
Daily Operating Expenses
$/Bed
Arrayed in order of increasing Undergraduate Participation in Housing

14. 14
Net revenues translate to Non‐Operating Expenses
Non‐operating expenses – Repayment of
Debt Service, Institutional Contributions,
and Project Funding

15. 15
Case Study A
PROTECTING ANNUAL NET REVENUE

16. 16
Institution A: A case study
Students are feeling the impact of rising tuition and housing costs
25%
20%
15%
10%
5%
0%
‐5%
Housing Rate Relative to Annual Tuition
FY2007 FY2008 FY2009 FY2010 FY2011
Housing Increases Tutition increases
25%
20%
15%
10%
5%
0%
‐5%
Enrollment & Participation in Housing
FY2007 FY2008 FY2009 FY2010 FY2011
Total Enrollment Housing Participation

17. 17
Housing costs are higher than the FMR
Across the campus, there is limited housing availability

18. Non‐Operating
Expenses
18
Housing revenue and expense detail
Totals shown in millions of dollars
$14
$12
$10
$8
$6
$4
$2
$0
Total Expenses FY2011
Reserve Contributions
$2.6M
Institutional Contributions
$2.3M
(Institutional Allocation +
Administrative Allocation)
Interest/Debt Service
$2.6M
Daily Service & Utilities
$3.4M
(Physical Plant Allocation)
Housing Administration
$1.9M
Projects
$0.4M
Res Life
$0.4M
Utilities
$0.1M
Total Revenues FY2011
Student Fees
$13.1M
Misc Income
$0.2M
Summer Programs
$0.2M
Other Rent
$0.2M
Student Fees only include Room, not Board.
Operating
Expenses

19. 19
Incomes & expenses have increased at different rates
Institution A is contributing more toward Non‐Operating expenses than peers
Income & Expenses Operating Expenses
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Peer Average Institution A
$/Bed
Operating Expenses Non‐Operating Expenses
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
FY2007 FY2008 FY2009 FY2010 FY2011
$/Bed
Income Expenses

20. 20
Historic spending in Non‐Operating categories
More funding is going back to the institution than at peer campuses
Private Peer’s 5 Year Average of Non‐
Operating Expenses
42%
21%
37%
Peer’s 5 Year Average of Non‐
Operating Expenses
43%
17%
40%
Institution A’s 5 Year Average of
48%
Non‐Operating Expenses
42%
10%
Interest/Debt Service
Institutional Contributions
Projects
Institutional Contributions include 13% of Housing’s revenue,
Administrative and Institutional Allocations.

21. 21
Historically low investment back into the facilities
Release reserve funds for building improvement projects
Annual Investment Target Non‐Operating Allocations
$1.0
$1.4
$2.1 $2.5 $2.6
$9.0
$8.0
$7.0
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
FY2007 FY2008 FY2009 FY2010 FY2011
Millions
Interest/Debt Service Institutional Contributions
Projects Reserve Contributions
$1.0 $1.0
$1.1
$0.5
$1.4
$2.1
$2.5
$2.6
$9.0
$8.0
$7.0
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
FY2007 FY2008 FY2009 FY2010 FY2011
Millions
Housing Funds Reserve Contributions

22. 22
Protecting annual net revenue
Summary
• Despite rates increasing faster than tuition, the housing
program at Institution A has been successful in
maintaining a high occupancy of their on‐campus beds.
• The operating costs of the beds have been consistent
with what other institutions are spending.
• The case has been made to increase the amount of
project funding by decreasing the annual contribution
rate as the student fees increase. Market
Operations Assets

23. 23
Institution B: A case study
ADJUSTMENTS TO MAXIMIZE REVENUE

24. 24
Housing growth outpaces enrollment increases
Strongest participation from Freshmen, who are required to live on‐campus
Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010

25. 25
Lower participation than peer institutions
Greek Housing for First Year Freshmen contributes to low participation
Increasing Freshman
participation to 67% would
fill all Institution B’s Housing
options to capacity
Fall 2010 Undergraduate Enrollment
20%
25%
31%
24%
First Year Freshmen Sophomore
Junior Senior
Fall 2010 Housing Participation
45%
14%
12%
29%
Institution B
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

26. 26
Vacancies provide revenue opportunities
Over $1M yearly in additional revenue if all facilities were fully occupied in FY11
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Annual Revenue Opportunities in Under‐Capacity Buildings
Hall A Hall B Hall C Hall D Hall E Hall F Hall G
124 60 23 13 15 Vacancies
Revenue Opportunity
Vacancies
(# beds):
Total Vacant Beds: 235
Average annual rate per bed: $4,875
Total Revenue Opportunity: $1,041,000
Traditional Residence Halls Suite-Style Residence Halls Apartments

27. 27
Modeling potential opportunities at 100% occupancy
By not filling all beds, built‐in revenue opportunities are lost each year
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Maximizing Revenue by Increasing Occupancy
$0.3
$0.6
$0.9
$1.1
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Assumptions –
Rates increase annually by 2%
At 100% occupancy by FY2015 (Fall 2014)
22% increase
in revenue
Income
Expenses Increased Revenue
Net revenue at
100% occupancy
Net revenue with no
occupancy increase

28. 28
Potential opportunity from reaching 100% occupancy
Assumes no additional debt service
Institution B’s 5 Year Average of
Non‐Operating Expenses
92%
7%
1%
Interest/Debt Service
Institutional Contributions
Projects
Potential breakout at 100% occupancy
73%
5%
21%
by FY2015
Interest/Debt Service
Institutional Contributions
Projects
Not Designated

29. 29
Allocating revenue towards building projects
Increasing the annual project spending levels
$0.29
$0.57
$0.85
$1.14
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
Target Investment Need
2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
Total Investment vs. Target
Total Spending Projected Spending Additional Revenue
Life Cycle Need

30. 30
Allocating revenue towards building projects
$2.84
Which could be saved and used in a single year for a full renovation
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
Target Investment Need
2007 2008 2009 2010 2011 2012 2013 2014 2015
Millions
Total Investment vs. Target
Total Spending Projected Spending Additional Revenue
Life Cycle Need

31. 31
Adjustments to Maximize Revenue
Summary
Market
• Even though participation in on‐campus student
housing has been increasing over the last 5 years, there
is still a need to house more students.
• The Institution is looking into redefining the Freshman
housing requirement to not include students who live
in Greek Housing. Currently, the on‐campus housing
department is not receiving revenue from those
residents.
• By increasing the number of students living on‐campus,
at the current bed count, the program could generate
an additional $1M annually, which could be set aside to
help renovate the older housing facilities on campus.
Operations Assets

32. 32
OUR GOAL AT EVERY INSTITUTION

33. 33
An iterative process designed to…
Consistently measure
and document housing
management and
investment
Effectively tell your
student housing story
from the dormroom
to the boardroom
Track progress annually
against your own goals
Measurement,
Benchmarking & Analysis
Give systems and
consortia the ability to
share, compare, and
facilitate discussion

34. 34
QUESTIONS AND COMMENTS