The Pike House - House Corporation Financial Management Pi Kappa Alpha Housing Operations Leadership and Victory. In figuring an absolute minimum rental rate to charge the chapter, it is recommended that a house corporation determine its financial needs, being especially mindful of long-term goals and anticipated capital improvements. This will enable the house corporation to build and maintain adequate reserves and funding for property renovations and improvements. Keeping this in mind, the corporation should charge the chapter an aggressive rate of rent, even if the corporation ends up with a substantial profit.
Profit is really extra money for reserves which no house corporation can have too much of.
Passing along below market or bargain rental rates to save the students money is a recipe for absolute failure in the long run. Additionally, the house corporation should have a solid understanding of the chapter's budgeting needs and its ability to afford a property. The chapter is normally the corporation's primary source of income. Few house corporations have been successful in establishing a continuous giving program of this nature. Any prudent lender would not view this income as reliable.