Part of the new condominium hotel ownership opportunity at The Inn at Pelican Bay is an optional Rental Management Program, which allows owners to allow their units to be made available to hotel guests on a rotating basis, if they so choose.
Presented here is a list of the most Frequently Asked Questions about the benefits of the optional Rental Management Program.
FAQ About the Rental Program
Is a rental program available for the hotel guestrooms?
Yes, every purchaser will have the opportunity to enter into the Unit Rental Management Agreement ("URMA"). If you elect to participate in the program your unit will be made available to hotel guests on a rotating basis with other units participating in the program.
How can I learn more about the condominium hotel rental program?
A representative of the rental manager will be able to assist you in answering all questions pertaining to the rental agreement and hotel operations.
Is the owner required to participate in the Rental Management Agreement?
No, the program is voluntary and is not a condition of purchase.
What is included in the unit I purchase?
All of the units in the hotel will be refurbished and redecorated by the developer. Each unit is furnished and ready for rental. Soft goods such as sheets, comforters, glasses and cups are not included. The rental manager will provide those items if the unit owner decides to participate in the rental program.
Will I receive a percentage of the revenues earned from the other facilities at the hotel?
The gross revenue is determined by guestroom rentals only. Revenue from other services such as liquor sales or vending machines is not shared revenue. The vast majority of income is derived from room rentals.
What expenses are paid from my condominium dues?
Condominium dues are used to pay for maintenance of common elements including life safety maintenance, elevator repair and maintenance, building insurance, common and grounds maintenance, recreation equipment maintenance, reserves, refuse removal, water, sewer, pest control and utilities.
Are there any restrictions on the personal use of my condominium?
If you are participating in the URMA then the owner is obligated to the terms of the occupancy program selected. If you have not selected the URMA your personal use is unlimited except as prohibited by zoning ordinance. However, owners are restricted from occupying the unit as a permanent residential residence. The unit is a commercial condominium and permanent residential use is prohibited by zoning ordinances.
Are my friends and family able to utilize the guestroom for personal use?
Yes, with your permission. If the guest or family member is not paying a rental fee then the time used will be deducted from the owner's personal use time.
Can there be more than one owner of a guestroom unit?
Yes, but there must be a "designated" owner. The management company will not divide interests and will only send statements, checks and notices to the "designated" address. Corporations and LLCs may hold title as well.
Can I personalize my unit?
If you are participating in the URMA you may not. The guestrooms in the rental program must be consistent in design to provide the guest with a high quality hotel experience. If you are not participating in the URMA you may personalize your unit. However you must abide by the rules of the Condominium Association and governing law.
How is the revenue from the hotel rental program paid to the owners?
The percentage of room revenue to the owner will vary depending upon the personal occupancy plan chosen. The gross room revenue is the actual collected amount of rent for the unit. Net room revenue is derived after subtracting for refunds, travel agent commissions, booking fees and credit card fees. The remaining balance is split between the hotel and the owner based on the program selected.
Rental Program Overview
Revenue - Net revenue represents the collected revenue from the rental of the guestroom after deducting for credit card fees, travel agent or booking fees, refunds and other fees. The owner and the hotel share the net revenue based upon the occupancy program the owner has selected. The net revenue will be distributed on a quarterly basis.
Reserve - 4% of gross guestroom revenues due to owner will be retained to maintain the guestrooms to the hotel's standards. This replacement and refurbishment reserve is utilized for replacement costs of various items such as furniture, carpet and bedding.
Rotation Procedure - Guestrooms will be rented based on a fair rotation, subject to specific guest requests, comparable units and unit availability. A specialized computer reservations system will assign the unit a status level based prior occupancy. The system strives to distribute room revenue on an equitable basis.
Room Rates - Rental rates are determined by the hotel. The rates will vary depending upon the season, market conditions and special events or promotions.
Owners Responsibility of Payment - The owner will be responsible for payment of the owner's mortgage or other financing. Payment of real estate taxes, insurance, major repairs and condominium dues are also the owner's responsibility.
Other Charges - Generally there is no rental charge during the owner's personal use of the Guestroom. Owners will receive daily limited complimentary housekeeping and will be charged an exit cleaning fee. If the owner requires full service daily cleaning of the room there will be a charge. Any purchase incurred such as long distance, bar or room service will be charged to the owner. Owners will have annual charges for minor maintenance and deep carpet cleaning.
The material above is for information only. Refer to the actual document for correct representations.
