What is a typical rental program agreement at condo hotel?
Condo hotel rental programs are designed to be very attractive to unit owners. The hotel’s operator prefers that you participate in the program. The result is a program that will entice unit owner participation where the potential for revenues is considerable. While, there is no standard arrangement in condo hotels, applications are often similar in many condo hotel rental programs; unit owners are responsible for the same expenses which are typically incurred by condominium ownership. They are, mortgage payments (for those financing their properties), monthly homeowner’s association (HOA) fees, property taxes. Other indirect expenses, or, expenses that are deducted from the unit owner’s share of the revenues, often include, reserve for furniture replacement where necessary, fixture maintenance and overall unit upkeep. Travel agent commissions and credit card fees will normally be split amongst unit owners and the hotel’s operator. Hotel operating expenses are typically paid for by the
