Rental Pool Description
Purpose
To reduce the monthly swings in rental income when each owner only receives what their specific unit generated in rental income, and to share fairly the rental income that is received for all units participating in the Pool in each Condominium Assembly (i.e., Diamonte del Sol will have its own Rental Pool).
Participation
Owners may choose not to participate (“out of Pool”), but owners may not advertise nor engage any third party to assist in renting units. Owners may rent or allow use of their unit(s) to friends & family directly, but all other rental activity must be handled by the Manager. In order to share in the Rental Pool Income on any specific day (the “allocation day”), a unit must have been available for rent for the allocation day for the 90 preceeding days (i.e., “in the pool”).
Mechanics
In order to encourage potential rental clients to plan a trip to Diamonte del Sol, units will be considered in the Pool unless an owner specifically requests (via website or phone) that their unit(s) be pulled out of the Pool. For example, if an owner, Mr. Jones, is planning to occupy his unit for a specific week, then mr. Jones would request that his unit be out of the Pool for that specific week. Unless otherwise specified, however, Mr. Jones’ unit would be in the Pool, and therefore available for rent, at all other times. For those days that Mr.Jones’ unit was in the Pool, he would receive a percentage of the net rental income generated from all units in the Pool, which would be calculated as the rental rate for Mr. Jones’ unit divided by the aggregate rental rate of all units in the Pool for the allocation day (see example below). The manager will set the rental rates for each unit and may make adjustments based on demand.
Fees
If a unit is in the Pool, the Management fee for renting units and managing all associated activities will be 25% of rental income payable to the manager. If an owner chooses to have the unit occupied by friends & family (and is therefore out of the Pool for that period), the Manager will charge a fee for “non-owner occupancy arranged by owner” equal to:
$40/day, if less than 1 week
$250/week + $35/day thereafter, if less than one month
$750/month + $25/day thereafter
Maintenance & Reserve Account
$10 per night for each unit rented will go to a reserve account to cover maintenance, as needed.
Deposit
A Rental Deposit of $1,000 will protect against damage, unpaid bills, and/or other extraordinary costs. Careful examination of units upon check-in and check-out will be performed.
Rental Pool Example
Unit 3C participates in the Pool for the day of December 1, along with 39 other units. Of the 40 units in the Pool that day, 30 units are rented by the Manager and the total rental income for those units is $9,000. The dollar amount available to be distributed to Pool Participants is calculated as follows:
Total Pool Income $9,000
25% Management Fee $2,250
Rental Maintenance Reserve Amount ($10/night) $300
Dollars available for distribution to Pool Participants $6,450
The calculation for unit 3C’s share of the Pool is as follows:
Daily Rental Rate for Unit 3C $315
Divided by aggregate daily rental rate for all 40 units in the Pool $12,000
Unit 3C’s Share 2.63%
So, the owner of unit 3C would receive 2.63% of $6,450, or $169 for its share of the Pool for the day of December 1, whether or not unit 3C was actually rented.
On-site Management:
Maintain all the Common Elements(e.g. Pools, Gardens & Landscaping)
Inspect the exterior of the buildings, adjacent grounds & individual units when vacant on a regular basis
Provide all security as it deems is needed
Provide maid service when the unit is occupied
Provide valet & bell captain services
Provide concierge Services
Pay all local bills on behalf of the owner
Make all required entity filings on behalf of the owner
Provide rental unit if desired
Provide unit re-sales
If there are any other services the owners would like, they can call on the developer anytime to discuss
Payment Schedule:
10% due upon execution of a purchase agreement.
10% due when construction begins.
10% due when the roof covering the building is completed.
FINANCING IS AVAILABLE
