There are a variety of reasons as to why people buy into Private Residence Clubs for their vacation property.
Cost & Rental Pools-Investment opportunity
The cost involved is usually one of the most important factor. The most straightforward way is to equate the dollars you're spending with the amount of time that you'll spend in your property. Most people with second homes find they only spend 3 to 6 weeks a year at their second home. So by buying a luxury residence with the rental pool option you can effectively only pay a small amount of for the time that you're going to actually use your property.
By offering standard rental management to our buyer and also creating a rental pool to help with the risk of owning property. At no cost to you!!
A rental pool is a risk management tool which allows an owner to share the risk of vacancies and repairs with other owners in that pool. Regardless if an owner's unit is vacant, rented or damaged, you get a share of the monthly profit. If any unit in the rental pool is damaged, the cost of repair is shared across the rental pool.
There are several benefits to being a part of a rental pool. Firstly, the management costs are usually cheaper than single unit management. Single unit management fees in average are 15% of collected rent. There is a shared set of accounting records which make it easier for us to manage, and that savings is passed on to the owners. Other benefits include the sharing of banking fees, administration charges, and the advertising of your property for rent.
There are monthly fixed costs that the rental pool pays. These include condo fees (the rental pool pays these on behalf of the owner), resident manager pays (if applicable), and the management fees. There are variable costs as well, which would include unit repairs, painting, etc. Annual Financials are prepared by an external auditing firm and copies are sent to the owners. Usually your revenue is paid to owner quarterly, and rental splits range typically, a 50-50 split after 15% is taken off the top for the management fee is common.
The common fee included:
- Property taxes
- Insurance on building and contents
- Trustee ownership structure fees
- Accounting and audit fees
- Maintenance and replacement on all supplied items in the residence and external building works
- Private pool maintenance
- All utilities, except the electricity used for the air-conditioning which is metered while you are in residence
- Communal pools, landscaping and garbage servicing
- Access to the beach with chairs, umbrellas, service staff and towels
- Resort security - 24 hours a day, 7 days a week, gated
- Front desk and personalized concierge services
- Daily maid service with toiletries and linen/towel servicing
- Internet access
- Long distance phone calls
- Satellite TV
- Fitness facility
Lots of Relaxation and No Maintenance
The ability to go on vacation and not have to worry about spending your time repairing or maintaining your (second home) vacation property is another big factor that private residence club buyers mention. You can turn up and just start relaxing and enjoying your vacation and at the end of your vacation you can simply head home without worrying about the property.
Private Residence Clubs offer the service levels of luxury hotels with 24 hour concierges and daily maid service. Your home will be prepared for you before you arrive and you can just leave it at the end of your vacation and not need to worry about it. The concierge can book tee times, spa times or theatre tickets to ensure that you make the most of your vacation time. Other services can include airport valet, private chefs, childcare and to name but a few.
The appeal of using the world class spa and wellness retreat, fitness facility and other sports and leisure amenities are all major attractions for private residence club buyers. You can also usually leave personal belongings such as sports equipment in storage at your property, so that you don't need to carry it all back and forth.
In addition, the properties are furnished to the highest standards and offer the highest quality in all elements of design and construction.
In a Ragatz survey of private residence club owners, which asked them why they bought, 90% of owners said "Quality of finishes, furnishings" was very important to them and 83% said "Extent of on-site amenities, activities" was very important. We continue to see the number of private residence clubs increase each year - spurred on by the clear benefits to ownership. We've also seen examples of the private residence clubs increasing in value over time.
The Puerta a la Vida Approach to Private Residences
Our rooms will use only natural environmentally clean construction material, 5 star-interior design. Organic landscaping. Clean spring water and air-condition. Organic healthy menu … etc. design by best- Victor Canas.
The potential member of our Residence Club will spend 1-2 and up to 4 weeks. The longer stay will be mostly related to wellness retreat health treatments. Some people will come twice a year for a health treatment.
Most of time will be spend in outdoor activities, seminars- event and Spa-Wellness Center.
So from this point they do not need to invest or over-stretch to unnecessary big-expansive living space.
That how we realize “Small is New Big”
We were motivated to create “affordable luxury” small -elegant 5-star spaces. That work with real functionality. Size-that people could easy afford as a second -vocation home.
The second principals of cost-value are to present the option of investment opportunity where Club member could earn a dissent return on investment via rental pool option (phase 1) or fractional ownership (phase-2) or combination of both.
In this case Club members will have the rental income that and part of it will cover a “cost free” their vocation home stay.
We also will have satisfied part of the demand segment that not necessary want to participate in above option and want to be a permanent member of the community.
Bellow some data that support our practical approach.
PRC will consist of total 58 residences.
The first phase -40 mini-villas.
14- Tropical Garden Casitas (model-1) by architect Victor Canas-with indoor-outdoor swimming pool field with mineral spring water. Living size 564 sq. feet (52.2 sq.). Space will have air-condition and fiber -optic hi speed internet. Spa- like bathroom, outdoor patio, organic garden. High-11feet sealing. Fully furnish price $119,000 & One-week fractional ownership… Yes! just $3,987 Occupancy 2-person.
26- Cliffside Duplex with independent-private entrance. (Model-2) by architect Victor Canas. Prime ocean view. Living size…1000…Space will have air-condition and fiber -optic high speed internet. Spa-like bathroom. Outdoor patio and big green area for organic fruits, vegetable & herb garden, Hi-sealing 10’ and 11 feet. Fully furnish price…. $239,000 and One-week fractional ownership just $7,987. The functionality of the design allows to rent one of the two rooms and use the second by the owner of the villa.
Below you could see table that illustrate estimated return on investment from rental pool option.
15% management fee will cover absolutely ALL the expenses to PRC operation.
We will provide the additional storage space for a personal belonging (ski board, …)
PRC member could participate in organic agricultural coop and any other business opportunities that community involved
To be continue…
The second phase- 18 luxury 3-4 bedroom villas
Details of the second stage design and pricing will be presented on individual’s demand
Limited Founders Offer - contact us for more details: Living@puertavida.com