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Resort Residence
Summary of Rental Program
Below please find a general summary of the proposed
Rental Program available to Unit Owners at Sixty Sixty Condominium. The
salient terms and conditions are summarized below. It is contemplated
that an Agreement will be entered into between the Rental Company
(“Company”) and a specific individual Unit Owner (“Owner”) concerning a
Unit (“Rental Unit”). Please note that this Summary is provided for your
convenience only. In the event of any conflict between this Summary and
the Rental Management Agreement, the terms and conditions of the Rental
Management Agreement shall prevail.
Guest
Defined as any person or persons who rents the Rental
Unit, including complimentary guests, but excluding Owner and Owner’s
immediate family.
Rotation System
A “rental management system” will be used in an
attempt to fairly and equitably offer Rental Units for rental. The
Company may divide the Units into different grounds based on size,
location, view, rent, etc. Company may rent out of the rotation system
order if a guest requests a specific room, view, location, size, etc.
There can be no assurances, however, that each Rental Unit will be rented,
or if rented, will be rented equally.
Term
The term is 24 months, and automatically extends for
24-month periods thereafter. Owner may terminate for Company breach with
90-day notice, and Company gets 30 days to cure. Terminable by Owner upon
sale with notice to Company. Company may terminate if Unit does not meet
rental standards.
Exclusive
Agreement is exclusive between Company and Owner –
thus only Company can rent that Owner’s Unit and Company remains entitled
to all fees and revenues as set forth in the Rental Management Agreement.
Company’s Duties
Company provides equitable rental rotation program,
maintains guest roster, maintains management office and is responsible for
paying the costs of the rental program, which may include advertising,
promotion, accounting, cleaning supplies, credit card commissions, travel
agent and real estate commissions, guest room expendables, salaries,
payroll taxes and benefits to Company employees, sales and tourist taxes,
city, state and county business taxes (such taxes to be paid by Company
and charged to the Unit Owner), reservations and Company fax, telephone
and computer charges. Company does all advertising and promotion.
Company also provides Owners with an accounting every
month.
Company assists Owner in the maintenance of Units by
maintaining, at Unit Owners’ expense, a maintenance person for emergency
repairs, keeping a compliment of supplies for immediate replacement of
broken/missing items, conducts regular inspections and reports findings to
the Unit Owner, and designates each Unit as being to “standard” or being
“sub-standard”.
Company may eject undesirable guests who do not
adhere to rules.
Company provides a telephone system. Owners are not
charged for local calls when occupying their Unit, but do pay for toll and
long distance and get a 20% discount from standard guest rates. All
telephone revenue belongs to the Company.
Owner’s Duties
If a Unit is deemed “sub-standard”, Company and Owner
may inspect together and revisit rating. If still “substandard”, Company
may remove it from the rental program until it meets standard. Owner
agrees to pay cost of all damages, missing items etc., and if Owner fails
to do so, Company has the right to do so and withhold Owner’s share of
rental proceeds until Company is paid back. If costs exceed $300.,
Company must notify Owner and Owner has 15 days to give Company permission
to make repairs and 30 days to pay them for it. Otherwise, Company may
make repairs and deduct the cost from the Owner’s account until paid in
full.
Owner must designate Unit as smoking or non-smoking.
If designated as non-smoking, Company cannot assure the behavior of each
guest and cannot guarantee that the guest will not smoke in a non-smoking
designated Unit.
Owner must provide Company with all tax information
for Company’s accounting purposes.
Owner must agree to make all payments for mortgage,
taxes, insurance, condominium maintenance fees and assessments as due. If
condominium maintenance fees and/or assessments fall behind, Company may,
but shall not be obligated, to use Owner’s rental proceeds for payment.
Sale of Unit
In event of sale, Owners must notify Company no less
than 10 days of being listed, and 5 days before any closing.
Rental
Company has right to grant guests a discount in the
event Unit needs repairs during rental period. Company may also transfer
guests to another Unit if needed.
Company has the right to use the Unit for up to 12
nights for promotional purposes.
Owners wishing to use their own Unit may notify
Company in advance, subject to the Unit not being rented already unless
that guest can be moved to another unit.
Compensation
Company places the first $500. of Net Rental Income
in the Owner’s account as security for Owner’s obligations. For rental
services rendered, the Company receives 10% of the actual Gross Rental
Receipt for fees and commissions, and 50% of Gross Rental Income, plus
reimbursement for any commissions, repairs, etc. Company will pay Unit
Owners 60% for referrals to their own Unit, 10% to another Owner’s unit.
Owner pays Company a daily cleaning fee of $20.00 and
a reduced departure fee of $35.00 when they leave their own Unit to get it
ready for the next rental.
Other
There are no proposed “black-out” periods, so all
Units in the Rental Program may be used by Owners at any time.
Limited Power of Attorney to act on Owner’s behalf in
renting, repairing and managing Unit.
No pets.
Insurance requirement for both Owner and Company.
No representation as to investment value or
potential.
Company may be an affiliate of Developer.
Company shall deduct three (3.0%) percent from the
Net Rental Income for deposit into a “FF&E Reserve Account” for the
replacement of furniture, fixtures and equipment and other items as deemed
necessary.
Unit Owners need not
enter into any rental program agreements at all, may rent the Unit
themselves, or may choose any other rental program company the Unit Owner
wishes. Unit Owners are not obligated to rent their Unit under any
circumstances. Further, nothing in this Summary of Rental Program makes
any representation of any investment value, revenue projections, or
marketability.
This Summary
is intended to illustrate the basics of the proposed Rental Management
Agreement. While this Summary is indicative of the logistics of the
Rental Management Agreement, no terms or conditions expressed herein are
binding. Owner and Company are only obligated when a formal Rental
Management Agreement is executed between them, the terms and conditions of
which may vary from those expressed herein. |
