South Point Condo Hotel FAQs
When will the owner receive rental income?
Rental income will be credited quarterly based on payments received from rental of participating units; funds will be credited to Owner’s Distribution Account on or before the 30th of the month following the preceding quarter. Statements will be prepared quarterly.
What guarantees do you give that the units will be rented?
We give no guarantees; however we will employ best practices and efforts to achieve maximum occupancy and revenue potential for the property. The prime location and concept of South Point lend the development a better than average chance for strong occupancy levels. One of our shareholders has many years of experience in the industry and has successfully provided marketing services to a leading hotel in Antigua. We will engage the services of PR agencies, marketing companies, travel agents and online agents and portals to distribute, promote and sell the holiday rental accommodation.
How many days notice do I have to give if I want to come to my appartment?
If the unit is in the Condo Hotel Rental Program, then the agreement provides Owner or guest of Owner reservations subject to availability only. It is however, recommended that early notification of preferred dates for occupancy will improve availability. If the unit is booked, the owner may have to substitute his/her own unit for another in the Condo Hotel or the booking may be moved to an alternate unit.
What is the owner’s reserve fund?
As units are to be rented out as part of a Condo Hotel, it is expected that from time to time there will be wear and tear and breakage from normal use. The Reserve Fund will be used to pay for repairs and replacements to keep units at the high standard required for hotel rental and the market rates, which are to be commanded. Additionally the Reserve Fund may be used for assessments for major upgrades, refurbishment, and replenishment of soft furnishings, appliances or for the repair to property and contents within the units. The Reserve Fund is held and operated by the Hotel Management Company and is calculated at 5% of Rental Revenue.
How are the rental and occupancy rates established?
The rental and occupancy rates have been determined through research and comparison of rates achieved for properties in the area and in Antigua in general. A combination of other criteria such as location, services and amenities of the facility, quality of the property and rooms, competition, market rates, seasonality, experience, and historic knowledge and data are all taken into consideration in order to arrive at the rates.
What are the owner’s costs associated with the condo hotel rental program?
Unit Owners are only affected by the direct costs of generating bookings or room rentals, these being tour operators, travel agents’ and online travel agents’ commissions, credit card fees and the reserve fund.
Should an owner decide to sell his/her unit before the term of the 5 years, how does it affect the contract?
If you decide to sell your unit, you must provide the Hotel Management with notice; the new owner is required to honor all existing bookings and terms and conditions of the agreement until the departure of those reecervations. Please note that the Developer has a right of first refusal if a unit is being put up for sale. The sale agreement contains specific provisions regarding the way in which this right may be exercised.
The contracts states that South Point Hotel Inc. reserves the right to withdraw the rental program if less than 70% of the units participate. What would the consequences be?
This would be very unlikely; this clause serves to release the Hotel Management Company from its commitment under the Condo Hotel Rental Program should a majority of owners choose to keep their units for personal use resulting in there being insufficient units under management to make the operation of a Five Star hotel economically viable. With only 23 units, less than 70% participation threatens the hotel’s viability in that it could possibly end up with only 9 to 10 rooms available on any given night. This is only a policy; it does not mean that the hotel operation will automatically be shut down if there are less than 70% units in the hotel rental program. This serves to ensure that Owners’ objectives are aligned with the concept of South Point. South Point has been conceptualized as a boutique hotel in order to offer Owners the greatest income potential; at present the property is already operating as a hotel. It is important to understand that the start-up costs for a hotel are quite high and so once this is launched, the likelihood of closing the program is very improbable.
How many nights per year can I stay in my unit and is there a cost?
As an Owner, you have an allotted forty-two (42) nights occupancy (14 nights during the high seasons and the balance during the rest of the year). No rent or room fee will be charged for these nights but you will be charged for house keeping as requested an a mandatory departure fee for cleaning and amenity restocking services. If you elect to stay in excess of the allotted 42 nights, rates will be solely at the discretion of the Hotel Management Company.
If an Owner chooses to stay during the Annual Closure Period these nights will not be deducted from your annual Owner occupancy allowance but note that hotel services and amenities will not be available and significant heavy maintenance is undertaken during this period and therefore quiet enjoyment cannot be guaranteed
Can relatives of the owner stay under the owner’s name without the owner being present?
The 42 Owners nights can be used by anyone to whom an Owner chooses to give use of his/her unit. Any guest staying under the Owner’s occupancy allocation is defined as a Guest of Owner.
How do I make a reservation to use my own unit?
All Reservations including those of Owners and Guest of Owners must be made through the Management Company to ensure co-ordination with other confirmed reservations.
May I request my unit to be non-smoking?
The Management Company operates a non-smoking policy in all rooms however smoking is permitted on the terraces.
Whilst not in residence, may I use the hotel facilities?
Some of the amenities at South Point are commercial and open to the public and are charged separately; these include the Fitness Centre, Restaurant and Lounge. These facilities would also be available to Owners whilst not in residence, however, facilities such as the Pool and Beach will be reserved primarily for hotel guests or Owners in residence.
What happens if I do not enter my unit in the vacation rental program?
If a unit is not entered into the Condo Hotel Rental Program the Owner is NOT permitted to operate a parallel vacation rental or hotel program. Units that are NOT in the Developer operated Condo Hotel Rental Program are required to pay a Resort Fee to the Hotel management Company.
If I need to rent another unit for additional guests, do I get a special rate?
The Condo Hotel Rental Program Management Company has absolute right to determine the rates based on best commercial practice and mindful of the intent to optimize revenue for the Rental Pool; Owners in the rental program may request preferential rates for their paying guests, however, rates will be set solely at the discretion of the Hotel Management Company, subject to availability and Best Available Rates will prevail.
How often will I receive a statement?
A statement will be issued quarterly showing a breakdown of rental activity and revenue for the period in question.
How often will I receive rental income?
Rental income will be allocated to Owner Distribution Account quarterly based on prorated portion of Rental Pool Revenue for the period in question. Payment will be made no later than the 30th day of the following month.
What is the term of the condo hotel agreement?
The term of the agreement is five (5) years and will automatically renew for another five (5) years unless Owner provides 180 days notice prior to the expiration of the then current term.