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Caicos Beach Club Resort and Marina

Managed Rental Programme (Pay off the cost of the apartment through managed rentals, and still have a place for holidays!)

 

OPERATION OF THE RENTAL POOL

Unit Owners at Caicos Beach Club Resort and Marina will have the opportunity, renewable on an annual basis,  to place their unit in the Owners Rental Pool Programme.. Owners who participate in the plan will derive Rental Income while still retaining the option to use accommodation and resort  facilities through their Club Membership in Caicos Beach Club.

Caicos Beach Club Resort and Marina will be operated as a Resort Hotel. However, the one major difference between Caicos Beach Club Resort and Marina and your local Hotel is that the net proceeds from the Rental Pool go to the Unit Owner who placed the Unit in the Rental Pool Programme, not the Hotel owner.

The Pool will operate as follows:

  • Gross Rental Income from the Apartment Rentals 
  • less Gross Expenses =
  • Net Rental  Income:  placed in the Rental Pool Account and shared among all participating Unit Owners in the Plan according to their respective membership interests.

Please note that a minimum rental guarantee of 8%, for as long as you own the apartment,  is offered to all buyers not requiring developer financing.* This is a minimum. Where the rental pool return is greater, you will receive the higher of the two amounts.

 
 
 
 
EXAMPLE RENTAL INCOME CALCULATION

 Example Based on an Ocean View One Bedroom apartment at $289.000

Investment Proforma
Own an Asset, not a Liability
Ocean View One Bedroom Rental and Expense Projection

Average Rate Per Night 55% Occupancy 60% Occupancy 65% Occupancy 70% Occupancy
Gross Income at $299/night
 $60,024 $65,481 $70,938 $76,395
Maintenance $3,600 $3,600 $3,600 $3,600
Use fee $11,041 $12,045 $13,049 $14,053
Management $18,007 $19,644 $21,281 $22,918
Average Net Rental $27,376 $30,192 $33,008 $35,824
Two Week Bonus $4,186 $4,186 $4,186 $4,186
Gross Net/year
(including 2 free
bonus weeks)
 $31,562 $34,378 $37,194 $40,010
  • Assuming 55% occupancy at $299 per night, the gross income would be $60,024 per year.
  • After deducting the estimated expenses for maintenance, use and management fees, the gross net return is $27,376 per year. The use fee and management fee is only charged when the Unit is occupied.
  • Gross net per year, including the two free weeks use valued at $4,186 ,is $31,562 or a 10.9% return per year on the $289,000 purchase price.
  • Assuming 35% down, the purchase price with the appropriate under construction discount will be $289,000 and the down payment would be $101,150.
  • 10 Year  Mortgage Amount (187,850) at 8% interest only would be an annual interest payment of $15,028.
  • Gross net per year is $27,376 and the two free weeks valued at $4,186 is $31,562 or a 31.2% return per year on the $101,150 invested (cash actually in).
  • The $31,562 less the interest payment of $15,028 per year shall net $16,534 per year or 16.3% based on the $101,150 invested (cash actually in).

    The above Proforma does not include the annual appreciation which has been between 10% and 20% per year over the last eight years. The current annual 2004/2005 per night rental rate for an Ocean View One Bedroom Unit in the Turks and Caicos Islands is $434. The above proformas are based on $299 per night or approximately 32% less than the 2004/2005 annual rental rate.


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