Monday, December 11, 2006
Paying vs Nonpaying Guests
Hi All. We currently have our unit in the VLE rental pool and pull it out of the pool when we need it. If friends or other guests use the unit, we are always asked if they are "paying" or "nonpaying" guests. When I asked what they were referring to, the reply I received was "A non paying guest is a guest that is not paying you any kind of money for the use of your villa." Does anyone know why this should matter to the resort - what are the implications? Most of the time, our guests would fall under the "nonpaying" definition, but I'd like to understand why the need for the distinction. Thanks.
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John and Kathy, this is one I can answer. The resort management company charges us $10 (plus 10% tax) for each night we rent our villas. The charge is somewhat higher for 3 BR or penthouse villas. It is said that this charge is because of the extra demand on the concierge staff associated with renters, who might be first-time Cabo visitors, as opposed to the owners, who are supposedly old hands at it.
Tom
Tom
After attending today's HOA meeting, I think clarification is needed on this topic.
The $11 charge is not paid to the resort management company; rather, it is paid to the HOA and is in place as an attempt to somewhat equalize fees paid by homeowners. For example, an owner who uses their unit 30% of the time -- and does not rent it out -- uses less resources (staff, utilities, common supplies) and therefore should pay less. An owner who has 70% occupancy; likely from rentals, should pay more. Renters also tend to be harder on the facilities than owners.
It's not perfect, but an attempt at equalizing dues.
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The $11 charge is not paid to the resort management company; rather, it is paid to the HOA and is in place as an attempt to somewhat equalize fees paid by homeowners. For example, an owner who uses their unit 30% of the time -- and does not rent it out -- uses less resources (staff, utilities, common supplies) and therefore should pay less. An owner who has 70% occupancy; likely from rentals, should pay more. Renters also tend to be harder on the facilities than owners.
It's not perfect, but an attempt at equalizing dues.
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