Project Coordination
Given the right location, product and pricing, the common thread of all successful condo hotels is the orchestration of the development, construction, real estate sales and marketing, and rental management. It is the fusion of asset development with condo hotel operations.
To achieve our clients’ goals we coordinate with the Developer, and its consultants and advisors, in the orchestration to open the condo hotel project. We are one of the few companies experienced in producing results regardless of market conditions. The reason is simple: we’ve been at this for almost 30 years including two down turns in the real estate market.
Condominium Map and Condominium Documentation
Well planned condo hotels take into consideration use, rental performance, and maintenance of units to be bought by the consumer, in addition to real estate driven incentives. Overlaid on top are the business goals of the developer and the rental operator. We are adept at carving out condo apartment units; both residences and commercial applications are considered in conjunction with project architects. We understand the correlation of the mapping process with the project documentation, including the CC&Rs, hotel license areas, front desk and unit maintenance agreements, all of which influence the condominium association and licensed area budgeting process.
Budget Development
Perhaps the most sensitive orchestration is played out in the budget development process. How should costs be allocated between the homeowners' association and the other invested parties with respect to the licensed areas and rental program? We work through this process by first establishing the developer’s goals and mission statement, which, while it may be primarily motivated by the bottom line, also includes other incentives such as political, environmental, and/or other related project issues (happy buyers invest at other projects).
The process continues into the review of the condo map and the reading of the condo documentation to ensure correct allocation of expense categories within the guidelines of the CC&Rs, and the license and unit maintenance agreements.
Rental Management Advisory
A key success element of a condo hotel is the professional management of individual owners’ condominium units. Credibility of the rental program and the performance of the operator will reflect on the prospective buyer's propensity to acquire a condo hotel unit, especially if the purchase is the buyer’s first condo hotel investment. Accordingly, a known operator or brand will significantly enhance the reputation of the offering.
AHC will assist in the selection of an operator, review management obligations, and participate in and/or conduct the negotiation of management contracts and franchise license agreements.
Rental Program Owner Services
Perhaps the least understood but the most influential in a successful condo hotel sales environment is our Rental Program Owner Services, through which we provide information on the rental program to future condo hotel owners.
Our Rental Program Owner Services program provides:
- A descriptive analysis of the rental program.
- Development of historical hotel statistics and other factual information packaged in a meaningful format.
- Development of an FAQ (Frequently Asked Questions) document along with other rental collateral including information on the program operator (if available).
- Answering via phone, email, and letters, all rental program questions related to rental structure, use rights, and the financial responsibility of the repair/maintenance and upkeep of the condo units.
- AHC associates will answer all rental program questions within the guidelines set forth by the SEC in the IntraWest “no action” letter.
AHC’s associates are experienced in condo hotel rental management and owner services, having formed rental programs and provided owner services for many other condo hotel projects. Its principal, Will Tanaka, is a former SEC licensed principal and was the financial principal of a real estate securities company that sold condo hotel securities, private placements and registered.
We participate in the developer sponsored discussions with the development team members and provide only factual representation of rental program material. All developed rental material is first circulated through the developer’s legal team for comments and revisions before diseminating it to the public.
Some facts to note about rental program owner services:
- The average buyer who has not previously bought a condominium hotel will spend an average of one hour asking about the rental program. These questions will be spread out over not less than five contacts.
- All related rental program questions can be distilled down to three main, root categories as follows:
- rental program mechanics (how does it work, when do I get paid, what are the percentage splits, etc.)
- owner use benefits (how, how often, when, etc.)
- repair/maintenance and upkeep of owner’s asset
We anticipate that the projected price range of the Project will attract buyers whose interest will focus more on the use and maintenance of their investment than on the rental opportunities
As Rental Program Owner Services Specialists, we will respond to queries relating to the rental program, and present qualified condo hotel representatives to answer questions and serve as a conduit to the project status, all within the context of SEC guidelines.
The objective of our rental program owner services is to give buyers confidence in the rental program so that they will focus on the real estate purchase.