Glossary · Costs and income
Rental programme
Also called: Rental pool, Rental guarantee
In short
An arrangement in which an operator lets your unit with others in the project and pays you a share of the income, or a fixed return the developer guarantees for some years.
What it means
In a rental programme the owner hands the letting to the project's operator, usually a hotel company. In a rental pool, the income of all participating units is combined and shared out. A rental guarantee is different: the developer promises a fixed yearly payment, whatever the unit earns.
How it works
- The operator markets the units, takes the bookings and looks after the guests.
- Its fees and the running costs come off the income before the owners' share is paid.
- Owners may use their unit for a limited number of days a year, often outside the high season.
- Daily letting is lawful because it runs under the project's hotel licence. That is not something an owner can do alone in an ordinary condominium.
What to check
- The operator's share and every cost that is deducted first.
- The length of the agreement and whether you can leave it.
- Who pays for refurbishment, and when it is required.
- For a guarantee: who gives it, for how long, and what the unit would earn without it. A guarantee is worth as much as the developer behind it.