FAQ about purchasing a suite at Estrimont
Before investing in your future pied-à-terre, allow us to further explain the concept of condo-hotel ownership. Here are some frequently asked questions:
1.Q- Is it the same as a time-share?
A-No, it is a very different concept. In time-share setups, people own a week of the property, without any actual ownership title.
In the case of the condo-hotel with us, you are the owner of a condominium, with a title of ownership, registered by a notary, as it would be with any condominium purchase. The two main differences are that we give you a rental lease that clearly states your rental revenue, and we set the unit up as a hotel.
2.Q-Does this condo-hotel formula exist elsewhere?
A-It is a formula that has been tried and tested for many years. It has been in use in Mont-Tremblant since 2000, and has been successfully implemented at the Saint-Sulpice in Old Montreal, and at Estérel Resort in the Laurentians.
3.Q-What’s different about your formula compared with other condo-hotels?
A-The differences are in the way that we establish your rental revenue, and with the occupation rights to your unit.
- a) The difference in the way we establish your rental revenue:
Most condo-hotels are set up to share rental revenue 50/50 between the condominium owners and the hotel operator. This means that the operator and owner each receive an equal share (50%) of the revenue. Furthermore, owners are responsible for the following expenses: school and municipal taxes, condo fees, telephone service, cable, and mortgage. With its 50% share of the revenue, the operator covers the costs of cleaning, reception, and marketing.
The problem with this model:
Owners receive variable revenue but their expenses remain 100% fixed (mortgage, taxes, condo fees). The operator on the other hand, with hotel expertise, also has variable revenue, but benefits from variable expenses.
In our case, we propose a 20-year lease with fixed revenue, indexed according to consumer prices after the second year. This eliminates in large part the risk associated with ownership, because revenue is not subject to rates of occupancy, or to the hotel’s median rates.
- b) Owners occupation rights:
In other condo-hotel formulas, owners are deprived of revenue when they are occupying their own units. As a result, owners are hesitant to stay in their units because of the potential loss of revenue. This is particularly frustrating for owners when, at the end of the month, they get their statements, only to realize that occupancy was sometimes low, and staying in their units would not have had much of an impact on revenue. By then, it is already to late to make the most of their unit for that timeframe.
Here, we give owners an occupation-costs chart for their unit, for the upcoming 4 months. We provide these charts every 3 months. These charts will show at least 160 days out of the year, when owners can occupy, rent, or lend their condominiums for $20 per day. The other days, the rate for using one’s unit is 30% less than the hotel’s advertised rate.
4.Q–If we come with friends or family, can we have another suite at the same rate as our own suite?
A-Yes, you can rent a second suite- at owner rates-10 nights per year.
5.Q-Do owners get discounts and advantages?
A-Yes. See the section on “advantages”.
Geneviève Bellavance, Real Estate Broker
Cell : 514 220-9666
Yannick Beaupertuis, General Manager
Cell : 514 358-3126