Go Party? Go Skafa! Go Skafa! Go Party!

„What you often notice is that there are several levels and layers of costs between the hotel, where the profits are generated, and the owner of the unit who must receive a portion of the profits. The rental pool management company is entitled to a percentage of the hotel`s turnover, as a fee, in addition to the management fees charged by the hotel management company. From a tax perspective, there are also some advantages, that is, the Internal Revenue Service (IRS) has rules that can limit the amount of losses that can be deducted from rental real estate. A taxpayer cannot deduct losses because the IRS takes into account the passive activity of rental income and a loss of passive income cannot be deducted from active income, for example. B wages earned. However, if a taxable person has other passive income, he or she can deduct a loss. Last week, the hotel`s organization was placed under administration on charges of mismanagement, financial irregularities and conflicts of interest, involving the developer, who is at the same time the largest unit owner, the president of the organization and the sole director of a company that performs certain positions of manager. A rental pool management contract is used to develop reduced costs. Cost-merging saves money. In addition, everything is distributed among the parties, from administration to expenses. A hotel operating contract defers the risks of the owner`s management to a hotel management company and ensures the smooth running. The developer`s reputation or balance sheet.

Ask the developer to refer you to other hotel developments he has undertaken, and then ask the unit owners in those developments what their experiences were, Keet advises. In the recent decision to Station Mont-Tremblant v. Banville-Joncas[1], the Court of Appeal asked to characterize a contract between the developer of a resort hotel project and the owners of condominiums. The contract stipulated that the units should be made available to a rental pool managed by the developer. A hotel operating and rental contract is an agreement between the owners of a hotel property and a hotel management company, under which the functional and administrative operation of the hotel is outsourced to the hotel management company.

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