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RITZ-CARLTON
KEY BISCAYNE
Q: Do they
have two bedroom units at the Ritz-Carlton, Key Biscayne
and if so, what kind of income and expenses can I
expect?
A: The large units at the Ritz-Carlton
are one bedroom units attached to a studio lock-out
unit. In effect, it is a two bedroom unit. The monthly
maintenance for a one bedroom unit is currently $1,109,
and the maintenance for the studio is $503, for a
total of $1,612.
Included in the maintenance is electric,
phone, insurance for hurricane and liability, reserves
for unit replacement, plus your use of the Ritz-Carlton
Spa, tennis and beach club.
Real estate taxes are 2% of the purchase
price.
Rental rates vary dramatically, but
range from $160-$300 per night for a studio and from
$225 - $400 per night for the one bedroom. Combined,
the units could go for anywhere from $350 - $500 per
night, depending on demand and the time of the year.
The busiest times of the year, obviously,
are the holidays, especially Christmas, 4th of July
and Thanksgiving, but their strongest months are from
mid-end October to Mother's Day in May.
As for renting out your unit, they
have two plans in place, one guaranteed and one flexible.
The flexible one is most conventional.
"After taking the management fee off the top (10%),
the remaining 90% is split 50-50. Therefore, the balance
of the revenue (45% of the total) is paid to the unit
owner."
The guaranteed plan says that you
the unit owner will be paid $70 per day for your one
bedroom unit and $50 per day for your studio unit,
regardless of if it is rented, guaranteed. The problem
though is that this is based on a 10-month program,
not 12. So, if you want to use your unit for two months
a year, this may work well for you. However, if you
want to use it three months a year, the flexible plan
may be your only option.
The above question(s) were submitted
via e-mail by a visitor to www.condohotelcenter.com.
The answer was prepared by Joel Greene, a licensed
real estate broker with Condo Hotel Center which specializes
in the sale of condo hotel units and fractional ownerships
in private residence clubs.
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