OWNERS SHARE OF RENTAL INCOMEIn the September 2019 meeting of the PROA Finance Committee, the rental policy was updated and the rental reimbursement was changed as follows: Effective January 01, 2020, owners shall receive 60% of the gross room revenue realized from the rental of their unit, and Pinestead Reef Resort shall retain 40% of the gross revenue for administrating the rental. Payment to the owner will be made by check, and will be mailed to the owner's address on file on or before the 10th of the following month. Owners receiving more than $600.00 of rental income will receive a 1099-MISC tax form, per IRS requirements, by January 31st reporting the prior year's rental income.
NO MINIMUM GUARANTEED Pinestead Reef Resort cannot guarantee or predict the number of nights an owner's unit may rent, or accurately estimate the dollar amount the owner may expect to receive in advance. The owner should be aware of the unpredictable nature of the hospitality industry, and accept the possibility their unit may rent anywhere from zero nights, up to the total number of nights offered for rent. The owner should understand that even if their unit has been reserved in advance, the renter has the option to cancel the reservation, without penalty, up to a certain time. Thus, advance bookings are not a guarantee of future rental income. Changes in room assignments are made daily, up to and including check-in time, which best accommodate resort operations and guest preferences. Pinestead Reef Resort will attempt to rent the owner's unit for as many nights as possible, and for the most competitive nightly rate at the time. The owner understands and agrees that Pinestead Reef Resort retains sole discretion in determining the nightly rental rate charged and that it may be less than the published nightly rate. The owner is welcome to call Pinestead Reef at any time to check on the rental status of their unit/week/days, with the understanding that it is subject to change.
REVOKING AUTHORIZATION TO RENTOwners may or may not be able to revoke their authorization to rent their unit, depending on operational considerations at the time. The owner agrees to and understands that their authorization to rent their unit/week/days is their express permission to appoint Pinestead Reef Resort as rental agent for that unit/week/days. Once rental authorization is received, Pinestead Reef Resort has the ability to contract with tenants who have or may agree to rent the owners unit, and Pinestead Reef Resort has a duty and obligation to fulfill that rental agreement with the renter. If the owner's unit has not been rented and they wish to occupy the unit, the owner may revoke their authorization to rent. If the owner's unit has been rented and Pinestead Reef Resort is unable to accommodate the guest in another similar unit, the owner may not revoke their authorization to rent and will not be able to occupy or assign(sell) their unit for the current year.
OWNERS FINDING THEIR OWN RENTERAs an alternative to placing the unit with Pinestead Reef for rental, owners may pursue and secure their own renter to occupy their unit/week. In this case, Pinestead Reef will treat occupancy of the unit as if the owner were using the unit. The owner will enter into their own agreement with the renter, and Pinestead Reef Resort has no financial interest or obligation in the transaction. Any refunds,discounts or financial transactions that may occur, or that may be requested by the renter, are the full responsibility of the owner.
The owner must provide Pinestead Reef Resort with written notice of the renter's name(s) and dates of occupancy, which will permit and authorize resort staff to check in the guest. The owner assumes full responsibility for any damages or loss incurred by the Pinestead Reef Owner's Association, as a direct result of the renter's misconduct. Owners should consult with their insurance advisor concerning their personal liability which may arise in the event of injury or claim asserted by their rental guest.
PROCEDURES FOR BOOKING RENTAL UNITSRental units are booked by Pinestead Reef Resort primarily based on guest preference and occupancy considerations. Unit size, location and layout may be factors in determining which units become rented. Thus, special requests by renters for certain unit types or locations will be honored whenever possible, and changes in room assignments may occur, up to and including check-in time.
Example 1.) if a renter wishes to stay over Sunday, we will attempt to book them into a rental unit which is available both Saturday and Sunday nights, thus avoiding a room change on Sunday.Example 2.) if a guest at check-in requests a unit closer to the pool rather than the originally assigned unit away from the pool, we will move the guest closer to the pool if possible.
Cancellations, date changes, special requests, Sunday stay-overs and current occupancy all influence which units are rented. Pinestead Reef Resort has sole discretion in assigning rental units, based on decisions which best accommodate our guest's needs and are determined to result in the most efficient operation of the resort.
AMOUNTS OWED TO THE ASSOCIATIONOwners are not permitted to apply any rental income generated from the rental of their unit/week(s) to any outstanding account balance owed the Association. The Association shall hold any rental income earned from the rental of an owner's unit/week until the owner's account is paid in full, at which time such rental monies will be paid to the owner. The Association reserves the right to rent, collect and hold monies received from the rental of a delinquent owner's unit/week, as permitted by Michigan law.
FLEX UNITSFlex owners who secure their assigned flex week and place it in the rental program effectively convert their flex week into a fixed week for that particular year, and are subject to the same rules and policies that apply to fixed week owners. Owners can only rent out flextime during their assigned flex week. Once an owner has secured their flex week, they may rent, occupy or allow friends/relatives use of that week, or any combination of the three. Unrented or unoccupied flex days for that assigned week may not be carried forward for use a tanother time.