Newport Coast Villas MF's Discussion

[Superchief]

2016 Master Reserve Assessment 58.82
2016 Condo Reserve 74.15
2016 Master Operating Assessment 91.23
2016 Condo Operating 117.95
2016 Replacement Reserve 238.58
2016 Operating Fee 549.10

Grand Total $1,129.83

{ETA from deleted duplicate post} Forgot to Mention California Property Taxes of $91.78 -- in addition to the MF

This is a 6.9% over last year. Another excessive increase in MF. Key increases 23% activity fees, 15% human resources, 16% owner services. These should be controllable expenses.

 

[BocaBoy]

This is a 6.9% over last year. Another excessive increase in MF. Key increases 23% activity fees, 15% human resources, 16% owner services. These should be controllable expenses.

MVCI controlled costs much better when inflation was a lot higher. Hard to understand this.

 

[gregloucks]

I agree. Most of our MVCI properties have increased fees 5-6% per year in recent years, at a time when inflation has been running 1-2%. Personally I don't see us holding onto them if that trend continues long-term.

I have been wondering if the property managers are more focused upon improving GSS (since presumably that impacts their compensation) and less focused upon keeping a lid on increasing costs (since those appear to be easily passed through).

 

[rickandcindy23]

The fees for Marriott's Custom House, Boston, are outrageous. We own an annual + an EOY at CH. The fees are well over $1,600 this year. I see no reason to keep those units, unless I can rent them, and so far, I have been unable to rent them even for my fees. We won't go to Boston every year. What a mistake to buy those!

 

[Deej82]

I know that at the owner's meeting at Ko Olina, BQ cited their rising healthcare costs as the primary reason that personnel expenses were going up... the laws in Hawaii I believe are different, but I'm sure the trend is throughout...

 

[dioxide45]

I think it is really HR and labor costs that are causing the higher uptick. In our Fall Harbour Lake newsletter, the GM or BOD member discussed how Walmart had announced they would start paying $15 an hour. I don't know if this was in Orlando, as I hadn't heard that. Of course, if other employers are paying more it will be harder for our resorts to attract and keep talent unless they are willing to pay more too. I don't like the increased trends, I think we need to start to put pressure on our BODs and ask the tough questions. If we all just continue to pay when the bill comes due, I don't think we will effect much change.

 

[jtp1947]

We also own at the Custom House and while I agree the MF's are high, if we were to rent a week in October when we always go, it's over $4K. We didn't buy it to rent, but to go every year. We bought the CH for $5K and they are even cheaper now.

 

[davidvel]

This is a 6.9% over last year. Another excessive increase in MF. Key increases 23% activity fees, 15% human resources, 16% owner services. These should be controllable expenses.

Activity fees are up. Must be all those free drinks given out at bar stool bingo and blackjack!

 

[tahoeJoe]

Non Fall Owners

We also own at the Custom House and while I agree the MF's are high, if we were to rent a week in October when we always go, it's over $4K. We didn't buy it to rent, but to go every year. We bought the CH for $5K and they are even cheaper now.

Maybe, but what about the poor souls who DON'T own September or October? Is a week in January or February really worth over $1600?

 

[jtp1947]

No, a Jan. or Feb. week isn't worth $1600 but you can buy a platinum week for nowadays for $500 and if you don't want to go every year you can easily rent it out for more than your MF's in the fall season.

 

[SueDonJ]

Maybe, but what about the poor souls who DON'T own September or October? Is a week in January or February really worth over $1600?

Isn't that the risk you take when buying a float Week for rental purposes?

I guess it's a harsh reality but there are no specific reservation guarantees with float Weeks and MVW doesn't guarantee rental activity/income for any of its products.

 

[dioxide45]

We also own at the Custom House and while I agree the MF's are high, if we were to rent a week in October when we always go, it's over $4K. We didn't buy it to rent, but to go every year. We bought the CH for $5K and they are even cheaper now.

You must be looking at rental rates on Marriott.com? I don't see how anyone could get $4000 by renting a week at Custom House in October on the private market. Is there something I am missing.