POOLED INCOME SYSTEM
Green Waves Villa will use a pooled occupancy method for distributing the rental income of the complex to ensure that all Villa Owners are treated in a fair manner regarding the investment return generated from Villa rental activities.
Villa Owners receive a proportionate share of pooled rental income regardless of the actual rental occupancy in any specific Villa as shares are calculated on the entire complex's rental income. The method of sharing is influenced by each Owner's utilization of their villa ("Owner Occupier Nights' or "ONN"). Villa Owners are excluded from the rental pool on those nights when they are in residence.
This structure has several other benefits. It allows individual owners to use their villas as much or as little as they choose. The less an individual uses the villa, the more they will benefit economically from commercial rentals. Also it encourages all owners to consider when they will stay in their villa as certain times of the year (the peak seasons of Christmas and the month of August, for instance) are more valuable to the Villa Owners and the Villa Complex than other times of the year.
This is how the system operates:
Step 1
All villas are grouped into a single accommodation pool
Step 2
the total revenue and owner's shares are calculated on a daily basis, accounted for on a monthly basis, and distributed to the owners on a quarterly basis. All travel agency and airline commissions are subtracted from this gross amount and paid to the agency or airline before they reach the complex.
Step 3
from the remaining balance, an allocation of 10% is paid to the Management Company as its Variable Management Fee. The remainder is termed the Gross Rooms Revenue (GRR).
Step 4
Each Villa owner has an Owner's Share in the complex. The share is equal to the number of bedrooms in their respective villa divided by the total numbers of available bedrooms for commercial rental in the complex. On any given night any or all Villa Owners may be using their Owner Occupied Nights (OON). If they are, they are removed from the pool of available bedrooms for that night.
Step 5
on any given night the Total Available Bedrooms (TAB) is calculated. TAB equals the number of bedrooms in the complex minus OON.
Step 6
Owners who are not using their OON are then entitled to the Owner's Nightly Pool Share (ONPS). Each ONPS equals the GRR divided by the TAB multiplied by number of bedrooms that the Villa Owner possesses.
Step 7
as indicated above, this calculation is performed daily then the cumulative figures are compiled monthly and then income is distributed quarterly.
