Rental Program Explained
Rental Program Explained
Meadow Lake was designed with owners in mind, but they are not necessarily filling all of the beds every night of the year. When an owner isn’t occupying a unit, one option is to put that interval into the rental program. There are a few different scenarios when it comes to putting a unit into rental: owners that are RCI points members, owners who do not belong to RCI points, and owners who have become delinquent on their maintenance fees. Regardless of the scenario, a robust rental program can directly benefit all owners and will yield a healthier resort overall.
RCI Points Members: When an owner joins RCI, they essentially release their interval to RCI’s inventory. Meadow Lake cannot use RCI inventory or put it into the rental pool, even if it is unused. Therefore, in order to put a week into rental, an owner must first take the necessary steps to book that week through RCI. Once RCI has made a reservation under the owner’s name, the owner may then contact the resort to acquire the paperwork to put it into the rental pool. Maintenance fees must be current, and non-U.S. Citizens must have a U.S. tax ID number. If there is demand and the interval is rented, 30% of the revenue pays a fee to Meadow Lake, and 70% of the revenue is paid to the owner.
Non-RCI Points Members: Meadow Lake owners who do not belong to RCI Points may directly contact the resort to acquire the paperwork to put their week into the rental pool. Maintenance fees must be current, and non-U.S. citizens must have a U.S. tax ID number. If there is demand and the interval is rented, 30% of the revenue pays a fee to Meadow Lake, and 70% of the revenue is paid to the owner.
Units with Delinquency – RCI Points & Non-RCI Points: Unfortunately, there are owners who have slipped into delinquency, leaving the responsible owners of that unit with an extra burden. When an owner does not pay their maintenance fees, Meadow Lake takes the initiative to put that interval into rental. If rented, 30% of the revenue pays a fee to Meadow Lake and 70% is then put towards the maintenance fees of that unit, lessening the delinquent amount burdening the other owners. The rental program is the primary avenue taken to counteract delinquency and to relieve the resulting financial burden on owners and the resort as a whole.
In all scenarios, the nightly rate is determined by many factors such as season, demand, housekeeping fees, and unit size. Additionally, renters can rent more or less than a week depending on their needs. Due to these variables, total revenue for a given unit in the rental pool fluctuates. There are also times when low demand for rental yields no revenue whatsoever, so Meadow Lake cannot guarantee that everything put into the rental pool will be rented and generate revenue.
Regardless of the scenario, rental activity directly benefits all owners at Meadow Lake, and as rental activity increases, so do the benefits. Hosting owners will always remain a priority of the resort. However, when there are unused intervals for any reason, the wellbeing of all units and owners can be upheld by a robust rental program.