Here are our estimates of the potential annual Return on Investment (ROI) that might be realized by Unit Owners offering short term holiday rentals. These projections are based on assumptions, including comparable rents and costs at January 2022, anticipated future rates of occupancy and net rental rates to be achieved. Due to the inherent uncertainty of future projections, one or more of the assumptions employed in our calculations may not materialize and thus the actual results may vary from our projections and the variations may be significant.
For each Unit size we have prepared a projection of ROI for the first year of rental and a second projection of ROI seven years later, assuming a cumulative total increase in rental rates and annual expenses of 30% (equivalent to an average compounded increase of 3.85% p.a.).
ROI Projections for Unit Owners - Short Term Rentals: 1 Bedroom Condo
Note that these Projections are based on assumptions which in our opinion are applicable at Jan 2022. Actual results will vary from these Projections and the variations may be significant.| Purchase of 1-BR condo | ||||||
|---|---|---|---|---|---|---|
| Purchase Price | US $ | 298,500 | ||||
| Legal fees & costs | (See Note 1) | 4.00% | 11,940 | |||
| Furniture & linens (estimate) | 25,000 | |||||
| Total cost of Investment | $332,940 | |||||
| Estimated Cash Inflows: | Rate, excl. VAT (see Note 3) | |||||
| Rental | US$ | Days in Season | Occupancy | Revenue (US$) | ||
| Winter season (Dec - Apr) | 225 | 121 | 70.0% | 19,057 | ||
| Summer | 150 | 244 | 50.0% | 18,300 | ||
| 37,357 | ||||||
| Commissions/marketing | 20.00% | (7,471) | ||||
| 29,886 | ||||||
| Estimated Cash Outflows: | Monthly average | |||||
| HOA Service charge (incl insurance) | 175 | |||||
| Interior R+M | 80 | |||||
| Property tax | 20 | |||||
| Housekeeping | 200 | |||||
| Utilities | elec/internet/tel/cable tv | 250 | ||||
| monthly | $725 | annually | 8,700 | |||
| Annual net income | US$ | $21,186 | ||||
| ROI estimated | 6.36% |
Notes:
- The legal fees are an estimate of the fees for a purchaser with substantial mortgage financing. If there is no mortgage the fees will decrease.
- No account has been taken of any income tax considerations for owners, as these can vary widely by owner.
- No account is taken of VAT since currently, Bds VAT is not applicable where total revenue is less than US$100,000 p.a.
| Assume that in 7 years Occupancy % is unchanged and Rents & Expenses increase by an average of 30.00%. The ROI projection, using the assumptions in the Notes above, is calculated as follows: | ||||||
|---|---|---|---|---|---|---|
| Estimated Income: | ||||||
| Rental | Rate, excl. VAT | Days in Season | Occupancy | Revenue (US$) | ||
| Winter | 293 | 121 | 70.0% | 24,817 | ||
| Summer | 195 | 244 | 50.0% | 23,790 | ||
| 76.86% | 48,607 | |||||
| Commissions/marketing | 20.00% | (9,721) | ||||
| US $ | 38,886 | |||||
| Estimated Cash Outflows: | ||||||
| HOA Service charge (incl insurance) | 228 | |||||
| Interior R+M | 104 | |||||
| Property tax | 26 | |||||
| Housekeeping | 260 | |||||
| Utilities | elec/internet/tel/cable tv | 325 | ||||
| monthly | $943 | annually | 11,310 | |||
| Annual net income | US$ | $27,576 | ||||
| ROI estimated | 8.28% | |||||
ROI Projections for Unit Owners - Short Term Rentals : 2 Bedroom Condo
Note that these Projections are based on assumptions which in our opinion are applicable at Jan 2022. Actual results will vary from these Projections and the variations may be significant.| Purchase of 2-BR condo | ||||||
|---|---|---|---|---|---|---|
| Purchase Price | US $ | 440,000 | ||||
| Legal fees & costs | (See Note 1) | 4.00% | 17,600 | |||
| Furniture & linens (estimate) | 32,500 | |||||
| Total cost of Investment | $490,100 | |||||
| Estimated Cash Inflows: | Rate, excl. VAT (see Note 3) | |||||
| Rental | US$ | Days in Season | Occupancy | Revenue (US$) | ||
| Winter season (Dec - Apr) | 350 | 121 | 70.0% | 29,645 | ||
| Summer | 230 | 244 | 50.0% | 28,060 | ||
| 57,705 | ||||||
| Commissions/ marketing | 20.00% | (11,541) | ||||
| 46,164 | ||||||
| Estimated Cash Outflows: | Monthly average | |||||
| HOA Service charge (incl insurance) | 300 | |||||
| Interior R+M | 150 | |||||
| Property tax | 30 | |||||
| Housekeeping | 300 | |||||
| Utilities | elec/internet/tel/cable tv | 325 | ||||
| monthly | $1,150 | annually | 13,260 | |||
| Annual net income | US$ | $32,904 | ||||
| ROI estimated | 6.71% |
Notes:
- The legal fees are an estimate of the fees for a purchaser with substantial mortgage financing. If there is no mortgage the fees will decrease.
- No account has been taken of any income tax considerations for owners, as these can vary widely by owner.
- No account is taken of VAT since currently, Bds VAT is not applicable where total revenue is less than US$100,000 p.a.
| Assume that in 7 years Occupancy % is unchanged and Rents & Expenses increase by an average of 30.00%. The ROI projection, using the assumptions in the Notes above, is calculated as follows: | ||||||
|---|---|---|---|---|---|---|
| Estimated Income: | ||||||
| Rental | Rate, excl. VAT | Days in Season | Occupancy | Revenue (US$) | ||
| Winter | 455 | 121 | 70.0% | 38,539 | ||
| Summer | 299 | 244 | 50.0% | 36,478 | ||
| 76.86% | 75,017 | |||||
| Commissions/marketing | 20.00% | (15,003) | ||||
| US $ | 60,014 | |||||
| Estimated Cash Outflows: | ||||||
| HOA Service charge (incl insurance) | 288 | |||||
| Interior R+M | 195 | |||||
| Property tax | 90 | |||||
| Housekeeping | 390 | |||||
| Utilities | elec/internet/tel/cable tv | 423 | ||||
| monthly | $1,386 | annually | 16,632 | |||
| Annual net income | US$ | $43,382 | ||||
| ROI estimated | 8.85% | |||||
ROI Projections for Unit Owners - Short Term Rentals : 3 Bedroom Townhouse
Note that these Projections are based on assumptions which in our opinion are applicable at Jan 2022. Actual results will vary from these Projections and the variations may be significant.| Purchase of 3-BR Townhouse | ||||||
|---|---|---|---|---|---|---|
| Purchase Price | US $ | 491,500 | ||||
| Legal fees & costs | (See Note 1) | 4.00% | 19,660 | |||
| Furniture & linens (estimate) | 42,500 | |||||
| Total cost of Investment | $553,660 | |||||
| Estimated Cash Inflows: | Rate, excl. VAT (see Note 3) | |||||
| Rental | US$ | Days in Season | Occupancy | Revenue (US$) | ||
| Winter season (Dec - Apr) | 440 | 121 | 70.0% | 37,268 | ||
| Summer | 320 | 244 | 50.0% | 39,040 | ||
| 76,308 | ||||||
| Commissions/marketing | 20.00% | (15,262) | ||||
| 61,046 | ||||||
| Estimated Cash Outflows: | Monthly average | |||||
| HOA Service charge (incl insurance) | 355 | |||||
| Interior R+M | 200 | |||||
| Property tax | 110 | |||||
| Housekeeping | 400 | |||||
| Utilities | elec/internet/tel/cable tv | 500 | ||||
| monthly | $1,565 | annually | 18,780 | |||
| Annual net income | US$ | $42,266 | ||||
| ROI estimated | 7.63% |
Notes:
- The legal fees are an estimate of the fees for a purchaser with substantial mortgage financing. If there is no mortgage the fees will decrease.
- No account has been taken of any income tax considerations for owners, as these can vary widely by owner.
- No account is taken of VAT since currently, Bds VAT is not applicable where total revenue is less than US$100,000 p.a.
| Assume that in 7 years Occupancy % is unchanged and Rents & Expenses increase by an average of 30.00%. The ROI projection, using the assumptions in the Notes above, is calculated as follows: | ||||||
|---|---|---|---|---|---|---|
| Estimated Income: | ||||||
| Rental | Rate, excl. VAT | Days in Season | Occupancy | Revenue (US$) | ||
| Winter | 572 | 121 | 70.0% | 48,448 | ||
| Summer | 416 | 244 | 50.0% | 50,752 | ||
| 76.86% | 99,200 | |||||
| Commissions/marketing | 20.00% | (19,840) | ||||
| US $ | 79,360 | |||||
| Estimated Cash Outflows: | ||||||
| HOA Service charge (incl insurance) | 462 | |||||
| Interior R+M | 260 | |||||
| Property tax | 143 | |||||
| Housekeeping | 520 | |||||
| Utilities | elec/internet/tel/cable tv | 650 | ||||
| monthly | $2,035 | annually | 24,420 | |||
| Annual net income | US$ | $54,940 | ||||
| ROI estimated | 9.92% | |||||