Owner Rental Policy
AUTHORIZATION TO RENT
Owners wishing to place all or a part of their week into the Pinestead
Reef rental program must submit their request in writing. This written
request must include the owner(s) name, signature, unit & week number,
days or dates for rent and social security number. Rental reimbursement
checks may be held until written authorization is received. Owners will
be mailed a confirmation letter or postcard once their written or
verbal rental request is received.
OWNERS SHARE OF RENTAL
INCOME
Owners shall receive 65% of the gross room revenue realized from the
rental of their unit, and Pinestead Reef Resort shall retain 35% 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 may
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
RENT
Owners 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
RENTER
As 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 UNITS
Rental 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.
Example1.) 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
ASSOCIATION
Owners 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 UNITS
Flex 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 flex
time 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 at
another time.
Pinestead-Reef
Resort
1265 US 31 North
Traverse City, MI 49686
PHONE: (231) 947-4010
FAX: (231) 947-0255
1-800-968-1302 | owners@pinestead.com