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3 Comments

  1. 1

    BW on MF's

    Maintenance fees have always been a problem but even more so when they became a significant and separate profit center for the developers or the HOA!

    And for all you out there that don’t understand what a ‘profit-center’ is then let me give you an example.

    A roll of toilet paper cost the developer or HOA $0.15 (that cents) but they (developer/HOA) pad the cost so that the AMF each owner pays reflects a buck for the same roll(s) of toilet paper!

    Not a bad mark-up!

    And then add in everything else that is marked up that much (and more) from light bulbs to (you name it) and you’ll begin to appreciate why AMF’s have become such an issue!

  2. 2

    Caribbean King

    There’s a reason why developers and hotel brands fight so hard to keep the management contracts in there own hands: It’s really profitable! Part of that is the AMFs. HOA managed resorts are generally different and can face real challenges, especially if they are HOA managed. All resorts need to be well managed and there are some very good companies that specialize in that, but ts owners have to understand that profit for the management company is built into the fees they pay. All of that should be very transparent, and the budget details should always be available for any owner to view.

    I once worked as a procurement director for a certain resort managed by the developer and I took my job seriously. It was time for refurbishment for the units and I worked my tail off getting the best deals possible. I also got new contracts for everything from toilet paper to light bulbs. Overall I saved the resort (and therefore the ts owners) THOUSANDS of dollars. How was I rewarded? The company gave me an ass chewing and fired me. Because they didn’t get all there usual kickbacks from the suppliers!!!!

    It’s a dirty dirty world, children. Color me disenchanted.

  3. 3

    Rick

    The MF’s that really crack me up are the ones charged in Mexico!

    The developer pays the grounds keepers (with benefits; believe it or not) about $50/$60 a week (a six day work week mind you); less or about the same for the waiters, the maids and so on and then they turn around and charge the Gringo and Mexican TS Owners AMF’s comparable to the rates in the US, Canada etc. as if the Mexican developers have the same overhead (and fixed costs); Mordidas aside that is ;~)

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