The property is managed by an owner run Condominium Association, just like associations found throughout Minnesota and the United States. The Association is in charge of hiring a manager to take care of operating the property to make sure you don’t have all the work normally associated with cabin ownership.
One of the great features of fractional ownership is that you are only paying a fraction of the insurance, a fraction of the taxes, a fraction of the maintenance, a fraction of the utilities, etc. All the costs are shared among the owners. The 2016 Dues for a one tenth ownership are $85.53 per month.
The 2016 Dues are for interior/exterior maintenance, pool cleaning, garbage removal, snow removal, landscaping, insurance and funds for a capital reserve. All Utilities and Property Tax are separate and billed annually. These are subject to market fluctuations – ask us about the current year budget and compare this to whole ownership. The total for Dues, Utilities and Property Tax is less than most people spend on just Property Tax for their whole ownership lake cottage! A capital reserve is funded from your Dues for future repairs like roof replacement and staining. This approach is used versus a “special assessment” approach that may be used elsewhere. This is definitely something to ask about at other properties.
All utilities – electricity, natural gas, cable TV and garbage – along with property tax are billed annually and subject to market fluctuations. Ask us about the current year budget and compare this to whole ownership. Also remember that because you are billed annually for these items, you won’t have another set of utility bills to pay each month like you would with a whole ownership property.
One of the great things about fractional ownership is showing up and enjoying a sparkling clean cottage. The last thing you want to do is spend your time cleaning up from your last visit – or your friend’s last visit! Rather than increase the Association Dues for everyone for all the cleaning for all the owners, you are only charged for the time you use the cottage. That way, the owner who uses his cabin twice a year is not subsidizing the owner who uses the cabin five times a year. In 2012, the cleaning fee is $100 per visit and your ownership includes one free cleaning per year.