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Monthly Costs

Understanding Monthly Costs

As with any home, there are utilities and other ongoing expenses associated with Fractional Vacation Home ownership. These costs ensure your vacation home is well-maintained and ready for your next stay or your guests next stay. Because Fractional VR manages the home, you don’t have to worry about any of the usual homeowner or vacation rental details or hassles — we take care of the bills, cleaning and maintenance, and we even handle the property tax payments as well as market and handle any of the vacation rental time you appropriate to either recover expenses or get an ROI on your investment. Some owner expenses are a fixed amount - monthly or annually (For example: Monthly expenses are Internet, Trash and so on. Annual expenses would be Property Tax, Fire Insurance and so on.) We will break the annual expenses into 12 fixed monthly payments and add them to the monthly fixed expenses. These are unavoidable and paid monthly.There are variable costs/expenses, some are consumption such as the electricity, gas and water that were use during your use of the fraction and therefore passed through to you the owner of that fraction. The other will be unavoidable repairs/maintenance and others will be voted on by all owners upgrades or improvements.  


All fixed monthly payments and variable costs/expenses are deposited into the LLC account, and Fractional VR uses those funds to cover the expenses as needed: Your account must be in good standing in order to use your fractional time. If you decide to short term rent out your fractional time (partial or all) you can use that revenue to cover your monthly operating expenses. Below are some of the monthly fixed (annual and monthly) expenses.

  • Preventive and routine maintenance. Depending on the property, this may include landscaping, pool maintenance, snow removal, HVAC servicing, gutter cleaning and more.

  • Property management. For the first year Fractional VR provides in-house property management services taking care of the day-to-day needs of the home. We ensure communication is streamlined and the quality of service is exceptional. After that the Home Owners can vote to keep Fractional VR as the property management company or find another property management team or have one of the owners perform that service. We want to earn your business and trust.

  • Deep Cleaning. Each vacation home must be professional deep cleaned and inspected after each owner’s stay, and consumables, supplies, such as paper goods, are replenished. This is required and cannot be done by the owner. 

  • Vacation Rental Cleaning - Cleaning between vacation renters - paid for by the vacation renters and not you the owner are completed between Vacation Renters. But when your fractional time is up then the vacation home has to be Deep Cleaned for the next owners fractional time.. 

  • Utilities. This includes gas, electric, water, sewer, garbage and internet/TV — the basics to keep your home functional are billed to you based on your fraction of the home and calculated based on your consumption during the use of that home. Wether you occupy it or rent it out to vacation renters and they occupy it . You the owner pay your consumption of the utilities.

  • Taxes and insurance. Fractional VR manages the payments for property taxes, homeowners insurance premiums, home warranty payments, and any and all other payments when due. We’ll provide an annual K-1 tax form for each owner. Learn more about ownership and tax reporting in a multi-member LLC. 

  • Reserve fund. As any homeowner knows, things break or wear out, so Fractional VR maintains reserves in the LLC's bank account to cover those unforeseeable or longer-term expenses, such as a roof replacement. 

As each Vacation Home has it's own HOA then the home owners can decide on how much reserves to have, how much to improve the property. Increases of monthly owner expenses is only needed to cover increases in actual costs of the home, such as insurance, taxes or other increased rates. Any necessary adjustments are made annually during the HOA meetings, and all cost statements are available to owners upon request.

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