Understanding the running costs of a co-owned holiday home
There are various aspects to consider when purchasing a holiday home – destination, design, amenities and much more but usually, one of the most important considerations is the financial implication. This does not only apply to the purchase price of the property but also the ongoing expenses. At Lazazu, the running costs of a fractional vacation home are passed on directly, without any mark-up, to the owners, who contribute in proportion to the number of shares they own.
Transparency is paramount to us and therefore we would like to ensure that you know what to expect. The total home operating costs consist of the following elements:
1. Pro rata home operating costs: This includes the costs for the local home manager, gardening, pool service, off-seasonal and annual deep cleaning, internet and TV, alarm service, insurance, home consumables, any applicable rates and taxes, as well as accounting and corporate fees for the company that holds the home. We carefully select the best local providers to service your home and pass on their costs without a mark-up.
2. Per use costs: The costs for cleaning and exchanging towels and bedsheets (“changeover”) after an owner’s stay and the costs for electricity, heating, and water are paid for on a per-use basis.
3. Pro rata maintenance contributions and repairs reserve: The maintenance contributions are kept in reserve until needed to cover ordinary service costs, regular maintenance and any necessary smaller repairs. The repairs reserve is for larger necessary expenses (like for example the replacement of a geyser). The reserve remains in place and is topped up when needed to maintain a sufficient balance.
4. Lazazu management fee: We charge a flat monthly fee of EUR 125 per share for managing all aspects of your holiday home, the company, serving as your single point of contact and for providing the technology to book your stays.
It is important to note that the running costs associated with the home will vary depending on the size of the home and the plot, and the location. To give you a ballpark figure, for a 3-bedroom townhouse valued at EUR 1 million, you can expect total home operating costs of around EUR 340 per month per 1/8 share, and a 4-bedroom villa valued at EUR 2.3 million will cost around EUR 455 per month per 1/8 share (this excludes the changeover costs).
If you choose to rent out your home, you can offset some of these costs. The majority, if not all, of the annual running costs of a 1/8th share can typically be covered by renting out a single peak week per year. We will manage the entire rental process , all you have to do is let us know which days you wish to rent out.
In a nutshell, if you love the idea of a second home at a fraction of the cost – co-ownership might be the perfect solution to your holiday home ownership dreams. Schedule a call with one of our international team members to discuss your holiday home requirements.
Discover more about Lazazu:
How Lazazu co-ownership works | Frequently asked questions about shared holiday homes | The benefits of fractional ownership | Browse Lazazu’s selection of second homes | The difference between timeshare and co-ownership