Many current motel leases include a provision for a maintenance fund (sometimes referred to as a repair account), however the application of this fund and what it can be used for, can sometimes be misunderstood.
There is no "one size fits all" commentary for this subject, there will always be variables however most commonly the following would apply.
At the time of preparing this article, we are in the grips of the winter season and the weather that it brings. Also it seems, the Winter of Discontent in terms of the economy and its immediate outlook. Accommodation providers have enjoyed excellent post Covid recovery, however this winter is proving to be a little more challenging, so just now certainly doesn’t seem to be the right time to be suggesting an increase in room rates. Nonetheless, we believe that the accommodation industry is poised for good times ahead for a number of reasons.
The intention of this article is to provide a brief overview of the operation of Management Rights in New Zealand. There are many variables in the way these businesses operate, and it is beyond the scope of these notes to cover all of those. Suffice to say, that Management Rights have been operating in Australia for many years, often on a smaller scale, (many by expat Kiwis), but also on a large scale by publicly listed companies.
Why Would I Sell A Freehold Property And Buy A Lease?
Welcome to the Occasional Coffeys Newsletter for April 2024. We celebrate 40 years of involvement in this industry for the writer, discuss the market, review the Coffeys Motel Industry Benchmarking Survey results, social housing and banks. Thanks for taking the time to read it.
Comments relating to some earlier versions of Motel Leases
What should be expected?
The Buyers Guide is a collection of various articles written at different times addressing the many aspects of buying and selling tourism property.
