Investors who purchase a Kiener Hills Cebu property from SDR have the option of using their apartment for their exclusive usage or adding the apartment to SDR Serviced Apartments Inc.’s Rental Programs to earn income.
The following terms and conditions of Kiener Hills Cebu Condos which outline the basics of the agreement for investors who enroll their units to SDR’s Rental Program:
* SDR Rental Program
The investor/apartment owner shall sign a rental management agreement with SDR for at least 5 years.
Upon completion of your new unit in Buildings B & E. You will have the choice of either a guaranteed ***6% per annum return (based on your purchase price (US$40,000+ only) and subject to SDR’s final agreement) for 5 years or a 60% return on the net room rental receipts for 5 years. Any further management agreements or extensions to the initial agreement will be subject of SDR terms and conditions at such time.
***6% is only available to units sold by SDR for units priced US$40,000+ and utilizing our SDR standard furniture package. Units must be in Building B or E. Apartments purchased in buildings A, C or D have the 60% of net room income deal.
* Right of First Refusal
Should the apartment owner decide to sell his/her apartment, SDR shall be given the first option, under the same terms and conditions of the buyer, to buy the apartment. This right of first refusal forms part of the consideration of SDR’s Rental Management Program.
Should SDR fail to exercise the right of first refusal (within a 15-day period from date of receipt of notice by the seller and the offer price of the third party), and if SDR or its nominee cannot take up the option, the buyer can sell to the other parties. The new buyer, if the sale is made before the expiration of the rental management agreement, shall respect and honor SDR’s rental management agreement until its expiration, unless a penalty fee is paid to SDR to compensate the loss of revenue.
* Condominium Dues
All property owners shall be responsible for paying their monthly condominium association dues to Kiener Hills Mactan Condominium Corporation Inc. (KHMCC). As of April 15th the cost of condo dues for a studio is: 2,200 Pesos per month and 4,000 Pesos per month for Lofts.
* Usage of Rented Apartments
Investors who choose the 60% Rental Share Option shall have the right to check in anytime to their own apartment (subject to availability) and enjoy a 50% discount over SDR’s already competitive Internet promotional rates.
SDR management will help preserve investments by providing a professional, year-round maintenance service to the apartments.
* Monthly Service Deductions
Internet charges, cable TV, telephone bills, A/C maintenance total approximately Php 5,000 per month as of April 2015. Funds for this service shall be deducted from the owner’s revenue share.
* Non-rental Related Operation Expenses
SDR shall ensure the security and protect the value of the investment (upon request of the owner) by facilitating these payments through its in-house counsel and accountant for SDR’s standard 15% management fee.
If SDR is not contracted to do this service, it shall be the owner’s responsibility to handle the following:
- (a) Real Estate Tax: For a 36.56 square meter apartment, the owner pays an annual tax of approximately US$200 to the local government.
- (b) Land Tax: Apartment owners are assessed an annual land tax by the local government which is approximately US$130 per year per apartment.
- (c) Other Special Assessments by the Kiener Hills Mactan Condominium Corporation: Investors have a share on any special assessment for common area and/or building improvements.
- (d) Insurance: Insurance fees for the protection of the common areas of the building. Currently, there is no insurance taken out for the common areas so no charge is being passed on to the owners.
- (e) Any other item not covered by above points and related to expenses.
Check the availability of certain apartments in our Available Units page; view our rates and payment options at our Price and Payment Options page. Also check out our Floor Plans, Photos, and Videos. Our apartment’s detailed specifications are found in our SDR Apartments page.
If you want to know more about this Cebu real estate property, e-mail manager or leave a message in our contact form. Feel free to call us at these numbers: +63-32-238 3929 (landline), +63-917-30-8181-7 (mobile), or +852-8125-7277 (Hong Kong).