Fractional France Articles

FAQ #1: Understanding Fractional Ownership Annual Dues

Fractional Ownership dues

This is the first in a series of FAQ articles where we answer common questions from our clients about our fractional ownership.

[Your] annual dues do seem to be higher than other fractional ownership opportunities we’ve seen in the recent past – especially with Paris Perfect. Is there a reason for that? It’s still not a huge amount of money but I was wondering if your overall approach is different from the other companies – perhaps the cost of the shares is priced lower? Just curious about that.

Comparing annual fees between different fractional ownership entities is like comparing apples and oranges. They exhibit considerable variation depending on numerous factors. In this article, we delve into the annual dues pertinent to Paris fractional ownership.

Anatomy of Paris Shared Ownership Annual Dues

Basic Services: Services covered in Paris co-ownership programs may include supplies, housekeeping, maintenance, utilities, legal and administrative costs, property taxes, and insurance. These can vary considerably based on factors such as the size of the property, location, and the level of quality other owners in the building wish to maintain. For example, is there an elevator? A doorman? How frequently is the property cleaned?

A 2-bedroom Paris shared ownership, 100 sqm apartment, for instance, will require more cleaning time than a smaller, 2-bedroom unit. Weekly housekeeping is more expensive than periodic cleaning, and so will property taxes. A well-kept building with an elevator and a full-time “guardienne” at a prestigious address means higher maintenance costs. A Paris real estate apartment equipped with AC means higher utility costs; etc.

Management and Concierge Services: Basic management services (administration, tax reporting, managing contracts, etc.) are ubiquitous across fractional setups.

But you must also assess the availability and quality of a full-time, English-speaking concierge person associated with your Paris shared ownership. A key consideration is the concierge’s capability to deliver personalized, high-quality services consistently throughout the year. Or how reactive is this person? How well does he/she know the city and its restaurants? Etc.

Share Size

Paris fractional ownership units usually come in 8, 10, or 13-owner configurations. This directly impacts the amount of annual dues that each owner pays. For instance, in a property with 8 shares and a total yearly cost of 50,000 euros, each owner would incur 6,250 euros annually, compared to 3,846 euros per share for a property with 13 shares.

It’s noteworthy that different fractional ownership companies in France adopt varied business models. Some prioritize long-term profit generation through management services, potentially incorporating profit margins on services, while other companies may impose restrictive management contracts, limiting the flexibility of service provider switching — or both.

The Fractional France Philosophy

At Fractional France, we eschew the imposition of hefty annual dues and management fees. Our ethos revolves around delivering a delightful ownership experience while maintaining operational efficiency. We prioritize full transparency and uphold high service standards, ensuring our owners can relish their Parisian stay at a reasonable cost.

Key Features:

  • Basic services are transparently billed at cost.
  • Housekeeping is scheduled weekly.
  • Our English-speaking concierge remains accessible throughout the year.
  • Owners retain the option to customize or forego services as desired.
  • In instances of dissatisfaction, owners have the option to change their management service provider at any juncture.

Stay tuned for additional insights and responses to your inquiries in our forthcoming blog posts. We encourage you to reach out with any further questions or concerns, or visit our FAQ pages at https://fractionalfrance.com/learn/fractional-101/

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