Average Daily Rate FAQs
Calculating your income
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What is ADR?
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ADR stands for Average Daily Rate. In this context ADR is defined as the average daily room rate earned per day for each room category at each of the properties in the Condominium Rentals Hawaii rental program.
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How is ADR calculated?
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Every month we calculate the total rental income for all units in each room category at each property (examples: “Maui Kamaole: 2 Bedroom, Garden View”; or “Sugar Beach: 1 Bedroom, Ocean View”). We then subtract miscellaneous income earned (i.e., the extra person charge premium). This remaining amount is then divided by the total number of room nights generated by Condominium Rentals Hawaii for all the units in that particular room category. The result is the ADR for that room category for the month.
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How is my rental income calculated?
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The number of nights rented for your condo from bookings generated by CRH is multiplied by the ADR to determine your income for that month. Additionally, owners who had bookings containing any miscellaneous income earned from guests (i.e., the extra person charge premium) would have this income credited to their account.
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Why do we use this system?
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We have several sources of bookings for the units we represent. These include travel agents, wholesalers and direct bookings from individuals. Wholesale accounts book rooms at a discount of 20-25% off our rack rates. Individuals booking direct may in some cases be eligible for discounts (ex: AARP Members, Airline Employees, Internet Discounts, etc.). The end result is that in any given month a particular room category may rent for a number of different rates. Because it would be logistically impossible to give each owner an equal amount of bookings from all the different sources, we have found the ADR system to be the fairest way of dealing with this unique situation.
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What about owner bookings?
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The ADR system only applies to reservations generated by Condominium Rentals Hawaii. Any nights that an owner has booked their own guests in their own unit will not be affected by this system.
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How are travel agent commission and credit card fees allocated?
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Travel agent commissions and credit card fees are calculated monthly for all condos in a specific room category at each property, and the costs divided between all the owners in that respective room category and property.
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New Owner FAQs
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We would like to
be notified if guests want to stay over 3 weeks and would like to have a limit on time of a month. Are these terms able to be included in the agreement?
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We offer you an owner’s website so you can view your future reservations as often as you like. We can try to notify you of 3 week or longer stays, however it cannot be guaranteed. The online calendar will be the best most efficient way to review your future bookings. If you want to have certain months blocked for owner use, you can do that as well from the owner website. I believe you can book as far in advance as 2019 right now on the calendar.
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Do you impose a
minimum stay period? If so, what is it? |
Currently we do not have a minimum stay. We like to be able to accommodate those guests that like to visit more than one island and island hop, therefore staying shorter times in each location.
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Do you give a monthly
accounting of incidental items that are spent on condo upkeep and repair? |
Yes, we have an owner’s statement that comes out every month on the 15th and shows the previous calendar month’s revenue and expenses.
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Can we see a sample accounting list from a typical condo to see what types of things are included?
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Please see attached sample.
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Who provides general items for guests such as soap, dish detergent, garbage bags, etc.?
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The cleaner provides a “starter kit” of items that includes soaps, dish detergent, laundry detergent, garbage bags, toilet paper, etc. Please see the last page of the attached cleaner contract for a specific list. These items are included in the departure clean rate charged by the cleaner.
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Agreement says that CRH collects a cleaning fee based on average for the area, then passed along to owner. So is the owner then responsible to setup a cleaning agency for all guests, including those found by CRH? Or does CRH provide the cleaning person?
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Cleaners work for the owner. CRH will communicate with the cleaners their schedules for all reservations and we will also pay the cleaner on your behalf. We understand that owners are not going to know of local cleaners that are available to clean. We do have a data base of cleaners that we work with for our other condos and will recommend the best ones we use. You are welcome to interview and ask specific questions to the cleaner before you hire them.
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Does anyone from CRH check up on units between guests to ensure they are in proper order?
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On Maui, we have a full time inspectress that does random unit checks. While she cannot inspect every unit after every check-out we do monitor units as needed.
On Kauai, Monica, does pre-arrival inspections of the condo before guests arrive. (Mon-Fri arrivals). We also want a close communication from the cleaner, so when they go to do their departure cleans; they communicate if there are any concerns or needs. |
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How frequently is Hawaii general and accommodation tax due?
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Monthly, Quarterly, or Semi-Annual. We always start out with Quarterly, if possible. Sometimes the tax office will require that an owner submit monthly if they have a certain amount of revenue each month.
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Does CRH take professional photos and do the write up for the condo listing, or can we do our own write-up? (I prefer to do my own)
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We can hire a professional photographer on your behalf and we do have writers that create the wording. However, we encourage owners to write or add any information to make their condo stand out or point out specific amenities or special features. I have attached a form, below, on how to do this and what we require.
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Will CRH be updating their website to make it more user-friendly for potential guests?
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We recently did update our website. If there is something you would like to see added let us know. We are always welcoming feedback and comments for continuing improvements and enhancements.
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What is the service fee that CRH collects from guests?
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CRH collects a $35 reservation fee and a $25 damage waiver fee.
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Where does CRH advertise the condo?
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Many places. I have attached a marketing flyer that goes over some of the places marketing advertises. It is not limited to only these places and we are constantly adding new marketing avenues in order to meet the marketing trend and stay competitive.
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Do you guarantee a minimum level of bookings?
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We do have historical numbers to give on an anticipated forecast. We typically have our peak season from Dec. 21st-March 30th. Value season from April 1st to December 20th.
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Do you change the price over the seasons and do owners have input into the pricing?
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Yes, we do change the prices, higher in peak and a lower rate in value. Normally marketing will set the rate based on competition and their years of experience in what they feel are the best rates.
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Do you screen potential guests?
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When someone rents to the public, they need to be very careful when it comes to who they say can and cannot rent their condo, as you can put them in jeopardy of violating a federal law. We follow all Federal laws and cannot discriminate. For example, we cannot tell someone they cannot rent the condo because they have a small child. Believe it or not, the best “sounding” people have had their share of condo troubles and someone who we maybe thought was going to be bad was perfectly fine. Obviously if a guest were to mention in their conversation that they were planning to have parties every night, we would not rent to them. Our first priority is to protect your home while following all laws. On another note: We do have a “black list” of people we do not rent to because of past experiences/damages.
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Do guests put down a deposit and is it refundable or partially refundable? What are the terms and do we have input into this for CRH generated guests?
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30 or more days prior to reservations, a $350 non refundable deposit towards the reservation is required. At 30 days full payment is due. We do not take refundable deposits as it typically incurs extra credit card charges for the owners. Our cancellation policy is 30 or more days from arrival is $150 to cancel. 30-14 days is 4 nights and 0-14 days prior is nonrefundable. We do take medical/death considerations on a case by case basis.
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Can arrangements be made for welcome items such as small bags of coffee, or box of cookies, etc? If so, can this be customized, ie larger for honeymooners or guests staying 10 days for example?
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Yes, we can set something like this up. We can have items stored in an owner’s closet that the cleaner could access and take the “gift” out and leave it for each guest. Your account manager can also assist in delivering any special “goodies” that you may want to deliver. If this is something you would like for her to do on a regular basis, then we can set up a special plan for your condo for a small fee.
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How would the booking calendar be integrated into our use if we use the condo or generate some of our own guests? Can we share the calendar?
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You are given access to your own owner’s website where you can view your calendar, make owner and owner guest bookings, view your statements, view tax submissions (if we do your taxes), and read our monthly newsletters.
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Is the guest reservation calendar updated hourly or daily?
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Its in real-time. So when we take a booking, you will be able to see it right away on your owner’s website and vice versa.
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Can guests with early or late check-outs be accommodated, especially if they book for many days?
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Yes if there is not a back to back reservation, then we can accommodate them. (providing the cleaner is done and condo is ready for an early check in) CRH will typically give up to 3pm for a complimentary late check-out and 7pm for a ½ day charge.
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Do you have local contacts that are available 24/7 for emergencies, such was water line breaks, etc?
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Yes absolutely!
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What type of security fee do you charge?
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We do not collect a security fee or deposit because it can become difficult to charge a guest's credit card when the charge can easily be disputed with the credit card company. Instead we charge a $25 damage waiver to each guest. If there is accidental damage in the condo, up to $1,000- we will use our fund to replace the item that was damaged
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How is pest control handled? Can we request the safest, least toxic methods?
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This is different for each property and sometimes is controlled by the association. If your association does not do any quarterly pest control, we can set this up for you. Many of the companies now have safer, less toxic sprays that they offer and we would be happy to request this for you on your behalf.
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I need a copy of my statement and I don't have access to the owner's website, who do I ask for a copy?
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Your Account Manager
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I don't see any cleaning charges on my statement but I see I got reimbursed for cleaning?
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If the cleaner has not invoiced us (yet) and the statements have come out, you will only see "reimbursement" and not cleaning charges. You may see these charges in the next statement.
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How do you calculate credit card fees?
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The total of all credit card fees for each property category is put into a "pot", so to speak, then divided by the total number of nights for the reservations in each month. (This excludes non-pooled reservations) Each owner pays an equal amount of fees based on a per night charge.
For example: 10 reservations (totaling 50 nights - all pooled nights) are paid by credit card for a total payment of $1000 for the month of March. Total credit card fees are approximately $245. $245/50 nights = $4.90/night. (The fees may vary depending if American Express is used, which has a higher fee rate) If your unit had a reservation in the month that was for 5 nights their credit card fee would be approximately $24.50 for that reservation. ($4.90 x 5) If your unit had a reservation that was for 15 nights their credit card fee would approximately $73.50 for that reservation. ($4.90 x 15) The per night fee will change each month as the total of the credit card payments per month differ. |
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How do you calculate travel agent fees?
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The total of all travel agent commission for each property category is put into a “pot” so to speak, then divided by the total number of nights for the reservations in that month. Each owner is charged an equal amount of travel agent commission based on a per night amount or ADR.
For example: 10 reservations (totaling 70 nights) with total commission of $300 paid out for the month of August. The ADR for the commission in August would be $4.29 per night ($300/70 nights = $4.29). The average daily rate will vary depending on the commission paid for the month and the total number of nights booked in your property/room category. If your unit had a reservation in the month of August that was for 5 nights; the travel agent commission charge would be approximately $21.45 for that reservation ($4.29 x 5). If your unit had a reservation in the month of August that was for 15 nights; the travel agent commission charge would be approximately $64.35 for that reservation ($4.29 x 15). The per night fee will change each month as the total travel agent commission that is paid out per month differs as well as the total number of nights that the units are occupied. |
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Can we decline to comp travel agents using our units?
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When a travel agent comp is given, it is done so to educate that person in the travel business. By giving them a first-hand experience at one of our properties and the chance to stay in a condo, it will help them to better sell the property with real experience they can share with clients/guests. (How far the pool is, how the property is set up, the amenities in the condo, the condition of the condo, and the great bed they slept in, can all be shared with their clients) Often times, based on their experience, they will also directly recommend that condo to the client/guest they are booking and they will accept it based on the trust/relationship of their agent. This is a very common practice in the travel industry to familiarize and educate those people who sell the vacations to their clients/guests.
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Does commission come off what was collected from the guest or ADR?
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The commission rate is deducted from what you are actually being paid based on our ADR system, not what was collected from the guest.
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