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THE SOUL APARTMENTS RENTAL SCHEME 2024 FAQ’S

Who is Valor Hospitality? 

Valor Hospitality is a full-service hospitality acquisition, development and management company of alternative thinking enthusiasts, driven by excellence and innovation. We create memorable customer experiences and deliver exceptional commercial performance for branded and independent hotels and resorts around the world - and we work with most major international  brands and run successful franchise operations on their behalf.

Established in 2012, Valor proudly manages 100+ properties and projects across 5 regions, employing over 3000 staff. Valor currently has regional offices in America, the UK, South Africa and Dubai.

For full details www.valorhospitality.com

What changes/ updates to the Soul Branded Residences Offerings can home owners expect?

Valor Hospitality will be managing all aspects of The Soul Hospitality offering, facilities, property management and effectively ensuring better communication between all Apartment Owners and the Developer - ensuring a fresh and seamless,hassle free experience for every owner or guest touchpoint at The Soul Branded Residences. 

Working in conjunction with the Owners Association, Valor will assume day-to-day responsibility for property management, facilities maintenance and rental scheme management. The new Valor rental scheme will also offer many services and benefits which are covered later in this FAQ.

Owners can expect consistently executed services and standards of international quality which directly results in happy and satisfied owners, tenants and guests.

What is The Soul Rental Scheme and how will it work?

Under the optional rental scheme, an apartment owner is free to choose whether to keep the residential unit for personal use or place it in the rental inventory (subject to agreeing to furnishings and guest amenities in accordance with Valor operating brand standards) to form part of the inventory of a centrally managed “Rental Scheme”.

The terms and conditions of the rental scheme will be set out in a Rental Scheme Agreement /Mandate between the Owner and Valor.

In this scheme, each residential unit is accounted for independently of other residential units in the scheme. The owner’s Net Revenue is derived after operational expenses, management and or other fees as defined in the Terms and Conditions are deducted.

Unlike platforms such as Airbnb where each residential unit is listed separately, our booking platform will sell " residential unit types" and the allocation of residential units is managed by a property management system, thereby giving all owners of a specific "residential unit type" equal opportunity to be reserved.

Homeowners can benefit from professional property management, global marketing resources and access to a broader guest base. It provides an opportunity to generate rental income without having to personally manage bookings and maintenance.

Properties eligible for the rental scheme are required to meet certain criteria set by Valor Hospitality for The Soul brand such as high-quality construction, minimum FF&E/OS&E (fixtures, fittings and equipment/ operating supplies & equipment) standards, luxury amenities and a desirable location.

What Apartments or Properties will be part of The Soul Rental Scheme?

Only Owners of a Soul Residential Unit, who opt into the Soul Rental Scheme, will be eligible to participate in the scheme.

What Rental Periods will be Facilitated By the Valor Rental Scheme?

The Soul Residences Rental Scheme will offer two options of rental:

  • Short Term (period of stay 1-90 days) 
  • Long Term (period of stay 90-360 days)

What are the minimum requirements to Join the Rental Scheme? 

All participating apartments  are required to meet the minimum requirements and standards of the Rental Scheme. This includes a specific standard of furniture, linen, cutlery, crockery, glassware, amenities, housekeeping supplies and guest consumables such as tea and coffee.  

What are the minimum standards of furniture, linen, crockery, amenities etc and how much will they cost me?

High-quality, durable standard finishes will be needed. These specifications and standards are being finalised, and will be shared once costed and signed off. 

There will be an opportunity to also purchase  various official furnishing kits.

*The developer reserves the right to alter or substitute any of the items listed in the schedule for another, equal or similar, as per the architect’s or trade appointed professional’s discretion.

How can I  join The Soul Rental Scheme?

The  Soul Rental Scheme has been established by the Developer and Valor Hospitality Company and will be managed by Valor Hospitality Management Company in accordance with the applicable regulations, rules and or consents required for such an operation by the laws of the Republic of Tanzania.

Any Owners interested in entering into the rental scheme will need to submit an application to Valor Hospitality. On successful review of the property Valor Hospitality will enter into a Short or Long Term Term Mandate with the Owner dependent on preference.  The application form can be found on the Soul website under paje.thesoul.africa/the-soul-lifestyle/ or alternatively, please email [email protected].

How much will it cost to join the Rental Scheme?

There is NO joining fee, however, participants in the scheme will be required to invest in minimum standards and quantities of furniture, fittings and guest equipment, as well as crockery, cutlery, glassware and amenities for rental guest comfort and quality standards introduced by Valor in the new rental scheme.

The maintenance of and replacement of these items, if broken or damaged, is catered for through a self funding reserve from each rental reservation.  In other words, a percentage is retained from each rental, for the replacement of these items, either through normal wear and tear or damages/breakages. 

At the end of the financial period (from year 2 onwards) surplus of these reserves will be made available to the Owners and may be refunded on a pro rata basis, subject to the decision of Valor and the Owners, and ultimately the Association rules, guidelines and budget approval within the scheme. 

Who is responsible for the governance of The Soul Rental Scheme and how will my interests be protected?

Valor Hospitality has been selected as the management company by the Developers and CPS, for the Rental Scheme, so both are responsible for your property as set out in the Rental Scheme Agreement.

Once the full Soul Paje development is complete, CPS will hand over management responsibility to the Owner’s Association, who will then work in partnership with Valor Hospitality - the designated management partners to CPS.

Valor Hospitality is implementing Property Management and Reservations technology which will allow for fair share rotation of residential units per apartment type (1, 2 or 3 Bedroom) being allocated, thereby ensuring each participant gets equal opportunity to earn a fair share of bookings and in turn revenue for each reservation. Similarly, prices are controlled which enables us to maximise revenue rather than undercutting fellow homeowners to close a rental.  This is best practice in other reputable Rental Scheme models.

How will my Soul Apartment get rented out and how will I be guaranteed that I can still use it?

Valor Hospitality will market and promote The Soul rentals through appropriate channels, through platforms such as AirBnB, Booking.com and other platforms, as well as on Social Media platforms such as Facebook and Instagram. Guests will also  book online through a new upgraded The Soul website. Valor and CPS will be investing in a property management and reservations system, guest app and a channel manager, linking The Soul rentals to multiple booking sites.

You may utilise your residential unit at any time provided you advise us at least three months prior to the use thereof by yourself, and it has not been rented out yet. 

Because The Soul Residences Rental Scheme is based on residential unit types, the chances of you not being able to reserve your residential unit, is slim - unless we have 100% occupancy for the desired dates.

Reservation of the residential unit for self use must be done through Valor and you will be liable for fees as listed in the Rental Scheme Agreement under the cost of sales, e.g. Cleaning service, technology fees etc.

What revenue can I expect from rentals if I join?

Based on our conservative estimations, you can expect a net return of approximately 60% of the rental price - after deductions of commissions to 3rd party channels such as Booking.com or AirBnB, and other costs such as technology, marketing costs, overheads etc associated with running a rental scheme.  This is similar to what you would achieve through other channels after taking similar expenses into account.  

The advantage here is the “hosting” and administration of your unit is done by Valor, thereby freeing you from these tedious tasks, as well as Valor targeting quality rentals at acceptable prices.

What services and amenities will be included for guests staying in Soul rental properties?

Guests staying in rental properties will have access to all facilities offered by the Soul Residences, including the lagoon and gym. The amenities and services such as concierge, housekeeping, tea/ coffee station and housekeeping will be available for each rental unit.

How are housekeeping services managed during the guest stay?

Before, during and after each rental, Valor Hospitality Management Company will coordinate and schedule the cleaning and servicing of your property, undertake laundry and the restocking of consumable items.

How is maintenance and upkeep of the property handled while your unit is in the rental scheme?

Valor Hospitality Management Company offers a comprehensive Maintenance Program.

Our Minor Maintenance Program covers the cost of labour and supplies for providing guest services to your home and for maintaining a wide range of items that need attention on a regular basis. Owners will have the peace of mind of knowing that the basic maintenance of their home is being performed by our experienced staff of maintenance technicians. 

For Major Maintenance or more specialised repairs that are not included in this program, we will coordinate with outside contractors to perform repairs or maintenance, at the cost of the Owner. 

This Minor Maintenance Program results in fewer trouble calls and provides a higher quality of service, enhancing the guest experience and improving your home’s rental appeal.

The full scope of minor and major maintenance services will be covered in the Rental Scheme Agreement.

What will Valor Offer Owners partaking in the Rental Scheme?

Streamlined communication and transparency assures the relationship between Valor Hospitality Team and the HO´s is a productive one. 

  1. Property Operations Manager - The property manager is a partner in the success of your vacation rental, and your point of contact for any questions or needs. 
  2. Access to HO Portal - You will receive access to Valor Hospitality Owner Portal where you can access your rental statements, monthly reports, book your property, and see important updates from the property management team.
  3. Monthly Accounting - Each month, Valor Hospitality will provide an accounting statement of income and expenses for the property, identifying all amounts due to or payable by the HO.
  4. Sales and Marketing Fee - Each reservation will be subject to a 10% sales and marketing fee of the gross rental income. The sales and marketing fee covers all costs associated with the sales, marketing, and promotion of the home to prospective rental guests, including travel agent commissions, credit card processing fees and listing management fees. 
  5. Operational Health & Safety - Full compliance with Valor OH&S Protocols ensuring the community, guests and onsite partners welfare is managed at the appropriate standard.  
  6. Bespoke Services - the following additional services will be facilitated for guests at an additional charge:
  • Dedicated Concierge 
  • SIM card & top up service
  • Parcel pickup service
  • Shuttle/ transfer services
  • Vehicle hire service
  • Flight booking service
  • Doctor on call
  • Bureaucracy support service
  • Cleaning Services
  • Personal Chef
  • Personal butler
  • Laundry service
  • Taxi & driver service
  • Tours & excursions
  • Water sport excursions
  • Personal Trainer & group classes
  • Private security
  • Babysitting & Kids entertainment

How will a guest reserve/ book my Soul Apartment and how long are the allowed rentals?

Reservations are made through The Soul Residences website, where Valor’s booking engine allows for immediate confirmation, and payment thereof.

Rentals may be booked short or long term as defined by yourself in the Rental Scheme Agreement, i.e. whichever option you choose to participate in.  Obviously, longer staying schemes offer slightly lower rates but may yield higher revenue overall.  The choice is yours.

When will a rental guest check in or out of my Soul Apartment?

Guests will be expected to check out by 11h00 on any particular day to allow cleaning and preparation for the next guest’s arrival. Check in will be permissible from 15h00 onward, but may be earlier subject to availability. Depending on seasons and certain rate strategies, there may be further booking terms and conditions to ensure maximum revenue is generated for you  -which may include hourly or half day rental charges for late checkouts and or guaranteed early arrivals

How can I see what is happening with my Soul Apartment  in rentals?

The property management system has an “App” which you can download onto your device (mobile or PC) to view basic information about revenue generated to date, occupancy, and future bookings.

What happens if a guest breaks something in my apartment? Am I insured?

Guests will be required to pay a refundable “breakage” deposit.  This is recommended at 10% of the daily rate, and should this be insufficient to cover the damage and Valor is not able to recover the funds from guests, the items will then be replaced through the OS&E and FF&E reserve which is deducted from each sale.

Items may be replaced through the OS&E and FF&E reserve immediately and thereafter recovered where possible.  This is to ensure your property is not disadvantaged or temporarily blocked from being allocated.

How many times a year may I use my own Soul Apartment?

There is no limitation to the number of times you may use the property for yourself, provided that it is within the terms and conditions of the Rental Scheme Agreement. For example

  1. you are not privately letting it out,
  2. you reserve it through the Soul Residences platform, 
  3. you accept the minimum charges incurred by the scheme, e.g. cleaning, technology costs, etc.

This will affect your earning potential if not managed correctly, and not informing Valor of usage timeously.

How can I ensure that my Soul apartment is booked for my use and not available for rental?

Once you have made your reservation through Valor, and the sophisticated booking technology, it will be immediately allocated to your reservation, thereby removing it from the list of available units for rental.

Can I leave items in my apartment?

Yes, however we recommend a locked cupboard for any personal items.

How long in advance can I make a booking?

To ensure we optimise your revenue opportunities, we have recommended self use bookings be made at least three months in advance.

If I cannot, or do not want to use my Soul Apartment for any time and rent it out, what do I do?

If you have reserved your unit for self use, and no longer wish to use it, you may cancel the reservation to return your unit into the rotation inventory list.  You may however, be liable for administration and or cancellation fees.

Is the Rental scheme a Rental Pool?

The rental scheme is not a Rental Pool, Owners will receive any net income generated by their unit for each individual reservation generated and allocated as per the Property Management Technology and fair share rotation software.

Do I have to pay another levy every year for the Soul rental scheme managed by Valor?

No, the Valor management fee is included in the cost of sale, as is the The Soul brand franchise fee. 

Is The Soul Rental Scheme an Investment?

That depends on your outlook.

It is designed as a self-funding scheme to make the management of your property investment simple and easy by empowering Valor and the Soul Residences to free you from the tedious tasks of self letting, cleaning, managing bookings and other administration that go with self letting.

It does have a yield of 60%, meaning 60% of the letting price is banked into your account.

Do I have the right to cancel the contract and get a refund of monies paid?

Yes, there is an opportunity to decide annually if you no longer want to participate in the Rental Scheme.

Can I still give my apartment to a friend or family member if I join the rental scheme?

If you make a booking for yourself to use, and decide not to use it, you will be able to "gift" it to a friend or family member as long as you are not "reselling" it for financial gain; and you pay the required minimum fees (cost of sale fees) - which should have been paid at the time of booking, anyway.

Will I be required to pay an exchange fee if I give usage to a friend or family member during the times I have booked for myself?

No. There are no fees provided you submit the name change to Valor at least 48 hours prior to the arrival date.

How do I contact Valor to join the rental scheme?

For more information, please contact [email protected] 

or visit the website: paje.thesoul.africa/the-soul-lifestyle/ 

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