Sunwise Bonaire is our partner when it comes to the rental management of our client’s properties. Sunwise also acts as our sales broker and manages the Homeowner’s Association (HOA). Sunwise has a long track record when it comes to managing real estate and their efficient and personal approach assures you of the best return on your investment. Of course our clients are not obligatory to let their new property, but if you do not inhabit your home all year and wish to let it during your absence, entering into a partnership with Sunwise is highly recommended!
Because of their well thought marketing and rental plan, you are assured of the highest return on investment. Sunwise pays for almost all costs related to the rental (such as cleaning costs, marketing costs, fees for tour operators and travel agents, commissions of booking sites) out of their commission, so you don’t have to worry about the variety of costs concerning the letting of your property. Sunwise will like to tell you about the possibilities to join the rental pools and about what your potential return will be!
Sunwise will carry out a marketing plan to come to the best occupancy figures and highest rent income possible. This marketing plan includes social media marketing, working with travel agents and tour operators, listing the properties on commercial booking sites like Booking.com, putting up affiliate marketing programs and most important: keeping up a high service level towards their clients and the guests. They pick up people personally from the airport, show them their rented house and they are at their service until they leave the island again!
Sunwise takes care of all correspondence with all parties like travel agents, tour operators, bookers, guests, the owners et cetera and takes care of bookings, payments, administration and so on and they will manage all financial matters concerning the rental management. Sunwise will of course manage the individual properties outside rental periods too, so they will stay safe and clean.
Why is investing in a house on Bonaire and specifically in the Bonaire Construction projects smart?
Bonaire is a world famous destination for divers, accessible via numerous direct flight connections;
The economic outlook is excellent according to all calculation models;
Bonaire is a (special) Dutch municipality, so with Western European (legal) security;
Both fiscal climate and weather climate are excellent;
The value for money for the Den Tera and Sunshine Hato homes is exceptional, increasing value can be expected;
The net return on investment in Den Tera and on Hato is expected around 6%, see below!
The yield is too dependent on variable factors to predict accurately, but we like to give you an example calculation based our latest project “Den Tera”, using objective data…
– The houses in this project start at € 99,500
– Buyer’s costs and taxes approximately € 7,500
– The inventory package that is suitable for rental € 17,280 including ABB
– The landscaping package € 2,268 including ABB
– Unforeseen: € 952
– The entire investment cost € 127,500 ($ 176,000 against current exchange rate).
We would like to show you all the relevant figures later on, but for now please assume that rental costs (including marketing, minor maintenance, laundry, administration, credit card fees, cleaning, tour operators and other bookers, commissions booking sites and the fee for the manager / administrator) together will be around 55% of the rental income. By acting together in a “rental pool” we can lower this amount for you with 18%, to 45%! Investors have to deal with some variables such as water and electricity costs, insurance, AoO costs and property taxes. We try to keep the utility costs as low as possible by asking the guests to switch off air conditioners when they go out et cetera.
The Homeowners Association (HOA) of Den Tera asks for a contribution of $ 75 per month and the property tax is effectively 0.8% (20% of 4%) over the set value, plus 15% “surtax”. The higher actual value in mind, we do not calculate with the € 99,500 purchase price, but with a plausible and officially praised € 145,000 ($ 200,000).
Our experience shows that these costs are about 12% of the rental income, with an average occupancy rate. Total cost therefore about 57%.
Properties like this are rented for about $ 110 per night. With an average occupancy rate of 62% on Bonaire (while the occupancy rates of these resorts are usually somewhat higher, towards the 70%) means an annual rental income of $ 110 x 365 x 62% = $ 24,893.
Minus the above 57%, the net income will be $ 10,704, which means a return on investment of 6.1%.
Compared to the current savings rates in the Netherlands or the United States it’s an excellent result! This yield calculation is even excluding the revenues for the owners from the “affiliate program” of Sunwise. They share the commissions from car rentals, diving activities et cetera with the investors!