Of the two main services a property management company provides, the first is called ‘keeping your calender’.  This simply means the company will book people to stay in your villa.  It is a bit more complicated than that though.  They will keep open any dates YOU want, make sure two families are not arriving at the same time, arrange and collect payment, and arrange any of the optional services listed in the last post.

The second main service is maintainance of the actual property.  This can include regular maintenience such as gardening, maid service (once daily, once weekly), pool service, etc.  It will also include emergency services such as plumbing, cistern, septic, electrical, storm shutters, etc.  This is a very important service especially if the owner does not live on island.  It means there is only one number for the owner or a paying guest to call if a problem or an ememrgency arises. 

Another option is sometimes available because of the way most houses are built in the Virgin Islands.  Many homes here are built with an extra apartment.  This apartment can be rented out, but it is often used as a residence for a handy man (or couple) free of charge in exchange for their services.  If the problem is too big, the handy man makes the call to a professional.

How many services the management company provides and to what degree will determine the cost.  Check around for different prices and services provided, but look for recommendations or referals.  Remember, you may not be on island and you have to be able to trust the company or individual with your home and all of its contents.

Many people who purchase here purchase for their future.  Some people buy just so they can stay in their second home for vacations, some buy to have a place to retire to, and some buy because real estate is a good investment.  I do ask my customers what their intentions are because what is important will be different if they are moving here to work and need an affordable place to live as opposed to a location that a tourist would be more inclined to stay.

When on St Thomas on vacation, people want to be close to the beach or have a nice view.   Lots of times they want a pool to cool off in.  In the Virgin Islands people are fond of naming their homes.  Typically the term Villa in front of the name means it is for rent.  There are several companies on island who will do your property management.  The fees that are charged vary for different companies as well as which services the company provides for you.  Below are three villa rental companies I would recommend, but there are several others. 

www.saintthomasvacationrentals.com

www.usvipvillarentals.com

www.caretbay.com

The two main services the rental companies can provide are maintaining your property and what is known as keeping your calender.  Other services that can be provided for your renting guests are…

• airport pick-up and drop-off
• stocking the fridge
• chef to prepare one, some, or all meals
• island tour
• babysitting
• maid service

More next time…

For those who do not know – a condo, or condominium unit, is like an apartment building except instead of renting, you can own individual units just like any other piece of real estate.  Condos are similar to townhouses (explanation of townhouse at end of post)

GOOD STUFF… 

For many people who purchase here, the purchase is an investment and they are not on island to keep an eye on the place.  The purchase of a condo may be the best option for them because the outside maintenance is taken care of.  All you would need to do is find people to rent it to and make sure the inside is ready for any arrivals.  There are several property management companies( www.saintthomasvacationrentals.com ) on island who can “keep your calender” and hire maid service for you.

There is a “condo fee” associated with this service of outside maintenance to pay for materials and labor.  The outside maintenance usually consists of landscaping, amenity maintenance (i.e. pool, beach chairs, tennis court, golf course, gym), parking lots, security, and general upkeep of the outside of the buildings (paint, deck or entrance repair, etc).  General upkeep is something you would have to spend money on even if you had a house.  The condo association is just taking care of it for you instead of you needing  separate numbers for the landscaper, pool guy, painter, etc. 

Purchasing a condo is also an affordable way to buy waterfront property.  For a fraction of the price of buying a piece of waterfront property or a house on the water, you can have a lovely 1, 2, or 3 bedroom home on the water or at the very least, a very short walk to the water.

NOT SO GOOD STUFF…

This is not to say that you can assume the association will act in YOUR best interest.  Please keep up to date with any notifications or meetings and feel free to request accounts of how and when your condo fees are spent.  Outside companies are sometimes hired to manage funds.  Keep on top of them and keep them honest.

Condo fees run from about $200/month – $1800/month.  This amount is in addition to your mortgage and taxes although it typically  includes  homeowners  insurance.  Insurance is expensive here because we are in the hurricane belt.  Ask to see the complexes’ blanket policy and reserve fund. 

There is also a term called a ”special assessment” that may be added at any time to address unexpected expenses that come up.  These assessments may be a one time fee per instance, or if it is a substantial sum, the complex may give the option of spreading the fee out over several months.  You can join your condo board to give your input about how the fees and assessments are spent.

Townhouses are similar to condos in that the outside maintenance is taken care of and you have restrictions as to what you can put on the outside.  The main difference is that townhouses typically are tall, skinny structures with two or more floors and one or two walls adjacent to the next town home.  There is not another unit above or below you.   While we do have some structures that would usually be called a townhouse, there is not a separate designation on St Thomas, St Croix, or St John.  All multi unit structures are listed as “condos”.

Stay tuned next time for “Who can take care of my new Caribbean home while I’m not there?”

When purchasing here, remember “buyer beware”. At this time, St Thomas does not require a sellers disclosure or a termite warranty. A home inspection is a very good idea especially for anyone new to the islands because there are certain things to look for that do not occur in most areas of the United States.

For example, almost all homes in the US Virgin Islands use a cistern. A cistern is basically a well that is built into the foundation of the house. The cistern holds water that is collected from the roof when it rains and is then pumped throughout the house to kitchens and baths. Drinking cistern water is not recommended as everything on the roof ends up in the cistern. There are, however, several ways of filtering the water to make it drinkable. Checking the cistern and gutter system for leaks and checking the filtering system (if any) is just one reason to hire a home inspector.

Now that you have decided to own real estate on St Thomas, do you want to buy a house, a condo, or a piece of land to build on.

In the US Virgin Islands, multi-unit houses with a main house and one to three apartments are typical. This is wonderful if you are looking for an investment property or just someone else to help you with your mortgage. A financial institution will consider 75% of your rental income as personal income. This means you can qualify for more house. You do still have to come up with the down payment which is typically twenty percent.

The extra unit(s) can be rented short term (vacation) or long term (yearly). The nicer the house the better chance of renting short term to vacationers who would like a unique island experience. This would also mean you can stay there when you visit if you are not quite ready to be on island full time.

There are people on island who caretake villas for a living. They can keep your calender (for short term rentals), interview tenants (for long term rentals), be the maid service, gardener, pool boy, and repairman. Your basic goto guy.

Ahhh, but that is a blog for another day…