What They Don’t Tell You
So, you’re thinking about putting your luxury branded residence into a hotel rental program? Sounds like a sweet deal, right? Passive income, top-tier management, and a seamless guest experience. But before you sign on the dotted line, let’s talk about the fine print—because there are plenty of strings attached.
We got ahold of a Four Seasons rental agreement and here’s what they don’t tell you upfront but what you absolutely need to know before handing over the keys.
1. No Promises, Just Vague Hopes
The first thing that should raise an eyebrow? There’s zero guarantee of rental income. The hotel operator makes it crystal clear: they’re not promising occupancy, returns, or even that your place will get rented at all. If you were banking on this program covering your mortgage or HOA fees—think again.
2. You Have No Say in Pricing
Once you’re in the program, the hotel operator sets the rates, and you have absolutely no control. They might slash prices during slow seasons, give deals to VIP guests, or prioritize their own inventory over yours. And guess what? You won’t see a dime if they decide to rent rooms for peanuts just to fill space.
3. You’re Locked Into Their System
Want to list your place on Airbnb or work with another rental agency? Tough luck. Unless you go through their so-called “Qualified Rental Agent,” renting outside their program is strictly prohibited. Basically, they own your unit’s rental potential.
4. Death by a Thousand Fees
Let’s talk money. Whatever rental income you do make, expect it to be chipped away by:
- Management and admin fees
- Housekeeping charges (even when you stay there yourself!)
- Marketing and advertising deductions
- Credit card fees and travel agent commissions
- Maintenance fees, which they can raise whenever they want
By the time they’re done, your “profits” could be laughably low.
5. You Might Not Even Get to Stay in Your Own Place
Think you can pop down for a spontaneous weekend getaway? Not so fast. If a guest has already booked your unit, you’re out of luck. Want to guarantee availability? You’ll need to reserve it 13 months in advance. And even if you do stay, you’re still on the hook for housekeeping and maintenance fees.
6. They Control When You Can Leave
This is a major one. The contract automatically renews every 24 months unless you give a whopping six months’ notice to pull out. Miss that deadline, and you’re stuck for another two years. So if the program turns out to be a bad deal, exiting won’t be easy.
7. Who Gets Booked? Not Always You.
The agreement says rental assignments are “equitable”—but let’s be real. Factors like location, view, and bed configurations mean that some units will be favored over others. And without transparency into how bookings are made, you could be at the bottom of the priority list while other owners rake in revenue.
8. Guest Damages? Good Luck Getting Paid Back.
After every stay, the Rental Manager will inspect your unit. If a guest trashed the place, they’ll “make an effort” to recover damages—but there are no guarantees. In the end, you’ll probably be the one footing the bill for repairs.
9. You Pay, They Profit
Remember, you’re responsible for all upkeep, furniture replacements, and maintenance. If the hotel decides your unit needs an upgrade to “meet brand standards,” you’re the one cutting the check. And don’t forget—if you make any rental income at all, they take their slice first.
10. Revenue Distribution & Tax Headaches
You’ll get paid only if your earnings exceed $100—and payments are delayed by at least 30 days. Plus, expect withholding taxes, occupancy taxes, and whatever else they decide to deduct. If you’re not careful, you could end up with a much smaller payout than expected.
**Bottom Line: Who Really Wins?
