Verify the operating model
Establish whether the property permits short stays or only longer tenancies, who markets and manages it, how bookings are allocated, who controls pricing and what service standards apply.
Test the net number
Start with gross room or unit revenue, then deduct vacancy, platform and management fees, housekeeping, utilities, linen, consumables, repairs, replacement reserves, insurance and applicable taxes.
Read every return statement carefully
Distinguish a contractual payment from a projection, illustration or past result. Check the paying entity, term, security, exclusions, owner use restrictions and remedies. Obtain independent financial and legal advice.
