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All operating costs are passed directly to the owner group, and a reporting of monthly operating costs are available to owners upon request. Operating costs are subject to some variability, just like any home ownership expense, which could increase (or decrease) your monthly operating expenses. For example, if property taxes increase, monthly operating costs would also increase. Importantly, Savvy does not mark up the costs when they are passed along to the owner group. In other words, owners pay the actual operating cost, no markup.
Each home is owned in a property-specific, manager-managed limited liability company (LLC). The LLC is organized under the laws of the state in which the home is located. The LLC has its own bank account and tax identification number. The LLC holds title to the residence, and the owners hold all the ownership interests in the LLC.
No. Tenancy in common is an arrangement where two or more people share ownership rights in a property. This means each owner is recorded on the deed, creating unnecessary complexity and cost when one owner tries to sell their share under a TIC arrangement.
Owners in a Savvy home purchase membership interests in a property-specific LLC, and the property is deeded to the LLC. The LLC structure makes buying and selling ownership interests in the property fast, simple, and relatively inexpensive (much less expensive than, for example, selling a full ownership vacation home).
The LLC structure is widely used for commercial and residential real estate.
The deed for each property is recorded in the name of a property-specific LLC. Each owner holds their ownership interest through the LLC, which provides for both privacy and liability protection.
Yes, after 12 months of ownership, owners can sell their ownership interest at any time. You'll work with a real estate agent, determine your list price, and list your share on the open market just like a whole home.
No, this is prohibited under the terms of the LLC Operating Agreement.
If a life-limited item, such as an appliance, breaks, the reserve funds cover the expense of repair or replacement. If an owner or a guest damages something in the home, the owner will be billed for replacing or repairing the damaged item. Homes are inspected after each use, ensuring a quality experience for all owners.
The reserve fund is part of the owner operating expenses. Reserve funds are set aside for the repair or replacement of life-limited appliances, equipment, and fixtures of the home. Owners can also vote to use the reserve funds to add or upgrade items around the home (e.g., adding a pool table or upgrading a theater room).
Yes. Savvy's mission is to delight its owners. If Savvy is not providing enough value, the owners may remove or replace Savvy at any time after the second anniversary of the purchase of the home.
Owners enjoy the privacy and liability protection offered by the LLC. Additionally, the LLC indemnifies owners acting on behalf of the LLC in good faith and in accordance with the LLC Operating Agreement. Each home also has a homeowners liability insurance policy up to $1 million.
Every share in the LLC holds one vote. Owners can bring any major decision to the other owners for a vote. For example, if an owner wants to add a sauna to the pool area, the owner can call for a vote. The Savvy team coordinates the communication and logistics of the voting.
Not necessarily, but many owners do wish to meet their co-owners. We find that friendships and shared interests are common among owner groups. However, Savvy makes the process so simple that owners can also show up for their reserved time, enjoy their new home in privacy, and leave the cleanup to us -- without ever needing to know the other owners. At a minimum, each year owners are invited to an annual meeting that is held by phone or Zoom and organized by Savvy.
Each year Savvy holds an annual meeting for the owners of each home to attend by phone or Zoom. At the annual meeting, your Savvy concierge will provide a report on the home, including financials, a description of any proposed resolutions to be voted on by the owners, and a description of any proposals to change the policies and procedures of the home. We find that one meeting per year is generally enough to take care of important matters related to the home.
Savvy coordinates the payment of property taxes and provides a Schedule K-1 to each owner for U.S. federal income tax purposes. Payment of property taxes is included in the owner operating expenses and may be tax deductible to you. Savvy does not provide tax advice and suggests you consult with a professional for more information.
Material changes require the vote of the owner group. Non-material changes, like change of address for reporting purposes, can be updated by Savvy on behalf of the owner group.
All funds related to the residence are held in a property-specific bank account, in the name of the LLC.