m a n a g e m e n t   F A Q s. . . . .

What will the management company do to attract rentals?
Management is motivated to achieve a combination of high occupancy and  premium rentals to maximize commissions and earnings from optional services. Direct marketing will target the US & Australian  markets. Top end wholesalers will also represent Mentawai Sanctuary.
  • Indigo Travel - Australia
  • OM Tours - Japan 
  • Surf Travel On-line - Bali
What charges will I have to pay if I stay in my villa?
Owners can stay for a continuous period of 30 days or an aggregate of 42 days in one year without any  room charge. Additional days will be charged 50% of the prevailing published room rate.

A variable logistics fee will be charged at a rate published each year. This covers airport pickups, 3 meals per day, speedboat transfers to/from  Rokot airport, speedboat to other surf breaks in the area, one complimentary massage, free use of non-powered watersports equipment, room cleaning, fresh flowers and use of business center. (2006 fee is $65 pppn)

On other services such as a-la-carte  food & beverage, additional massage treatments, minibar, powered  water sports equipment, optional treks or live-aboard yachts etc, owners will receive a discount at the discretion of management. Currently the discount is 20%.


What happens if I want to stay in my villa and it is already booked?
As long as there is availability, you will be offered another villa at  the same location or at another Mentawai location. This will be treated  the same as if you were staying in your own villa.

How will rental rates compare with similar properties and charter boat rates?
Mentawai Sanctuary villas occupy a unique market niche and our projected rates are very conservative when compared with Tavarua, the Maldives or top end charter boats. Target prices are less than 50% of established  top-end land based surf destinations and approximately mid range compared to  existing quality Mentawai Charter boats.

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The  management company's strategy is to offer a favorable introductory rate in year  one to generate awareness and interest and to then build on the rate as demand  strengthens.

What if I have friends who want to stay in my villa?

Each owner is required to supply a members list for approval by the management company. The list sets out members of the owners immediate family or partners who shall be considered as members of the owners group and to enjoy the full benefits of  ownership

All other friends and associates will be treated as normal paying guests. If owners make a booking on behalf of friends, they may be entitled to receive a special discounted rate at the discretion of management and subject to availability. Initially the discount will be 20% off prevailing published rates. This discount shall also apply if owners wish to book additional villas for themselves or friends traveling in their group.


Can I move to another Mentawai Sanctuary location while I am staying in my villa?
Subject to availability, you are welcome to move to a MS villa or lodge suite at other surf locations. Speed boat tariff (depends on numbers & distance) & a modest transfer fee will apply to cover laundry and room cleaning.

Can I upgrade to a charter boat while I  am staying in my villa?
Yes, subject to availability but the days you blocked for your own use will be aggregated when calculating your villa rental return unless management can secure last minute bookings for your villa.

What financial reports will management provide?
  • Annual financial statements and reports.
  • Monthly owners income reports.
  • Full access for owners to management records.
How will I receive the income from my villa?
Payments from our British Virgins Island company will be bi-annual into an account of your choice. A bi-annual owners income statement and management report will accompany all payments. The accounts will be subject to annual audit.

What are the expected utility and maintenance expenses for the property and per villa?
  • An annual fixed fee of USD$5,000 will be charged for the 1st year of operations based on USD$417 per month rate. Half of this fee will be payable in advance in the first year. Thereafter the income should exceed these fees. This fee will be increased each year by a maximum of 10%.
  • Commencing in the second year, USD$1,000 of this fixed fee will be placed in a replacement/reserve account which will be used at the discretion of the management company to maintain both common access and indoor facilities.
  • 20% of the net rental income as a  management fee  (rental incomes after tax, service and agents fees)
  • Any of the inclusive costs such as doing inclusive breakfasts, meals ( if applicable), boat transfers &  area specific Government fees and taxes such as  Mentawai Tourism Retribution Fees.
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