FAQ About Our Fractional Offerings
Have questions about how our shared ownership offering works? Find Frequently Asked Questions below.
Q: What is Co-Ownership and How Does it Differ From Time Share?
A: Co-ownership, also called shared or fractional ownership has steadily gained popularity due to the desire for second home ownership at a fraction of the cost and hassles of fully owning second home. It was initially launched in the 1980’s in ski areas in the United States and has expanded well beyond that, including luxury hotels offerings in many locations. Co-ownership is very different from a timeshare: A timeshare only qualifies you for a stay in a property, but you do not own any part of that property or development, nor share in any financial gains. With co-ownership, buyers have a fully deeded ownership share in THAT specific property. This deeded ownership can be resold or passed on to loved ones.
See our blog answering some of our most frequently asked questions about fractional co-ownership.
Q: Why did Paris Perfect decide to offer fractional ownership, and how it is different from Paris Perfect's vacation rentals?
A: With over two decades in the vacation rental business and scores of renovations under our belts, we received many questions from guests about buying an apartment Paris. Most quickly realized they had neither the fortitude, patience or budget to conduct a property search, and manage a renovation from afar. In response to these questions, we decided to offer a shared ownership opportunity to provide our clients with a chance to own an apartment in Paris that we manage in the same trusted, high-quality way, and most importantly, without the costs and responsibility of full ownership. We found that many people wanted to visit up to a month each year, and instead of renting from us, they wanted a piece of a beautiful apartment, without the cost and hassles of 100% ownership. We listened and created Paris Perfect Co-Ownership.
We’re uniquely positioned to do this because we manage almost 100 apartments for full owners in Paris, which is a crucial advantage. Decades ago, we established a complete operation to manage and service apartments. A co-owned apartment is a logical extension of the same set of services, with the same high-quality standards and care.
At Paris Perfect Co-Ownership, we use the same French operating company as for our rentals that includes full-time maintenance, housekeepers, a welcome center and a full-time staff. There are also the same furnishing touches such as elegant décor, our beautiful French porcelain dinnerware and our popular custom-made Paris Perfect monogrammed linens.
Q: What Makes Paris Perfect The Right Company to Offer Co-Ownership Apartments?
A: Over the past two decades, Paris Perfect and parent company Vacation Perfect have become a leading luxury vacation rental company in Europe and London. The core building blocks which made our rental company successful were consistent from the day it was founded: trust, quality properties, and an excellent team who deliver the best service. We realized that our guests had not only fallen in love with Paris, but many wished to spend part of each year there.
These core values fit this new idea from the start: knowing where and how to find the best properties to purchase, remodel, furnish, maintain and manage properties in all our Vacation Perfect locations -- not simply accept what owners had purchased on their own. Those values have put us in a leadership position in the vacation rental industry. The same skills are required to locate a fabulous property which we remodel to the highest standards and manage for owners --whether owned 100% or shared among several owners. Watch our video about the Beaune two bedroom offering.
Q: How will I choose my four weeks?
A: The choice of weeks is done on a rotation basis of two weeks each, similar to a professional sports draft. If you are in position one for the first round then you have first choice of your first two weeks and last choice of the second two weeks. The first-round pick moves down by one each year, and the second-round pick moves up by one each year. That way everyone has an excellent choice of favorite weeks, either in round one or two. There are no “bad” weeks or seasons in Paris! Every season is special, from snowy days in winter to picnicking in the summer at nearby parks. Please read more here.
Q: What is the annual budget set for the property? Are there any additional costs?
A: All of the costs to manage the apartment -- including building charges, condominium fees, utilities, property taxes, turnover/cleaning, management, supplies, a five-to-ten-year depreciation cycle for appliances and normal wear and tear -- are included in the annual fee paid by each owner. This is an incredibly reasonable, all-inclusive fee that makes ownership a natural decision for most. In addition, a portion of the annual fee is set aside for a longer-term maintenance fund for the apartment and building. Our offerings have low running costs, thanks to our large property management business and our philosophy to provide excellent value to guest and owners. We invite you to judge for yourselves by comparing the fees and costs at Paris Perfect Co-Ownership with any shared ownership offering in the US or Europe.
Q: Will we need a French bank account or be liable for taxes in France?
A: No, you will not need a French bank account nor will you have to personally file French taxes. The fees are paid in US dollars to the US companies set up to own each co-ownership property through a French SCI (similar to an LLC). The US companies will pay the taxes to the French SCI, which will file an annual tax return. These ongoing expenses are already factored into the annual fee detailed above.
Q: If there is any conflict among the owners, how is it to be resolved? If an owner doesn't contribute their share or abide by the agreement, is there a system/process in place to resolve it?
A: A US company holds the apartment, and the contract will have an owner management board to answer questions, authorize payments and resolve conflicts and issues. As the fractional system has grown, this kind of system has become increasingly common and workable. What makes our offer unique is there is an established operating company on the ground that handles all the legal vacation rentals, as well as the fractional apartments, including laundry, luxury linens, on-the-ground office and excellent cleaning staff.
Q: If an owner wants to exit, will there be a chance among the other owners to purchase the share first? Is there a defined exit process for an owner who wants to sell their share?
A: Yes, there is a defined process, and we can act as agent to sell your share. Other shareholders will have the first priority to purchase shares.
Q: If we wanted to secure a share, do you need a deposit or the funds upfront?
A: Just let us know if you’d like to secure a share and we’ll provide you with the information package and contract – and also schedule a showing plus answer all your questions. Please email us for more information and with any questions you may have: [email protected].
Q: Where else do you offer fractional properties?
A. With the success of Paris Perfect Shared we have expanded our offering to Italy Perfect Shared with the launch of our first Florence, Italy fractional, the Maestro apartment, in late 2022. Maestro is a beautiful apartment with a lovely terrace in the heart of Florence near the famed Ponte Vecchio.