Report Abuse

Re: Crazy prices

Apparently they did use the lowest bidder. Think how much $20,000 could buy in the largest unit you could own... would that more than replace everything? Would the upgrades be cheesy? Maybe not gold plated faucets and someone to cook for you. Now divide $20,000 by 50 (weeks per year assuming there are 2 weeks per unit where no-one picks up the maintenance tab) and it seems like Starwood is making $2600 per week or $135,000 per year per unit for renovations beyond the maintenance fees. The maintenance fees are supposed to cover renovations on an annual basis. Figure each unit for 1 week receives $300 in maintenance fees x 52 weeks/year=$15,600/year per unit. Now figure true weekly costs for the unit= (2hrs wages @ $20/hour=$40/week); (Laundry not including pool laundry $20/week); (Lawn and Garden $20/week); (Pool Fees $30/week); (Weekly wages for other employees $30/week); (Fees for misc. broken dishes, dead TVs, etc. $30/week; (Yearly upgrade of pillows, sheets, curtains, wall pictures $30/week); (Annual future maintenance stockpile $100/week) Total=$300/week or $15,600/year. Are these quotes generous enough? The company needs maintenance fees to operate. It is not supposed to make money on the maintenance fees beyond costs. Figure each building at Myrtle Beach has 40 units. $15,600x40=$624,000 per year. Multiply that x 10 buildings=$6,240,000/year in maintenance recuperation. Remember there are at least 7 more buildings on the property and the company does not build until each unit is sold. 6x624,000=3,744,000 $3,744,000 per year in maintenance fees that go where? Now consider in 10 years you will pay a hidden fee of $3000/unit for Upgrade fees. At 10 buildings that is: $62,400,000 to upgrade all units in 10 buildings. This is a ridiculously conservative estimate. NO WAY!