Answering Your Questions About Fractional Ownership

We know that fractional ownership is a fairly new concept to many vacation rental buyers. We are here to help by walking you through each step of the process to ensure that you feel comfortable and confident in your investment! But first, find out answers to some of our most frequently asked questions about fractional ownership:

What is fractional ownership? 

Fractional ownership means that a property, in this case, a vacation home in Southern Utah, is owned by a group of co-owners through an LLC (limited liability company). Each fractional owner shares legal ownership and can enjoy using the property for 6 weeks out of the year. 

How does Red Rock Fractional help with fractional ownership? 

The expert team at Red Rock Fractional is responsible for managing the shared ownership group which includes handling accounting, reservations, cleaning, and maintenance. Also, if you do not use all of your allotted weeks, we can help book nightly rental guests to occupy those weeks. This is another added bonus since renting out the time provides you with additional passive income. The owner group has the right to replace Red Rock as the manager if it is not satisfied with our services.

 Is fractional ownership the same as a timeshare? 

No, a timeshare is slightly different from fractional ownership. In a timeshare, you own the right to the time at a property, but with fractional ownership, you’re buying actual real estate and owning part of the property’s title. Also, as a fractional owner, your share increases with the home’s value. 

How do I choose the weeks I want, can I trade weeks?

The selection of the 6 weeks is given based on the order of purchase. Every year the selection will rotate based on seniority. Owners can request to trade weeks with one another, and there’s a simple process for doing so.

 Can I sell my share or buy more than one share?

You can! Your fractional ownership share can be sold or willed at any time. There is a $500 transfer/processing fee for changing the vesting names and gathering and collecting owner information. If you wish to purchase more than one share, that’s absolutely possible! One person may purchase up to 4 fractional shares and own 50% of the home.

What are the benefits of fractional ownership? 

There are many benefits of fractional ownership in Southern Utah. First, it’s a relatively easy and more affordable way to enter the real estate market. Because of rising home prices and interest rates, a fractional share is a great financial option. Each property comes fully furnished and professionally designed, ready for your use! Most importantly, fractional ownership takes away the stress from owning a home, so all you need to focus on is having fun!

Is there a start-up cost?

No. There are no start-up or closing costs! 

What is included in the Red Rock fractional management monthly fee?

The $99 monthly management fee (per owner) covers all home expenses and vacation rental management. This includes collecting and paying the utilities, property taxes, and HOA fees, scheduling cleaning and maintenance, coordinating reservations, and channel marketing. It also covers software fees and door lock/thermostat automation.

We hope this has helped to clear up any questions or confusion about fractional ownership! As always, our staff is only a phone call away and is happy to discuss with you further how fractional ownership can work for you. Reach out to us anytime! We look forward to hearing from you.