Several owners in Beverly Hills Club, Tenerife, who have rental contracts with Excel Hotels and Resorts SL (“Excel”) have been sent invoices for community, water, electricity and wifi for 2020.
If you have received these invoices, don´t worry, you do NOT have to pay them! Excel even describes their emails as for “information” purposes. If you are in doubt we can ask our lawyers to confirm this in your case.
Excel has not been paying the net rental specified in the contracts with property owners from 2019 until now. Cristobal Villalobos, director of Excel, informed owners of this a brief, one-way zoom “meeting” in November 2020. He also stated that Excel would pay as a minimum the expenses of the apartments.
What should Excel have paid owners? Excel should have paid a share of the hotel income less expenses.
What have Excel been paying? Excel has at least been covering the expenses related to the apartments – but the reality is that the hotel needs a functioning community, water and electricity supplies.
What have Excel done to address the situation? Not a lot! They are offering owners an unattractive and restrictive 10-year contract, ridiculous sales mandates to Excel with “exclusivity”. The hotel is even offering free holidays where we expect owners will receive a timeshare style “fly-buy” sales pitch for more problematic investments.
Will I have to pay the community, water and electricity bills in the future? Yes, once your apartment is free of contract, you will have to pay these costs. But at that time you will have the personal use of your property, it will be much more saleable and more valuable.
What can you do?
If you have a rental contract in Beverly Hills Club, our advice is to make sure you officially give notice not to renew it. Most owners have the 30th June this year to do this. Our lawyers can help you with this if you haven’t already done so.
Another option is to take Excel to court, for non-compliance with their rental contract obligations. Our lawyers have already evicted Excel from two apartments on the complex and we expect to see more evictions shortly.
Finally, we urge all owners to continue to unite and support the “Beverly Hills Club Owners” project being run by Trudy Woolley, to put control of the Community with the owners.