Base Pay Policy for Clients of Airdesign360: Pioneer Series Designs in Amani Grand Resort Residences on Airbnb.

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Base Pay Policy for Clients of Airdesign360: Pioneer Series Designs in Amani Grand Resort Residences on Airbnb.

UMC-STRPRO-POLICY-004

Policy Statement

The base pay structure for Amani Grand Resort Residences ensures fair compensation for property owners. Adjustments to base pay rates and tax compliance procedures are outlined to maintain transparency and accountability.

Purpose and Scope

This policy aims to establish clear guidelines for determining base pay rates at Amani Grand Resort Residences, providing property owners with consistent compensation aligned with guest satisfaction. 

Applicability

This policy applies exclusively to property owners subscribed to STR Pro services for Amani Grand Resort Residences and clients who have availed Airdesign360: Pioneer Series Designs. It specifically governs the determination of base pay rates for nightly stays booked through Airbnb.

Definitions

  1. Base Pay: The fixed amount per nightly stay received by property owners based on the cumulative number and quality of guest reviews. It serves as the baseline compensation for property owners subscribed to STR Pro services.
  2. Amani Grand Resort Residences: The specific property or properties managed by STR Pro under subscription for rental management services. It encompasses the accommodations offered within the Amani Grand Resort Residences.
  3. Client Payments: Monetary transactions made by guests for their accommodation bookings at Amani Grand Resort Residences through Airbnb. These payments contribute to the overall revenue earned by property owners.
  4. Withholding Tax: A tax deducted by the Philippine government from client payments made to property owners subscribed to STR Pro services. The withholding tax is calculated at a rate of 5% of the base pay and is withheld if property owners fail to provide an Official Receipt for client payments.
  5. Gross Earnings: The total income earned by property owners for a specific month, calculated by multiplying the total number of nights any guest stayed by the applicable base pay rate per night.
  6. Net Earnings: The final income earned by property owners for a specific month after deducting the withholding tax from the gross earnings. It represents the actual amount received by property owners after tax deductions.

General Provisions:

Base Pay Structure

  1. For the first 10, 5-star reviews received on any OTAs platform, the base pay per nightly guest stay is set at 300 pesos per nightly guest stay.
  2. For guest stays exceeding 10 but not more than 20, 5-star reviews, the base pay increases to 600 pesos per nightly guest stay.
  3. After reaching 20, 5-star reviews, the base pay further increases to 800 pesos per nightly guest stay.
  4. The base pay of 800 pesos shall be maintained for a consecutive period of three months.
  5. After three months, STR Pro or the property owner may provide a recommendation to adjust the base pay rate, which will be considered based on the overall performance and market conditions.

Tax Compliance

Tax Compliance Procedures: Property owners subscribed to STR Pro services are subject to tax under the Philippine government. Failure to provide an Official Receipt for client payments may result in a withholding tax of 5% of the base pay. 

Property Owners Earning Computation 

The computation of earnings for property owners subscribed to STR Pro services shall be based on the number of nights any guest stayed in a month, with a consideration for the 5% withholding tax. The following steps outline the earning computation process:

  1. Calculate the total number of nights any guest stayed in a month.
  2. Multiply the total number of nights by the applicable base pay rate to determine the gross earnings for the month.
  3. Deduct 5% withholding tax from the gross earnings to obtain the net earnings for the month.

For example:

  1. If the base pay rate is 300 pesos for the first 10, 5-star reviews, and a guest stays for 15 nights in a month: Gross Earnings = 300 pesos per night x 15 nights = 4500 pesos Withholding Tax = 5% of 4500 pesos = 225 pesos Net Earnings = Gross Earnings – Withholding Tax = 4500 pesos – 225 pesos = 4275 pesos for the month.

 

  1. If the base pay rate is 600 pesos for guest stays exceeding 10 but not more than 20, 5-star reviews, and a guest stays for 18 nights in a month: Gross Earnings = 600 pesos per night x 18 nights = 10800 pesos Withholding Tax = 5% of 10800 pesos = 540 pesos Net Earnings = Gross Earnings – Withholding Tax = 10800 pesos – 540 pesos = 10260 pesos for the month.

 

  1. After reaching 20, 5-star reviews, if the base pay rate is increased to 800 pesos per nightly guest stay, and a guest stays for 22 nights in a month: Gross Earnings = 800 pesos per night x 22 nights = 17600 pesos Withholding Tax = 5% of 17600 pesos = 880 pesos Net Earnings = Gross Earnings – Withholding Tax = 17600 pesos – 880 pesos = 16720 pesos for the month.

 

RESPONSIBILITIES

Property Owners: Property owners subscribed to STR Pro are responsible for adhering to the guidelines outlined in this policy.

STR Pro: STR Pro is responsible for overseeing the implementation and enforcement of this policy.

Compliance

Compliance with this policy shall strictly adhere to the outlined guidelines without exception.

Effective Date

This policy shall become effective immediately upon publication on our website. Any revisions or updates to the policy will also take effect immediately upon their posting on the website.

Administration

The administration of this policy shall be overseen by the management team of STR Pro. Responsibilities include ensuring the consistent implementation and enforcement of this policy.

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