FAQ

Flatels Fractional s.r.o. is a purely Czech company based on Czech capital, which deals with the sale of shares (from 1/8 to 3/8) in holiday properties in attractive European destinations such as Italian Sicily, Spanish Andalusia and the Canary Islands.

Our goal is to offer people the opportunity to own part of a second home without having to buy the entire property.

Buyers not only get the opportunity to use the property for their own recreation, but in the event of non-use, Flatels rents it out on a short-term basis, generating a yield of 3-6% p.a. Each property also has its own car, in which the buyer owns a share along with a stake in the property. This is a carefree, sustainable and economical ownership model that also allows for investment diversification. This concept of ‘fractional ownership’ is currently an emerging global trend in the holiday property sector.

• Lower initial investment: the purchase of a share costs a fraction of the price of the entire property. This allows you to afford a second property in an attractive foreign location that would otherwise be unaffordable for you.
• Mortgage-free and risk-free : unlike buying the entire property on a mortgage, buying a share avoids long-term debt and the risk of not being able to pay the entire amount yourself in the event of an income shortfall (e.g. during a pandemic).
• Carefree: the property is taken care of by Flatels. You just come and enjoy your second home without worrying about maintenance, insurance, paying bills, etc.
• Rental income: When the property is not in use, it generates a rental yield of 3-6% per annum. Compared to renting the entire property individually, this income is more stable and secure.
• Diversification: instead of one property, you can have an interest in several in different locations. This will reduce your investment risk and increase the flexibility of your stays.
• Your own car: An interest in real estate includes an interest in your own car. You don’t have to deal with a rental company and you save money.
• Community: you share a similar philosophy of life with other co-owners and can make new friends all over Europe.
• Sustainability: shared ownership is environmentally friendly. One property serves multiple people effectively.
• Advantageous compared to traditional holidays: on repeated visits to your favourite destination, buying a share quickly pays off. You get the feeling of a second home, more space and privacy than a hotel, all for a fraction of the price of annual vacations. For a detailed comparison, check out our blog post.

• Sicily – Italy: the largest island in the Mediterranean Sea, famous for its beautiful beaches, historical monuments, unique cuisine and the active volcano Etna.
• Andalusia, Spain: a region in the south of Spain, famous for its sunny weather, golf courses, typical white villages and tapas bars.
• The Canary Islands, Spain: an archipelago in the Atlantic near the African coast that offers a year-round pleasant climate, varied volcanic landscapes, beaches with more than just black sand and a rich underwater life.

• Alps in different countries (France, Italy, Austria, Switzerland)
• Mountain areas in Bohemia (Lipno, Giant Mountains)
• Other seaside resorts in the Mediterranean

Flatels offers a flexible share purchase system that allows you to tailor your investment to your needs and financial capabilities.

The basic offered share is 1/8. Larger shares are available in multiples of 1/8, namely 2/8 and 3/8. In order to maintain a balance between co-owners, we do not sell shares larger than 3/8 so that no individual has a majority or blocking minority.

Each share represents an entitlement to use the property to the extent of the corresponding number of points. Points are allocated to each day of the year according to its attractiveness. For example, in Sicily, a day in high season may be worth 100 points, whereas a day in January may be worth only 45 points.

The owner of the 1/8 will thus be entitled to 1/8 of the total sum of points, which can be freely drawn in days or blocks according to his preferences and the current point value of the days.

This system gives you a high degree of flexibility in scheduling the use of the property versus fixed weeks. It also takes into account the different value of different times of the year in a fair way.

• Choosing a property: first, choose the property that best matches your ideas for a second home from our offer. Our specialists will be happy to provide you with detailed information about each property and help you with your selection.


• Choice of share size: Depending on your preferences and financial possibilities, you can choose the size of your share (from 1/8 to 3/8). This choice will affect the number of days you can spend in the property and the amount of your share of the rental income.


• Booking contract: Upon payment of the reservation fee, we will draw up a reservation contract with you, which will guarantee you exclusivity in the purchase of the selected share for a period of 60 days.


• Document verification: during the booking period, we will provide you with all the legal and technical documents for the property and the company that owns it. You will have enough time to study them and ask any questions you may have.


• Signing the purchase contract: If you are satisfied with the documents, we will proceed to sign the purchase contract. This sets out in detail all the important parameters of the transaction. By signing this agreement, you are also automatically acceding to the Partnership Agreement and the Shareholders Agreement. An integral part of the package of documents are the rules of use of the house, which ensure the harmonious coexistence of all co-owners.


• Payment of the purchase price: you pay the purchase price securely through a solicitor’s escrow. Only after the payment is credited to the escrow account is the contract effective.


• Handover: once the transaction is complete, we will hand over all the necessary documents and access data to the internal booking system. From now on, you become a proud co-owner and can start planning your first stay.

• Flatels hotline: for any requests or questions regarding management and maintenance, our Czech-speaking Flatels hotline is at your disposal. Our team will then take the necessary steps in cooperation with our local partners at the destination. This way you always have one clear point of contact in your native language.
• Regular maintenance: Our local partners perform regular inspections and preventive maintenance on all key systems of the property (heating, air conditioning, security, etc.). This prevents breakdowns and ensures that your property is always in perfect condition.
• Cleaning and preparation: before each stay of our co-owners we provide a complete cleaning and preparation of the property. During your stay you can then use the services of our cleaning team according to your preferences. At the end of your stay, we will again provide a final cleaning to ensure the property is handed over to the next co-owner or guests in perfect condition.
• Emergency service: in case of any unexpected problems, our 24-hour emergency service is at your disposal. Whether it’s an equipment failure or a key jam, just call our hotline and our team, in cooperation with local partners, will help you quickly resolve the situation.
• Ongoing Improvements: we regularly make improvements and upgrades to our properties from contributions to the repair fund. The co-owners decide on the necessary investments by voting at the annual meeting. As a result, the value of your property increases over time.

• Attractiveness of the term: Yields are naturally higher during desirable periods such as high season, holidays or school holidays. Conversely, yields tend to be lower in the low season or on weekdays.
• Length of lease: Generally, the longer the lease, the higher the total yield. One- off short-term rentals generate a higher yield per day, but frequent guest changes entail higher costs for cleaning, handover, etc.
• Availability: the key factor is, of course, whether the days you have available can be rented out. Thanks to our experience and intensive marketing, we achieve a high average occupancy rate. Dates released with more advance notice have a higher certainty of availability.
• Costs: related costs such as cleaning, wear and tear, energy consumption, reservation system fees, etc. must be deducted from the gross rental income. These costs are transparently reported and fairly divided in proportion to the number of days of rental of each co-owner.

Our unique calendar sharing system is designed to be as flexible as possible while being fair to all co-owners.

Each co-owner has a fair opportunity to choose their dates according to their own preferences in a predetermined order that changes regularly. Reservations can be made well in advance and can be modified later. Unused days are offered for rent and the proceeds fairly shared.

A detailed description of the entire system, including illustrative examples, can be found in our detailed blog article [link to blog article].

Yes, one of the advantages of buying a share in a property with Flatels is that you can keep your personal belongings in the property. Each co-owner has their own lockable storage space where they can keep their belongings such as clothes, sports equipment, toys or other necessities permanently.

That way you don’t have to pack and carry everything you need every time you go on a regular holiday. You simply arrive and your second home is completely ready for a comfortable stay. You don’t have to waste time unpacking and then packing it in your suitcase.

This is especially practical if you are travelling by air. You don’t have to worry about backpack weight limits or paying for suitcases. Everything you need is waiting for you on site.

Of course, the storage areas of the individual co-owners are completely private and no one else has access to them. You don’t have to worry about your belongings.

Being able to leave your belongings in the property greatly enhances the feeling that you truly have a second home that you keep coming back to. At the same time, it makes travel and stays much more convenient and less expensive.

• New car: Flatels always purchases new or used cars with automatic transmission for comfortable and safe driving by all co-owners.
• Share size: Your share of the car corresponds to the size of your share of the property. This means that you always have the car for the duration of your stay, so you don’t have to share it with anyone.
• Regular renewal: after about 5 years, the car is sold and the car fund is used to cover any price difference for a new car. This ensures that you always have a relatively new car.
• All taken care of: insurance, maintenance and servicing of the car is completely taken care of by the property manager. You don’t have to worry about anything, just use the car.
• Handover at the airport: as part of the organisation of the exchange, we work with our partners to arrange the handover of the car at the airport. If this is not possible, the car is waiting for you at the property.
• First take: In the case of a property that can be used by several co-owners at the same time, the car is reserved for the one who reserves it first.

Our goal is to create a diverse mosaic of people who will use the property at different times, according to their individual preferences. With this selection strategy, we want to ensure the satisfaction of each co-owner and at the same time the long-term sustainability and efficiency of the whole concept. We believe that a diverse group with complementary needs guarantees a smooth sharing of the property.

• House Fees: These fees cover the normal operating costs associated directly with the property, and running the company such as: – Energy (electricity, gas, water) – Property insurance – Taxes and local charges – Regular maintenance and repairs – Bookkeeping in the country where the property is located and in the Czech Republic
• Repair Fund: each co-owner contributes to a repair fund, which is used to finance major repairs, renovations or improvements to the property. The amount of the contribution is determined on an annual basis and is approved at a meeting of the co-owners. This fund ensures that the value of the property is maintained and increased over time. The amount of the contribution to the repair fund is set annually according to the estimated costs.
• Car fund (if applicable): for properties where a car share is included, the co-owners contribute to a special fund to cover the costs of operating and maintaining the car. The amount of the contribution to the car fund is set annually according to the expected costs. The fund shall cover the following items: – Compulsory liability and accident insurance – Road tax and vignette – Service inspections and repairs – Pneumatic service and filling of operating fluids – There is a fund to replace the car after about 5 years.

• Cleaning services: the cleaning of the property is paid separately by each co- owner according to the frequency of their stays. Flatels will arrange the cleaning but the price is charged directly to the co-owner. Therefore, if some co-owners use the cleaning services more frequently or to a greater extent, this is not reflected in the cost of the others.
• Individual expenses and damages: if a co-owner causes damage to the property or its furnishings through his/her own fault, he/she is obliged to pay the full cost of repair or replacement. Likewise, if he or she causes additional expenses (e.g. loss of keys and the need to change locks), he or she shall bear these costs individually. Flatels, as property manager, assesses and decides on these situations in order to ensure that the interests of all co-owners are protected. This principle ensures a fair distribution of responsibility and prevents the consequences of careless behaviour by an individual being passed on to the other co-owners. At the same time, it encourages the considerate use of common property.
• Flatels fees: these fees cover services provided by our company in connection with the management of the property and the organisation of the co-ownership, such as: – Coordination of stays – Managing the booking system – Assistance and support to co-owners – Organisation of the handover of the property between stays – Administrative and legal services

• Offer to co-owners: You have the option to offer your share first to the other co-owners. They have the right of first refusal. If they are interested in your share, they must comment on the offer within 1 week and buy the share at the price you set within 2 months.
• Selling via Flatels: our company has a database of interested parties. We will be happy to help you find a buyer, introduce the property and ensure a smooth transaction. In this case we charge a commission of 5% of the sale price.
• Direct sale on the market: you can offer your share for sale yourself, using regular real estate portals or other advertising channels.

• Flatels reserves the right to approve a new co-owner. If Flatels does not agree with the new co-owner (e.g. due to non-compliance or incompatibility with the other co-owners), it may block the transfer for a limited period of up to 3 months. During this period, Flatels may secure another buyer on the same terms. After 3 months, Flatels can no longer block the transfer.
• In the event of an offer to the co-owners, the latter have the option to offer a maximum price for the share, determined by them, at which they would be willing to buy the share. If the seller agrees to this price, the co-owners are obliged to buy the share at this price within 2 months.
• When the share is sold, all rights and obligations associated with the share are transferred to the new co-owner, including payment of fees and compliance with the rules of use of the property. This also applies to any debt owed by the original co-owner.

• Professional management: with real estate held in a company it is easier to ensure professional management, bookkeeping, distribution of costs and revenues between co-owners. The managing director of the company (in our case Flatels) takes care of these matters. Ownership through an LLC therefore provides the co-owners with greater flexibility, protection and management comfort while maintaining full control over their assets. This is why this model is very popular not only with Flatels but in shared ownership of property in general.
• Simple changes of ownership: transferring a share in a company (i.e. a share in a property) is much easier, faster and cheaper than transferring direct ownership of a property, especially abroad. There is no need to change the land registry and pay high transfer fees. For example, in some popular destinations such as Spain or Italy, the property transfer tax is between 6-10% of the property value. When transferring a share, none of this is payable.
• Higher liquidity: due to the easier transfer, the liquidity of the share in the company owning the real estate is also higher than for direct ownership of the real estate. You can sell your share at any time (after 6 months from purchase). The new co-owner then only enters an existing structure with clear rules.
• Similarity to an HOA: Ownership of a property through a limited liability company (LLC) is in many ways similar to ownership of an apartment within a unit owners’ association (HOA). In both cases, you own a share of the common property and follow set rules. The only difference is that the unit is the time of occupancy and not the specific unit.

• 15% of the share price at the first sale
• 5% of the share price on the second and subsequent sale

• Fixed monthly fee 900 – 2.500 CZK per 1/8 share (charged to owners annually)
• 5% of the turnover of short-term rentals (see our blog for a full explanation and fees associated with short-term rentals)

• Ownership: with Flatels Fractional, you become the actual co-owner of the property with registration in the Land Registry (through your co-ownership company). With a timeshare, you only buy the right of use, not a share of ownership.
• Flexibility of use: Flatels offers a flexible booking system where you can plan your stay according to your time availability. Timeshares often work on the basis of pre- determined weeks of the year.
• Possibility to rent: As a co-owner, you can rent out your share in Flatels to generate passive income. With timeshares, this option is usually limited or non-existent.
• Sale of shares: You can sell your stake in Flatels at any time at market price (after 6 months from the date of purchase). With timeshares, selling is often complicated and may not match the original investment.
• Management and maintenance: at Flatels, all management and maintenance is handled by a professional team and costs are transparently allocated to the co-owners. With timeshares, the management may not be as efficient and transparent.

• Maintenance and repairs: Flatels Services can carry out maintenance and repairs independently only up to the equivalent of 75,000 CZK per case. More expensive works and renovations must be approved by the general meeting of the co-owners.
• Sale of assets: As Managing Director and Administrator, Flatels Services may not sell company assets worth more than CZK 75,000 per case without the approval of the General Meeting.

• Communication with our team: the first step should be open communication with our team. We are ready to listen to your comments and work on solutions that will lead to your satisfaction.
• Vote on change of administration: If dissatisfaction persists, the co-owners have the option to vote on changing the management of the property. If a majority of the owners decide to change, the current managing agent will be removed and the management agreement terminated.
• Appointing your own managing director: after the removal of the current managing director, the co-owners can appoint a new managing director who will be responsible for managing the property according to their wishes.
• Ensuring self-management: If the co-owners decide to self-manage, they can arrange for their own management. This means that they take responsibility for all aspects of the management of the property, including maintenance, finances and legal and accounting matters.

• Prevention: fees are always paid one year in advance and the next year’s fees are paid from the rental income statement. This makes the risk of non-payment very low-the co-owner would have to have serious financial problems lasting more than a year. In addition, it can be assumed that a person in financial difficulty will not go on long and expensive holidays, so non-payment due to lack of finance is unlikely to occur.
• Procedure in case of non-payment: if the fees are still not paid, the procedure agreed in the partnership agreement will apply. Specifically:
  – The co-owner will be denied access to the property until the fees are paid.
  – Its free days will be offered for rent on a priority basis, with the proceeds primarily used to pay outstanding fees.
  – Once the debts have been repaid from the rental income, the co-owner will regain access to the property and the possibility to use it within his/her rights.
• Execution: in the case of execution on a co-owner’s share, the same procedure will be followed:
  – The right to use the property will be suspended until the foreclosure is resolved.
  – The free days attributable to a given share will be used to the maximum extent possible for renting in order to minimize the economic impact on the other co-owners.
  – The share itself can be sold under execution to a new owner who takes over all the rights and obligations associated with the share. This will not affect the functioning of the co-ownership.
• Violation of the rules: the same principle of suspension of the right of use applies if the co-owner violates the rules of use of the property or otherwise damages the common property. The aim is to protect the interests of the responsible co-owners and to motivate them to make amends.

• US mortgage with a pledge of another property in the Czech Republic: if you own another property, you can use it as collateral for a non-performing loan to pay for the share.
• Consumer credit: Some banks offer special consumer loans for investment property. These loans usually do not require a mortgage on the property, but have slightly higher interest rates.
• Loan secured by financial products: if you have a portfolio of investments (securities life insurance, etc.), you can use them as collateral for a loan to buy a share.
• Specialised loans for fractional ownership: Flatels is currently in discussions with banks about tailor-made loan products for share purchases. As soon as these products are available, we will keep you informed.

Yes, it is possible to pledge a share in a company, but only with the consent of the general meeting. Our goal is to have financially sound and stable co-owners, so we do not recommend pledging shares. In the event that one of the co-owners should cease to meet its obligations, it is better if its share remains unencumbered. This will make it easier to find a solution that does not jeopardise the functioning of the company or the interests of the other co-owners.

However, if the general meeting agrees to the pledge, this is legally possible. The right of pledge of a share is created by registration in the Commercial Register. It is important, however, that the pledgor (e.g. a bank providing a loan) is familiar with the articles of association and the rules of the company in advance, especially the provisions on the transfer of shares in the event of default by the owner.

In any case, the property itself remains unencumbered as it belongs to the company, not to the individual owners. Any lien on the share would therefore have no direct effect on the other co-owners or on the management of the property.