This guide explains how to move an Area from a Trust Pool to a Performance Guarantee contract for the same owner, using a Change of Ownership in RMS.

Overview

Use this process when an owner keeps ownership of an Area but wants to change how their income is calculated, moving the Area out of a Trust Pooling arrangement and onto a Performance Guarantee contract. The owner does not change: only the contract type does.

A Performance Guarantee contract (also referred to as a Performance Undertaking in some internal documents) guarantees the owner a set return for the period, rather than distributing pooled income across the Area's lot entitlement. Because the income model changes, the Area must be ended in the pool and given a new contract that starts the following day.

The steps below cover ending the pool entitlement, creating the new contract, and clearing any forward reservation allocations so income is paid to the correct owner from the change date onward.

Before you begin

Confirm that no reservation crosses the change date for the Area. A reservation with stay dates that span the change date must be split into two so that each contract receives income only for its own period. This mirrors the rule in Record a change of ownership.

End the Area in the Trust Pool

In the side menu of RMS, go to Owner Accounting > Trust Pooling.

1. Highlight/select the Pool the Area is located in.
2. Select Edit.
3. Select the Area (or Areas) you are moving out of the pool.
4. Choose Edit.
5. Change the Effective To date to the day before the new contract is due to start.
6. Save and Exit the change.

7. Save the confirmation window that follows to make sure the change is applied.

   

   
    

Create the new Performance Guarantee contract

1. Go to the Booking Chart.
2. Locate the Area and click the Area hyperlink to open it.
3. Open Edit Room.

4. Click Add a new Owner Contract.

   

   
    

5. RMS displays the following warning message:

   

6. Set the Contract Type to Performance Guarantee.
7. Set the contract start date to the actual date of the change (the day after the pool entitlement was ended in the previous section).
8. Select the owner
9. The banking details for the owner
10. Enter the guarantee amount

11. then save and Exit.

    

    
     

Verify the contract

Open the Area's Owner Contract to confirm the new Performance Guarantee contract is in place and starts on the correct date, with the previous pool entitlement ended the day before.

Update End of Month Expenses

Review the End of Month Expenses for the Area and update them if the change of contract affects the charges applied to the owner.

Clear forward reservation allocations

Forward reservations that already have tariffs on their Reservation Accounts may still be allocated to pay the pool rather than the individual owner. Clear each one so income is directed to the correct owner from the change date onward.

1. On the Booking Chart, open each forward reservation for the Area.
2. Move the reservation out of the Area into any other Area, then save.
3. Move the reservation back into the original Area, then save again.

This resets the allocation so the reservation pays the individual owner instead of the pool.

Related Articles

• Record a change of ownership
• End of Month Preparations - Trust Pooling
• End of Month Expenses