This 04/28/2020, we received a help of… 118 Euros! For a residence whose monthly charges are 3000 Euros which cannot be carried over, confinement will directly cost us more than € 12,000, not counting the losses to be suffered following the cancellation of festivals and the concern of travelers. The cost of COVID-19 is estimated for us at almost 35,000 € by imagining a restart of the tourist sector at full speed in April 2021. Based on an annual net profit of 20,000 € and without having to reimburse the reservations already received, we will be in balance at the end of July 2022. If reimbursements or assets were to be put in place without receiving state aid (which is not required for furnished apartments from their reopening date), the total cost would be greater than 55,000 € and would in no case allow our treasury to cope: therefore we would regret declaring bankruptcy outright. As for loans guaranteed by the state, it is obvious that even by postponing their repayment to 12 months, the amount of charges increasing to € 4,500 per month, no profitability would be possible before 6 years. So, today, what solutions can we offer (knowing that debates whose results will not take place until the end of May may still change the situation)?
1. the pure and simple application of the reservation conditions, which the law allows, and the prorated reimbursement of the aid received.
2. the postponement of the dates of stay but not beyond March 2021 inclusive, so as not to spread a loss over the following year.
3. postponement to dates of stay after March 2021 but only for reservations less than 21 days from the date of arrival.
4. The conversion of the amounts paid into profit sharing, knowing that the reimbursement of these dividends can only be envisaged when we become beneficiaries again or at their discounted value according to the losses suffered.
We remind you that cancellation insurance costs € 47 per year for people living under the same roof and covers all reservations made up to € 10,000 per year (https://www.europ-assistance.fr/). After taking out the insurance, or on the day of this subscription, we can send you a booking confirmation which will allow you to cancel later for any justifiable cause (sometimes with a slight excess). We always recommend taking out this type of insurance in the event of a non-cancellable and non-refundable reservation. If you have equivalent insurance (sometimes included in credit cards), we will send you a cancellation invoice to recover the lost deposit. Today, this is the solution we advocate.