Clamshell Beach -The Cottages on Whitefish - was approved by the Minnesota Department of Commerce to offer resort cottages for sale on a fractional basis.
Clamshell Beach resort is on the Whitefish Chain in the Brainerd lakes area.
According to the Explore Minnesota Tourism, the number of resorts has gone from more than 3,000 in the 1970s to 890 now. During this time, the state population has grown from 3.8 million to 5.1 million and lakeshore prices have increased exponentially. All of these factors have combined to make it more difficult for people to find an affordable way to enjoy time at the lake, Clamshell reported.
The resort reported the fractional business model for resorts provides a solution as new cottages are offered for sale with a shared ownership among different families, but the use, management and rental agreement is formalized. Owners receive a deed to the property, but the resort owner continues to manage the property and rents the cottages for the owners when they are not there.
The national average for second home usage is three to five weeks per year.
This approach allows the resort owner to assure that guests will have a high quality experience at the lake and that the resort won't be subdivided for residential use, Clamshell reported.
Fractional ownership, while relatively new to Minnesota, has enjoyed popularity throughout the United States. According to Conde Nast Traveler "fractionals appeal to buyers who want exclusive getaways ... an alternative to full ownership because of the ease. You're not paying for when the property is vacant, it's become a convenient way to own ... without all of the problems."
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