Model 04
Fund the fit-out.Share the return.
We identify homes with the right bones in the right locations, negotiate long-term leases, and bring them up to the Xentori standard. If you're looking for a yield-generating alternative to a fixed deposit — without the ₹2–5 crore ticket of buying a Goa villa outright — you fund the refurbishment and earn a contracted share of every rupee the property generates.
₹35–75L
Typical investment ticket — versus ₹2–5 crore to buy the property outright
10–18%
Target net yield on capital deployed, after all operating costs
5–8 yrs
Typical payback period on the fit-out investment
19.2%
CAGR of India's vacation rental market, 2024–2034 (Market Research Future)
The structure
Three parties.One property.
The arrangement is documented in a registered Lease Deed (owner–Xentori), a Refurbishment Investment Agreement (Xentori–investor), and a Tripartite Deed binding all three parties. The investor has no possessory interest in the property — the claim is contractual against the operating cash flows, secured by the investment agreement.
Property owner
Holds title to the villa and grants Xentori a long-term lease (typically 5–9 years with renewal options). In return, the owner receives a Minimum Guaranteed Rent — usually 70% of their projected revenue share — regardless of occupancy. The owner has no operational involvement.
Xentori (operator)
Leases the property, manages all guest operations, marketing, pricing, and maintenance. We source and manage the fit-out process, onboard the property to all booking channels, and handle monthly revenue accounting. Our return is the residual after paying the owner's guaranteed rent and the investor's profit share.
You (refurb investor)
Fund the capital expenditure — furniture, fixtures and equipment, AC systems, kitchen, landscaping, technology — in exchange for a contractually defined share of the property's net operating profit over the investment term. You have no ownership of the property and no day-to-day involvement. Your return is the profit share.
What you fund
Shell to guest-readyin 8–12 weeks.
The fit-out investment covers everything required to bring a leased property to the Xentori operating standard — from civil works through to professional photography. The coastal climate in South Goa demands anti-corrosive fittings and weather-resistant materials, which adds a 10–15% premium over comparable inland fit-outs.
Budget fit-out (functional, mid-range finishes)
₹20–35 lakh
Premium fit-out (design-led, Instagrammable)
₹35–60 lakh
Ultra-luxury (bespoke, pool, landscaped garden)
₹60–100 lakh
What the budget covers
Add 10–15% contingency buffer on all South Goa fit-out budgets — coastal conditions consistently surface surprises in first-time refurbishments of older properties.
The return
How the moneyflows back to you.
The profit waterfall
Gross revenue
All bookings collected
Less: OTA commissions and payment fees
Airbnb / Booking.com: 12–15%
Less: direct operating costs
Housekeeping, utilities, consumables, insurance
= Gross Operating Profit (GOP)
Less: property tax, owner's MGR, marketing cap
Marketing capped at ≤3% of gross revenue
= Net Operating Profit (NOP)
Your share of NOP
Pre-agreed % — negotiated based on fit-out quantum
Negotiate what counts as a "permitted deduction" before signing. Watch for operator management fees charged to related parties, excessive head-office allocations, or pre-opening marketing costs charged post-handover — these reduce the pool available to you.
Illustrative return — ₹40 lakh fit-out, 25% of NOP
At a premium property (₹35L gross revenue, tighter cost control), the investor's share could reach ₹5–7L annually — a 12–18% yield on capital deployed. This is an illustration, not a projection.
Your exit
At the end of the lease term, the operator typically buys out the investor at a pre-agreed multiple on invested capital (1.5–2x), or the fit-out is considered fully depreciated and the profit share reverts to a residual. Exit can also happen by transfer of the investment agreement to a third party, with operator consent.
How it compares
Versus thealternatives.
Instrument
Return
Context
Bank FD (SBI, 1–2 yr)
6.5–6.7%
Fully taxed at income slab (~4.5% post-tax for HNIs)
Bajaj Finance FD (highest retail)
7.4%
Fully taxed at income slab. No upside participation.
Goa villa ownership (direct)
6–9% gross
₹2–5 crore ticket. You bear 100% of vacancy and maintenance risk.
Xentori refurb investment
10–18% net
₹35–75 lakh ticket. Operator bears operating risk. LLP structure: Section 10(2A) exemption on profit share.
Equity mutual funds (large cap)
11–14% XIRR
10-year average. Market risk. 3-year lock-in for LTCG efficiency.
Risk and protection
Where the risks sitand who bears them.
Vacancy risk
Primarily operatorYour profit share includes a Minimum Guaranteed Rent floor — typically covering 70% of your projected return — regardless of occupancy. Below-floor revenue is absorbed by the operator.
Routine maintenance
OperatorDay-to-day operational maintenance (pool, AC service, housekeeping, appliance repairs) is the operator's responsibility. A maintenance reserve of 3–5% of gross revenue is set aside annually for FF&E replacement.
Force majeure
Shared (suspended)During declared force majeure events exceeding 30–60 days, the MGR is suspended and profit share continues on actual revenues — which may be zero. Returns are not accumulated during these periods unless both parties agree to deferred recovery.
Operator insolvency
Protected by contractThe investment agreement includes step-in rights allowing you to appoint a replacement operator in the event of operator default. A registered charge over the operating bank account provides additional security.
Tax note
The LLP structure — most efficient for investors
Most boutique deals at the ₹35–75 lakh investment size are structured as a revenue or profit-sharing arrangement through an operating LLP, with the investor as a limited or silent partner. Under Section 10(2A) of the Income Tax Act, a partner's share of profit from a firm is exempt from tax in the partner's hands — the LLP pays tax at the entity level. This makes the LLP structure materially more tax-efficient than a loan or fixed-return instrument, both of which create fully-taxable income in the investor's hands.
Compared to an FD in practice
An FD at 7.4% is fully taxed at your income slab. For an HNI at the 30% slab plus surcharge, the post-tax return is approximately 4.5–5.1%. A 10% gross yield in an LLP structure, after the Section 10(2A) exemption, stays close to 10%. At 15%, it stays near 15%. The structural difference is meaningful — and it widens as the return climbs. Consult your CA to confirm the characterisation based on your specific agreement.
Yield with a realasset behind it.
Tell us what capital you're looking to deploy and we'll walk you through the current pipeline — specific properties, projected cash flows, and proposed structures. No pitch deck. An honest conversation.