# Fractional Partnership

**Comprehensive Process for Partner Participation**

We’ve designed a clear and compliant process that lets partners join operational short-term rental deals with low entry capital and high transparency. Here’s how it works from start to finish:

**1. Identifying Profitable Properties**

* We source properties with strong short-let potential in strategic locations.
* Each opportunity is screened for occupancy, ADR, seasonality, regulations, and unit economics under a rent-to-rent model.

#### 2. Negotiating a Lease with Subletting Permission

* Once an opportunity is approved, we negotiate a lease directly with the landlord that explicitly allows short-term subletting.
* No purchase is involved. We operate via lease only, which reduces capital requirements and speeds up deployment.

#### 3. Maximizing Returns Through Professional Management

* We furnish, stage, photograph, and list the property on major OTAs.
* We manage pricing, guest comms, cleaning, maintenance, and compliance to maximise occupancy and net income.

#### 4. Listing the Deal in Our Partner Platform

* When a property is ready, we open a “deal” in the platform so partners can review key metrics and participate.
* Each property is its own project with defined capital needs and projected performance.

#### 5. Deal Contract and Governance

* Instead of creating an SPV, each deal runs under a UK-law **Rent-to-Rent Partnership Agreement** between nfstay and the partners.
* The agreement sets out contributions, distributions, decision rights, reporting, and dispute resolution.

#### 6. Digital Partnership Records (Not Property Tokens)

* We do not tokenize the property. Where helpful, we create **on-chain records of partner entitlements** that mirror the off-chain contract.
* These records support transparent allocations, voting, and distribution logic. Rights are governed by the contract, not the chain.

#### 7. Inviting Partners to Join

* Partners can take part from a low minimum, alongside others, until the deal’s required capital is filled.
* Every partner becomes an active participant with voting rights on key property decisions.

#### 8. KYC and AML

* All partners complete **KYC/AML via Veriff** prior to participating.
* We maintain compliance checks and ongoing monitoring aligned with our platform policies.

#### 9. Funding Window and Refund Safeguard

* Each deal has a defined funding window prior to lease activation.
* If the target is not reached in time, **all contributions are refunded in full**. No partial deployment without full readiness.

#### 10. Successful Funding and Monthly Distributions

* When fully funded, we activate the lease, complete setup, and go live.
* **Distributions are paid monthly** based on net income after rent, bills, ops, and reserves, pro-rata to each partner’s participation.
* Payout options include bank transfer and supported stablecoin rails.

#### 11. Active Participation and Voting

* This is not a passive product. Partners **vote** on proposals such as refurb budgets, pricing strategy, or manager changes.
* We schedule regular proposals. Staying active ensures alignment and transparent governance.

#### 12. Payout Options and Treasury Integration

* Partners can:
  * Claim monthly income in fiat or supported stablecoin.
  * Elect to convert part of distributions into our ecosystem token for platform benefits (optional).
  * Reinvest into new deals directly from the dashboard.
* A portion of retained earnings at the platform level supports a **BTC treasury strategy** for long-term strength. This does not affect partner entitlements from each deal.

#### 13. Flexible, Repeatable Participation

* Diversify across multiple properties and cities through **fractional partnerships**.
* At lease end, the landlord’s security deposit (if applicable) is returned and allocated per the partnership agreement.
* Partners may transfer their participation to another approved partner, subject to platform consent.

### TLDR

* **Active partnership, not ownership**. Join rent-to-rent deals with low entry capital and vote on key decisions.
* **Compliant and transparent**. UK-law partnership agreement, Veriff KYC/AML, clear reporting, optional on-chain records.
* **Monthly income**. Distributions based on net property performance, paid monthly in fiat or supported stablecoin.
* **Refund protection**. If a deal isn’t fully funded before activation, everyone is refunded in full.