September October 2018
As the season changes, we want to let you know about the upcoming activities at Marsh Harbour Inn.
We hope this newsletter is useful in planning your next visit and staying in touch. We look forward to seeing you soon. Safe travels.
Message from the President

Transition is the theme of my August letter; as Kim and I celebrate 2 years as fellow owners we have reflected on our decision to become part of The MHI family.

We purchased with a good deal of spontaneity, fell in love with the Island, its tranquility, warmth and spirit of the Inn. MHI seemed like a nice fit for our life style and need to unplug.

The fractional ownership was intriguing; maybe a perfect way to be a part of this special place w/out an overwhelming financial commitment all the while enjoying a four season get away; A turn key opportunity to enter “Paradise” with a deed.. All of us have purchased and became owners for a variety of reasons; some investment, rental income, personal use and most a combination of these factors.

On a funny note; one of the aspects of fractional ownership I found so compelling was the care free relationship w/our new property. Show up, have a big time and check out, well that changed six months later entering the role as HOA President. I was fortunate to become part of a team of very diverse and talented people all committed to revitalizing and positioning our property to be one of Pride and Joy..

When speaking w/fellow owners it is clear many of you share my observations, a few not as much. Our transition is focused on major physical and service upgrades confirmed by the recent assessment.

In 2018 MHI is experiencing a nice transition of ownership; According to Rod, nine properties have changed hands with a good number of prospects in the wings. New faces, ideas and suggestions will propel our renewal.
The transition continues as visibility in our property is enhanced, tangible proof of financial management, physical upgrades approved and exciting plans to increase awareness.

During my recent visit I joined John Carter and Mickey Glasgow as we traveled deep into the Marsh to shoot drone video from a boat. This amazing footage will be linked to our site once John finishes his edits. The Sunrise of August 29 th was memorable, followed by Sarah’s pancakes and yes thick cut bacon…

The curtain is rising and I can say w/confidence that 2019 will be the year where our transition will provide the evidence to all that family and friends are welcome, the water is safe and the time to join us is now.

My best,
Tim Roche
Financial Update

First Half 2018 Financial Results

We are pleased to report first-half results for the Marsh Harbour are positive, with year to date (YTD) end of June expenses reported at $7.9K below budget and cash in banks at $35.8K at June 30, 2018. We have made several improvements including better collection efforts, financial reporting versus a monthly budget, and cost variance reviews. However, these results are primarily driven by the effective work Lynn and Sophia continue to do with significant focus on expense management. 
An effort implemented this year, still in process, is the monthly reporting of expenses for which the Inn Managers are responsible, including variances to budget by line item (the “Manager’s Budget”). These expenses represent over 60% of the total budget, including payroll, repairs and maintenance, supplies, and utilities. Lynn and Sophia’s cost management efforts on these items, while providing great service and executing ongoing work on repairs and maintenance have been essential. A breakdown of total Inn expenses through end of June, including insurance, professional fees (accounting), dues, and other is shown below:

Special Projects

The financing arrangements for the new carts have helped us stabilize cash costs associated this expense item, and the benefits to the experience at the Inn for owners and renters has been significant. We recently kicked off the assessment effort to fund the improvements to the roof and are actively managing collections and cash flow so we can start the project in Q3, but we need everyone’s attention to this matter and to make their contribution so we successfully meet this deadline. 
We expect second half expenses for the Inn to remain stable and at budget. We‘re optimistic at the prospect of having a well-managed cost baseline for the Inn by year-end, contributing to our ability to plan and set realistic performance expectations for future management efforts.

Financial Highlights

  • Total cash in banks as of 6/30/2018 of $35.8K
  • Stable flow of income from dues.
  • Dues in arrears (Q1, Q2) are down to $3.3K!
  •  Total Expenses as of 6/30/2018 reported at $7.9K below budget.
  • Mainly driven by Manager’s Budget, representing over 60% of the total budget for the year.
  • Careful management of operating related costs.
  • Working on processes to more readily close the month and collection of dues and assessment.
  •  YTD manager expenses variances include:
  • Parking expenses unfavorable $(2.5K) reflecting bundle of passes in April; total payroll is favorable by $3.1K.
  • Utilities driven by cable service costs are unfavorable by $(1.4K) due to higher bandwidth costs already adjusted to meet appropriate needs of the Inn.
  • Total Repairs and Maintenance higher than plan $3.7K but significant work has been executed.
  • Seasonality not perfectly built into the budget (developing a budget by month will continue to improve as we better understand Inn costs).

Dues and Reserves

Dues in arrear (Q1 and Q2) represent a total of $3.3K. This has come down significantly from 2017, from over $20K. 
  • Mainly a result of better collection efforts and controls.
  • Total reserves at $13.8K as of 6/30/2018
  • YTD $4.9K were funded from reserves for the delivery costs associated with the new golf carts. 
Collections of dues will continue to be a point of focus, along with careful management and strong reporting of the 2018 assessment.

Frank A, Treasurer

Please verify that you are using the following address if mailing your dues:
The Marsh Harbour Fractional Interest Association
PO Box 10712
Southport, NC 28461
From the Derricks
Pinnacle Suite Owners and
Co-Managers for MHI
It’s hard to believe how excited you can be over a NEW ICEMAKER but after years of repair and never knowing if the ice machine was working, we are all proud owners of a new state of the art water and ice machine. We met the installation crew at the ferry, helped unload and install. We’ve cleaned the various water lines you saw in the back entrance and mounted the unit on a new stainless-steel table, improving the look 100% as you come in the back door. We christened the machine the first afternoon by making some daiquiris, in keeping with MHI tradition!

The assessment for the new roof and facia repair are now due. We are asking everyone to help us with timely collections as our contractor is ready to start. As a bonus, we’ve been able to negotiate with Project Works the use of a 100-foot power crane lift for an entire month. It will be stored in the back of the Inn so be watchful. This will allow us full access to not only to the roof and facia boards but will give us easy reach to all the areas that need painting. The Inn should take on a whole new look when we are finished. Once we have a majority of the assessment collected, we will start 30 days after. The work should take approximately 30 to 40 days once begun. We hope to be finished by Thanksgiving.

We have a wide number of projects underway both short and long term. Listed below are for your review, comments are welcomed:

-On Sunday, August 12 th , the Inn narrowly missed a direct lighting strike around lunch time. The strike took down our phone lines and set off the security alarms. As a result, we had to evacuate the Inn. Our personal thanks to both the staff and Rod Sr who managed us through a very difficult afternoon. Rod contacted the Village Mayor and was able to get us first in line with Spectrum to repair our line that afternoon. Luckily, we were able to let folks back in the room around 7pm. However, the strike took out several TV’s, the Spectrum cable boxes and the internet routers. We are still putting things back together. Thanks to those who had to weather through this event with us.
-Following multiple bids, we have selected a fire sprinkler company to repair all the water piping in both the golf and storage rear garages. We had damage from frozen pipes this spring. We will also be replacing the rear golf cart garage door with a strong composite material. This will give us added warmth in the winter and clean up the rusted piping you now see.

-The bathroom ceiling in the Blockade Runner was repaired and replaced on August 23 rd. I know the owners will be glad to hear this.

-The new carts are doing well. We’ve had to adjust some of the electrical outlets by adding single plugs and waterproofing the casings. Making sure you have the recharging plugs properly set into the cart is key. The only complaints we’ve had are excessive ‘squeaking’ in the roof. As such, we are taking all our carts into ‘Always Read’ the week of September 24 th to have rubber washers added to the roof carriage. This will eliminate the issue.

-Folks always ask us what they can do to help around the Inn. Two easy suggestions. We have an ‘easy-to-use’ battery powered weed eater hanging in the golf cart garage. Feel free to ‘whack’ away at any weeds, especially around the bike racks. (This can be done with a glass of wine!) Another is keeping an ‘eye’ on the bikes. We have bike supplies in the front closet. Spray the chains, inflate tires, tighten handlebars – all good. Especially since the bikes are getting A LOT of use this summer.

-One of our biggest focus areas as we grow forward is preventative maintenance on our utility ‘system’ within the Inn. Did you know we have 16 HVAC (air conditioning) units? Did you know we have 120 sprinkler heads? How about 11 circuit breaker boxes with over 600 individual circuits. Yet we have only 2 water heaters. We are working with our contractors to learn more about each unit. We want to help do preventative maintenance and be able to do diagnostic evaluation throughout the year. More details to follow.

-On a longer-term note, we are constantly looking at how to improve our breakfast. We’ve ordered a unique ‘biscuit warmer’ that will be up and running by the end of September. We are also going to several B&B conferences this year, notably ones that highlight B&B menus. We are looking to join PAII (Professional Association of Innkeepers International) which will give us more access to conferences and events. More details to follow.

-Another Fall/Winter project on the books is to lay pavers in the back-cookout area. Although we cleared out a considerable vine population last year, the area still doesn’t feel ‘comfortable’ when cooking out. We want to improve this.
In closing we again ask everyone to help us with the assessment collections and thanks to those who have already sent theirs in. We have an excellent contractor who has been on site multiple times with us to inspect and reinspect the work to be done. We’ve matched the paint colors and are ready with our paint brush. We will add a venting system along the top ridge that will eliminate moisture issues on the 3 rd floor. In all this will give tremendous added value and incredible improved looks to the Inn. We have done a lot of due diligence to this point with open transparency as to what we are doing. We look forward to giving you a lot more detail as we progress.

Lynn and Sophia Derrick
Innkeeper's Corner

By now most of you have heard about our near lighting miss on Sunday, August 12 th . Sarah was in the house along with Sharon and Beth. I cannot thank them enough for pulling together, keeping me on the phone, and figuring out a unique and at times serious situation. We’ve never had to evacuate owners and guest during my ten years here at the Inn. We found out how well our team can really work together in tough situations. We also want to thank Rod Sr. for coming on site and working the logistics with the Village and Spectrum.

On a lighter note I hope you’ve enjoyed the new Cornhole game set. My husband, Pito, built this for us, mainly because he owed me too many favors!!! We’ve painted and logoed the set and folks are using it a lot on the deck.

We've worked hard to keep all areas of the kitchen and Inn clean and it has paid off.

We received a 100% this month on our annual surprise inspection!
We are also now getting our first working demos of the new on-line reservation system. As planned, this will not come on until after the ‘high’ season. We are working with Rod Jr. and will begin to get more training on this web-based system. As with most software implementation, we know we’ll have some challenges but look forward to improving this experience for everyone.

And finally, a reminder. If you are having anything shipped to the Inn, please include the PO Box #3075. The Island Post Office is very adamant about this now. They opened a new large parcel office earlier this year and more items are being shipped directly to the Island now. Below is how you can address it knowing some places will not ship to a PO Box.
Marsh Harbour Inn 3075
21 Keelson Row
Bald Head Island, N.C. 28461
c/o 3075 (This just needs to be somewhere in the address)

Your Innkeeper,
Christe Smith

Be Sure to Send Your Arrival Confirmation!

Please be sure to send your arrival confirmation at least two weeks prior to your visit.
The MHI ARRIVAL CONFIRMATION form is now located online in the Owners Only section of the HOA website. Simply fill in your information and send!

If you are planning to let someone else (renter, family, friends...) use your suite, be sure to have them fill out the MHI RENT EXCHANGE CONFIRMATION FORM located in the Owners Only section and send to Innkeeper.

Password: mhiowners
MHI HOA Communication Policy

As a result of numerous recent communications from various sources regarding MHI HOA, it's important to remind all owners of the MHI HOA communication policy. This policy provides consistency and accuracy in the delivery of MHI HOA business communication.

All official HOA communication including communication requirements outlined in Section 4.05 and 4.06 of our Covenants should be sent through the HOA Secretary using the official HOA database of owners. Owners that do not follow the Covenants may risk voiding the sale. Covenants 4.05 and 4.06 are located on the website under the Owners Only section on the "Sales" tab.

Password: mhiowners
HOA Website Now Offers an
HOA Owner Rental & Exchange Opportunity

Check out the Availability Rentals tab

If you would like to post your suite "For Rent" on our HOA website, simply fill out the MHI RENT EXCHANGE RELEASE FORM located on the HOA website under the Owners Only section - Admin.

Watch your email for full instructions.
For a tutorial, or walk through of the new HOA website and Owner opportunities, please contact Liz

Note: the MHI Innkeeper will only post your unit and contact information on our website. As the owner, you will be the direct contact for negotiating rates, managing and collecting rents unless you choose to use a real estate professional.
Helpful Links:

(located on HOA website- Owners Only - ADMIN)


Any time you rent or trade your unit you MUST alert the Innkeeper by submitting the MHI RENT EXCHANGE CONFIRMATION FORM - located on the HOA website under the Owners Only section - Admin.
Is Social Media Your Thing?

We are looking for someone that would like to manage the social media for MHI. There are so many opportunities for fun sharing of photos and posts of our family and friends. Our website has a place for a collection of family stories and photos....just looking for the right person to jump in! Please let us know if you are interested!
Suites For Sale
From time to time owners may to decide to sell a suite or purchase another suite at Marsh Harbour Inn. To help facilitate this process, the HOA will provide an updated list of suites available for sale at the reception desk including a description of what it means to be a fractional owner and part of our Marsh Harbour Inn family.

If you are interested in selling one of your suites and would like to be added to the flyer, please contact Liz at If you are interested in purchasing another suite, please ask the Innkeeper for a copy of the most current list.

NEW: A list of all available suites for sale is located on the Owners Only section under "Sales"
Nextdoor Communication
We have set up as a way of communicating with Inn owners, and a way to communicate with owners of your suite exclusively. 

Many owners already use this program in their home neighborhoods. It is a very easy way to keep up on what is going on and to have quick updates and conversations as a group. If you are not familiar with you can check out the website before you sign up. 
Note: If you are already signed up for a Nextdoor account in your home neighborhood, you will not be able to use the same email address for your Marsh Harbour Inn Suite. You must use a separate email address.
Here's how to join our group:
1. Join the NextDoor Bald Head Wynd at this link:
2. Join Marsh Harbour Inn Owners—we are asking all owners to join this group
3. Then you ask to join private groups of the suites you own. 
Blockade Runner Owners                   
Cape Fear Owners
Captains Quarters Owners
Harbour View Owners
Ocean View Owners
Pinnacle Suite Owners
Royal Palm Owners
Ship Watch Owners
Yacht Master Owners
We are looking for an administrator for each unit. If you’d like to be the administrator for your suite, please email
Bald Head Island Club Membership 
There is a lot going on at BHI Club. As an owner at Marsh Harbour Inn you are also a member of the  Bald Head Island Club   including access to world-class golf, swimming pool, work out facility, tennis, croquet, great restaurants and many seasonal activities - see below for the Calendar of Events at BHI Club. 

BHI Club's New Aquatics Complex & Ocean View Restaurant - still under construction
See the status of renovations here

New features will indclude:
  • Olympic Lap Pool
  • Slide Tower and waterslides 
  • Splash Pad and Zero Entry Pool
  • Cabanas & Trellis
  • Cabana Bar & Casual Ocean View Restaurant

To take advantage of your membership you must register for a Temporary Membership for the days you plan to use the club or participate in events..   

BHI Club Temporary Membership Fees

May 21 - Oct 31
Daily $35
2-3 Day $60
4-7 $90

Nov - Dec
Daily $25
2-3 Day $40
4-7 $65

* green fees and activity fees are extra

For more information and temporary usage fee, call  910-457-7320. 
Calendar of Upcoming Events

Island Nature Tours  - Every Sunday, Monday, Wednesday and Friday 9a-11p
BHI Conservancy 910-457-0089

Kids Activities - ongoing
BHI Conservancy 910-457-0089 

Island Outdoor Activities .


September 2 - Labor Day Then and Now Home Tour

September 24 - Howl at the Moon
Sponsored by Mary Munroe Realty
  • 6:0pm
  • Sunset: 7:05 Moonrise: 7:14pm


October 5-7 Roast and Toast on the Coast

October 26 - Howl at the Moon
Sponsored by Bald Head Island Limited
  • 5:30pm
  • Sunset: 6:27 Moonrise: 6:52pm


November 23 - Howl at the Moon
4:30pm - 6:30pm


December 22 - Howl at the Moon
4pm - 6pm

Note: membership is required for the following activities. See membership details above.

Other Helpful Links

Riverside Adventure Co. Rentals and activities

Bald Head Island Beach Report for a complete report on wind & surf conditions

To subscribe to Claude Pope's daily news about activities on BHI  go t o   and follow the links

The Village Voice - subscribe for news
Contact Information
Tim Roche - President
Mike Kirk - Vice President
Cathie Ostrowski - Secretary
Frank Antunez - Treasurer
David Baumer - Board Member - Legal
Liz Dion - Board Member - Marketing
Rod Hyson - Developer

Lynn Derrick - Co-Manager
Sophia Derick - Co-Manager

Christie Smith - Innkeeper

(910) 448-0717 Innkeeper on Duty