What Are Condotels And Condo Hotels?

Money was flowing and almost anyone could get a loan for almost any kind of real estate. Hotels and some motels were being converted into condominium type units. That was a few years ago. Things are a little different now. Prices are down and seem attractive to many buyers.

Condotels or condo hotels are converted motels and hotels. Hotels and their facilities are converted into condominium type units that are sold to individuals for their own use and as rental units. It seems simple, but that ‘s not always the case. Different buildings have different sales conditions and restrictions after purchase.

Most of the time, condotel units are simply converted hotel rooms. Sometimes they are upgraded, but quality and style vary greatly. If the converted hotel was a luxury property, the rooms are probably of higher quality and larger. If an old low-end hotel was converted, the rooms will be smaller and of lower quality and less stylish. Many of the units are without kitchens – they are just like living out of a hotel room.

No two condo hotels are sold and managed in the same way. This is part of the frustration when looking to buy units in different buildings. They just are not the same and hard to compare. Buying in a building might require you to sign a contract full of restrictions and rules. The rules could include restrictions on the number of days you can use your unit, your share of rental income, requirements that units must be rented through the management company and so on.

Financing a condotel can be more difficult than a conventional condo. Few lenders, probably less than 3%, have programs for condotels. These loans will require higher down payments than other loans and will likely be at higher interest rates.

Condotels can be attractive to a lot of people who are looking for a vacation property with some income potential. You might be surprised at the quality of many of these conversions, they are really very nice. Amenities can be nice too. Some are in great resort towns and popular vacation destinations.

Being realistic though means understanding that it is unlikely that a condo hotel units will provide you enough rental income to make mortgage payments and cover taxes, fees and insurance. You may get a good portion of expenses offset, but positive cash flow is not likely.

Find a real estate agent if you are interested in buying a condo hotel, but not just any agent. Find an agent who specializes in condo hotel and condotels. This may be difficult because there are specialized requirements, but prices are lower and the transactions are more complicated and require a lot of work. A lot of agent are not interested in selling condo hotels.

When buying a condo hotel, you must take great care to understand what you are buying and the contract you are signing. It makes sense to have a lawyer review the documents and help you understand the restrictions, fees and other owner requirements for the building. You need to protect yourself when buying a condo hotel.

Lynn Byrne has been selling real estate in the Daytona Beach, Florida area for 13 years. She specializes in Uk marriage visa Ormond Beach Homes for Sale, visit Lynn’s Uk marriage visa Daytona Beach Real Estate Blog for lots more information.

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