Investing in oceanfront condotels is like to have your cake and eat it too. Condotels, also known as condo hotels, are typically condominiums in a resort. It can serve as vacation home and rental income. Unlike a timeshare, where buyers pay for limited use of a resort, buyers of a condotel own their residence outright and can rent it out, stay in it, or sell it according to their own wishes.
Owning a condotel differs from buying and managing a condo. If you bought a “regular” condo there may has a limitation of how long that you can rent it out in most condo rule that you can only rent from 1 month to 6 months, it’s not as profitable as to rent it daily or weekly. Plus there may be less flexibility when it comes to placing your unit in and out of the rental program, and you miss out to market your unit nationally in the way that a large hotel company might.
Many condo hotels, especially the branded condo hotels, have seen double-digit growth. Condo hotels units are fee simple deeded real estate, and can be bought and sold like other forms of real estate. The location of your unit has the potential of figuring prominently into how profitable an investment it is.
It’s all about the numbers. You’d have to look at the calculation and the stats on vacation rentals website to make sure the property would be suitable for an investor. Some management companies, for example, stipulate how often you must make your place available and even how it should be decorated. To find out more about this wonderful investment vehicle, call Amy Lee to schedule a meeting today!