You may have heard about the latest trend in vacation homes – condo hotels. Suddenly, consumers can own a second home in a wonderful destination without any of the hassles of ownership. To see why the condo hotel concept has so much appeal, consider these benefits.
Benefits To Owning A Condo Hotel
1. You can own a piece of a world-class property. Most condo hotels are of three- to five-star quality.
2. You’ll have a vacation home in a fantastic destination. Most condo hotels are located in great locations – on the beach, near golf courses, next to ski slopes and in bustling downtowns. Miami Beach, Fort Lauderdale, Orlando, Myrtle Beach, Las Vegas, Chicago, and the Bahamas are some of the most popular condo-hotel locations.
3. Use your vacation home when you want. Flexibility in use means you always have a place to “get away from it all.” When you’re not using your vacation home, place it in a rental program if you wish.
4. A professional management company will take care of all maintenance and operational issues. Most condo hotels are managed by premier hospitality firms, often the biggest names in the business.
5. You receive approximately half of the rent revenue your condo hotel unit generates when you’re not using it. The management company takes care of renting your condo for you. The revenue helps offset your costs of ownership. Plus, most management companies have sophisticated reservation systems and invest in professional marketing, enabling them to keep your unit rented far more than you likely could on your own.
6. The management company deals with guests. Part of the hassle-free nature of condo hotel ownership is that the management company handles everything regarding guests, from attracting them to checking them in and out of the hotel and solving any problems that arise during their stay.
7. You’ll have access to luxury hotel services. Unlike a single-family home, in a condo hotel vacation home, you can take advantage of all the perks of the hotel such as a brand-name spa like Canyon Ranch or Elizabeth Arden Red Door, concierge, room service, fitness facilities, pool, fine dining restaurant and more.
8. Share your condo hotel unit with family and friends. The unit is yours, so you decide how it’s used.
9. Purchase your condo hotel unit with traditional financing or even as part of a 1031 exchange. A variety of loans are available to invest in condo hotels. Condo hotels also qualify for tax-deferring strategies like 1031 exchanges.
10. Realize appreciation when you resell your condo-hotel. Like traditional real estate, over time your condo hotel unit has the potential to appreciate. Because of its quality location, professional hotel management, and on-site luxury amenities, the value of your vacation home should increase. You keep the profits when you sell.
There are many types of real estate investing which means there are plenty of opportunities for you to decide what’s best for you and your needs. A condo-hotel offers many perks, but as with any investment, it can still have disadvantages. It’s important to do your research and make sure that you know the risks involved.