Many people are familiar with condos and what to expect when you stay at a condo versus staying at a hotel. There is a fairly new term being used now and that is “condotel.” Condotels are also known as condo-hotels or hotel condos. Just from the word, you can probably tell there are a few major differences between a regular condo and a condotel including amenities, how they are rented, and ownership. Whether you are looking to invest in a new property or simply curious, consider the differences between a condo and a condotel.
Amenities
Amenities are certainly more available at a condotel. While many condos may have a pool and one or two common areas, condotels are more like hotels. A condotel usually offers more amenities than just a swimming pool, including on-site restaurants, spas, exercise facilities, bowling alleys, and lounges. Condotels have check-in desks and concierge services. The amenities are certainly an advantage for condotel owners. Services at a condo or not as plentiful, available, or affordable.
Owners and guests of condotels will also have daily housekeeping and regular maintenance. Renting a condo means you are responsible for your own cleaning and maintenance services that are not readily available. If something breaks, you are at the mercy of third-party vendors. Sometimes maintenance takes longer in this situation depending on the time of day and day of the week. One other factor to consider is that condotels are also more like hotels in that there is more security. The homeowner associations will hire experienced security personnel to keep an eye on the property. Condotels tend to be more populated than the usual condo complex as well, which is another reason for increased security.
Flexibility for Renters and Owners
Condotels are sometimes preferable to hotels because of their flexibility. Condotels can be used as a vacation home and/or rented out. Condo owners can rent out their condos but often must comply with homeowner association rules. A condo owner is also responsible for looking for their own renters and preparing the unit for guests. Condotel owners have more freedom. They get to choose when they stay at their property and when they choose to rent it out, they use the rental program. The management company is responsible for booking guests and also handling guest needs during their stay. A percentage of the revenue goes to the management company. Some owners prefer not having the stress of keeping up with their units, so they don’t mind paying a fee.
Rental options are also more flexible for condotels. A condotel can be rented nightly, allowing for long-term and short-term options. Condos are usually reserved for extended stays and there is usually at least a four-night minimum. Nightly rentals are not an option when renting a condo. The rental options may mean more guests for owners of condotels.
Cons
There are possible cons to owning a condotel, cost is a factor. Condotel owners share the rental income with the complex owners. There are also maintenance fees that go to the management company. Refurbishment fees can be an issue. Sometimes tax and insurance costs deter possible condotel owners. Condotel owners do not own any land but still pay premium prices, as property taxes are generally higher than regular condo complexes. Some complex owners also put restrictions on how many days condotel owners can stay at their units. Usually, owners are expected to book their units in advance and it is not easy to make changes.
There are many factors to consider if you are trying to decide between purchasing a condo or a condotel. Your lifestyle can guide you in making a decision. If you are looking for a permanent residence or are not open to renting out your vacation home, then a condo is probably the choice for you. A condotel allows you to be an owner without the stress of maintenance. You can also use this residence for ready and steady rental income. An agent at Better Homes and Gardens Real Estate Elliott Coastal Living can help you look for your beach property today. Myrtle Beach and the surrounding areas are a perfect location for a vacation or second home. With 60 miles of golden sand, championship golf courses, thousands of restaurants, and copious entertainment, Myrtle Beach is a great place to stay and play! The agents at Elliott Realty are just as inviting and warm as the South Carolina sunshine! Make that next step today and you may just become a condo(tel) owner.
