How to Invest in Condotels and Make Money

 

Condotel investing is a way to own a condominium unit in a resort or downtown community and then rent it out to prospective users just like a hotel. Condotels are typically developed by hotel and resort companies, and the price you pay for a unit may be substantially higher than that for a "regular" condo. However, you have access to the services of an in-house management company, which will market and rent your unit out for long or short periods of time (even nightly). The management company will also handle the maintenance of your unit, groundskeeping, and the clean-up after your renters leave.

When looking to invest in a condotel, it is important to research the local real-estate market and regional tourist activity. The location of your unit has the potential of figuring prominently into how profitable an investment it is. Some investors have had success with condotels because these destinations offer desirable tourist activities and because these buyers purchased at a time when area real-estate prices were appreciating.

If you are considering investing in a condotel, there are a few things you should keep in mind. First, you should make sure that you are comfortable with the idea of not having complete control over your unit. When you rent out your unit through the management company, you will not be able to choose your renters or set your own rental rates. Second, you should be aware of the fees associated with owning a condotel. In addition to the purchase price of the unit, you will also be responsible for monthly maintenance fees, property taxes, and insurance premiums.

Overall, condotel investing can be a good way to generate income from real estate. However, it is important to do your research and understand the risks involved before making an investment.

Here are some additional tips for condotel investing:

Consider buying a unit in a condotel that is located in a popular tourist destination. This will increase the chances of your unit being rented out frequently.

If you are planning to use your unit for personal use, make sure that you factor in the timeshare-like restrictions that may be in place.

Get familiar with the condotel's rental program and the fees that are associated with it.

Do your research on the developer and the management company. Make sure that they have a good reputation and that they are financially stable.

Consider buying a unit before a condotel project is fully built. This may allow you to purchase your unit at a lower cost.

Get pre-approved for a mortgage before you start looking at condotels. This will give you an idea of how much you can afford to spend.

Condotel investing can be a profitable way to invest in real estate. However, it is important to do your research and understand the risks involved before making an investment.