|
  |
|
|
What is a condo/hotel ?
A condo/hotel is a popular business model to describe a cross between a traditional condo and a hotel. This type of investment property is popular worldwide and includes the following advantages:
1. Location: Location is a crucial element in a successful real estate investment. It should be a well known geographic area, accessible by car, plane, train, etc. 2. Attractive to potential buyers: A condo/hotel should have a "WOW" factor, be loaded with amenities, ensure a positive experience for guests and owners. 3. Priced competitively: Buyers will expect to pay a premiun for something that is clearly head and shoulders above competing properties. 4. Appreciation potential: A buyer must be assured that the selling price of the units will be greater at some point in the near future than it is today. 5. Professional management: To ensure long term success a project must have a top notch on-site management team to properly manage the resort and to perform the daily tasks of greeting guests, check-in, activities, cleaning, maintainance, accounting, etc. Typically a condo/hotel allows for short term stays of 1-3 days ( most stay 7-10 days ). This allows more people to experience the resort and also to fill in the difficult mid-week openings. Almost all condo/hotels gaurantee owners personal use of their unit. This is usually limited to 1 or 2 weeks during the " High Season " for the locale and 1 to 2 weeks during " Low Season ". Some will charge a small admin/cleaning fee for this personal use. The rest of the weeks are devoted to rentals. The management will take a portion of the rental stream to cover the expenses involved in making the resort successful. This may range from 15% to 70 % depending on the level of services provided and the ability to command higher nightly rates. Potential buyers should be totally familiar with the condo/hotel concept and daily workings. Buyers should be aware of all costs associated with condo/hotel ownership. These costs include purchase price, debt service, monthly unit owners costs and fees, taxes, insurance, resort fees, booking fees, credit cards fees, etc. A general criteria often applied to this type of ownership is that the owners share of the rental income should pay for all " Non-debt service" expenses and make a contribution toward "Debt Service ". That is, all of the expenses other than paying the mortgage should be covered by the rental income with some rental income available to help pay the monthly mortgage payment. As a general strategy it is felt by many that the original buyers tend to do better than subsequent buyers. The first level buyers take a higher risk exposure and therefore are many times rewarded with the best profits.
|
Contributor's Note
These thoughts are based on my sales of condo/hotel properties on Fort Myers Beach, Florida and may not reflect the opinions of others.
|
|
|
 |
|
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "What is a condo/hotel ?" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
