BY. TJ WHITE
What could be more perfect than owning a luxury vacation home at a world class resort and receiving rental income whenever you aren't using it? Condo hotels are the newest trend in vacation home ownership. Live in it when you're there, and rent it out when you are not.
So how do condo-hotels differ from owning a traditional condominium or vacation apartment? They aren't your typical second homes.
They are beautifully furnished condominium suites in some of the most famous hotels and resorts all around the US. The properties are typically large, high-rise, luxury hotels. Prices can range from $250,000 to over $1 million for prime condo hotel properties.
When the owners of condo-hotel units aren't using their units, they have the option of placing their unit into the hotel's rental program. This is what makes the program so attractive.
While the developer doesn't guarantee the rental of the unit, by capitalizing on a hotel's name recognition, advertising, national affiliations, centralized reservation system and management expertise, most unit owners typically receive a higher level of rental income than they would from a traditional vacation home.
As part of the rental agreement, the hotel pays for most operating expenses such as marketing, housekeeping, and administrative costs. The condo-hotel owner typically pays for insurance, real estate taxes, and capital improvements.
Condo-hotels are typically large, high-rise, luxury hotel buildings operated by big names such as Four Seasons, Ritz-Carlton, Sonesta, Starwood, Hilton, Trump and Rosewood.
Each condo-hotel unit is sold to individual investors who may use their unit for a specified amount of time, and when not used the investor has ...