• As Investments
• Condotels Rental Policy
• Condotel Fractionals
• Condo Hotels vs. Traditional Condominiums
• Converting Existing
• Living Restrictions at Condo Hotels
• Personalizing Your Unit
• Renting Out Your Unit
• Management Company
• The Appeal of Connecting Condo Units
• Condo Hotels- Who’s Buying and Why?
• How Condo Hotels Rental Programs Work
• Florida Condos
• Press Release

Living Restrictions at Condo Hotels

During the developmental stages of creating condo hotels, developers have to consider whether the condo units should be separated from regular hotel units, and located in a separate building, or placed all together. The latter niche approach makes it easier to allow owners to share the same amenities as guests, but owners have restrictions on the amount of time they are able to occupy their residence.

When condo hotel owners place their units in rental management programs, zoning regulations, which govern hotel use, prevent year-round occupancy. The income from renting is normally divided between the owner and management team. In some cases, owners are not allowed to decorate their units if including them in the hotel’s rental pool. If part of a franchise, the franchise directs how units are to be decorated. The hotel may even bring in its own design team to decorate the units, so that individual room decor reflects the design of the overall hotel common areas.

Owners are typically willing to offer the rental of their unit to be managed by the management company because of the freedom from responsibility involved in gathering deposits as well as the daily task of cleaning and maintaining the unit. Unit owners often recognize the potential benefit to offset costs from rental revenue they can receive. Most condo hotels are part of hotels with national and international affiliation, offering recognized prominent brand presence and management expertise, thus elevating income potential. The idea of owning real estate is another bonus for buyers, especially for retirees and well-traveled consumers. Condo hotel investors are tired of the timeshare routine that gives ownership of essentially nothing except time.

Restrictions imposed on developers by regulatory agencies such as the Securities Exchange Commission have positive effects for buyers as well. To avoid being in violation of rules, many developers take upfront initiatives to allow condo owners the option of not renting their units, choosing their own third party agents to oversee their units, and abstain from giving prospective buyers rental income expectations, since future revenue predictions are impossible to define.