What, exactly, is a condo hotel?
Also known as a Hotel Condominium or Condo-Tel, the Condo Hotel is a concept that has become popular in South Florida, and particularly Fort Lauderdale as of late in response to/compliance with a recent restriction on the occupancy types that were/are allowed for some of the current, and upcoming construction projects in the Fort Lauderdale Beach Area.
Some of the projects are subject to the rules that restrict owners from residing in their units for no more than 60 days in "The Season", and no more than 60 days in the "Off Season". There are several Condo Hotel Projects in various stages of planning and completion on Fort Lauderdale Beach. Be sure to contact me for details. They are an interesting and seemingly lucrative investment.
A Condo Hotel is usually purchased as a Fee Simple Deeded Transaction. It can be conveyed to a Corporate Entity, or an Individual. The owner will have the right to sell or transfer ownership according to the covenants of that particular building. Financing is possible for the Condo Hotel Buyer. Based on the increasing acceptance and popularity of the Condo Hotel Concept, many banks are creating programs and products targeted specifically to this sector of property ownership.
The units have traditionally been completely finished and furnished upon delivery. Each unit is tastefully decorated, furnished and appointed as any fine hotel property would be. Including televisions, VCR's, DVD Players, Telephones, and the like. Some of the residences are even complete with Dishware, Silverware, and the like. The prices of the units do include these components in most cases.
The concept is that while an owner is not in residence, they may place their personal belongings in a private secure, locked closet or storage area, (provided by most of the new projects), and place their unit in the Rental Pool. The Fort Lauderdale Beach project's Rental Pool's are being handled by respected organizations such as Starwood Hotels, Hilton Hotels, St. Regis, W, and The Leading Hotels of the World. In exchange for the convenience and luxury of employing such an organization, owners give up a percentage of their rental income to "the pool". This percentage, and the specific rules do vary from project to project. All residents and guests will enjoy the amenities and benefits of living in a "resort like" atmosphere with Concierge Service, Valet Parking, Security, Daily Maid Service, Room Service, and all of the niceties of tropical Fort Lauderdale Beachfront living.
Monthly costs will usually include traditional monthly "maintenance" assessments for the common areas and amenities, other amounts may also be collected for expenses such as staffing, housekeeping, administration, and other general expenses as set forth in each project's condominium documents and covenants. Among the other expenses are Real Estate Taxes, Insurance (in some cases it is included in your monthly maintenance fee), Utilities and of course the mortgage if applicable.
This is an excellent opportunity to benefit from the Pre-Construction pricing in many of these projects. Usually, it is the original owners who gain the most benefit, especially those who purchase Pre-Construction. If you have any questions, please ask me, if I don't know the answer, I will find it for you. None of this information is intended to be legal or financial advice. This is merely my translation of a newer concept to the simplest terms, introducing a relatively new type of Real Estate ownership.
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