Is A Condotel Right For Me?
You've seen the online advertisements... "Buy a Florida condo CHEAP!" ... "Affordable Florida Condos, priced as low as $25k!"
It's true. You can get a beachfront condo in the greater Daytona Beach area on the cheap. What you get for that rock bottom price is usually a condotel. A condotel is a little different than a typical condo. Think of it as a hotel room you own.
FOR SOME BUYERS, a condotel is the perfect investment. But others may find a more traditional condo complex would be a better fit for their lives because a condotel doesn't meet their needs.
Here are some key things you should know when deciding whether to buy a condo, or a condotel.
- Condotels are an affordable option for beachfront vacation property. (Traditional oceanfront condos tend to cost more.)
- Unlike a timeshare, with a condotel you are the FULL owner of your condo unit all year long. You're not just buying time in the unit. You're buying the unit itself and typically, all of its contents.
- Monthly fees often cover most or all of your unit's utilities, as well as many resort-style amenities like fitness rooms, swimming pools, game rooms and more.
- They can be a low-stress rental investment that requires little effort from you. Often, the management of the complex will even handle the rentals for you... for a fee. Typically, our clients find that renting out their unit covers the monthly fees, rental management fees, and sometimes provides a little extra cash flow on top.
A Few Things To Think About
- BE PREPARED TO PAY CASH. Low cost condotels can be difficult to finance. Buyers rarely, if ever, get a traditional mortgage on these units. Be prepared to buy your condotel with cash, or at the very least, be prepared to compete at the offer table with other buyers who ARE paying cash.
- Just because you own the unit all year doesn't mean you can live year-round in your condo unit. In fact, most condotel complexes limit the consecutive number of days that owners can stay in their units to just a few months. The rest of the time, the units are rented much like a hotel room would be. If you want to live in your condo year round or even half of the year, a condotel may not be right for you.
- Monthly fees and available amenities can vary greatly from one complex to the next. Pay close attention to these features and ensure the fee fits your budget, because you will be paying this fee even during the months your unit is not in use. And don't forget to give yourself a little cushion for any special assessments that might come up. (A one-time fee for major maintenance and repairs in the complex like balconies or the roof.)
- Policies are often different in a condotel than in a typical condo. For example, much like at hotels, pets are rarely allowed at a condotel. If you hope to bring Fifi or Fido along on your Daytona Beach vacations, you may want to consider a more traditional style condo complex.
Our team would be more than happy to discuss these considerations and others that could play a part in your determination of whether to buy a condo or condotel. There are HUNDREDS of condo complexes in the greater Daytona Beach area and we know them all WELL. We're confident we will find the Florida condo paradise that's right for YOU, your budget, your needs and your lifestyle!