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. However, what you get for that rock bottom price is usually a condotel. A condotel is different from a typical condo. Think of it as a hotel room you own. 

FOR SOME BUYERS, a condotel is a 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. 

A buyer must know all the differences between a condotel and a condo. You might be able to save some money buying a condotel instead of a condo, but you might also end up losing in the long run if the condotel is not aligned with your lifestyle and personal conditions.

Here are some key things you should know when buying a condo or a condotel:

Some Benefits

1. Condotels are an affordable option for a beachfront vacation property. (Traditional oceanfront condos tend to cost more.)

2. 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.

3. Monthly fees often cover most or all of your unit's utilities and many resort-style amenities like fitness rooms, swimming pools, game rooms, and more.

4. 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 and rental management fees and sometimes provides a little extra cash flow on top.

5. Condotels offer hotel-like services for a significantly lower price, offering owners more convenience and comfort.

6. Reselling of a condotel unit can be done at any time. If there is an urgent financial concern, having a condotel could be a life-saver.

A Few Things To Think About

1. BE PREPARED TO PAY CASH. Low-cost condotels can be challenging 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 ready to compete at the offer table with other buyers who ARE paying cash. 

2. Just because you own the unit all year doesn't mean you can live year-round in your condo unit. Most condotel complexes limit the consecutive days when 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 the year, a condotel may not suit you.

3. Monthly fees and available amenities can vary greatly from one complex to the next. Pay close attention to these features and ensure the cost 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 cushion for any special assessments that might come up. (A one-time fee for significant maintenance and repairs in the complex, like balconies or the roof.)

4. 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. 

5. Nowadays, the rates for renting condotels have been lower. Income from renting your unit might be significantly lower than expected.

6. There has been a significant decline in the market demand for condotels in the past years, making reselling difficult. Therefore, if your purpose for purchasing a property is to generate income, you need to think twice before buying a condotel.

While having your own property at a lower price is enticing, more factors must be considered. Consulting with experts would be ideal if you are unsure what property is right for you. 

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! Click here to check out some of the condos in the greater Daytona Beach area!