A condotel (condo-hotel sounds

better) is a condo built by a hotel developer, usually as part of a larger development.

Or,

as The Real Estate Journal puts it:

A condotel looks and feels to visitors like a hotel or

resort, but in these resorts, individuals have the opportunity to purchase individual units. Unlike

a timeshare, where buyers pay for limited use of a resort, buyers of a condotel own their residence

outright and can stay in it, rent it out, or sell it according to their own wishes. In these

communities, in-house management companies rent out the units on behalf of their owners in exchange

for a percentage of the rental income. Condotel owners and their renters often have use of the

resort’s amenities, such as concierge, fitness and spa services. Whether an owner can use the

amenities while a renting guest is staying in the unit depends on the rules of the particular

condotel development.

There is a lot to like about these types of properties, but there can

be problems, too. Some management companies dictate how often you have to rent out the property,

and some won’t allow you to make major changes to your unit’s interiors.

I did a bit of

research on the whole thing, a couple of years ago. From what I’ve heard, you shouldn’t count on

the rents you collect to cover any mortgage – you split the rental income with the manager, 50-50

(most times), plus you’ll be living there, part-time, leaving little chance of collecting lots of

revenue.

These differ from “fractional share” condos, by the way.

Complete article:

Tips on Buying a Condotel As a Rental Residence – by Jane Hodges, The Wall Street

Journal

Additional information: Condo Hotel Center – Joel Greene’s website & business

Contact me to find to set up an appointment to start your Boston condo buying process.

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For more information please contact one of our on-call agents at 617-595-3712.

Updated: January 2018

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