SANDRA'S BLOG

Pros and cons of buying a 'condo hotel' suite

CLICK HERE FOR VIDEO

 

A condo hotel is a condo that operates legally as a hotel with a front desk and other hotel amenities. They are usually large high-rise luxury hotels operated by big name hoteliers. The hotels have condo units, allowing individual investors to own a full-service vacation home that offers amenities like spa, fitness, fine dining, business centre, housekeeping and more. 

Conceptually, when the owner is not using their own unit they may rent it out themselves or enter it into the hotel rental pool where it would be offered as a suite for short term rental.

Ideally the rental revenue helps offset the owner’s expenses. The on-site management company takes care of upkeep, maintenance and interaction with renters making it hassle free home ownership.

Most condo hotels are meant for short-term occupancy and often stipulate the maximum number of days an owner may occupy the suite, with only a few projects allowing year round permanent residency. The owner may resell the unit at any time and retain the profits.

What to keep in mind:

  • Many investors have lost money on this type of deal.
  • The rents have been lower than anticipated.
  • The maintenance fees are higher than most condominiums as there is a built in management fee and perhaps a refurbishment fee.
  • Property taxes are higher than similar condos pushing the costs even higher.
  • Financing can be an issue as only a few lenders are funding this type of product.
  • When reselling this kind of product you are marketing to a very small pool of buyers making the demand low.

MARKET UPDATES


WANT THE LATEST NEWS?

Sign up for my Market Update Newsletter.

STAY UPDATED

TESTIMONIALS

Sandra Rinomato is simply THE BEST agent anyone could ask for. We are blessed that she was so available, so helpful and so understanding of what we wanted and needed. Call Sandra. You cannot lose.

- Marianne Englert

 

More Testimonials

SANDRA RINOMATO PROPERTIES

1984 Bloor Street West
Toronto, ON   M6P 3K9


Office 416-565-3001
Direct 647-725-0191

Trademarks owned or controlled by The Canadian Real Estate Association. Used under license.

The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.

Information is deemed reliable but is not guaranteed accurate by TREB.

Toronto Real Estate Board - IDX Last Updated: 5/22/2018 1:19:10 PM