Condotels – Are They A Good Rental Investment?

Awesome Way To Gain Rental Opportunities

If you haven’t heard of a condotel, it might be something that you want to consider as we move into post-pandemic conditions with a renewed sense of adventure. Not all of us can afford a two-bedroom home on the beach – and not all of us want one. A condotel combines the very best things about resorts with the comforts of living in your own place. For practical purposes, they are also usually easy to rent and have people onsite who monitor your property and the renters that you have in and out. Why a condotel? Home Springs Mortgage shares their reasons for buying in with RedFin readers. 

What is a Condotel?

A condotel combines all the best amenities of a hotel with the comforts afforded by owning a second home. The best part? You can rent them out to gain extra income and pay the mortgage off at the same time, which makes them an excellent venture overall. A condotel has a front service desk and comes with amenities like an exercise room, a pool, and sometimes other upgrades, as well as maid service, if you choose. But the difference is that you own it, so you can rent it out as you wish and your renters get a hotel-style experience.

What are the Advantages of a Condotel?

The biggest advantage of owning a condotel is that you get help with things like cleaning and check-in services. Also, repairs and other things are handled onsite. And you can attract renters who are looking for a hotel atmosphere but want a little extra homeyness and personality. Another advance of a condotel is that you can rent it out at will. There are no provisions about letting others stay there; in fact, many owners use the rental income to pay the mortgage on their unit. 

What are the Disadvantages of a Condotel?

Condotels do have a lot of advantages, but there are also some drawbacks. A condotel is an entire complex, which means that if one (or more) of the units are not maintained properly, it can reflect poorly on the rest of them and bring property values down. In the same respect, if the location of the condotel goes through a period of unpopularity, then your rental rates can suffer as well. It is always an issue when your property value depends on the actions of others. But that is no different than if you own a condo or house in a particular neighborhood. 

What About Rental Attractiveness?

As far as rental attractiveness is concerned, a condotel is often highly attractive because it offers what houses and condos can’t: namely, guest services and amenities that are often reserved in condo associations for owners only. Also, many people who prefer the hotel experience are drawn to condotels because owners have their heart and soul in the individual units. 

If you are looking to entirely rent a condo or hotel or purchase a vacation home, then condotels might not be a common thing, but they are gaining in popularity. The biggest drawback that comes from a condotel is that finding financing can sometimes be problematic. That is why at HomeSpring Mortgage, we specialize in getting you approved for your condotel purchase and highly recommend it as an option for your second-home dreams. Contact us today to get started on finding the mortgage you need to buy a condotel tomorrow!