Boca Raton Condo Vs.
Condotel - What’s the DifferenceOne of the things you will find when looking at the difference between a
The condotels provide access to concierge services and the condos are maintained by the hotel. When purchasing a condo, they are typically unfurnished. The new owner is responsible for decorating and furnishing the condo. A condo will often have a community pool and unless they decide to hire someone to do it, they are going to be doing their own housekeeping.
Condotels are normally furnished by a professional that is hired by the hotel managing the unit. Usually all the units within one building are decorated quite similarly. They will even include the linens and all this is figured into the amount of the cost of the condotel.
Condos are often rented out by the owners however; the condotel owners may choose a program such as hotel rentals. They are usually rented to customers on a rotational basis. A list of condotels is made and rented according to where they are on the list. The owner of the condotel will share the money received for rent with the managers, operators and often the developers.
One thing that is quite different when it comes to condos and condotels is that the condotels, if being sold and participating in rental agreements, qualify as a security. This means they must be registered with the Securities Exchange Commission (SEC). This is according to rules that say any program that is for profit and has the capacity to benefit economically or impede the owner from renting or occupying their property must be registered with the SEC.
There are different sets of rules for a regular condominium than for a condotels. This also applies to the sellers of condo hotel packages. They cannot sell a condo hotel using the rental programs as a basis for the sale. There is also no requirement that says a condo owner must take part in the rental program.
As you can see there are quite a few differences between the typical condos that we think about and the condotels that have made an appearance recently. Since the areas where these condo hotels are located are in highly desirable areas they are more likely to be rented by people who come to the area to visit the attractions or by those who spend the winter months where the weather is warm.
Gloria Singer is the Broker of Boca Expert Realty, a boutique Boca Raton real estate company with a focus on professional service and an unparalleled customer experience. Our select agents are amongst the top performing professionals in the field. Visit www.BocaExpert.com for information on Boca Raton, Delray Beach and Highland Beach real estate and to connect with an expert in the local market.