Boca Raton Condo Vs.
Condotel - What’s the Difference
One of the things you will find when looking at the difference between a
Condotels in
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.
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