Traditional timeshares are properties that are jointly owned by a group of people and overseen by a management company. The partial ownership in the timeshare allows owners to vacation in their own timeshare during designated blocks on time during the year. The latest wave of timeshare properties are “condotels” or condo hotels.
Condo Hotels differ from a traditional timeshare in some ways. Traditional timeshares are used for vacation purposes while condo hotels are used as the primary home of the occupants. These occupants more than likely don’t spend the whole year though, since the main purpose of a condo hotel is to live in the condo when you wish to, and then let it be rent out to vacationers when you are gone. Condo hotels are planned to be residential hotels and units at the same time, permitting admission to hotel-type services such as restaurants and pools even to occupants who spend months living in one of the units. The biggest draws to condo hotel ownership is that, the condo renting is done by the management company, thus occupants don’t need to deal with the hassle of searching vacationers and then screening possible occupants themselves. Places such as Miami, Las Vegas and even Los Angeles see these few developments coming out all over the city. In fact, some of the hotels on the Las Vegas Strip actually offer a section of their building as condo hotels, allowing partial ownership to tenants while living amongst the glitter and glitz of one of the wackiest cities in the world. As these kinds of places are prime locations for not only people who are taking their vacations but corporate businesspeople as well, this kind of arrangement could do a lot of sense. An individual who only wants to spend half of his/her year in a particular city could buy a condo hotel property and make use of it when they’re in the city, and then just spend the rest of the year gathering a check from rental proceeds.
What is the downside to this sort of arrangement? Many people simply do not like the idea of renting out their homes, even if the homes are used solely for vacation purposes. Yes, it’s true that the maintenance and renting is handled by the management company. There’s never any assurance that a group of tenants who are having their vacation will not turn out to be zealous partygoers who’re bent on trashing their trip abode. There’s always a risk when permitting strangers to reside temporarily in a condotel. Apparently, if that person has problems with other persons having access to their house then this kind of arrangement isn’t appropriate for them in the least.
The lure of rental income is one of the reasons people like the idea of a condo hotel, but one must remember that as with any other sort of property there is never a guarantee of tenants. A condo hotel can sit empty for months due to any sort of disaster such as a hurricane in Florida or an earthquake in California. Owners of condo hotels must never count on rental income as a guaranteed asset. Owners of condo hotel would almost certainly be much better off seeing the rental income as an extra benefit to ownership not as a major source of proceeds.
Because of the difficulty and inflexibility in many cases of selling, traditional timeshares had garnered bad reputation in lots of circles. Condo hotels, however, allow much more flexibility because it is the tenant who is calling the shots and deciding when to use the property and when to rent it out. Selling a condo hotel can be a bit difficult depending upon the real estate and vacationers market at the time, but since these condo hotels are usually located in highly popular areas they are not too difficult to pass on to someone else. Tenants benefit from a rental income and the hotel itself benefits from a steady stream of visitors who utilize their services. If a person is looking to purchase some sort of vacation home it makes sense to check out condo hotels. A vacation house that includes occasional rental income could be a good thing indeed.
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