A condo hotel, is a building, typically high-rise buildings developed and operated as luxury hotels, usually in major cities and resorts areas like Orlando. It is legally a condominium but which is operated as a hotel, offering short term rentals, and which maintains 24 hours Front Desk.
In Orlando, when you own of these condos, the on-site management takes a percentage of the total income from rentals (commissions) around 40% but the good news is that all operating expenses are covered.
They take care of the property (maintenance), security, landscaping, building insurance, front desk personal, they replace any furniture, electronics, appliances, linens, towels, etc. Water, internet, phone and cable are normally included as well.
They do the cleanings, and of course they take care of the rentals and guests. And you as an owner receive a net amount at the end of the month.
You are responsible of property taxes, insurance of the contents inside the unit, and electricity in most cases is your responsibility as well.
I’m aware from my previous clients that I have helped buying properties in Lake Buena Vista resort, Floridays and World Quest Resort that these 3 are having levels of occupancy of at least 70 to 80%. And all of them express happiness with the cash they receive every month and the great equity they have built; But I must clarify to you that all of them purchased at low prices a couple of years ago.
However, we can still secure great deals if this would be an investment option you would like to try.
And here is an article I found that speak about the things you need to know when considering buying a condo hotel: http://bit.ly/AboutCondoHotels
And this tells you a little bit more about the Orlando condo hotel’s market: