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What is a Condotel?

A condo hotel or Condotel for short is a building that is both a condominium and a hotel. They are skyscrapers that are operated as like luxury hotels. However, unlike a real hotel, some rooms or units inside the building is owned by someone as a full-service home. In some instances when said owner is not staying in this home, the owner can opt to have the room or unit managed by the condotel administrators and makes it available for rent like any room in the condotel.

That being the case, the condotel is actually owned by multiple owners instead of just one. Every unit in the condotel is sold off to individual owners. However, if the owners are not around, which is often the case; a guest can rent a unit in the condotel just like a typical hotel. In most instances, all rooms in the rental program of the condotel look identical or similar with each other.

Condotels are usually not sold or bought as primary residences. In fact, most owners who buy a unit in a condotel do so as a form of investment instead of for personal use. The owner usually restricts usage of the unit they bought and just make them available for rent. Placing them in the condotelís rental program however is still optional.

Because a condotel unit is a property of its owner, he/ she have complete control over the unit much like any other residential unit but within the provisions set by the condotel management. For instance, you obviously cannot change the color and the exterior design of the unit because it will generally affect the uniformed design of the whole building.

Because one can generate rental revenue, one can use said revenue to offset some of ownership expenses. Most of condotels are located in major cities or major tourist vacation spots. Owning one therefore allows you to have a vacation place. Real Estate Investment in a condotel is a low risk investment because one can always use it or sell it an appreciated market value.

Among the disadvantages however of owning or living in a condotel included restrictions on pet ownership, immediate availability on short notice because either you or someone else (a tenant) may be using the unit. Much like any other hotel or accommodation services in the hospitality industry, occupancy rate and the ability to earn income is apparently affected by season, natural calamities, terrorist threats, inflations as well as economic recessions.

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