A condotel, short for "condominium hotel," is a type of real estate property that combines features of both a condominium and a hotel. Here's how it typically works:
Ownership: In a condotel, individual units are sold to buyers, just like traditional condominiums. Buyers own their specific unit and have a deed for it.
On-Site Services: What sets condotels apart is that they are typically managed by a short-term rental management company. Owners of condotel units can choose to place their units in a rental pool. In this case, the management company rents out the units to guests, much like a regular hotel room. Owners receive a share of the rental income, and the management company provides services such as cleaning, maintenance, and amenities.
Amenities: Condotels often come with the amenities you'd expect from a hotel, concierge services, swimming pools, hot tub, sauna, work out room and housekeeping.
Flexible Use: Owners of condotel units usually have the flexibility to use their units themselves when they want to stay in them, and they can also benefit from vacation rental income when the unit is rented out to short term rental guests.
Condotels can be attractive investments for those who want a vacation property that can generate rental income when they're not using it. However, they also come with some complexities and considerations, such as the management agreement with the hotel, potential restrictions on personal use, and the fact that rental income can vary based on occupancy rates. The busy tourist season on the Oregon Coast is seasonal. You can expect near full occupancy during June - September and occupancy that tappers off drastically in the winter months with busier times around the holidays and holiday weekends throughout the year.
It's important for anyone considering purchasing a condotel unit to carefully review the terms of the management agreement, understand the financial implications, and be aware of any rules and regulations governing the property.
On the North Oregon Coast, we have several buildings that offer on-site management for short term rentals and are considered Condotels. At the time of writing this, The following condo buildings are considered condotels
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