A common sense guide to buying a condo hotel property.

The condo hotel marketplace can be a difficult and oftentimes confusing environment to navigate. Here are a few common sense guidelines to help keep you on track through your journey:

When deciding on purchasing a condo hotel:
• Purchase not just to obtain a real estate investment, but for multiple reasons such as personal use, to explore the location and to relish in the superior amenities. Seldom do such properties work as stand alone investments.
• Location, location, location. Find not only an area that attracts you, but also one that will attract others and will likely see real estate rise. Also, search in markets that are strong year round (areas such as New York or Hawaii) and not seasonal (such as Orlando).
• Look not only into the brand of the hotel, but the company that manages it. You’ll want a management company with a proven track record, professional service and high quality, consistent maintenance. In fact, oftentimes, the management company is as important or even more important, than the brand name of the hotel.
• Make sure you’re fully aware of the rental program and the HOA details that are set forth in your agreement. Are they fair, reasonable and productive? Do they allow for easy adjustment and/or termination?
• What is the owner occupancy of the building? How long has it been operating?
• Is every facet of the condo hotel operating efficiently? From housekeeping to monthly invoicing; the system is only as strong as its weakest link.
• Do it for yourself, your friends and your family first. Make the purchase more for vacation than for investment and you’ll be ahead of the game.