Condotel

DEFINITION of 'Condotel'

A condominium project that is operated as a hotel with a registration desk, cleaning service and more. The units are individually owned. Unit owners also have the option to place their unit in the hotels rental program where it is rented out like any other hotel room.

BREAKING DOWN 'Condotel'

There are pros and cons to condotel ownership. Pros include rental income to offset ownership expenses, a great vacation home, a cared-for home and potential price appreciation. On the down side, you might have to make a reservation for your own unit several days or weeks in advance. There are risks associated with all hotel ownership as well, such as occupancy rates that might be based on general economic conditions and potential destruction of the property.

Generally, condotels are sold as a second or third home.

RELATED TERMS
  1. Bungalow

    A bungalow is a one-story house, cottage or cabin. Bungalows ...
  2. Real Estate

    Land plus anything on it, including buildings and natural resources.
  3. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  4. Limited Common Elements

    Elements of condominium living units that are assigned to specific ...
  5. Timeshare

    An ownership model whereby many customers own allotments of usage ...
  6. Condominium

    A large property complex that is divided into individual units ...
Related Articles
  1. Home & Auto

    Simple Ways To Invest In Real Estate

    Owning property isn't always easy, but there are plenty of perks. Find out how to buy in.
  2. Retirement

    Does Condo Life Suit You?

    Association fees and disputes with neighbors could spoil your move if you're unprepared.
  3. Home & Auto

    Tips For The Prospective Landlord

    Investing in rental property can generate serious income, but there's more to it than collecting rent.
  4. Taxes

    Tax Deductions For Rental Property Owners

    Besides creating ongoing income and capital appreciation, real estate provides deductions that can reduce the income tax on your profits.
  5. Home & Auto

    Uncover The Next Real Estate Hot Spot

    Real estate land speculation is a way to get in on a hot investment before a boom hits.
  6. Options & Futures

    Timeshares: Dream Vacation Or Money Pit?

    This popular real estate product has its advantages, but don't expect to make a profit.
  7. Budgeting

    Beach Property in California: The Pros & Cons

    Learn the pros and cons of buying a beach condo in California, and how to protect yourself from common pitfalls many condominium buyers experience.
  8. Budgeting

    Beach Property in Puerto Rico: The Pros & Cons

    Learn these important tips for buying a beach condo in Puerto Rico. You need to have a buyer's agent and an attorney to represent your interests.
  9. Home & Auto

    Tips on Buying a Beach Condo in Puerto Rico

    The island has beautiful beaches, a great climate, tax breaks for American buyers – and a huge debt crisis. Still game? Here are guidelines for a purchase.
  10. Real Estate

    Beach House Investing: Best Beach Towns in Long Island, New York

    Learn about the three beach house locations on Long Island that investors should consider for beach house investing projects and key facts.
RELATED FAQS
  1. Can FHA loans be used for condos?

    A borrower can obtain Federal Housing Administration (FHA) loans to finance the purchase of a condominium as long as the ... Read Full Answer >>
  2. What is the difference between capitalization rate and rent?

    Rent and capitalization rate are both factors that determine whether a real estate purchase is a wise investment. Rent is ... Read Full Answer >>
  3. Can real estate agents help renters find rental property?

    While real estate agents often exclusively service those in the market to buy or sell a home, some can also be excellent ... Read Full Answer >>
Hot Definitions
  1. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  2. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  3. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  4. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
Trading Center