Why Condo-Hotels Are a Top Choice for Investors

Condo-hotels represent a unique blend of luxury living and smart investing, offering a steady income stream and property appreciation over time. This type of real estate combines the benefits of condominium ownership with the amenities and services of a luxury hotel.

Flexibility and Ownership Benefits

One of the major advantages of condo-hotels is the flexibility they offer in terms of rentals. Owners can rent out their units on a short-term or long-term basis, usually having the possibility to live in their properties for up to 120 days per year. This flexibility makes condo-hotels an ideal choice for frequent travelers and vacation home seekers.

Hassle-Free Rental Management

Condo-hotels often provide management services to handle rentals on behalf of the owners. These services typically include marketing the unit on platforms like Airbnb and Booking, managing reservations, handling guest check-ins and check-outs, and maintaining the property. Owners can choose to take advantage of these services for a fee, usually representing 20% of the profit, making the rental process hassle-free.

Suitable for a Wide Range of Buyers

Condo-hotels are suitable for various buyers, including:

  • Investors: Seeking a solid investment with potential rental income.
  • Frequent Travelers: Needing a home away from home that can be rented out when not in use.
  • Vacation Home Seekers: Desiring a vacation property with hotel amenities.
  • Retirees: Looking for a part-time residence in a desirable location with income-generating potential.
Financial Overview

The average cost of a 1-bedroom condo-hotel unit in Miami ranges from $320,000 to $599,000, depending on the location and amenities. Weekly rental income can be around $1,400 or higher, while monthly rental income can reach $6,000 or more, assuming high occupancy. Miami’s condo-hotels generally have an occupancy rate of around 70-80% annually, meaning units can be rented out for approximately 21-24 days per month on average. HOA fees for these units typically range between $1,000 and $1,500 per month.

Prime Condo-Hotel Projects in Miami

Some notable preconstruction condo-hotel projects in Miami include:

Conclusion

Condo-hotels in Miami offer an exciting investment opportunity, combining luxury living with potential for steady income and property appreciation. With flexible rental options, professional management services, and suitability for a wide range of buyers, investing in a condo-hotel could be a smart addition to your real estate portfolio.