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How Condo
Hotel Rental Programs Work
Q: I am interested
in knowing how the rental programs work at condo hotels.
For example, if I buy a condo hotel unit what are
the terms of putting the unit into a rental program?
Do I get to use of it when I want if I do this, and
how often and at what cost to me?
For example,
if I want to use the condo hotel unit say for two
weeks during a busy high season time, do I pay for
the usage, or under the terms of my agreement with
the hotel do I have a certain amount of usage free?
What are the terms of usage in other words?
A:
Where do I start with this
one? Every condo hotel property has a different rental
program from the others. There is no exact answer
to your questions. Typically, you can use your condo
hotel unit whenever you want, as often as you want
(unless you have living restrictions) and you do not
pay anything when you are using your unit, except
maybe a maid's fee each day.
Usually, the property's management
requests as much as 60 days notice to guarantee your
room is available for you, but if you should call
on a Wednesday and ask, "Is my room rented out this
weekend?" if the answer is "No", you can say "Save
it for me," and they will remove it from the program.
Q:
What are the terms of any rental income which I would
receive from the hotel operator on an annual basis?
A: Usually your revenue is paid to
you quarterly, and rental splits can range from as
little as 18% coming to you to as much as 100%, depending
on other costs that are passed on to you. Typically,
a 50-50 split after 10% is taken off the top for the
franchise fee is common.
The above question(s) were submitted
via e-mail by a visitor to www.condohotelcenter.com.
The answer was prepared by Joel Greene, a licensed
real estate broker with Condo Hotel Center which specializes
in the sale of condo hotel units and fractional ownerships
in private residence clubs.
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