What Is a Condotel & Why Invest in One?

A condotel or a condo hotel is a real estate development which is legally a condominium but which is operated as a hotel. It offers short term to long term rentals and managed by a team of staff as a hotel would. A condotel has units that are individually owned and is under a property management programs that allows people to rent out the units much like a hotel. Since the condotel has features like swimming pools, fitness area and front desk and cleaning services, it is an attractive option for guests to book & stay in.

In Metro Manila and other metrocities in the Philippines, condotel has become an real estate investment trend. People are purchasing condominium units from developers offering property management for it to be rent as would a hotel.

Is it smart to invest in a condotel?

One of the top reason why people are looking in to purchasing a condotel is to earn  a passive income. The Philippine real estate is booming with a potential investors developing building not only as residential but business opportunities for unit owners. One of the investment trend in real estate that has been growing for a while now, especially with the rise of hospitality service websites like Airbnb – these are condotels.

Make sure to purchase a condotel unit from a development with a promising location. A building that is within walking distance from school is very ideal for students you will need apartments for rent. Condo close to the airport is also ideal for travellers who prefer to stay closer to the airport but prefers staying in a condotel than a hotel.

How do I earn from condotel?

Apart from earning from renting out their condo unit, unit owners also earn from gross sales from the condotel. Since condotels operated as joint venture between unit owner and condotel operator part of the gross sales after taxes will be divided among the unit owners. This guarantees that there will be regular income even when the unit is not occupied or rented out.

And as far as property investments go, a condotel is very low-maintenance. Once you sign for property management, you do not have to worry about marketing the unit and maintaining its good condition even when you are out of the country, as the management group will be taking charge of these.

Is a condotel a worthy investment?

All business has risk involved and investing in a condotel is not a exemption. If you are not a hundred percent sure, it is best to consult a professional. Approach someone who can give you advice not only the process of buying but also the advantages and disadvantages of owning a condotel unit. This is a great way to not only learn more about the developer but also you have informed decision from some who has been in the real estate industry and seeing how these condotels perform. Find professional real estate brokers and agents on the Filipino Homes.