If you are planning to buy your condo and been browsing thru newspapers and internet these past few days, you must be encountering the word “condotel” every once in awhile. What is this all about?
Condotel is derived from the words condo hotel. This means that it is a condominium unit that you could buy and live at for a fixed term in a year. Then to increase your earnings, this could be rented out to guests by your condo/hotel management and part of the proceeds goes to you for owning the unit and for them to cover the advertisement and operation costs. For all the rooms in a certain condotel to look the same, you will pay a certain amount for your rooms to be furnished just like a regular hotel room.
Most short term renters prefer this type of temporary dwelling because this will cost them much less compared to five star hotels and resorts. It is actually gaining popularity among the foreigners who would like to stay in a daily, weekly or monthly basis.
Some regular condo owners take advantage of this and furnish their condos in an elegant manner. Then they advertise their listings on the internet to attract transient tenants. Some investors are reported to own more than 5 units in the same building alone! Plus they get all the rent because they manage it on their own. Great Idea Right?