Myrtle Beach is a paradise for residents and visitors alike. A major tourist destination in the United States, the real estate market in the city is somewhat unique. Condos are exceedingly popular for homebuyers in this market. But, did you know that most of the oceanfront buildings in Myrtle Beach are actually condotels and not condos? It is important to know whether the properties you are looking at are true condominiums or condotels. The two have marked differences, particularly when it comes to financing. Your needs will be different if you are looking for a permanent home in Myrtle Beach or one that you can use as an investment property. Be sure to work with an Experienced Real Estate Team that understands the local market and can help you through the entire process.
What is the difference between a Myrtle Beach condo and a condotel?
A condo is an individually owned housing unit within a structure that is owned by all of the tenants. The shared ownership of the structure applies to all of the amenities within that building, such as pools, landscaping, and community spaces. The cost of maintaining these amenities is covered by the Home Ownership Association (HOA) fees. Although many of these factors are shared between a condo and a condotel, there are important differences to note. In a condotel, the individual units are privately owned, however, the structure is owned by a hotel or rental management company. This company handles the front desk, cleaning services, and many other features that are similar to hotel management, a key difference between these buildings and traditional condos. The units within the building are often furnished similarly. In general, all utilities are covered in the HOA fees, unlike in condos where the utility company bills the unit owner directly. The major difference between a condo and a condotel is that short term, nightly rentals are available in the latter. These rentals, including the outside marketing of them, are handled directly by the management company. Financing is available when you are looking to purchase a unit in a condotel but it is often more limited than when looking at other properties, including standard condos. Although with the growing popularity of such units financing options have broadened over the past couple of years, condotel units cannot be financed with conventional residential loans regardless of your financial history. Ask your knowledgeable real estate agent to help you navigate your lending options. The Jerry Pinkas Team here to help!
Why choose a condotel over a condo?
Condotels are perfect for owners that want the flexibility to travel to Myrtle Beach on their own schedule throughout the year while garnishing a profit through renting the space when they are not in town. Having the amenities of a hotel and the feel of a home, condotels are very attractive to visitors, meaning a steady annual revenue for owners of these properties. Please note, although the owner receives most of the revenue from renting the unit, there often is a rental management commission to cover the expenses incurred by the condotel’s company.
If you’re considering a move to a Myrtle Beach Condo or Condotel, give the experts a call at the Jerry Pinkas Team. Put their expertise to work for you!