If you are looking to purchase a condo in Myrtle Beach, SC you may have spent countless hours online doing research, looking at different properties and trying to decide what the best option is for you and your family. But while starting the search online may seem like a good idea, many people are misguided and have the misconception that all condos are the same. I mean, what can be different? It’s just a condo, right? Wrong! There are in fact different subcategories for specific condo units, subdivisions, complexes, and resorts, and it is important to understand the differences so you can make an informed decision on what is the best fit based on what you are looking for. In today’s post, we are going to be talking specifically about condotels – what they are, what are some pros and cons of these specific types of units and the best route to take if, in the end, you find yourself looking to purchase one. We hope today’s post clarifies some of the misconceptions and differences in condotel’s and traditional condo units to better help you make decisions today, or in the future down the road as you begin your search
What is a condotel?
It is so important to understand exactly what a condotel is because you may find yourself looking online at a unit, which just so happens to be a condotel, but the description may not come out and say that exact phrase. So understanding the qualities and characteristics of a condotel will help to better equip you when conducting research. A condotel essentially is a condo that can be rented either by the night, the week, the month or multiple months, and is similar to that of a resort as the building has a front desk where people can walk up to book or rent a unit. It is similar to a hotel in that many times the building actually looks like a hotel, but each individual unit is actually individually owned. Now the owner obviously gets a split of the nightly rate that is charged by the front desk, but the owner does not necessarily have to be involved in the booking process. Which is an ideal situation for anyone living out of state, travels for work or someone who simply would rather not take on the burden of personally dealing with the rental process.
The front desk will usually also take care of all the cleaning for the unit including washing towels and linens, as well as any maintenance that pops up from time to time. And at the end of each month, the owner will get a statement showing how many nights the unit was rented during that time period and a check for their split of the rental income. Condotel’s work especially well in resort areas because they usually are located in popular vacation destinations and have a pretty consistent flow of people looking to rent units. And if the unit happens to be Oceanfront, that unit will not only be more appealing to renters, but you usually can also charge a premium for the desired location.
What are the pros of purchasing a condotel?
There are a few pros of purchasing a condotel that we wanted to point out in today’s post. First, as we touched on above, the front desk allows the rental process to be smoother, more efficient and less stressful. Also, that rental income you receive will help to offset the costs of the unit on a monthly basis, such as your mortgage, rest estate taxes, homeowner’s association fees, etc. And if you have enough rental income each month to cover all your expenses on the unit and you live out of state, you have a second home in beautiful, sunny Myrtle Beach, SC that is being paid for by renters. Now that is a pretty sweet deal!
What are the cons of purchasing a condotel?
And as with all pros, there are always usually a con or two mixed into the equation. As we talked about above, you may have a unit that is covered financially each month by renters. But, on the flip side of that pro, you may also find yourself having to book your time in your unit in advance. If the front desk or rental company rents out the unit during the time you were thinking of going, it can create some complications. So it is always good to plan your trips to your unit as much in advance as possible and give notice so there is a block and it is not rented out during that time.
And on that same note, if you are wanting to maximize your rental income through the unit, you should try to book your stay at the unit during the slow/off-season as to not take away from the income during the peak season. You also may find it difficult to find a lender for a condotel, as most major banks will not finance these units. Luckily, we know some lenders around town that will work with you, and we can make those introductions as needed.
Are condotels a good investment in Myrtle Beach, SC?
If we are being honest, not all condotels are a good investment. The best units, obviously, are the ones who produce massive amounts of income on a monthly basis. And the truth is that there are some units in which we call alligators, that will end up eating you alive. Those are the bad/risky investments that we try to steer our clients away from. However, on the other hand, there are also condotel units in which are rental income machines and continue to produce high revenues for the homeowner’s week after week, month after month, and year after year.
That is why it is so important to have an experienced, knowledgeable realtor in your corner during the whole process. Our team here at Jerry Pinkas Real Estate Experts has been doing this a long time, we know the area, we know the comps and we know what to look for in units. Allowing us to help you identify which unit has potential and which to avoid like the plague is the best way to ensure that you not only have a good buying experience but also that you avoid the pitfalls that can be costly. Myrtle Beach, SC has numerous condotel units that are incredible and can be incredibly lucrative for you, but you have to know where to find them and what to look for. And that is where we come in.
What should I do if I am interested in purchasing a condotel in Myrtle Beach, SC?
If you or someone you know is looking to purchase a condotel in Myrtle Beach, SC, give us a call today! Our experienced team here at Jerry Pinkas Real Estate Experts has helped numerous individuals, couples, families and even retirees find the perfect condotel, and we know we can do the same for you! We know there is a lot of information on the internet and while some of it is true, there is a lot of misleading information out there that people are consuming. Allow our team to sit down with you, dial into your needs and wants, show your properties and answer any questions that may arise. There is something to be said about having an experienced and knowledgeable real estate agent in your corner to give you the correct and accurate information you are seeking. We can help you avoid the pitfalls that can be costly, frustrating and extremely time-consuming. This is what we do, we do it every day and we are very good at it. We look forward to hearing from you and working with you soon!