Are developers willing to guarantee the rental of the condo-hotel unit used by the owners?
No, they are not. Developers are aware that potential security law issues can arise from the sale of condo hotel units. In order to avoid coming under scrutiny of any federal securities agencies, developers refrain from setting rental revenue expectations to prospective buyers. Instead, the developer’s emphasis in the condo hotel’s marketing materials and sales presentations is always on the unique real estate value and opportunity. Generally, it is best to consider a condo hotel unit purchase to be similar to a second home or vacation home. Choose a desirable building plan in a good or unique location that is likely to appreciate in value over the years. As additional benefits you can choose to participate in the rental program and receive income from the hotel’s use of your unit and defray ownership costs.
