If you are considering buying a vacation home or weekend getaway a condo hotel is a worthy consideration. The Resort Valley is home to three condo hotels, Grand Cascades Lodge & Minerals Hotel at Crystal Springs Resort and The Appalachian Hotel & Black Creek at Mountain Creek. If you are uncertain or confused as to how condo hotels work, you are not alone . . . here are answers to the most frequently asked questions.
In a nutshell, what is a condo hotel?
A condo hotel tends to be a mid to high rise building that functions like a normal hotel but rather than having one owner there is an individual owner for each room or unit.
What are the benefits of condo hotel ownership?
Maintenance free living with rental income generated when you aren’t using your unit. You turn the key to find an immaculately clean & maintained unit with fresh linens and towels and even coffee in the cupboard.
What are the weaknesses or risks?
Buying pre-construction in a startup poses more risks than an established property where you can sample the place by staying a few days. Once in the rental program there can be some restrictions on personal use.
What are condo hotel rooms like?
They can really vary from being a typical hotel type room like those found in Minerals Hotel to Grand Cascades Lodge units with full kitchens and fireplaces in studios, one, two and three bedroom units.
How does the rental program work?
Typically, the income is split with the rental company who pays for the marketing, check-in and cleaning. Owners pay their mortgage, taxes, insurance, utilities and maintenance of the unit. The rental company handles all maintenance issues at the unit owner’s expense.
Can I rent my unit out myself?
If you are in the rental program you can lend your unit to friends or family but not rent it out. Some owners have tried using Airbnb or VRBO and found they make far less with more hassle than if the unit was marketed and run by the on-site rental company.
What about the furnishings? How does that work?
Each condo hotel in The Resort Valley comes fully furnished so as to provide consistency and ease of upkeep. From time to time the furnishings are updated at the unit owner’s expense.
What about my stuff?
Owner’s closets are found in most units and there is storage in the parking garages for bikes.
How much income can I count on?
That can vary tremendously from property to property and depending on unit type and location. The good news is you can review the historical unit income before you buy.
What makes for a successful condo hotel?
A strong operator will likely rent your room on weekends, holidays and the summer season. The key is mid-week rentals. This requires meeting facilities and banquet rooms to attract corporations and groups. Grand Cascades Lodge and Minerals Hotel both possess substantial facilities & attract significant mid-week group business.
Is financing available for condo hotels ?
Yes, though the rates and amounts down tend to be a bit higher than traditional residential mortgages.
Is the rental program optional?
Yes it is, though the vast majority of owners place their unit in the rental program to generate income when not using the unit and to enjoy maintenance free living.
Is there a home owner’s association and what is its role?
Every condo hotel has its own home owner’s association to collect dues for maintenance and ultimately replacement of the common elements, i.e the roof.
What about the amenities . . . are they included?
This varies from property to property, but generally if you join the rental pool, all amenities are included though some like golf and skiing need to be paid for.
What do the rooms cost?
Minerals Hotel rooms start in the $40,000’s, The Appalachian Hotel rooms in the $70,000’s and Grand Cascades Lodge in the $175,000’s+.
How can a potential investor find out what is for sale in the condo hotels?
Mountain Resort Properties is the on-site brokerage firm that specializes in condo hotels with offices at Crystal Springs Resort, as well as the showroom at Grand Cascades Lodge & at Great Gorge Village next to Minerals Hotel. 973.827.6767. Open 7 days a week from 10:00am to 6:00pm.