Here we are continuing our Guide to Purchasing a Costa Rica Condo Hotel. Part 1 gave a brief description of Condo hotel business model and part 2 provided information on the concept of the CondoHotel. Part 3 will discuss how you can benefit from this business model.

How would I benefit from purchasing a condo-hotel property?

Mainly, as an investment you can expect to earn rental revenue which can help offset expense associated with your acquisition of a Costa Rica condo. As a vacationer, you can enjoy your condo anytime you want thus you have a vacation home in a exotic locale which earns you money without any effort on your part. Also, you could have access to resort features such as fine dining, spas, concierge services, etc which most luxury hotel brands will have. If the Costa Rica condo you purchase has a powerhouse like Wyndham Worldwide which will soon operate the Wyndham Jaco Beach, you can be very confident in their ability to market your condo and earn you rental revenue. Many Jaco Beach condos owners try to rent out their own condo via internet sites like VRBO, which is abbreviated for Vacation Rental By Owner or even Craigslist. If you can talk honestly to any of these owners, they can attest that playing rental agent is not an easy task and to earn money it is a full time endeavor.

A company like Wyndham brings their management experience, their worldwide network of reservation agents, and their brand name to the table which benefits the owners in a condo hotel project. In general, condo-hotel projects which partner with hotel brands such as Ritz-Carlton or Wyndham are in high demand and often difficult to acquire because of the confidence these brands can bring to the future rental revenues.

Most condo hotels have wonderful features and services that enhance their appeal to potential buyers as well as future renters. Typical amenities are spas, health and fitness centers, fine dining, business centers and more. Services could include valet, concierge and housekeeping. Condo hotels offer hassle-free Costa Rica vacation home ownership. The on-site management company takes care of all upkeep, maintenance and interaction with renters. Owners of condo hotel units have the right to resell their unit at any time. They keep any profits derived from appreciation. Thus condo hotels combine vacation home ownership with investment potential.

In the past, this type of investment was only for the super-rich where they would build a property and then lease it to a company such as Ritz-Carlton for 30 years. This often surprises many people but few hotel properties are actually owned by the brand hotel that operates it. Usually when a hotel such as Wyndham chooses to move into a new market they will partner up with investors who will build the property and Wyndham will manage it. This is a very successful recipe for both parties. Wyndham which has a worldwide reach with customers and travel agents can market the property much better than the original builders of the property they are using. Therefore, how you benefit from purchasing into a condo hotel project is multifaceted. Rental revenue, professional property management, owner access to premium services, and high resale value benefits you and the other condo owners.

Coldwell Banker Vesta Group Jaco will only sell products that are professionally managed, titled, insured, and registered with the Costa Rican government. If you are interested in purchasing Costa Rica estates for sale or Costa Rica condos for sale and would like to inquire about more information on the offerings in the Jaco Beach area please contact Lisle Head by calling toll free 866-403-1345 or you can send us an email using this contact form. You can be confident when purchasing through a trusted company like Coldwell Banker which has over a 100 years of success in servicing the real estate industry. Coldwell Banker Costa Rica is held to the same standards as all Coldwell Banker offices are in the United States, so you can be assured that you will receive the same service as if you were stopping by your local Coldwell Banker office in your home town.

Part 1 mainly dealt with explaining what this guide is about and laid out an outline of what to expect in the coming sections. You can read it here if you missed it.

Part 2 of Coldwell Banker Jaco’s Guide to Purchasing a Costa Rica Condo Hotel is a brief description of what is the concept behind a condo-hotel.

What is the concept of a Condo Hotel?

The basic concept of a condo-hotel is the private ownership of individual units which collectively is managed as a hotel. Condo-hotel agreements vary but the basics are you own the unit or condo and when the managing hotel sells the room, you earn a commission or share in the profits. Large professional hotel management companies are the most successful users of this business model because they know hospitality and the logistics of servicing units which a hotel requires.

If managed correctly, the owner earns rental revenue which can augment the loan payment. An example, of a professional hotel management company would be Wyndham Worldwide. From the consumers point of view, they likely will not know their rented unit is privately owned unless the developer is still actively selling the units. Typically, condo hotels are in the luxury market and demand prices that normal hotel suites could not compete with.

In summary, from the buyers perspective a condo hotel offers the ability to buy into a larger value property because of the rental revenue sharing. This type of unit is truly a mixed investment; leisure and revenue generation. Unless, you are amongst the top tier of incomes of the world, earning income on your property investment when the unit is vacant is a sound business decision.

The condo hotel business model offers individual buyers to earn monthly revenue plus still earn appreciation in the property value of their investment. For developers, the condo hotel business model allows them to recoup their investment faster and begin earning a profit much earlier compared to the typical hotel development.

Check back with us for the next part of this guide: How would I benefit purchasing a Costa Rica property using the condo hotel business model?

Coldwell Banker Vesta Group Jaco will only sell products that are professionally managed, titled, insured, and registered with the Costa Rican government. If you are interested in purchasing Costa Rica estates for sale or Costa Rica condos for sale and would like to inquire about more information on the offerings in the Jaco Beach area please contact Lisle Head by calling toll free 866-403-1345 or you can send us an email using this contact form. You can be confident when purchasing through a trusted company like Coldwell Banker which has over a 100 years of success in servicing the real estate industry. Coldwell Banker Costa Rica is held to the same standards as all Coldwell Banker offices are in the United States, so you can be assured that you will receive the same service as if you were stopping by your local Coldwell Banker office in your home town.

We are often asked about which properties we recommend and why. There is no standard reply. As unique our clients are, their needs are just as unique but what we can say in response is that “most people have found buying into a condo hotel development has been a rewarding experience.” Even with this response, there are still many question that our clients have, so we thought it would be helpful to give you this information upfront and allow you to educate yourself in the condo hotel business structure.

The Guide to Purchasing a Costa Rica Condo Hotel will follow this outline and will be published in separate parts. If you would like a complete guide please contact Lisle Head and he will arrange to have one sent to you. The guide series will begin publication tomorrow so please check back with us to follow the guide as it is published.

Guide to Purchasing a Costa Rica Condo Hotel

1. What is the concept of a Condo Hotel?
2. How would I benefit purchasing a Costa Rica property using the condo hotel business model?
3. What is the relationship of the developer and the Costa Rica Condo Hotel management?
4. What is the typical contractual arrangement made between parties in a Costa Rica Condo Hotel?
5. Is it mandatory to participate in the Condo Hotel rental management pool and can I rent it by myself?
6. What can I earn from my rental revenue share for my Costa Rica Condo Hotel. Is there a guarantee?
7. Where are the Costa Rica Condo Hotel developments in Costa Rica located?
8. Are all Costa Rica Condo Hotel developments new construction?
9. What is the price range for the Costa Rica Condo Hotels for sale?
10. Is there cost savings when buying from the developer rather than through Coldwell Banker Jaco?
11. Do Costa Rica Condo Hotels have special financing available?
12. What is the demographic of Costa Rica Condo Hotel buyers?
13. What makes on Costa Rica Condo Hotel more successful than another?
14. Is there a recipe for success?

As you can see there is quite a bit of information that will be covered in this Guide to Purchasing a Costa Rica Condo Hotel. The information provided is presented without bias and only refers to Coldwell Banker Jaco as an optional choice when a referenced is made. In other words, the guide is factual and it information can be applied to the general condo hotel market.

Coldwell Banker Vesta Group Jaco will only sell products that are professionally managed, titled, insured, and registered with the Costa Rican government. If you are interested in purchasing Costa Rica estates for sale or Costa Rica condos for sale and would like to inquire about more information on the offerings in the Jaco Beach area please contact Lisle Head by calling toll free 866-403-1345 or you can send us an email using this contact form. You can be confident when purchasing through a trusted company like Coldwell Banker which has over a 100 years of success in servicing the real estate industry. Coldwell Banker Costa Rica is held to the same standards as all Coldwell Banker offices are in the United States, so you can be assured that you will receive the same service as if you were stopping by your local Coldwell Banker office in your home town.

In Costa Rica, condo ownership represents an appealing alternative to single family home ownership. In the past, condo ownership was dominated by singles and couples with an empty nest. Today, more families are experiencing the benefits of owning a condo but even with the growing trend, owning a condo is not for everyone. For example, owning a Costa Rica condo in Jaco Beach may provide access to luxurious amenities and limit your time spent on maintenance, there can be some restrictions that Costa Rica vacation home owners do not experience. Here we will discuss the differences of owning a Costa Rica Condo or a beach vacation home. Understanding the unique benefits each property type has will ensure you make the right choice when buying Costa Rica property.

The two most basic factors in choosing what property type is right for you is location and lifestyle. Here in Jaco Beach single family homes are scarce compared to the inventory of condominiums. As a result, Jaco Beach condos are always in demand and appreciate faster than the local vacation home market. Also, because your property is a vacation home that would mean maintenance and upkeep will not get your attention most of the year which makes a condo a better choice. Homeowner associations dues pay for general maintenance and security of your property which makes condos worry-free for owners which is very important when your vacation property is in another country. In addition, traditional families with young children choose single family homes for extra space for children to play. However, condos provide amenities such as swimming pools, tennis courts and large open areas to help families relax and play. Economically, the condo-hotel business model allows you to earn rental revenue which is not readily available for single family homes. However, there is far more to consider than location and lifestyle when deciding which type of Costa Rica vacation property is best for you.

The type of property ownership is a prime example of the differences between condos and single family homes. In the simplest terms, owners of single family homes are entitled to exclusive ownership, while most condo owners are subject to certain forms of shared ownership. Purchasing a single family homes provides you with exclusive ownership which allows you to do what you want on your property. Purchasing a Jaco Beach condo provides exlusive ownership within the condo but outside common areas are usually owned by the association and your condo is governed by a set of rules enforced by the same homeowner association which keeps your investment worry-free. If you chooose to purchase a condo, it is important to read the Covenants, Conditions and Restrictions (CC&Rs) before making a commitment. These documents include all the rules condo owners must follow and can vary widely between condo projects. If you have indoor pets or other specific needs, make sure these are addressed in the CC&Rs to prevent any unwanted surprises. If you don’t understand any part of the CC&Rs when purchasing a condo, Coldwell Banker Jaco Costa Rica will clarify them for you. Also, Coldwell Banker Jaco broker/owner Lisle Head will not sell a condo which does not have a CCR and/or a set of unreasonable rules that would make condo ownership a burden rather than enjoyment.

While shared ownership of a condo might seem restrictive to potential investors, there are cerrtainly plenty of benefits. The obvious and most often forgotten benefit especially when the condo is in a foreign country is maintenance. A single family home owner is solely responsible for any problems with the properties, incurring all costs of needed repairs and for securing the property when it is not occupied to prevent any type of squatting. This is a forgone issue when owning Costa Rica property in the form of a condo. Finally, if you are considering which property type to invest in make sure you consider the revenue potential that the condo-hotel business model offers. It is true that there are many management companies that offer single family home owners services such as renting out the property and maintenance but they do not have the same motivation of a condo association. The homeowner association is collectively the custodian of your property and has a shared interest in keeping your property secure and in good condition which is a great relief to most investors when purchasing a property in a foreign country.

If you still have questions about which property is best for you to purchase here in Costa Rica, contact Coldwell Banker Costa Rica here in Jaco Beach to discuss this further.You can Coldwell Bank by calling directly 866-403-1495 or email by using the contact form located here. Visit the Coldwell Banker website to find more information about buying property in Costa Rica and to browse the Costa Rica Real Estate listings.