There is an emerging property type in the real estate market in recent years called Condotel. This is a combination model that has appeared for a long time but has become really popular in Vietnam recently. To learn more about the concept and benefits that Condotel brings, AHS invites you to follow the article below to get more information.
Condotel concept
An abbreviation of the word condo and hotel means apartment hotel or apartment hotel. Condotel, or Condo hotel is an acronym for condo & hotel, which means apartment hotel or hotel apartment.
In appearance, it is a condominium, but operates like a hotel. Condotels are usually built in big cities and large resort areas.
Legal of condotel apartments
Just understanding the concept of a condotel is not enough to make an investment. Next you need to learn about the legality of this type of thing? How is it different from previous related properties? When it was first introduced to Vietnam, the legal status of Condotel was quite meager.
It was not until 2017 that the Government promulgated the Law on Tourism and the Decree guiding the Law on Tourism. Through the process of amending and supplementing, up to now, Condotel's legal status has been improved: Tourist apartments have the necessary equipment and services to serve tourists. Guests can self-catering during their stay; The minimum conditions for technical facilities and services for tourist apartments are to have a seating area, bedroom, bathroom and toilet. And there are beds, mattresses, blankets, pillows, face towels, towels.
Must change mattress cover, blanket cover, pillow cover, face towel, towel when there is a new guest; Buyers of Condotel apartments cannot have all 3 rights of the owner including the right to possess, the right to use and the right to dispose of the property; The investor has the right to decide and control all three of the above rights of the owner from the fate of the apartment, the form of exploitation to the related operating and management costs. The project exploitation term is 50 years, which can be extended depending on the project but not more than 70 years.
Advantages and disadvantages when investing in Condotel model
Surely there are many people here who are feeling excited and eager to experience this attractive model. What are the benefits of investing in the Condotel market? And what risks are possible to? The answer is right here
1. Advantages of owning a condotel
Condotel model is favored by investors, located in a prime location convenient for multi-modal transportation: waterway, road or even air. Not only that, Condotel apartments are located in the golden place of the country's tourist village, which contains rich natural scenery with perfect harmony. Each Condotel hotel apartment project possesses the most modern interior design imported directly from abroad, exuding a luxurious, elegant and highly aesthetic beauty. Guaranteed income when your apartment has been rented for less than a month.
Because the Condotel model operates in the form of Share Time, preferential profit sharing, so the income amount will be accumulated by the units and then divided among each Condotel owner in the same project. The amount of money you have will be calculated according to the number of square meters you own, so if you own a large Condotel area, you will be divided into more income. Quickly recover investment capital: according to joint research from real estate experts, when the capacity of using Condotel apartments is effective, you will quickly recover both capital and interest in less than 10 years.
2. Cons of Condotel
Limit on the number of free days off
The first disadvantage is the limitation on the number of free vacation days with the owner, specifically, the Condotel investor will be allowed to use the Condotel apartment for free with a certain number of days according to the initial contract, normally. is 15 days.
The rest of the time you are required to pay the management unit for the tenant according to the condotel regulations. This affects more or less when you want to use the investment apartment more than signing it will not be very convenient, but you can discuss the agreement with the management unit about your wishes.
In addition, in the holiday season, peak tourist season, some managers will not allow you to use Condotel apartments for free. Please sympathize with them, because inherently at this time is the time when tourists rush to help you make a high profit.
If you can actively arrange to discuss with the manager, in the shortest time, you will have collected 100% of the initial investment.
Management fee payment
In order for the management department to help you operate smoothly to attract Condotel tenants, of course you have to pay a small amount of money for them to take care of the room cleaning, maintain the electrical/electrical system, and clean the apartment. your household regularly. However, this cost is quite meager compared to the profit you get from investing in Condotel.
Takes time to learn about operator competence
If you have just joined the Condotel hotel housing model or are an investor in a new Condotel model, it will take a lot of time to fully trust the operator's capacity. Because the executive and management department is the main factor that determines the number of annual profits.
AHS has provided important information in this article to help you have knowledge about real estate in general and Condotel apartments in particular. Condotels add significant value to both investors and owners' lifestyles. Wish you all the best of luck as you continue your path in the field of Condotel investment!
