condotel

Definition

A hybrid property that functions as both a condominium and a hotel, where owners can occupy their units part-time while renting them out through hotel operations. It's vacation ownership that pretends to be a legitimate investment strategy.

Example Usage

She bought a condotel unit in Miami, expecting rental income, but discovered the management fees consumed most of her profits.

Origin

Portmanteau of 'condominium' and 'hotel,' popularized in the 1960s-70s

Fun Fact

Many condotels can't qualify for traditional mortgages because lenders consider them commercial properties, forcing buyers to pay cash.

Source: Hospitality and real estate investment terminology

Related Terms

Intermediate

contingencies

The 'what if' scenarios that keep project managers up at night and pad contracts with extra zeros. In real estate, these are the escape clauses buyers insert into offers like 'contingent on inspection' or 'contingent on not discovering the basement is haunted.' Essentially, it's the professional way of saying 'but only if everything goes according to plan,' which it never does.

🏠 Real Estate

Advanced

alienation clause

A mortgage provision requiring full loan repayment if the property is sold or transferred, effectively preventing you from passing your sweet 3% interest rate to the next owner. Also known as a 'due-on-sale clause' for those who prefer their contract language less sci-fi sounding.

🏠 Real Estate

Intermediate

tax abatement

A reduction or elimination of property taxes for a specified period, typically offered as an incentive for development or renovation in targeted areas. It's the government's way of bribing you to improve neighborhoods they've neglected.

🏠 Real Estate

Beginner

down payment

The chunk of cash you fork over upfront when buying property, proving you have skin in the game beyond just promises and good intentions. It's the financial commitment that separates dreamers from homeowners.

🏠 Real Estate

Beginner

notice

The formal heads-up you're legally required to give before doing something that affects someone else, like ending a lease, quitting a job, or evicting a tenant. It's usually 30, 60, or 90 days, giving just enough time for panic and apartment hunting. Without proper notice, your plans become legally questionable at best.

🏠 Real Estate

Intermediate

mil rate

Property tax rate expressed in mills, where one mill equals one-tenth of one cent ($0.001). Because saying 'point zero zero one dollars' is apparently too straightforward for local governments.

🏠 Real Estate

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reps and warranties

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