- Why can't I retire in my condo-hotel unit?
The simple answer is “because it is a condo-hotel”. If you see the word "Condo", please also note the word "Hotel".
I am always tempted to ask why is the question in the first place. But I know the answer. It is because the price for condo-hotel units is so attractive.
So, it is very tempting to start considering a condo-hotel unit as a place to retire. It is on the ocean, there is a pool, some other amenities. Plus even though Association Dues are relatively very high per sq. ft., but because the units are meager 300-400 sq. ft. the dues that are $300 - $400 seem manageable.
Hence the idea that you can buy a retirement place very cheap and then enjoy life in paradise. To bring a dose of reality, think about it as living in a hotel, and this hotel is not Ritz Carlton.
Often people think that this is the limitation set by the Board of Directors. And they can limit the stay. Plaza Resort & Spa limits your stay as the owner to 30 consecutive days, and not more than 60 days total in any given year.
Some other condo-hotels limit the stay to no more than 6 months. Some have no limitations. The truth of the matter is that limitation will be coming from the city. This process is new for Florida, but it has started and we will sooner or later see it affecting the length of stay limitations.
- Why is that? What business do they have to the affairs of the condo-hotels?
Good questions. The reason for that is that condo-hotels are zoned as Transient Facilities, and this is the license that they have with the state. This zoning sets very specific requirements to the density, parking, etc.
However, living in the units, or renting long term is a use, which does not fall under T-Zoning, but rather under residential, and this would be a totally different ball game. The density for residential is half of what is allowed for hotels, and parking requirements are more stringent…
So, for the cities it is a matter of zoning, and they started enforcing limitation on the length of stay. If this is Transient Facility, then it is short term rentals only. I read that some of the cities in South Florida started setting the policies, and they run from 30 days a year to 6-monhts a year.
Anyway, it is very unlikely that you would really enjoy retiring in a condo-hotel, but it is not about the enjoyment, but about zoning.
Photo by Pug50 via Flickr.com
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