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Frequently Asked Question: Why I Can’t Retire In My Condo-Hotel Unit?

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

- 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.

Retirement 

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

Tanja Cisliek
Future Home Realty - Seminole, FL
Real estate with passion and professionalism!

Jon, I have previously been asked the same question. I think the condo-hotel idea is a product that is not widely known, cities in FL came up with that since so many small hotels gave way to condo buildings, and they cities want to make sure they keep their tax-revenue with the tourist and sales tax income, and they want the local businesses and restaurants to stay in business (hotel guests spend more money in restaurants than condo residents to). Very good post about this important distingtion between condo and condo-hotel.

May 21, 2012 12:12 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Jon, what a great explanation... and now it makes all the sense in the world.  Zoning determines just about everything.  Great job.

May 21, 2012 12:23 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Tanja - there are not really many condo-hotels even in Florida, and even few in others, so I am not really surprised people do not really understand them very well.

Price is enticng, but in the last decase I have seen enough people buying a unit in condo-hotel as a place to retire, and they all eventually left. It is not a retirement place, no matter how good the price is.

Thank you for you thoughtful comment

May 21, 2012 12:25 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Karen Anne - thank you. Interestingly, usually we do not think about it, but you are right, zoning determies just about everything

May 21, 2012 12:30 PM
Dan Jasmer
Fine Properties - Sarasota, FL
Changing the way you look at real estate

Hi Jon - We have one here on Longboat Key that did not tighten up their docs as well as they should have and of the 247 units there are two that are resided in full-time.  The units are large 2/2's and the zoning never addressed the issue of full-time residents.  Like you, I cannot imagine living full-time in such a transient environment but it is working for these people!

May 21, 2012 12:48 PM
Dave Kinkade
Home Locators Property Management Tampa Florida - Tampa, FL
Director of Marketing - Property Management

While the environment isn't ideally-suited to long-term residency, it is a shame when the government dictates an owner's options on their own PRIVATE property.  The reality of cramped hotel-style living is enough to regulate the length of a stay for most folks. 

May 21, 2012 01:07 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Dan - minicipalities starting looking into that is new in Florida as well. But yours are very sizable. Ours are just standard hopel rooms.

May 21, 2012 01:59 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Dave - I thought that goverment regulation is not something very new. Don't they have the minimum size requirements? And that the stove should be there?

May 21, 2012 02:01 PM
Nellie Lytvinenko
Homes by Nellie-Working with Buyers & Sellers - Raleigh, NC
919-210-9992, Raleigh - Cary NC Real Estate

Jon,

Where I am in NC not so much condo restrictions, but "the grass is always greener" when people are looking for retirement areas.

Such good information you provide in your posts. I've referred several to read and learn from you!

May 21, 2012 02:26 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Nellie - thank you very much.

May 21, 2012 02:32 PM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

Great question and answer. Zoning is the objective part, enjoyment is the subjective part. That's a complete answer.

May 23, 2012 11:58 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Jill - you summarized it beautifully, thanks

May 24, 2012 08:40 AM