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Beating The System?

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

Condos and condo-hotels have restrictions for the owners, and there is little surprise that they do. When there is a bunch of people being so close together, you need rules governing this being together, or close enough to affect each other.

 

Sometimes I am stunned how much effort people are willing to put into circumventing the system. You can usually see it with condo-hotels. They are relatively cheap (you can buy one in Daytona for less than $50K) and they are on the ocean. Wonderful.

 

So, the problem is that there are limitations stemming from the very fact that they are condo-hotels, i.e. operate as hotels. But our buyers want it as their residence. And they start inventing one trick after another, so that they can live there and pretend that they are not living there…

 

Rarely works, usually ends in frustration, and people sell and leave with the sour taste in their mouth.

 

But it is so difficult to reason with people. Some are so smart. You tell them that this condo-hotel does not allow long term stay for the owners, they say “no problem” and then try to make it their primary residence. You tell them it does not allow pets. And they say “fine”. And then bring and hide pets.

 

I remember this couple very well.  They said, there was no problem. So, after all the formalities were over, we had the Closing, came back to the resort, I introduced the Buyers/new owners to the General Manager of the resort, they took the keys and they went to their room.

 

10 minutes later the President of the Board of Directors walked in our office and asked:

 

- Do you know that these new people in room number so and so have pets?

 

No, we had no clue. But how could she know in 10 minutes?

 

- It is a bird. It is screeching. Let me show you…

 

We followed her there, and yes, from the hallway you could hear this bird loud and clear. 15 minutes later the buyers were in my office, explaining, that they figured that it was not a dog, they did not need to walk the bird, so nobody would ever see the bird, and they decided to trick everybody.

 

They were so smart…

 

Then it turned out they were even smarter than that, and planned to live there for a few years… but promised the President not to cause the problem.

 

Within the next 30 days we sold the unit for the same amount (but with some loss for the Buyers-turned Seller so fast… They left with the bird, and with the tricks to some other place.

 

It is tough when you outsmart yourself…

Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

We have what I call condotels here also except the name is based on the rental aspect, strictly for financing purposes. This sounds like a hotel room to me. Here they are 1, 2 or 3 condos where owners can live. Owners can have pets but no pets for tenants. Rental may have a 3 day minimum.

Sep 09, 2014 11:09 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bill - Yes, they are pretty much glorified hotel rooms. Except for one, which was built not a hotel and later converted, but was specifically built like this.

Sep 09, 2014 11:17 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Jon, It's an expensive lesson to learn, but one they deserved if they thought they could beat the system. 

Sep 09, 2014 12:23 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Liz & Bill - they beat it... for 10 minutes that is... :)

Sep 09, 2014 12:43 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Jon - Condo hotels are not something we have here, so I don't understand the concept. They buy it - but they can't live in it year round? 

I'm really curious about how that works... 

Sep 09, 2014 01:18 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Unbelievable, I wrote a lengthy comment and when I was ready to click "Post" it disappeared and the comment is gone. I am so frustrated. I will answer, but let me have some time to cool down.

Sep 09, 2014 01:37 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Interesting story Jon, 30 days, that is quicker than a renter can be evicted

Sep 09, 2014 04:31 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Oh yes, I know these types so well, Jon.

Sep 09, 2014 10:07 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bob - condohotels are always cash deals, so 2 weeks is not unusual. And yes, they ordered their own eviction of sort

Sep 09, 2014 10:38 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Gabe - I am sure you do

Sep 09, 2014 10:42 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

The world is full of folks who write their own rules.

That's why we have rules. 

Think of what the world would be like without the rules.

Sep 10, 2014 12:44 AM
Sharon Paxson
Sharon Paxson, Realtor® EQTY Forbes Global Properties - Newport Beach, CA
Newport Beach Real Estate

Hi Jon - there are always some who are trying to manipulate the system, and they generally get caught.

Sep 10, 2014 01:21 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Lenn - it is when they want something cheap and do not want to understand why it is so cheap, and then try to trick the world around them.

Sep 10, 2014 01:50 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Sharon - exactly true, thank you

Sep 10, 2014 01:50 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Looking for Daytona Beach, Florida Real Estate services? Contact Jon Zolsky at (386) 255-5355.

Sep 25, 2014 01:31 AM