Monday, February 29, 2016

FL Condo Hotel vs Condo what does IRS think about a Vacation Rental as Second Home or investment?

Thinking of buying a Vacation Rental in Florida as Second Home or Investment.  

I think Condo Hotel or a Vacation Rental in Florida as Second Home or Investment may seem like a good idea but only for those who have the cash to purchase them and the time to enjoy at least 2 to 3 weeks a year. Why EVERYONE LIKES FREE VACATIONS right?
That's why people usually want to buy a condo and rent it too. However in MyStPeteBeachHome 33706, St. Pete Beach City and Treasure Island Cities like any City have their own plans and Zoning maps. But most buyers are not familiar with Zoning restriction an how they inhibit there ownership of Condos and particularly if these Condos are in Residential areas then short term rentals will not be allowed in Residential Zones.  This made the Condo Hotel option a great opportunity for Free Vacations in your own investment condo hotel.

Condo Hotels usually have a higher standard or at least a consistent standard of accommodation to a regular condo
Condo Hotels have Often have 2 contracts. I is a contract with governed by FL Law on Condos. Buyer has a chance to review the restriction of each condo with its rules and fees and assessments per annual voting and financial management of these fees and handling their budget etc.
A Condo Hotel may have other contracts like Linen assessments. They also may or may not have a built in Management contract with an onsite rental company who may or may not inhibit your right of use vs their right to make a profit for you and make commission for doing so.  Some allow 21 days of use other allow you to stay 6 months.
Condo Hotels were quite the phenomenon in Florida in the boom.  Click here for a Condo Hotel center
The IRS Web Site may be a good start. Click on the link below.

Read all about your investment costs here This is all the info you need from the IRS web site

                                                             Sunrise Beach Resort
Sunrise Beach resort is a Condo Hotel and a great way the to enjoy Florida and Leave  your investment in good hands when you leave Florida. Managed By Blue Skies, I think ( i may not have spelled it right),  Since its inception in 1995. The Property management company has kept it in good nick as an affordable vacation destination  in beautiful St Pete Beach Florida.  They have an on site rental office so they work your condo as an investment for you so you can come just about 3 weeks a year 

Here is an example of a popular Condo Hotel on St Pete Beach on the corner of 55th ave opposite the Trad Winds hotel One of the Trade Winds websites that includes a many condo hotels.

Call me on 727 776 0122 
So i can help you understand what is available in the Condo Hotel market as each has there own rules according to the City Codes and Restrictions.
Diana Sames
Passionately selling Fla Beach living since 2001

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