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Understanding The Chicago Hotel Condo Market

By Jennifer Lane

I’ve been asked a lot lately about the hotel/condo concept that has been flourishing in Chicago.  What is it and how does it work?

1. What is a hotel/condo?  It’s a unit owned by many buyers, used by the owner minimally, and rented to visitors just like a hotel.  It is available for rent through the building’s or let’s say the hotel’s management company exactly as you would rent a hotel.

2. Is it like a timeshare?  Not in ownership, but similar in usage.  It is NOT a timeshare where an owner owns only time.  In a hotel/condo an owner DOES own the property, but simply agrees to rent it out and is used minimally by the owner.  Each property varies on the amount of time allotted to the owner for personal use.

3. How much do I get when the unit is rented?  All of the properties, offer different splits.  There will be an agreement before the purchase outlining the rental split.  Keep in mind, there is NO guarantee on the amount of days the unit WILL be rented.

4. What is the difference between a hotel/condo residence and hotel condo/rental unit?   In a hotel/condo RESIDENCE an owner lives in the unit, is never available for rent to hotel guests, has full use of all hotel’s amenities, and is decorated per the owner.  A rental unit is used minimally by the owner, does have full use of all amenities as well, but is decorated by the hotel with no owner input.

5. Can anyone buy?  Yes, typically a 20% down payment is required and often one point or more on the mortgage will be charged as the property is seen as higher risk by lenders.

6. What is the appreciation?  It’s thought that there will be great appreciation as the hotels are generally affiliated with internationally known brands (Ritz Carlton, Four Seasons, etc.), situated ideal locations in the city, and a limited commodity.  However, it is a newer concept across the country.

For further information about Chicago’s hotel/condo buildings that are under construction or newly being converted from an existing owned or rental building, call me for additional details on Chicago’s developments and availability!  Be one of the first to own a hotel/condo where you don’t have the hassles of being a full-time, on-call landlord!

About Jennifer Lane:
Jennifer brings a business approach to real estate. She studied business in college and worked in major corporations having exposure to every aspect of a company from purchasing and marketing to design, production, selling and everything in between. She obtained a real estate license for personal use to buy, remodel, and sell. It wasn’t long after using the knowledge for herself and investors that she realized she enjoyed real estate and could make it her career. She always wanted to own and run her own company and real estate became the answer. Yes, she runs her own company as Keller Williams allows her to operate her business and work with her clients as she sees fit, all under a Realtor’s® code of ethics, of course. She can market Jennifer M. Lane or her practice in anyway she wishes, so you are empowered with information she compiled to aide your search. Every piece of material you are given is created from her experience, research, and knowledge.

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