Assetsoft - Blog #Short-Term Rental

Can a real estate agent manage a rental property?

Tue, 18 Jul 2023 19:48:18 -0500

According to government guidelines, in America, it is not illegal for real estate agents to perform the duties of a property manager. In most states, it is legal, but in some places, the real estate company might ask for a property manager’s license to carry out their duties. Making your real estate agent work on your properties as a manager can actually turn out to be a golden opportunity for you.

There are multiple different benefits to hiring a real estate agent as a property manager and some drawbacks as well. In this article, we will try to find out what they are. This will help you as a real estate business to take a call on whether this is a suitable option for your business.

Why can real estate agents be great property managers?

Let us find out why real estate agents can be great property managers and help your business.

They already have the contacts and know the clients

One of the biggest advantages of working with your real estate agents as your property managers is that they already know the clients. If they are the ones who sold or helped rent out a particular property, then they are familiar with the client and have their details. They interacted during initial sales and the leasing process, so the clients will also be comfortable interacting with them.

Works as an incentive for extra income for agents

According to statistics, hiring a real estate property manager can cost up to 7-10% of the total income from your rental property. Property managers are very costly, especially if they come with management degrees and licenses. But it can become much cheaper if you can provide certain training and guidelines to your real estate agent to do the management work.

Property management can also act as an incentive for extra income for your real estate agents. Working as an agent is an uncertain job profile where the maximum income is based on sales and incentives. Also, according to NAR reports, the number of registered agents in the USA is more than 1.5 million; hence the competition can be quite steep to make sales and earn incentives. So, rental property management might come as a pleasant offering for agents.

It can work cohesively with real estate agents' current portfolio

The real estate business is all about building contacts, and when your agent starts to manage your properties, they can easily develop more contacts and get you more business. It is a win-win situation where they themselves also earn more from the incentives of the new clients they bring in from these referred contacts.

It can be scalable to accommodate your needs

Real estate agents, if they work as property managers, will obviously do this as a side hustle for extra income. So, you can scale down or scale up their services as per your needs since this is not their primary job, to begin with. If you have a rental property with only occasional customers, like a BnB, then a real estate cum property manager is a great option. They can get you the clients and also manage interaction with them and take care of the property at the same time.

Upkeep the apartment to keep it sale worthy

When your property is under one particular real estate agent, and the same person works as your property manager, then proper maintenance becomes their headache. Why? If they do not ensure proper upkeep, then they themselves will not be able to make a sale and earn their extra incentives. So, you, as a property owner or real estate business owner, do not have to worry about the condition of the property.

What are the drawbacks?

But not everything about hiring real estate agents as property managers are all great. There are some drawbacks too. Let us find out what they are.

Real estate agents might lack expertise in property management

One of the biggest drawbacks of employing real estate agents as property managers are the fact that they may not have the proper training to manage properties. Property managers come with their own experience and expertise in the field they work in, hence can do a more efficient job of managing. We understand that property managers may cost a little more, but if you have a diverse portfolio, it might be better to hire a dedicated manager to ensure smooth work.

They might get overloaded with work

Real estate agents who work as full-time agents already have a lot of work of regular agents, like looking for clients, publishing property listings, and showing houses. They also have to finalize deals and close property deals to make their payments. If you add property management tasks like maintenance, regular cleaning, paying bills, taking care of insurance and taxes, and other such work, it can become chaos. So, before you pass on this work to your agent, think twice if they have the bandwidth to perform these additional duties.

They might not have the foresight of a property manager

When it comes to things like Common Area Maintenance, insurance renewal, property tax payments, and more, property managers see these things from a mile away. But real estate agents may not have the foresight to consider these things because of their lack of experience in this field. This might land you in legal problems with the government and the customers. So, if you work with a real estate agent and want them to manage your property, ensure you provide adequate training.

Manage your real estate properties with Assetsoft

Worried about your property management plans? Running short on budget but want to do a good job nonetheless? Do the cons of hiring a real estate agent as a property manager seem slightly higher than the pros? We understand.

We are here for you. Outsource your property management tasks with Assetsoft. We will make the best of technology selection and expert human resources to work for you. You get the best of both worlds with our team at Assetsoft and yet pay only budget-friendly prices.

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How Many Rental Properties Does a Landlord have to Own Before Hiring a Property Manager?

Sun, 12 Dec 2021 12:59:07 -0500

As a landlord, managing multiple properties can be overwhelming. You have to list out your property to attract new tenants, screen and interview them, do a background check, and take care of all the documents, plus the maintenance of your property. If you have one property, you can do all of these yourself, but what if you own multiple properties?

Should you hire a property manager? Wouldn’t that be expensive? Or do you even need a property manager? Here's all you need to know about hiring a property manager for your property business.

When Do You Hire a Property Manager?

If you own a single property or even five units, you can handle all of it alone. Sure, it will be too much of a task, but hiring a property manager wouldn't be the best option considering the fees for property managers. But what if you own more than six to seven units? It can be an uphill task running behind every unit, looking for tenants, and maintaining them at once.

If you think you can afford a property manager, it's best to hire one to reduce your burden and get the work done on time. But hiring one means you have no direct control over your properties now. The property manager will handle all your units and report to you at the end of the day.

You will be the middleman indirectly managing your properties. It also means you get more free time and do not directly deal with tenants and property issues. But it would also mean you need to spend a part of your rental income on the property manager and hand over control of your property. It can be a tough decision, but hiring one can reduce your burden to a great extent as long as you have the budget for it.

What are the responsibilities of a Property Manager?

Property managers will be responsible for multiple things, right from interviewing your tenants to collecting rents to returning security deposits. Here are the top seven responsibilities held by property managers:

Screening of Tenants
Listing Property when Tenants are Needed
Setting the Price of Rent
Signing agreements

Manage repair and maintenance orders
Taking care of handing security deposit to the tenants
Handle issues raised by the tenant

When there are too many units to maintain, handling all your responsibilities on your own can be tricky, which is when property managers are hired. They can take care of your property, professionally address issues, and handle complaints by your tenants without taking them personally. Sometimes, disputes between landlords and tenants can turn personal, which may not be good.

Disadvantages of Hiring a Property Manager

Though pros outweigh cons here, one thing to note is that property managers can either be prompt and handle everything professionally since they don't own the property. But at the same time, they can be negligible about specific issues as they don't own the property. Even though you set to hire the best of the best, this factor can be a disadvantage of hiring property managers for your business.

When to Hire a Property Manager?

If you're still unsure when to hire a property manager, here are four tell-tale signs of you needing someone who can take care of your property.

You don't have much time

Suppose you own a business and you find it hard to devote equal time to your property business or find yourself delaying responding to tenant complaints and requests. In that case, it's time you consider a property manager. Sometimes you may not know that you need someone to handle your property, but if these subtle signs can mean hiring one can save you time and have a good relationship with your tenants.

Finding tenants is difficult

Searching for tenants, screening them, and handling their complaints can be a task, and if you don't enjoy managing it, it's time to think about hiring one. Some property owners don't like handling everyday property tasks, and if you're one of them, you know what to do. Leave the heavy work to property managers and sit back and get updates about your property every day if that's what you prefer.

You own multiple properties

One of the most common reasons to hire property managers is when you cannot handle multiple properties at once. And by numerous properties, we mean owning more than seven or eight properties. It sure is a task managing everything when there is so much going on at each unit. You can hire a property manager or consult a property management company to assist you with it. In fact, if you're looking for one, you can consult our team at Assetsoft.

You stay far away from your property

Whether you're staying in a different city or a different country and are away from your property, hiring property managers will ensure your properties are well-maintained, and your tenants are happy too. Having properties away from your home becomes challenging to manage and maintain when tenants raise complaints about the properties. And that's when you can hire a property manager.

Let Assetsoft Help You Decide If You Need a Property Manager or Not

Now that you got an idea, if you're still unsure and want to talk to experienced professionals about it, Assetsoft can help you. We provide property management services and products for your property business to make your life easier. We'll assess your portfolio and tell you what can be done best. Or, if you're looking for property management software for your business, we can help you with that too.

If you want to know more about it, you can get on a consultation call with us, and our team would be glad to assist you with your queries.

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Contactless Rentals: The Future of Property Management

Thu, 09 Sep 2021 08:00:00 -0500

Technology has become inevitable to keep up with the pandemic norms for the real estate industry. However, contactless technology serves more purpose than just minimizing physical contact. Property managers discovered that contactless technology was more convenient as opposed to traditional property management.

Apart from the social distancing, it also saved time and money. Simply put, contactless technology showed us a better way to do things in real estate. As the upcoming generation becomes more tech-savvy, remote real estate technology is here to stay. Read on to know more about the upcoming trends and be ready for the contactless future of real estate.

Contactless solutions through property management software

Technology has revolutionized property management through cloud software tools. Tasks that require you to spend hours in the office can be done online in a jiffy. Real estate software comes with a multitude of features that can facilitate contactless property management. Optimal use of such software can not only improve the experience for tenants but also make property management more convenient.

Contactless property showings

Showing rental properties is a time-consuming process for both property managers and renters. Coordinating schedules is not always possible and nearly 25% of prospects are forced to take time off work.

However, using advancing technology, you can host property tours either completely online or through the help of virtual assistants. Both these options provide flexibility for prospects to view properties at their convenience.

Virtual tours

Virtual tours let prospects view the property from the comfort of their own homes. Through pictures, snippets, videos, and even VR headsets, prospects can see the property without visiting it physically. Apart from social distancing, virtual tours are shown to increase sales. According to DigitalInTheRound, young adults are 130% more likely to book the property if it offers a virtual tour.

Virtual tours can be held with or without a guide. You can use a set number of pictures and videos that the prospects can browse at any time. 3D mapping of the property can also be displayed on your website, which provides a more thorough viewing. Or, prospects can also view the property through a video call for a guided tour.

Self-guided tours

Self-guided tours, on the other hand, require the prospect to visit the site. As a property manager, self-guided tours save you a lot of time. Prospects also prefer agentless tours for a number of reasons. A survey by RentCafe showed that 63% of prospects chose self-guided tours as it let them tour at their own pace.

AI chatbots enable prospects to schedule agentless tours by submitting a few details. A temporary verification code along with some documents makes the access secure. Combine these with keyless entry and an AI assistant, and you can make it an immersive experience for the prospects.

Tools like Yardi RENTCafé Self-Guided Tours make the tours more convenient. Features like tour scheduling and prospect verification can help you retain more leads even when your staff is busy.

Keyless entry

The risk of contact when handing over keys to tenants or property managers is eliminated with keyless technology. Alternate options such as digital code, fingerprint scanning, and facial recognition serve equally well. In fact, 52% of millennials prefer alternate entry methods to access their properties.

But, keyless entry is more than just for the beginning of the tenancy. For tenants sharing their apartments with multiple people, keyless entry options can be easier to replicate and regulate. Sharing copies of QR codes is certainly better than making physical copies of keys. A survey by Allegion U.S. reveals that 58% of millennials have shared access codes with family or even friends.

As a property manager, it is also easier for you to track the number of duplicate access codes. The security concern of not turning in a key at the end of the tenancy is practically eliminated. Instead, you can simply change the access codes for the properties and provide fresh codes to new tenants.

Keyless entries can also save time on maintenance. After tenants’ approval, technicians can be provided with limited-time access to the property through access codes. These can be revoked once the assigned task is completed.

Electronic payments

Enabling online payments is one of the best ways to complete the contactless experience. Through options like internet banking, credit cards, and e-wallets, you can eliminate payments through cash and checks. Though traditionally preferred, cash and check payments have their own downsides. Personal details printed on checks can easily fall into the wrong hands. They can also go missing or reach the wrong address.

Online payments make the whole process hassle-free and convenient. Tenants can instantly pay rents and other fees through a few taps on their smartphones. By combining it with property management software, you can also let them set up recurring payments and send them timely reminders. You can also verify every transaction as digital payments are easier to keep track of.

Remote lease renewal

Lease renewals are one of the recurring tasks in property management. Through the online transfer of documents and e-signatures, tenants can renew their lease from wherever they are. No more waiting for physical copies of signed lease documents.

Tools like MRI Secure Sign enable you to sign documents digitally. It lets you manage documents within the software without any printing or scanning. Tenants can remotely sign leases using their mouse or through a smartphone.

Contactless rentals are the new norm

The real estate industry quickly adopted contactless technology during the pandemic. As more people realize its benefits, contactless technology has become the new standard of property management. If you are looking to adopt this new technology, then Assetsoft is the right partner for you.

At Assetsoft, we help clients leverage the latest property management technology according to their requirements. By integrating platforms like Yardi, MRI, and Procore, we create a single platform with all the required features. Our team of experts guides you with the right tech strategy so you can make optimal use of the resources around you.

Contact Assetsoft for a seamless property management experience!

10 Benefits of Using Tenant Portals

Thu, 02 Sep 2021 08:00:00 -0500

Keeping your tenant happy is an unending task, but it's the most important step in your real estate business to succeed. While there are many ways to achieve tenant satisfaction, implementing a tenant portal is something you don’t want to miss out on.

Automating and digitizing some of the traditional processes can save a lot of time and improve efficiency too. It reduces paper use and tenants' dependency on property managers as it's a self-service portal.

If you're spending more time replying to multiple emails and responding to calls every day, getting property management software can reduce your time and streamline your workflow.

Go paperless and cashless as tenants upload documents on a cloud platform and make online payments. If you’re wondering how beneficial is to use a tenant portal, we’ve listed some of them for you here.

What is tenant portal?

Tenant portals are online platforms for tenants to communicate with landlords or property managers easily. It's a self-service portal where all the information about the property, payments, and maintenance requests can be stored using a single platform. Tenant portals reduce time and provide easy access to all the resources regarding the services.

It also helps property managers manage tenant requests and service orders better with zero hassle. Payments can be made using this portal instead of in-person payments every month. All the tenant's documents can be stored, making it convenient for tenants and property managers. 

Advantages of using tenant portal

Tenant portals reduce the manual time it takes to process documents and make payments. Here are some of the benefits of using tenant portals:

1. Access on the go

One of the biggest advantages is that tenants can access the portal anytime, anywhere. If your tenant has to pre-book a hall, it can be done using the tenant portal, looking at the availability. Booking is easier as there is no middle man to handle the process. It's cost-effective, and you can cut down on the resources without compromising the service to your tenants. It helps them place maintenance orders and pay rents on the go without you chasing them every month. Accessibility is what makes tenant portals the best for both property managers and residents. 

2. Attract potential residents

Tenants often find it hard to reach out to property managers or receive delayed responses. When you show your potential residents about tenant portals, it lets them know that they can rely on them for any problems. Since it can be used to report issues or know better about the properties, it builds a sense of trust and draws them to rent your property. On the one hand, the tenant portal helps retain tenants; on the other hand, it helps attract potential residents. Providing a full-functional service can go a long way to succeed in your property business. Tenant portals resolve many issues and offer a hassle-free service to your tenants. 

3. Build trust

You no longer have to be available all the time, answering multiple calls and replying to emails when you have a tenant portal. Any queries by the tenants can be easily resolved on the portal within seconds, and you can also use automated messages to help them in case of any issues at any time. These instant responses can build a sense of credibility and get positive responses to your building management. Tenants need to be sure that you will be available at all times, and with tenant portals, it couldn't be easier. 

4. Land long-term tenants

Tenants stay in your property as long as you provide all the facilities and respond to their queries promptly. If you want your tenants to continue using your property, having a tenant portal is the best choice. Management becomes easy with it, and you will also have satisfied tenants who don't vacate soon. Finding long-term tenants can be a huge task, but you can provide the best services to them and make sure all their queries are resolved on time with tenant portals. 

5. Improve efficiency

With tenant portals, the overall process of dealing with issues will no longer be inefficient. You can include resources, guides, FAQs, and payment methods on the portal. It makes it easy for the tenants to look up general information and know the status of their orders and their payments. It improves the overall efficiency as tenants don't have to contact you every time they have a question. They can upload their details to the portal for easy access and save time than having printed documents. 

6. Organize events

You can announce upcoming events through notifications and also update about new instalments in your property using the portal. Community building becomes easier with it, and tenants will also feel like a part of the society. Digital channels in property management and community building a lot simpler. 

7. Quick communication

You can respond to tenant queries and complaints instantly without delay with tenant portals. It eliminates tenant frustration and, in turn, increases tenant satisfaction. If there are any new updates or new installations on your property, you can inform the tenants through the dashboard instantly. If you're planning to organize an event or meet up with the tenants, communicate easily through the portal. Instant communication is one of the many advantages of tenant portals. 

8. One-click payments

You no longer have to worry about in-hand payments or remind your tenants of rent payments. With multiple online payment methods in the portal, payments can be made on the go at any time. Around 80% prefer digital payment so, with the tenant portal, you can make the whole payment process smooth and convenient for the tenant.

9. Easy reservations

Making reservations for party halls or other amenities provided will be trouble-free with the portal. Bookings can be automated, and you need not worry about keeping a manual record of them. Slot bookings can be a cumbersome process manually, but with technology, the entire process is automated, making it easier for both you and the tenants. Tenants will not be entirely dependent on property managers for every step with such software. 

10. Time-saving

On the whole, tenant portals save tremendous time by speeding up rent collection and service requests. Online payments, slot booking, community building can all be made in one single dashboard using a mobile phone. Due to its convenience, they will likely recommend your property to others and may also turn into long-term clients. This self-service method can improve your business and also make your tenants happy. Processing payments will no longer take hours or days with tenant portals. You can also make announcements and respond to requests easily.

Ensure overall tenant satisfaction with Assetsoft

Handling tenants and managing properties is not an easy feat, but with the help of software, it can reduce your time and keep your tenants satisfied. Assetsoft can help you implement or customize your tenant portals. We help you choose the right property management software for your property business, whether it’s Yardi or MRI.

Want a tenant portal for your business? Reach out to Assetsoft today!

The True Cost Of Eviction And How To Avoid It

Thu, 26 Aug 2021 11:30:00 -0500

The most important aspect of maintaining a successful property rental business is having top-quality tenants who abide by the rules and pay rent on time.

Bad tenants lead to a loss of income in the future in terms of back rent. To protect your property and income from problematic tenants, an eviction may be necessary. However, it is a time-consuming and costly process and can be taxing for both you and the surrounding tenants.

Even back in 2015, eviction rates were high in the United States due to the rising cost of rent payments. Landlords were faced with high eviction costs while losing out on revenue as tenants were not able to make the monthly payments. Now with the effects of Covid-19, property managers are further burdened by rising evictions. During the pandemic alone, over 470,000 evictions were filed across 6 states tracked in the US.

Each eviction can cost up to $3,000 for the landlord, making it a costly ordeal. When possible, finding alternative solutions would be the better choice.

Knowing when to evict a tenant

You may be tempted to evict a problematic tenant when the situation gets out of hand, but to avoid any legal trouble, you need to be aware of when a quit notice can be presented to the tenant.

Before renting out any properties, you should make sure that the lease agreement includes all the important terms and conditions of renting a property. Any terms not mentioned on the lease can be fought in court by the tenant.

Here are some common situations where you can pursue the eviction of a tenant:

Recurring months of unpaid rent
Lease violations

Damage to the property by the tenant

The process of evicting a tenant

Due to the lengthy and uncertain process of eviction, many landlords prefer to avoid eviction and try to sort out the problem themselves. A certain amount of time needs to be given to the tenant to resolve the issue. This will differ depending on where you live. However, if the problem still persists, here’s what you need to do:

A complaint should be filed with the local court detailing the issue
A court date will be sent to you, and a summons will be sent to the tenant
On the court day, both sides will be presented to the judge by you and the tenant

If you win, the judge will issue a Warrant of Eviction, forcing the tenant to leave. If required, an officer will be present at the property to evict the tenant. Depending on your lease terms and local laws, the tenant may be liable to all proceeding fees:

Court filing fees
Back rent
Attorney fees

Damages to the property

However, if the tenant wins, they can continue staying at the property and the landlord will be liable for the court filing and attorney fees.

A breakdown of the eviction costs

The cost of eviction may be higher than what you factored in. There are additional costs such as maintenance and back rent involved as well. These rates will differ based on where the property is located. Here is the full breakdown of the true eviction cost:

Back rent - The eviction process can take up to two months to complete. You will lose this income during this period. On average, this can cost upwards of $1500.

Court filing costs - This rate will depend on the location, but the average in the US is $90.

Sheriff’s office charges - To serve a notice of eviction to the tenant, the sheriff’s office will charge a fee, typically ranging from $50 - $300.

Legal fees - The eviction process is complicated and requires a lot of paperwork. Hiring an attorney to handle this and also make sure it is all legal is important. Depending on the attorney, this can cost anywhere between $500 - $900.

Maintenance fees - Once the tenant has been evicted, the property will need to be cleaned for the next tenant. Personal possessions may need to be kept in storage or disposed of properly. This on average will cost around $300.

Property damages - Any damage caused by the tenant will need to be repaired and you may even need to hire a locksmith for security. This cost will depend on the level of damage caused but can range between $400 - $1500.

Marketing fees - There will be additional costs to list the property back for rent. This can cost up to $150 in total.

All of these costs add up to be an expensive endeavor for the landlord and this is not considering the non-financial costs involved such as lost time and the stress of a legal case. Preventing problems before it leads to eviction is the most ideal situation.

How to avoid evictions

The eviction process may look simple on paper but it can be a stressful ordeal. Therefore, evictions should be a landlord’s last resort. Instead, the focus should be placed on finding high-quality tenants and preventing problems before they arise.

These are alternative methods to prevent evictions:

Offer a cash-for-keys deal - This method involves the landlord offering a few hundred dollars of cash to the tenant to move out. It acts as an incentive for tenants with cash flow problems. Paying the tenant this cash will be less costly than eviction.

Screen your tenants - The easiest solution is prevention before it becomes a problem. The best way to do this is by screening and analyzing each tenant before allowing them to rent the property. High-quality clients are much less likely to force an eviction in the future.

Screening tenants also include a small cost, but it is only a fraction of the total cost of an eviction. You don’t even have to do it yourself. You can use Yardi or MRI software to automate the screening process. This will reduce the overall time and cost spent on screening tenants.

Assetsoft is an experienced property management service provider that can help you avoid all bad tenant-related expenses by incorporating this software into your property today.

How Are Condotels The Next Big Idea For Real Estate?

Thu, 04 Mar 2021 09:00:00 -0500

As the pandemic settles, and the vaccine promises considerable recovery opportunities, spotting opportunity becomes critical. Knowing how to “ride the wave” can make a world of difference in how real estate companies grow during this period.

Condotels seem to be one of those opportunities. Many experts have agreed that they're the "next big thing" for property investment. Why would they say that? You'd be surprised by the advantages this relatively new concept brings.

What does the concept mean?

As NBC News reports, condotels let investors buy a property, unlike timeshares. This purchase can be a hotel room, studio apartment, or even a villa.

In other words, people can buy space in a hotel or vacation resort. It also allows them to own the space, accessing the property’s amenities, and rent their investment when they’re not using it.

Condotels in practice

Buying a condotel means acquiring property, and owners can use it as their main residency. The main obstacle mentioned by the article is that there could be restrictions on how long you can stay there.

Owners can use all the hotel’s amenities, being partly responsible for these areas’ maintenance, thus paying upkeep fees. They can also list their property for rent within the hotel or condo, creating an additional income stream.

Investors must also pay property managers a fee from their rental revenue for booking, housekeeping, and similar services. In layman’s terms, you get to buy a hotel room and rent it with the others.

Short-term rental popularity and condotels

Short-term rentals have become increasingly popular over the years. Forbes details how more people prefer to give up the luxury of traditional resorts for the affordability and convenience of vacation rentals.

Condotels offer an excellent option for investors looking to profit from this trend. It allows them to operate short-term rentals while curbing many of the obstacles brought by government regulations and bans on short-term rentals.

How does the investment work?

According to the article, investors have three options. They can buy a property as a vacation home. Renting the entire property when you're not there, or subleasing an unused area, offers a flexible investment. It's also possible to dedicate it solely to short-term rentals.

Why are they so promising?

Right now, condotels are free from problematic laws related to short-term rentals in residential properties. Renting these spaces is the same as booking hotel rooms while providing all the benefits from short-term rentals.

The role of short-term rental demand in condotels’ expectations

Airbnb and similar solutions have driven considerable demand for short-term rentals. Consumers seem to start a migration from traditional hotels to short-term rentals. Even amid COVID-19, short-term rentals have remained popular thanks to their safety and privacy against hotels prone to crowding.

Important considerations when investing in condotels

Condotels are a considerable investment. They can yield prominent returns thanks to growing demand, but it's not a decision you should make wisely. For a start, you need proper budgeting and forecasting before buying this type of property.

Just like any other investment, condotels offer advantages and disadvantages. For many investors, the pros outweigh the cons. That doesn’t mean you should overlook the risks brought by these assets.

What's good about them

Flexibility

Condotels offer many possibilities. Owners can use them as an office, vacation home, or dedicate them entirely to rentals. Constructing condotels is usually cheaper than traditional hotels as well.

Demand

Condotels, and short-term rentals in general, are increasingly more popular than traditional hotels with time. As we discussed, they’ve fared considerably well within the hospitality sector, even during the pandemic.

Amenities

Condotels allow homeowners and tenants to access luxurious amenities. Installations often include pools, housekeeping services, and gyms. However, it’s more affordable than a resort.

Security

Usually, condotels still receive maintenance from major hotel brands and property managers. That makes them benefit from excellent security measures, especially with the growing demand for this sector.

What's bad about them?

Ownership

Ownership is often a partnership with the building’s owner. Many experts see condotels as part-ownership with added privileges. Some condotels even require owners to notify and book their stays in advance.

Maintenance

Condotels are considerably more expensive than an apartment. That’s because of the mentioned amenities: pools, gyms, and more. Condotel owners are responsible for their maintenance and must pay additional fees for their upkeep.

Regulation

Finally, condotels are quite complicated when compared to homes and hotels. While that’s often seen as an advantage, it also makes the purchase and rental process significantly more complex.

What does this mean for high-rise development?

We also need to consider one of the most prominent developments in the real estate sector. High-rise properties have consistently gained popularity. Demand for these versatile and attractive properties keeps growing.

Thankfully, high-rise development is still a growing market. McKinsey & Company offers amazing insight into the sector’s promises. Interestingly, high-rise properties could even benefit from the growing condotel trend.

The sector is evolving considerably

The article focuses heavily on how the sector is expected to change by 2030. Prefabricated development and modular construction are two promising trends, according to experts. Additionally, general pollution restrictions are part of the expectations.

Nevertheless, the most prominent change will be the properties’ aim. Traditionally, high-rises aimed for specific functions, like apartments and offices. Dedicating different sections to different markets is becoming more common. Therefore, it’s expected for high-rises to contain residential, office, retail, and even service spaces.

Therefore, property management might also become significantly more complicated. Integrating the latest real estate software will be vital to ensure high-rises are as profitable as possible.

What do condotels mean for high-rise development?

High-rise properties can become prime opportunities for investments in condotels. They often offer attractive amenities, like great views, retail space availability, and more. As high-rises become more popular, they’ll likely offer excellent short-term rental chances.

High-rise buildings provide more comfort than traditional resorts. You can access shops, grocery stores, gyms, and other services without leaving the building. Therefore, they make excellent condotel options, particularly because of how convenient they are.