Condo‑Hotel vs Condo In Fort Lauderdale

Thinking about a place you can enjoy by the beach and also rent when you are away? In Fort Lauderdale, your two main condo choices are a condo-hotel or a traditional condominium, and they work very differently. You want the right balance of lifestyle, control, and potential income without surprises. In this guide, you will learn how each option is owned, used, financed, taxed, and resold in Broward County so you can choose confidently. Let’s dive in.

Quick comparison

What is a condo-hotel?

A condo-hotel is a deeded condominium unit inside a building that operates as a hotel under the Florida Condominium Act (Chapter 718). You can use your unit for personal stays and often place it in the building’s short-term rental program. The hotel operator typically handles reservations, front desk, housekeeping, and marketing.

Many condo-hotels limit how often you can occupy the unit, require advance notice for owner visits, and set blackout dates. If you join the rental program, you follow the operator’s rules on décor standards, housekeeping, and guest policies. Expect more guest turnover and less privacy compared with a residential-only building.

Common hotel-style services include:

• 24/7 front desk and security
• Daily housekeeping and linen service
• Concierge and valet
• On-site food and beverage outlets, spa, pool, and fitness
• Centralized marketing and revenue management for rentals

What is a traditional condo?

A traditional condo is also a deeded unit governed by Chapter 718, but the building operates as a residence rather than a hotel. You typically have more control over how you use and furnish your space. Short-term rentals may be restricted by the association, and many buildings enforce minimum rental periods.

Amenities vary by building. You might see a doorman or concierge, fitness center, pool, and security, but daily housekeeping and a hotel front desk are uncommon. If you choose to rent, you or a third party usually handle marketing, cleaning, and guest services within the association’s rules.

Costs and income

When you compare these options in Fort Lauderdale, focus on total cost and net income, not just the nightly rates or the sticker price.

• Purchase price: A recognized hotel brand, prime views, and amenities can command premiums in condo-hotels. Traditional condos price more like residential properties based on comps, location, and features.
• HOA fees: Condo-hotel fees are typically higher because they help fund hotel operations, staffing, utilities aligned with transient use, marketing, and insurance. Traditional condo fees vary but are generally lower than hotel-operating buildings.
• Special assessments and reserves: Both can assess owners for capital projects. Condo-hotels may face large upgrades tied to hotel systems or brand standards. Review reserve studies and recent assessments.
• Rental income: In a condo-hotel rental program, you receive a share of rental revenue after deductions such as operator commission, housekeeping, marketing, and credit card fees. Splits and costs vary by project, so request historical P&Ls and a clear gross-to-net example before underwriting returns.
• Seasonality: Fort Lauderdale demand is strongest from late fall through spring. Off-season months often bring softer occupancy and rates, which affects annual income.

Taxes and compliance

• Income tax: Rental income is taxable at the federal level. Florida does not have a state personal income tax. Talk with a CPA about depreciation and passive activity rules.
• Sales and transient taxes: Short-term rentals generally require collection and remittance of Florida sales tax plus Broward County and local transient lodging taxes. Confirm current registration and rates with the Florida Department of Revenue and Broward County.
• Property tax and homestead: Broward County property tax rules apply. Homestead exemption is available only for a primary residence and is often not available for units primarily used for short-term rentals or where project rules restrict primary-residence status.

Financing and resale

• Condo-hotel financing: Many conventional mortgage programs, including FHA and VA, do not finance condo-hotels or impose additional requirements. Buyers often use cash, portfolio loans, or bridge financing. Lenders evaluate the project’s investor mix, delinquencies, and brand strength.
• Traditional condo financing: More likely to qualify for standard mortgages if the building meets lender approval. Work with lenders who understand Florida condo reviews.
• Resale: Condo-hotel units usually appeal to investors or buyers who want serviced second homes, which can narrow the buyer pool. Traditional condos often draw broader demand across primary, second-home, and investor profiles.

Fort Lauderdale specifics

Fort Lauderdale’s draw includes beaches, boating and marinas, Port Everglades, and convenient airports. These drivers support steady visitor demand, especially in winter and early spring. Seasonality matters when you underwrite short-term rental returns.

Short-term rental regulation exists at the city and county levels. You must verify current licensing, safety, and tax rules with the City of Fort Lauderdale, Broward County, and the Florida Department of Revenue. Remember, a condo association can be more restrictive than the city. Even if the municipality allows short-term rentals, your association may prohibit them.

Insurance and building standards differ by property type. Condo-hotels may require commercial-grade life safety systems and accessibility compliance. Confirm what the association covers, what your HO-6 policy must include, and who pays for any compliance upgrades.

Due diligence checklist

Request and scrutinize these items before you commit:

• Condominium declaration, bylaws, rules, amendments, and any hotel operation appendix
• Recent association budget, reserve study, special assessments, and capital plans
• Association meeting minutes for the last 12 to 24 months and any pending litigation
• For condo-hotels: rental management agreement, revenue split formula, sample owner statement, housekeeping and marketing fees, owner-use policy, blackout periods, term and termination conditions
• Historical occupancy, average daily rate, and owner payout history for the unit or comparable units
• A clear pro forma showing gross-to-net income with notes on all deductions
• Insurance requirements and certificates for the association and unit owner
• Any project-level financing or lender restrictions on the common elements
• Confirmation of local short-term rental permits and tax registrations required in Fort Lauderdale and Broward County

Who each option fits

Condo-hotel fits

• You want a turnkey, hands-off short-term rental program with hotel-level services.
• You value consistent service during your own stays and accept owner-use limits.
• You prefer centralized marketing, reservations, and housekeeping over self-management.

Risks to weigh: Higher HOA fees and operator commissions, dependence on the hotel brand and management, limited financing options, and a narrower resale market.

Traditional condo fits

• You want a primary residence or seasonal home with more privacy and control.
• You plan to rent longer term or only if your association allows it, with lower operational overhead.
• You prefer broader mortgage options and a larger resale buyer pool.

Risks to weigh: Association rules may restrict short-term rentals, and if you choose to self-manage, you take on marketing, compliance, and operations.

Smart next steps

1. Define your goal: primary use, seasonal use, or income focus, and how often you plan to occupy.
2. Shortlist buildings that match your use case and association rules.
3. Request the full condo and, if applicable, hotel management documents before you go under contract.
4. Obtain historical unit P&Ls or comparable financials and a clear gross-to-net breakdown.
5. Speak with a CPA about income, sales, and transient taxes and with lenders who know Florida condo and condo-hotel financing.
6. Verify Fort Lauderdale and Broward County licensing and registration requirements for short-term rentals.
7. Review association minutes, reserves, and any litigation with a Florida real estate attorney.

Ready to compare specific buildings and numbers side by side? Connect with Josh Adler to get a curated list of Fort Lauderdale condo-hotel and traditional condo options, plus the documents and analysis you need to decide with confidence.

FAQs

What are owner-use limits in Fort Lauderdale condo-hotels?

• Many condo-hotels cap how many days you can occupy the unit, set blackout periods, and require advance notice, all defined in the rental management agreement and condo documents.

How do HOA fees compare between condo-hotels and condos?

• Condo-hotel fees are typically higher because they help pay for hotel staffing, operations, marketing, and insurance, while traditional condo fees reflect residential amenities and are often lower.

Can I do short-term rentals in a traditional Fort Lauderdale condo?

• It depends on the association’s rules, which may set minimum rental periods or prohibit short-term stays even if the city allows them.

How are rental earnings split in condo-hotel programs?

• Owners receive a share of rental revenue after deductions like operator commissions, housekeeping, marketing, and processing fees; exact splits vary by project and are detailed in the management agreement.

What financing is available for condo-hotels in Broward County?

• Many standard mortgages, including FHA and VA, do not finance condo-hotels; buyers often use cash or portfolio loans, while traditional condos more commonly qualify for conventional loans.

Can I claim a homestead exemption on a short-term rental unit?

• Homestead exemption in Broward County is for primary residences and is often not available for units primarily operated as short-term rentals or where project rules limit primary-residence use.