Rental Income at Hotel Condos in NJ Vacation Areas: the Appalachian Hotel, Minerals Resort, Black Creek Sanctuary or Grand Cascades Lodge at Crystal Springs
For many wanting to buy a vacation condo about 50 miles from New York City, Sussex County NJ hotel condos are popular. Golf courses, Mountain Creek Ski slopes, mountain lakes, and spas can be found right near the Appalachian Hotel, Minerals Resort, Black Creek Sanctuary or Grand Cascades Lodge at Crystal Springs. Over and over, I’m asked about rental income from these condos, so will focus on that.
(For non-rental income considerations, see Hotel Condos for Sale – Considering buying at the Appalachian Hotel, Minerals Resort, Black Creek Sanctuary or Grand Cascades Lodge at Crystal Springs?)
Owners can join the optional rental pools so that the condo can be rented to hotel guests. This can be a wonderful way to generate some income when you are not using your condo. Hotel-condo rental pool income will defray your costs for a vacation condo – not make you rich!
NJ Hotel Condos for Sale - Grand Cascades Lodge at Crystal Springs, just 50 miles from New York City
During a year with an extra-long Mountain Creek ski season and very hot summer, I documented 1 year where 1 of my Minerals Resort seller’s portion of rental-pool income fully covered his taxes, monthly maintenance fees and insurance. Period. No additional profit. He, however, had never used the condo himself, so it was available 365 days. Most owners will not cover those fixed costs for the year. And if there isn’t snow before New Year’s Eve or it is a very rainy summer, hotel bookings naturally will be lower across the board….
Are you (legitimately, openly) able to rent your hotel condo yourself without using the formal program in place? Perhaps not! You need to carefully review all Condo Association documents and also make certain you have appropriate insurance coverage.
If considering the rental pool offered by the condo hotel management, learn about:
House - Owner Split - Generally 50-50 but there often are other fees that diminish the net to owner. Also remember that all hotels adjust nightly rates based on season, length of stay, vacancies, group bookings, etc.
Actual Rental History – Say you plan to purchase a ski-in/ski-out Appalachian Hotel condo. You, family or friends will use it all winter, so it won’t be in the rental pool during high season. Take a really careful look at how much rental traffic you have other times, such as when the Mountain Creek water park is open. Insist on seeing the monthly statements.
“Owner use” – Think you’ll just shoot up to ski Mountain Creek the next time it snows and stay in your hotel condo? There will be a great likelihood that the hotel has already booked your condo for a paying hotel guest. You need to understand the rental-pool policies for owner bookings.
Fees when owners stay – Maid service is provided daily for paying hotel guests, which owners aren’t. An owner could opt to pay a “towel freshening fee” for clean linens or for daily maid service. To return your condo to rental-ready standards when you leave, a hotel will send in the cleaning staff and bill you accordingly.
Leaving items in your hotel condo – Some units may have a locked closet where the owner can permanently leave personal items, skis for example. Otherwise, just as with any hotel room, you need to take it with you when you depart.
So, is a rental income from hotel condo at the Appalachian Hotel, Minerals Resort, Black Creek Sanctuary or Grand Cascades Lodge at Crystal Springs going to pay for itself? Based on actual documentation I’ve seen to date, not by a long shot. What rentals can do is lower your costs to own a vacation condo that you use and enjoy.
Hotel-Condo Vacation Homes for Sale in Sussex County NJ - Ski resorts, Spas, Swimming and Golf Courses
Sold - Grand Cascades Lodge Unit 124, Crystal Springs Hotel Condo in Hamburg - Hardyston N
Minerals Resort Hotel and Spa - Vacation Ski Condos for Sale, Vernon NJ
SOLD - Short Sale - Minerals Resort Hotel and Spa - Vernon Vacation or Ski Condo - Income-Producing Sussex County NJ real estate for sale
Sussex County NJ Golf Real Estate - Crystal Springs & other Golf Course Communities
Copyright © 2011, Irene Kennedy, all rights reserved. This blog post represents Irene's personal musings.
Considering selling a home or looking to buy a house in Northwestern NJ? I serve the Route 78 corridor of Warren County & Hunterdon County. Benefit from creative marketing, top negotiating skills and vast real estate knowledge by calling or texting Irene’s cell at 973-493-8216.
Irene Kennedy, who is a NJ real estate agent with Weichert, Realtors, lives in Warren County NJ & works from the Phillipsburg office. She also services adjacent areas of Hunterdon and Sussex.
Yesterday my buyers closed on a beautiful one bedroom, fully-furnished suite in the Grand Cascades Lodge in Crystal Springs. For just $125,000, they now own a lovely vacation condo in a luxurious hotel in golf heaven and near Mountain Creek Ski slopes. It was a short sale and took far longer to close than any of us would have liked. In fact, I had been trying to get these buyers the right Grand Cascades Lodge condo at the right price for over 1 year!
As for my happy buyers, I'm hoping that today they are getting massages at the Reflections Spa within the Grand Cascades Lodge and enjoying their weekend vacation!
