The luxury and entertainment of Las Vegas attracts over 42 million people every year. Among the 42 million are guests drawn to the luxury, high-end living. Investors who buy high rises in Las Vegas understand how lucrative the market can be.
If you are a new investor in Las Vegas, you need to understand the difference between high-rise condos and condo-hotels.
The Difference Between Condo-Hotels and Residential Condos
The major difference between a condo-hotel and a residential condo is how long you can rent the unit out. For residential condos, most towers have a minimum amount of time you can rent them out. For most, you have to create six-month leases for every tenant.
With condo-hotels, you have a lot more flexibility. Rooms can be rented out nightly or by the month. It all depends on your current situation and the stipulations in place for your current high-rise.
The Role of Condo-Hotel Owners
As the owner of a condo-hotel, there are a couple of different ways you can make passive income off of your unit. The first way is to enroll in the hotel’s rental program. In this program, there is a queue of unit listings. Once it is your unit’s turn, the hotel rents it out, then it goes to the back of the queue again to resume the cycle.
When you are enrolled in this type of program, you do share the proceeds with the hotel. One benefit of this relationship is that your unit may be rented out more often and the hotel will take care of the maintenance and upkeep of the unit.
Another way to make an income off of your unit is to take more control. You advertise the room on Airbnb or any other rental service. The best advice is to rent at a discount from the hotel. Keep in mind Las Vegas law dictates you cannot rent a unit for less than a month. However, if you have a business license, you can rent weekly or nightly.
When you take control of the unit, you are responsible for cleaning and maintenance.
The Role of a Residential Condo Owner
Investing in a residential condo over a condo-hotel does have its perks. When you invest in a condo, you can receive an estimate of how you can make off of the building. You are allowed to see the estimates of potential cash flow. Hotels, on the other hand, cannot publish information about cash flow.
As the owner, you provide prospective tenants with a condo close to the best locations in Las Vegas. There are amenities in the high-rise that would not be available in other areas or with other properties. Additionally, owning a unit is low-maintenance. You do not have to maintain common areas because the owner of the high-rise does that for you. As a residential owner, you have breathtaking views and luxury to offer potential tenants.
When choosing to buy high rises in Las Vegas, your ultimate choice comes down to understanding the differences and knowing your own goals going forward. For investors searching for a new project or luxury real estate, Platinum Real Estate Professionals can provide you with invaluable service and information to help you achieve your goals.