If you’ve ever wanted to live out your Eloise at The Plaza fantasies by living at a hotel, this King Street West condo that just hit the market for less than $350,000 may pique your interest.
The unit — a studio on the eighth floor of One King West Hotel & Residence — offers the chance to live in a hotel, but the rules that come with living in a condo hotel mean that it will only be a fit for a certain type of buyer.
Being a condo hotel, the building operates as a hotel but all of the suites are privately owned.
“Buyers should keep in mind the internal policies of this development that differ greatly to traditional condo ownership,” Zoocasa agent David Acquino told Daily Hive.
Typically, owners of these units place their condos into a “rental pool” of units in the building which are then treated like hotel rooms and the profits are split amongst the unit owners. Owners do, however, have the option to remove their units from the pool to use to condo for personal use, but only for up to 180 days each year.
“Meaning personal use of the property is limited to approximately 6 months,” Acquino said.
The unit that’s for sale is listed for $349,000. It’s a cozy studio and has a bathroom and small kitchenette with a sink, mini fridge, and microwave, meaning this would not be a great fit for an avid home cook.
The condo’s monthly maintenance fees do, however, include all utilities, cable, and high speed internet.
The building itself is outfitted with great amenities, including a lounge, bar, pool, and health club.
Owners who choose to put their units into the hotel rental program would also be charged a housekeeping turnover fee between stays, which covers the costs of cleaning and replenishing guest supplies. There would also be a $9-12 per night FF & E Reserve Fund Allocation fee, which “ensures the refurbishment of rental suites.”
Acquino says that this property would be best suited for “a passive investor without the time or willingness to actively lease and collect rents on the unit” or “an individual periodically in Toronto and in need of accommodations.”
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Acquino notes that buyers of condo hotel units will need to be prepared to pay a larger down payment.
“Lenders for these units typically require minimum down payment of 35-45% with all units taxed at a commercial rate, rather than residential,” he said.
With all things considered, this would make a great investment property for anyone with extra cash to spend.