Thinking about a Miami Beach place you can enjoy part of the year and rent out when you are away? Condo-hotels can be a smart way to blend lifestyle and income, but the rules and numbers work differently than a typical condo. You want clarity before you write a big check. In this guide, you will learn how condo-hotels work, what to expect from rental programs, how financing differs, and what to check in Miami Beach. Let’s dive in.
What a condo-hotel is
A condo-hotel is a building that operates as a hotel while selling individual units to private owners. You hold fee simple title to your unit and belong to the condo association, but your unit may be eligible for the hotel’s rental program when you are not using it. Some projects are fully integrated into an operator’s rental pool, while others include private residences that do not participate.
In Florida, condominiums are governed by the Florida Condominium Act. Your rights and the hotel operator’s duties are defined in the condo declaration, bylaws, hotel management agreement, and rental program agreement. For the legal framework behind condominium ownership, see the Florida Condominium Act in Chapter 718 of the Florida Statutes.
Ownership, rights, and key documents
Your daily experience and returns come down to what the documents say. Focus on:
- Owner-use rules: blackout dates, priority booking, and how far in advance you can reserve your unit.
- Rental participation: whether you can opt in or out, and how to leave the program.
- Income assignment: how revenue is shared and when you are paid.
- House rules: guest conduct, housekeeping standards, and fees.
Ask the seller or developer for the rental program contract, sample owner statements, historical income for similar units, the association budget and reserve study, and recent board meeting minutes. These items help you see true carrying costs and any upcoming assessments.
How rental programs work
When you place your unit in the rental program, the hotel typically handles reservations, check-in, housekeeping, linen, and marketing. Gross revenue is collected, taxes and fees are deducted, the operator takes a commission, and the remaining net is shared with you based on the agreement. Commission structures vary by project.
Expect higher association dues than a standard condo because you are supporting hotel-level staffing, amenities, and reserves. Performance ties closely to tourism, average daily rates, brand strength, and property location within Miami Beach. Ask for historical occupancy and rate data, but treat all forecasts as projections only.
Owner use and guest policies
Programs often set how often and when you can use the unit, plus how owner stays are cleaned and billed. There may be minimum or maximum owner-use periods and advance notice requirements. Guest behavior and privacy rules are set in house rules. Read these closely so your lifestyle expectations match the program.
Financing reality in Miami Beach
Many condo-hotels are considered non-warrantable by agency lenders. That means conventional loans backed by Fannie Mae or Freddie Mac are often not available. Buyers commonly use portfolio lenders and may need larger down payments and face higher rates. For background on project eligibility and agency rules, review the Fannie Mae Selling Guide.
Appraisals can be more complex because income potential may factor into value. Start lender conversations early, and work with a team who has condo-hotel lending contacts. If you want to explore options in today’s market, you can Book a Consultation to talk through next steps.
Local rules, taxes, and insurance
Short-term rentals in Miami Beach operate under stricter land-use rules than many nearby cities. Building classification and zoning determine whether nightly rentals are allowed and how they must be licensed. Always confirm current rules directly with the City of Miami Beach.
Transient rental taxes apply to short stays. Florida charges state sales tax, and Miami-Dade County and the City of Miami Beach add local tourist development taxes. Operators often collect and remit, but your agreement should spell out who is responsible. You can review tax guidance from the Florida Department of Revenue.
Insurance is a major cost factor on the beach. Flood risk and windstorm exposure affect premiums and deductibles. Check FEMA flood maps for the property and review the association’s master policy for wind and flood coverage, limits, and deductibles. Start with the FEMA Flood Map Service Center and then compare quotes. For a deeper local overview, see our guide to flood and hurricane insurance resources.
Pros and cons at a glance
Potential advantages
- Professional hospitality services, branding, and marketing you cannot easily replicate.
- Option to earn short-term rental income when you are away.
- Hotel-level amenities and housekeeping convenience.
Potential drawbacks
- Higher HOA assessments to fund staffing and services.
- Less control over pricing, presentation, and guest screening when enrolled in the hotel program.
- Financing limitations and larger down payment needs that can affect resale liquidity.
- Income variability based on seasonality, events, and travel demand.
- Insurance and tax complexity that raises carrying costs.
Is a condo-hotel a fit for you
A condo-hotel can work well if you want a part-time Miami Beach base and are comfortable with tourism-driven income swings. It also suits buyers who value services like concierge and on-site dining more than hands-on control. You may want to look elsewhere if you require FHA or VA financing, need full control over pricing and guest selection, or prefer stable long-term leases.
Miami Beach due diligence checklist
Use this checklist to speed up your review and reduce surprises:
- Governing docs: condominium declaration, bylaws, house rules, hotel management agreement, and rental program agreement. Confirm opt-out and termination terms.
- Financials: sample owner statements, 12 to 36 months of P&L for comparable units, association budget, reserve study, and any special assessment notices.
- Insurance: association certificate of insurance and policy scope, including wind and flood coverage and deductibles. Verify any owner responsibility for interior coverage.
- Legal and developer status: litigation disclosures, developer control period rights, and any master lease arrangements.
- Taxes and licensing: property tax history, transient rental tax obligations, and project licensing status under Miami Beach code.
- Lending and valuation: speak with condo-hotel experienced lenders, confirm down payment and rate expectations, and request an appraisal that addresses income potential.
- Hazard checks: review FEMA flood maps and obtain quotes. Confirm wind coverage access and current pricing.
- Professional guidance: consult a Florida condominium attorney for contract review and a CPA for rental income reporting. For federal rental tax basics, see IRS Publication 527.
When you are ready to explore inventory, start with our curated Miami Beach condo listings and neighborhoods to see which buildings align with your goals.
Helpful resources
- Florida condo law overview: Florida Statutes Chapter 718
- Miami Beach zoning and short-term rental info: City of Miami Beach
- Flood risk maps: FEMA Flood Map Service Center
- Transient rental tax guidance: Florida Department of Revenue
- Agency lending background: Fannie Mae Selling Guide
- Federal rental income basics: IRS Publication 527
Ready to compare buildings, documents, and numbers side by side? Our team can walk you through income scenarios, HOA budgets, and lender options so you can make a clean decision. Connect with Scott Shuffield to get a focused game plan for your Miami Beach condo-hotel search.
FAQs
What is a Miami Beach condo-hotel and how is it different from a condo
- It is a condominium unit in a building that operates as a hotel, with optional enrollment in a hotel rental program that manages bookings, housekeeping, and guest services.
How do condo-hotel rental splits and fees typically work in Miami Beach
- The hotel collects gross revenue, deducts taxes and fees, takes a commission per the agreement, and the remaining net is shared with the owner; exact splits vary by project.
What financing challenges should Miami Beach condo-hotel buyers expect
- Many projects are non-warrantable, so buyers often use portfolio lenders with larger down payments and higher rates compared with standard condos.
What short-term rental rules apply to Miami Beach condo-hotel units
- Rules depend on zoning and building classification; check current requirements directly with the City of Miami Beach and confirm licensing status for the project.
What insurance should I review before buying a Miami Beach condo-hotel unit
- Review the association’s master policy for wind and flood, deductibles, and your interior coverage needs; also check FEMA flood maps and obtain quotes.
How are transient rental taxes handled for Miami Beach condo-hotel stays
- Florida and local tourist taxes apply to short stays; operators often collect and remit, but your contracts should define who is responsible and how reporting works.
