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Rent Analysis for Condo-Hotel

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Abschatzer

Thread Starter
Sophomore Member
Joined
Mar 15, 2007
Professional Status
Certified Residential Appraiser
State
Florida
I'm getting varied opinions on this subject...and I'm not getting a straight answer. Does anyone know how to provide a rent analysis on a condo-hotel unit and if it's even appropriate to try and do so???
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I refer all condo-hotel requests to Certified General appraisers as neither FNMA or FLHLMC will purchase a mortgage secured by this product.

I'll have to use spell check more often.
 
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Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
it can be done and you need a CG/MAI in your back pocket.

the hard part is getting the market rents from the holtel company and the amount of income that there units produce and expenses.

The same can be said about the comprables, but it can be done and has been done. Not as easy as doing rents on buildings for US Post Offices.


This would also be a big buck appraisal, several thousand dollars for the time it will take you to gather the data and spred sheet it.
 
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Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Of course it's appropriate.

I'm getting varied opinions on this subject...and I'm not getting a straight answer. Does anyone know how to provide a rent analysis on a condo-hotel unit and if it's even appropriate to try and do so???
Appropriate to consider the income when valuing a hotel? I think that is an unequivocal YES! What would not be appropriate would be to present that rent analysis summarized as though it were a consistent, monthly rent like one finds on residential properties. Check with a local Certified General in your area that does hotel properties for help. I don't touch hotel properties myself, whether owned as condominium units or otherwise. After taking a class on the subject, I just decided it wasn't worth the effort. :new_smile-l:
 

Abschatzer

Thread Starter
Sophomore Member
Joined
Mar 15, 2007
Professional Status
Certified Residential Appraiser
State
Florida
Thanks. I should have mentioned if it's appropriate for a certified residential to perform this analysis. I wish my management was more straight forward with this issue. Fannie not excepting these loans has nothing to do with the issue. As Certified Residential, we are allowed to perform commercial appraisals up to $250,000, correct. How does this fall into this assignment?
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
Abschatzer said:
As Certified Residential, we are allowed to perform commercial appraisals up to $250,000, correct.

You are not correct!!

(i) "Certified residential appraiser" means a person who is certified by the department as qualified to issue appraisal reports for residential real property of one to four residential units, without regard to transaction value or complexity, or real property as may be authorized by federal regulation.

According to Florida Statute 475.611 Certified Residential Appraiser's may only issue reports for one to four family residential properties.

However, in regard to your issue in the original post, contact me with a phone number and I will try to assist you in resolving your problem.
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Thanks. I should have mentioned if it's appropriate for a certified residential to perform this analysis. I wish my management was more straight forward with this issue. Fannie not excepting these loans has nothing to do with the issue. As Certified Residential, we are allowed to perform commercial appraisals up to $250,000, correct. How does this fall into this assignment?
Assuming one has the competency, I believe that is correct even though the wording in the FL law is just a vague reference to federal regulations. IMHO, the proper place to seek training to cure the competency issue on doing the analysis would be a local Certified General. Hotels are outside the typical practice of most residential appraisers. When faced with appraising a condotel, too many focus on the "condo" part of the name instead of the "hotel" part of the name. They are no more residential than an "office condominium" or "warehouse condominium." If one needs to ask "how" or "if" to do something for an appraisal of anything, it is a fundamental expression of a hole in one's competency. Not a problem as long as the hole is appropriately disclosed and filled. :new_smile-l:
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
You are not correct!!



According to Florida Statute 475.611 Certified Residential Appraiser's may only issue reports for one to four family residential properties.

However, in regard to your issue in the original post, contact me with a phone number and I will try to assist you in resolving your problem.


How would appraising a single (one) unit that is classified as a Residential Condominium Unit conflict with that? Just because a Condominium Unit is located within a Commercial operated hotel does not make the condo unit a commercial property. We have many of them in my market. Most have a limited market value as they can only be owned as investment properties.

BTW, usually the corporation or partnership that operates the hotel has a complete breakdown on the earnings of each residential condominium unit. I would ask for their assistance in what you are trying to do. BTW, I have appraised many such units in more than one such hotel. There are other investors in loans besides Fannie Mae and Freddie Mac.
 

Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
Without getting into.

all the Cert General vs Cert Residential debate, there are firms in Fla.(Hospitality Valuations in Miami to be specific) that specialize in these complexes. We have 1 condo/hotel in NY that I am aware of and several years ago I was referred to the aforementioned firm who walked me through the rental analysis process. Are you appraising an individual unit or units within the complex? If you are not, most certainly get an Cert Gen and hunt down one of the firms that handle these properties regularly. I do not know Fla. classification of these units, but they are most certainly residential in NY and you can appraise them.
 
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