Thinking about buying in North Beach and torn between a condo-hotel and a traditional condo? The choice can shape how you live, what you can rent, how you finance, and even your taxes. You want beach living and solid value, not surprises after closing. In this guide, you’ll learn clear definitions, North Beach market context, rental and tax rules to check, financing realities, and a step-by-step due diligence checklist. Let’s dive in.
What each option means
Traditional condo
A condo is a private, deeded residential unit governed by Florida’s Condominium Act (Chapter 718, Florida Statutes). You own your unit and a share of the common elements through the association. You can live in the unit or lease it, subject to HOA rules. You also pay assessments and must follow the association’s covenants and regulations.
Condo-hotel
A condo-hotel is a condo unit within a building that operates as a hotel or partial hotel with central management, front desk, housekeeping, and guest services. You hold deeded title, but you often sign a management or rental agreement that gives the hotel operator control over short-term rentals and standards for guest use. Owner use windows, revenue splits, and house rules are defined by that agreement.
North Beach market context
North Beach has a broad mix of older and newer condo buildings as well as multifamily properties. Pure condo-hotel product is less common here than in South Beach or Mid-Beach, where luxury hotel residences appear more often. That is why it is essential to verify a building’s exact classification before you write an offer.
Lifestyle and revenue goals vary. If you want a quieter residential feel, a traditional condo may suit you. If you want frequent short-term rental income, a condo-hotel may fit, but you need to confirm zoning, HOA rules, and city licensing for the specific property.
Ownership and management: what to expect
Condo ownership basics
- Deeded ownership of your unit plus an undivided interest in common areas.
- Voting rights per the declaration and bylaws.
- Right to occupy and to lease subject to association rules, which may set minimum lease terms or the number of leases per year.
- Responsibility for regular assessments and special assessments.
Condo-hotel ownership basics
- Deeded title, typically within a mixed-use or hotel-influenced association.
- Centralized hotel management for transient rentals with a rental program that may be mandatory.
- Pre-set owner use windows and potential blackout dates.
- Revenue split, housekeeping fees, booking fees, and other operator charges spelled out in the agreement.
- Possible separate commercial and residential components that can affect budgets and votes.
Services and daily life
- Traditional condos can range from basic amenities to full-service living depending on the HOA. Costs flow through association dues.
- Condo-hotels often offer hotel-level services like 24/7 front desk, daily housekeeping, and on-site dining. Fees can include HOA dues, resort fees, and per-use charges from the operator.
- Expect more guest traffic, turnover, and hotel standards for furnishings and renovations in condo-hotels.
Rentals, taxes, and local rules
Leasing flexibility
- Traditional condos: Many associations allow leases but often require minimum terms, such as 30 days, 60 days, or 6 months, and may limit lease frequency. Some buildings prohibit short-term rentals entirely.
- Condo-hotels: Daily or weekly rentals are the norm and are managed through the hotel operator. Owner stays are usually limited by contract.
Taxes on short-term rentals
- Short-term stays are generally subject to Florida state sales tax plus any local discretionary surtaxes and tourist development taxes.
- In condo-hotels, the operator typically collects and remits taxes, but you should confirm what net income means on your statements.
- In traditional condos, if the HOA and city allow short-term rentals and you self-manage, you are usually responsible for collecting and remitting applicable taxes unless a manager does it for you.
Miami Beach licensing
- The City of Miami Beach regulates short-term rentals and requires registration or licensing in many cases. Some areas are restricted.
- For any North Beach unit, confirm whether it is classified as residential or as a hotel lodging use. The distinction affects your ability to rent short term and how taxes are handled.
Financing, insurance, and resale
Warrantability and loan options
- Many lenders label condo-hotels and hotel-like projects as non-warrantable. These projects often do not meet conventional guidelines.
- Conventional loans backed by Fannie Mae or Freddie Mac may not be available for condo-hotels. FHA and VA approvals are also limited for hotel-type projects.
- Expect larger down payments, higher rates, and fewer lender choices for condo-hotel units. Specialty portfolio lenders are common.
Appraisals and income
- Lenders and appraisers may treat transient rental income conservatively. They may rely on verified historical statements and discount projections.
Insurance and tax reporting
- Condo-hotel buildings blend commercial and residential risks. Verify what the master policy covers versus what you must insure for your unit, including liability and loss of rental income.
- Rental income from a hotel program is taxable. Speak with a CPA about reporting, depreciation, and how operator-collected taxes appear on your statements.
Resale implications
- The buyer pool for condo-hotel units can be smaller because of financing limits and hotel program rules.
- Resale values can be more sensitive to hotel performance, rental splits, and association health than traditional condos.
Due diligence checklist for North Beach buyers
Documents to request
- Full condominium declaration, bylaws, articles, house rules, and amendments.
- Current operating budget, reserve studies, and recent financial statements.
- Minutes from recent association meetings for clues on assessments, litigation, or rental policies.
- Any hotel or rental program agreements, including revenue splits, fees, and owner-use rules.
- Proof of City of Miami Beach compliance for short-term rental or hotel licensing.
- Master insurance policy summary and limits for the association.
- Owner occupancy and rental participation rates.
- If income matters: 12 to 36 months of rental statements and occupancy data for the unit and comparable units.
People to consult
- Florida real estate attorney with condo and hospitality experience.
- Lender experienced with Miami Beach condo and condo-hotel financing.
- CPA familiar with transient rental taxes and condo-hotel income reporting.
- Listing agent and on-site management for operational details and access rules.
- City of Miami Beach planning or licensing staff for final confirmation of use and registration requirements.
Red flags to watch
- HOA documents or city ordinances that restrict or prohibit your planned rentals.
- Long, restrictive hotel agreements with high fees and limited termination rights.
- High concentration of ownership, big budget gaps, or pending litigation.
- Non-warrantability issues that could limit future buyer financing and your resale options.
Which option fits your goals
- Choose a traditional condo if you prioritize owner use, potential long-term leases, and a more residential environment.
- Choose a condo-hotel if you want professional short-term rental management, robust guest services, and you accept stricter contracts and financing limits.
How to move forward in North Beach
Start by clarifying your priority: lifestyle, revenue, or a blend of both. Then verify three things for any North Beach listing before you make an offer: the unit’s legal classification and any hotel management agreement, the HOA’s rental and owner-use rules, and the City of Miami Beach and Miami-Dade tax and licensing obligations. A short call with a lender, attorney, and CPA can save you from costly surprises.
When you are ready to compare specific buildings or review documents, our team is here to help. Hablamos español and can coordinate lenders and legal resources who understand Miami Beach condo and condo-hotel structures.
Ready for tailored guidance on North Beach options? Connect with the Alex Miranda Group at ONE | Sotheby’s International Realty® for a private consultation and a plan that fits your goals.
FAQs
What is the difference between a North Beach condo-hotel and a traditional condo?
- A condo-hotel runs with hotel management, short-term rentals, and guest services under operator rules, while a traditional condo is a residential unit governed by HOA rules that may limit or prohibit short-term rentals.
Can I live full time in a North Beach condo-hotel?
- Often yes, but you must verify owner-use windows and blackout dates in the hotel or rental program agreement because some limit when and how long you can occupy.
How do Miami Beach short-term rental rules affect my unit?
- The city requires registration or licensing for short-term rentals and restricts some areas, so confirm whether your building is classified for hotel use or residential use and whether your unit is compliant.
Is financing harder for condo-hotel units in Miami Beach?
- Yes, many condo-hotel projects are non-warrantable, which reduces conventional loan options and may require a larger down payment, higher rates, and specialty lenders.
What taxes apply to short-term rental income in Miami-Dade?
- Short-term rentals are usually subject to Florida state sales tax plus county or local tourist development taxes, and you or the operator must collect and remit them depending on who manages rentals.
What documents should I review before offering on a North Beach unit?
- Review the condo declaration and rules, hotel or rental program agreements, budget and reserves, meeting minutes, licensing compliance, insurance summaries, and rental history if income is a key goal.
