The four-part Helium Report Guide to Condo Hotels concludes with some key questions for consumers to ask before purchasing. With the basics of condo hotels explained, analyst Calvin Chin distills the final questions. See the first three parts to the guide if you’re not caught up:

• Part 1: Condo Hotels Explained
• Part 2: Financial Analysis
• Part 3: Brands and Projects

What to Ask – Condo Hotel Development Details

1. Who is the developer? What other condo hotel developments has the developer built?
2. Who is the management company? What other condo hotel developments does this company manage?
3. What is the term of the hotel management contract?
4. What is the state of the local hotel industry (capacity, occupancy, new developments, etc…)?
5. What are the planned uses for this development (condo hotel, hotel, residential, retail, commercial)?
6. How many condo units will be included in this development?
7. What is the range in floor plans and sizes of the condo units in this development?
8. Are photos or other examples available of the planned interior decorations?
9. What is the current or planned rating (number of stars) for the hotel?
10. Has the price of the hotel condo units changed during the pre-construction sale period? If so, how often and by how much?
11. What is the payment schedule for pre-construction units? When are deposits due?
12. When are deposits non-refundable?
13. Does this development carry the National Association of Condo Hotel Owners (NACHO) Seal of Approval?

What to Ask – Condo Unit & Rental Program Details

1. What are the positive/negative factors for your unit which may affect occupancy and/or rental rate (view, floor, size, location, etc…)?
2. What are the monthly maintenance costs associated with my unit?
3. What is the allowable annual increase in maintenance costs?
4. Will there be any on-site storage available to owners?
5. Are there requirements for minimum amounts of insurance?
6. Are there living restrictions that limit the amount of time per year I can stay in my unit? Are these municipal regulations or hotel management dictated?
7. If I stay beyond my allotted time, does the hotel offer a discounted hotel rate to owners?
8. How much notice do I need to provide to guarantee availability of my unit?
9. Are there any blackout dates during which owners may not stay in their units?
10. What is the procedure and costs associated with opting into or out of the rental program?
11. Are there fees such as departure fees, maid service fees, etc… that accrue when I stay in my unit?
12. Which amenities will I have access to during my owner stays? Are there any additional fees for usage?
13. Does the hotel close, limit amenities or otherwise change policies during any seasonal off-season or peak season?
14. What are the franchise fees associated with participation in the rental program?
15. What is the split of rental income between the management and the owner?
16. Is there a reserve from my rental income to cover the costs of capital improvements such as replacing or upgrading furnishings?
17. Are capital expenditures such as upgrading and replacing furnishings shared by management and owner?
18. What hotel operating fees such as marketing costs, travel agent commissions, credit card commissions, etc… are shared by the management and owner?
19. How often is rent distributed to owners?
20. How are room reservations rotated in the rental program?

With these due diligence questions at hand, reference the Helium Report directory of condo hotels and decide which ones suit your preferences.