Trying to choose between a condo, a condo-hotel, or a co-op in Fort Lauderdale? The right decision shapes how you live, what you can rent, how you finance, and what you pay over time. If you are buying your first place, investing along the beach, or relocating for a seasonal lifestyle, you want a clear, local breakdown. In this guide, you’ll learn how each ownership type works under Florida law, what to expect with rentals and governance, the financing and insurance differences, and a practical checklist to move forward with confidence. Let’s dive in.
What you own with each option
Condominium (condo)
You own your individual unit in fee simple plus a shared interest in common areas like the pool, parking, and building exterior. An owners’ association, elected by residents, manages budgets, reserves, rules, and maintenance. Condos in Florida follow the Florida Condominium Act (Chapter 718 of the Florida Statutes), which sets disclosure, meeting, election, and reserve standards. In Fort Lauderdale, condos are the most common option across the beach and downtown high-rises.
Condo-hotel (condotel)
You still own a condo unit in fee simple, but the building operates with hotel services and a centralized rental program. A hotel management company typically handles bookings, housekeeping, and front desk services. You may face owner-use limits, revenue splits, and higher fees tied to the hospitality operation. While condo-hotels fall under the same condominium statute, they carry added contractual rules through a hotel management agreement.
Cooperative (co-op)
You purchase shares in a corporation that owns the building, and you receive a proprietary lease to occupy a specific unit. A cooperative board controls approvals and building operations. Florida co-ops are governed by Chapter 719 of the Florida Statutes, which outlines transfer processes and board powers. Although less common than condos in Broward County, co-ops do exist and may come with stricter policies.
Governance and rules that shape daily life
Association documents to review
The real power sits in the documents. Plan to request and read:
- Declaration, articles, bylaws, and rules and regulations
- Current budget, recent financials, and reserve study
- Master insurance summary and deductibles
- Board meeting minutes for the last 12 to 24 months
- Any hotel management or rental program agreements
- Litigation disclosures and pending claims
Florida’s condo statute sets timelines for estoppel letters and association disclosures, which can affect your closing schedule. Build that into your contract deadlines.
Rental and occupancy differences
- Condos: Associations often set minimum lease terms, rental caps, and registration procedures. Short-term rentals may be limited or prohibited by building rules.
- Condo-hotels: A central rental program is common, with owner-use limits and a defined revenue split. Expect added fees for hotel services and program participation.
- Co-ops: Boards commonly require approval for resales and subleases. Subletting can be limited or prohibited, and short-term rentals are typically not allowed.
Local short-term rental rules
Even if a building permits rentals, Fort Lauderdale and Broward County require compliance with local licensing, registration, and tourist tax rules. City and county standards can restrict where short-term rentals are allowed and set safety requirements. Always verify city and county requirements before you bank on nightly or weekly rental income.
Financing: what lenders look for in Broward
Condos
Conventional mortgages are widely available if the project meets lender criteria. Lenders assess the association’s financial health, reserves, owner-occupancy ratio, delinquency on dues, commercial space percentage, and litigation history. FHA and VA loans may be possible if the condo project is approved by the agency. Investor or second-home loans usually require higher down payments than owner-occupied loans.
Condo-hotels
Financing is more complex because many lenders treat condo-hotels as non-warrantable. Expect larger down payments, specialty loan programs, and stricter underwriting tied to the building’s hotel operations and rental program. FHA and VA financing is uncommon for condo-hotels.
Co-ops
You finance shares in a corporation, often through a “share loan.” The lender pool is more limited, and down payments of 20 to 30 percent or more are common. Board approval is a key step and may affect timing. FHA and VA financing is limited and depends on project eligibility.
Project-level red flags for lenders
- Thin reserves or weak budgets
- High investor concentration or low owner-occupancy
- High delinquency on association dues
- Pending or recent litigation
- Significant commercial space or rental pool structures
Insurance and coastal risks to price in
Flood and wind exposure
Along Fort Lauderdale beach and the Intracoastal, many buildings sit in FEMA-designated Special Flood Hazard Areas. If your unit is in a flood zone and you finance, flood insurance is required. Associations carry master policies, but you still need an HO-6 policy for interiors and personal property. Windstorm insurance and deductibles can be significant in Broward, and rising insurance costs may be passed through as increased assessments or special assessments.
Reserve needs for coastal buildings
Elevators, roofs, parking structures, seawalls, and building exteriors are costly to maintain near the coast. Healthy reserves and a clear plan for capital projects help stabilize fees and protect resale value. Review the reserve study, ask about planned projects, and confirm how assessments are handled.
Taxes and recurring costs
- Property taxes: Broward County assesses property taxes. If you establish the unit as your primary residence, you may qualify for homestead benefits under state rules. Co-op eligibility depends on local procedures and lease structure.
- Transient rental taxes: Short-term rentals require registration and collection of tourist development taxes and local fees when applicable. Budget for both county and city requirements if you plan nightly or weekly rentals.
- Income taxes and rentals: Rental income must be reported, and you may be able to depreciate a unit used for rental. If you participate in a condo-hotel program, expect reporting based on your specific management agreement.
Resale and marketability in Fort Lauderdale
- Condos: Strong associations with solid reserves, low delinquencies, and no litigation are easier to finance and resell. These buildings attract both end users and investors.
- Condo-hotels: The buyer pool may be narrower due to owner-use limits and financing hurdles. They primarily appeal to buyers seeking a serviced, short-term rental model.
- Co-ops: Board approvals and limited financing shrink the buyer pool. Co-ops can see lower resale liquidity compared to condos.
How to choose based on your goals
First-time owner-occupant
- Condo: Typically the most straightforward path with broader financing options and clear homestead potential if you make it your primary residence.
- Condo-hotel: Less ideal if you want full-time residential feel or long personal use; hotel operations and fees can be a mismatch.
- Co-op: Be comfortable with board approvals and rules; financing options are more limited.
Investor focusing on long-term rentals
- Condo: Workable if the building allows leasing and fits lender criteria. Expect higher down payments and careful underwriting.
- Condo-hotel: Designed for transient rentals with professional management, but understand revenue splits, fees, and owner-use limits.
- Co-op: Usually not investor-friendly due to subletting restrictions and approval requirements.
Seasonal or relocator buyer
- Condo: Flexible for second-home use with a more residential environment.
- Condo-hotel: Convenient services for lock-and-leave living, but owner-use caps and higher fees can raise the effective cost of ownership.
Due diligence checklist for Broward buyers
Use this list to keep your process tight and on track:
- Confirm the property type and whether a condo unit participates in a hotel rental program.
- Review governing documents: declaration, bylaws, rules, budget, financials, and reserve study.
- Request board minutes for the past 12 to 24 months and review for upcoming projects or disputes.
- Obtain master insurance details and your expected HO-6 and flood insurance costs.
- Check pending litigation and recent special assessments.
- Verify flood zone and request sample flood quotes for accurate budgeting.
- Confirm Fort Lauderdale and Broward short-term rental licensing and tax requirements if you plan to rent.
- For condo-hotels: review management agreements, owner-use limits, revenue splits, and all fees; prepare conservative rental projections.
- For co-ops: read the proprietary lease and understand the board approval process and subletting policy.
- Talk with lenders experienced in Fort Lauderdale condos, condo-hotels, and co-ops; ask about project eligibility and warrantability.
What to do next
- Define your goal: primary home, seasonal use, or income. This points you toward the right property type.
- Get preapproved with a lender that understands Broward condo projects and, if needed, specialty condo-hotel or co-op financing.
- Shortlist buildings based on rules, fees, reserves, and local rental compliance.
- Request and review documents early so your inspection window covers association due diligence.
- If documents reveal complex issues or you are purchasing a co-op or condo-hotel, consider engaging a Florida real estate attorney for document review.
You do not have to navigate this alone. The coastal, insurance, and financing details in Fort Lauderdale are nuanced, and a team that works these transactions daily can save you time and risk. If you want a clear path and White Glove guidance tailored to your goals, connect with the Chad Bishop Group to map your next steps.
FAQs
What is the main difference between a condo and a condo-hotel in Fort Lauderdale?
- A condo is a fee-simple residence with association rules, while a condo-hotel is a condo that operates within a hotel program, often with owner-use limits, revenue splits, and higher hospitality-related fees.
Can you finance a condo-hotel in Broward County?
- Yes, but financing is more limited and often requires higher down payments and specialty lenders because many condo-hotels are considered non-warrantable by conventional and government programs.
How do co-op purchases work in Florida?
- You buy shares in a corporation and receive a proprietary lease for your unit; expect board approval for purchases and subleases, and understand that financing options are more limited than typical condo mortgages.
What insurance should you plan for in a Fort Lauderdale beachfront building?
- The association carries a master policy, but you should budget for an HO-6 policy for interiors and personal property plus flood insurance if in a FEMA flood zone, along with attention to windstorm deductibles.
Are short-term rentals allowed in Fort Lauderdale condos?
- It depends on both the building’s rental rules and city and county regulations; even if the association allows short stays, you must comply with local licensing and tourist tax requirements.
