Thinking about a Palm Beach pied-à-terre for season but not sure if a condo, co-op, or condo-hotel fits you best? You are not alone. The names sound similar, yet the ownership, rules, financing, and rental options can be very different. This guide breaks down each choice so you can match the right property type to the way you want to live in Palm Beach. Let’s dive in.
Quick definitions
Condo
You own a deeded unit plus a share of the common areas through an association. It is real property, and you pay property taxes on your unit.
Co-op
A corporation owns the building. You buy shares in the corporation and receive a proprietary lease for your apartment. You do not own your unit as real property.
Condo-hotel
You own a deeded unit, but the building operates like a hotel with services such as housekeeping and a front desk. Many buildings have centralized rental programs for short stays.
Ownership and governance
- Condos follow the Florida Condominium Act (Chapter 718) and the building’s declaration and bylaws. A condo association manages the property and sets rules.
- Co-ops follow Florida’s Cooperative Act (Chapter 719). A co-op board has broad discretion and sets policies for approvals, maintenance, and use.
- Condo-hotels operate under condo documents plus hotel management agreements and rental program rules that can govern owner use and guest stays.
Financing reality in Palm Beach
Condos
- Many condos qualify for standard residential mortgages, especially if the project meets lender eligibility guidelines for reserves, occupancy, and disclosures.
- Lenders may require higher down payments or reserves for second homes, and some buildings are not approved for conventional programs.
Co-ops
- Financing is different. Lenders make share loans secured by your shares and proprietary lease.
- Fewer lenders offer co-op loans. Expect stricter underwriting, higher down payments, and formal board approval before closing.
Condo-hotels
- Financing can be limited because of short-term rental operations and hotel services.
- Many buyers use portfolio or specialty lenders, or pay cash. Even well-run properties face more scrutiny and lender overlays.
Use and rental rules
Condos
- Policies vary by building. Many coastal condo associations allow seasonal rentals but often set minimum lease terms such as 30 days, 3 months, or 6 months.
- Some communities cap the percentage of units that can be rented at one time. Local municipal rules may also apply to short-term rentals.
Co-ops
- Many co-ops restrict subletting and short-term rentals. They tend to favor long-term, owner-occupied living and stable resident communities.
Condo-hotels
- Designed for short stays. Nightly or weekly rentals are common through a rental pool or central program.
- Owners may face limits on personal use days and standards for furnishings and alterations. Revenue-sharing and management fees apply.
Fees, insurance, and reserves
Condos
- Monthly HOA fees typically fund common area maintenance, building insurance for shared elements, reserves, management, and common utilities.
- You usually carry an HO-6 policy for interior finishes, contents, and liability.
Co-ops
- Monthly maintenance often covers the building’s insurance, utilities, reserves, and real estate taxes at the corporate level. It may also include a portion of an underlying mortgage.
Condo-hotels
- Fees can be higher due to hotel operations like housekeeping, front desk, linens, and marketing, in addition to typical condo costs.
- Expect separate management or program fees tied to rental operations.
After the 2021 Surfside tragedy, Florida increased focus on structural inspections, reserve funding, and transparency. Whether you choose a condo, co-op, or condo-hotel, review current reserve studies, engineering reports, and any recent recertification documents for older coastal buildings.
Taxes and homestead
- Condos are real property. You receive a property tax bill and may qualify for homestead if the unit is your primary residence under Florida rules.
- Co-ops can have more complex tax treatment because you own shares with a proprietary lease. Homestead may be possible depending on structure and local practice, so confirm with the Palm Beach County Property Appraiser and a local attorney.
- Condo-hotel units used mainly for short-term rentals can be classified differently, and transient rental taxes may apply. Verify how a specific building is assessed and what taxes are due.
What you will see in Palm Beach
- The Town of Palm Beach features many luxury condo buildings and a number of older oceanfront and Intracoastal co-ops. Co-ops are part of the island’s history and are often known for strong board control and resident stability.
- True condo-hotels are less common in the Town of Palm Beach than in larger resort markets. Some hotel-style condominiums and mixed models exist in the wider county, but availability is more limited on the island.
- Seasonal buyers often favor condos for turnkey living and potential seasonal rentals. Buyers who want privacy, predictability, and strong community standards may prefer co-ops. If you want hotel services and hands-off rental income, a condo-hotel may fit, subject to local regulations and financing reality.
Which property type fits you
You want 3 to 6 months in winter, ability to customize interiors, and potential seasonal rentals
- Consider a condo. You get deeded ownership and more flexibility, subject to association rules.
You value exclusivity, tight community control, and long-term neighbors
- Consider a co-op. Expect a thorough approval process and strict subletting rules.
You need hotel services and an easy short-term rental option
- Consider a condo-hotel. The tradeoff is more rules, possible limits on personal use, and higher operating costs.
You want maximum flexibility for nightly or weekly rentals
- Consider a condo-hotel or a condo that explicitly allows short-term rentals. Always confirm municipal zoning and licensing requirements.
You want primary residence benefits and a straightforward path to homestead
- A deeded condo is usually the clearest path. Confirm eligibility for co-ops with local officials.
Due diligence checklist
- Association documents: declaration, bylaws, rules, recent meeting minutes, budget, reserve study, and the insurance summary.
- Financials and assessments: audited or reviewed financials, reserve balance, history of special assessments, and any planned projects.
- Litigation and disclosures: pending or threatened litigation against the association.
- Building safety: recent engineering reports, structural and elevator inspections, and recertification records for older buildings.
- Rental policies: minimum lease terms, caps on rentals, guest rules, and for condo-hotels, the rental pool agreement and revenue split.
- Use limits: owner-use day limits in condo-hotels, blackout dates, and furnishing standards.
- Taxes and classification: verify assessment method and eligibility for homestead with the Palm Beach County Property Appraiser.
- Lender pre-check: confirm whether lenders will finance the specific building and property type before you make an offer.
- Local rules: check Town of Palm Beach and Palm Beach County standards for short-term rentals, licensing, and transient taxes.
Next steps
Choosing between a condo, co-op, and condo-hotel is about aligning structure and rules with how you plan to live in Palm Beach. If you want turnkey ease with seasonal flexibility, a condo often fits. If you prefer a closely managed building with long-term neighbors, look at co-ops. If hotel services and simple short-stay income matter most, explore condo-hotels with strong management and clear programs.
If you are weighing buildings on or near the island, it helps to see how rules and fees play out in real life. Let’s tailor your search to your calendar, privacy preferences, and budget so your winter season flows the way you want it to. Connect with Lemore Zausner to compare options and move forward with clarity.
FAQs
What is the main difference between a condo and a co-op in Palm Beach?
- A condo is deeded real property that you own, while a co-op is ownership of shares in a corporation with a proprietary lease for your unit.
How do rental rules differ among condos, co-ops, and condo-hotels?
- Condos often allow seasonal rentals with minimum terms, co-ops commonly restrict subletting, and condo-hotels are built for short stays with centralized rental programs.
Is it easier to get a mortgage for a condo, co-op, or condo-hotel?
- Condos are typically the easiest to finance, co-ops require specialized share loans, and condo-hotels often need portfolio lenders or cash.
What fees should I expect with each property type?
- Condo fees cover common area costs and reserves, co-op maintenance can include taxes and any underlying mortgage, and condo-hotel fees are higher due to hotel operations and management.
Can I claim Florida homestead in a Palm Beach condo, co-op, or condo-hotel?
- Condos usually qualify if it is your primary residence. Co-op eligibility can depend on structure and local practice. Condo-hotel units used for short-term rentals may be treated differently.
