What to know about buying a Hamptons hotel condo or co-op as an investment property

If you've ever thought about purchasing a summer place or investment property in the Hamptons and its environs but couldn't swing the steep price tag, there just might be a way to live the dream—you can buy into a hotel condo or co-op, which are numerous in this area and can be a fraction of the cost of a single-family house.

That's important to know because home prices in this stretch of paradise are still at an all-time high—in the first quarter, the median sales price exceeded $2 million for the first time, up 13 percent since last year, according to the latest edition of the Elliman Report. And the median price for condos on the East End in particular has skyrocketed over 200 percent since last year, hitting $1.96 million.

Being able to come up with enough money is not the only consideration, however. A vacation investment property can require a lot of work: You need to find renters and maintain the property, not always an easy feat when you don't live nearby. 

But with a hotel condo or co-op, you own the apartment, and you (or anyone who rents your place) can enjoy the hotel's amenities as well as housekeeping and other hotel services. A management company will rent the property on your behalf so you can be as hands-off as possible.

[Editor's note: A previous version of the article ran in May 2023. We are presenting it again here with updated information for April 2025.]

In this week's Buy Curious, Florence Costello of Martha Greene Real Estate and Justin Agnello, Hara Kang, and James Keogh, known as the Atlantic Team of Douglas Elliman, tell you everything you need to know about purchasing a place in a condo/co-op hotel in the Hamptons area, including where to find them, how much you'll be shelling out each month, and if you can expect to see a return on your investment.

The question:

I've heard that a condo or co-op hotel in the Hamptons might be a good option for a low-key investment property. Does that ring true? If so, can you tell me more? 

The reality:

If you want to own an investment property in the Hamptons area but don't want to do any of the work typically involved in property ownership, a condo or co-op hotel could definitely work for you.

The advantages are numerous: Someone else will take care of finding renters, allowing you to earn money on your property when it's not in use. You don't need to clean the unit or change the bedding after you or your renters leave. And you'll be able to sit back, relax, and watch it all unfold from afar.

"I can't think of any cons to doing this," Costello said.

What are the sought-after condo/co-op hotels?

Montauk Manor (which Costello represents) is a highly desirable destination in Montauk, according to the Atlantic Team. The views are phenomenal, the staff and management are world-class, and the overall ambiance is delightful, they said. Amenities include indoor and outdoor pools, a day spa, an exercise room, tennis courts, an Italian restaurant, a driving range, a putting green, outdoor yoga classes, and electric vehicle charging stations. 

Also in Montauk is The Surf Club, which offers rare one- and two-bedroom duplexes with ocean views. The club has a heated outdoor pool, fitness center, direct beach access, free parking, outdoor movie nights, yoga and Pilates classes, and concierge services.

The Beach Plum Resort, another Montauk locale, offers direct beach access, a heated pool, complimentary wifi, and outdoor grills. There are even play areas for kids, making it an excellent option for families.

Direct beach address, a heated pool, sauna, fitness room, and tennis courts are on deck at The Beachcomber Resort at Montauk, a seasonal community that is open from April 25 through the end of October (exact dates subject to change).

Dune Resorts owns several co-op properties in the Hamptons, with three in Montauk. The Atlantic Bluffs Club is a co-op community within walking distance of the beach and town. Ocean Colony, a beachfront resort, offers two tennis courts, a large private beach, and a clubhouse with ping pong and board games. Soundview Montauk, located on Block Island Sound, is a seasonal resort with an outdoor pool, playground, private sun deck, and a picnic area with barbecues. 

Other Dune Resort properties include Windward Shores, a year-round resort consisting of 45 townhouse-style apartments situated along the Napeague Stretch between Amagansett and Montauk; it has two tennis courts and cabana service on the private beach with lounge chairs, sun umbrellas, and towels; East Hampton House, situated on five acres of manicured lawns within walking distance of the village, offers a heated outdoor pool, fitness center, two tennis courts, and barbecue grills; and The Hermitage, a seven-acre resort with studios and one- and two-bedroom condos plus seasonal features counting two tennis courts, cabana service on the private beach, and on-site parking. All Dune Resorts' properties have heated pools and high-speed wifi. Be sure to check its portfolio of investment opportunities, which is updated frequently. 

Another popular spot in Amagansett is The Ocean Dunes, an oceanfront co-op resort with a heated outdoor pool and private beach access.

How do you rent out a hotel condo/co-op?

"The building takes care of it all," Costello said. In most cases, either an in-house or outsourced management company handles the entire rental process, meaning your work is complete once you've purchased the property and added it to the rental pool.

You may have the option to do the turnover and sourcing yourself, but that process can be burdensome, according to the Atlantic Team.

Costello added that in her experience with Montauk Manor, most people keep their properties in the rental pool for the summer season—which typically runs from early May to November—to maximize profits. In the off-season, the owners enjoy their spaces.

What can you expect to pay in maintenance?

Fees will vary from unit to unit and complex to complex. Many Hamptons-area resorts close for the winter months and therefore have lower maintenance fees.

If you buy in a complex that stays open year-round, you will have to factor in winter maintenance, which can be steeper thanks to the weather, according to the Atlantic Team.

A rough estimate would be total fees that range from $800 a month on the low end to over $2,000 a month on the high end.

How big do these properties tend to be?

Most of the units at these condo/co-op hotels are studios and one bedrooms, ranging from 400 to 500 square feet.

Some larger, two-plus-bedroom units can also be found at most resorts; they are significantly more expensive and come to market less frequently.

Can buyers expect to see a return on their investment?

Once the maintenance fees and all other associated costs are factored in, an owner can still end up in the green, according to members of the Atlantic Team.

Costello added that while purchasing one of these types of properties isn't as foolproof as putting money into a CD, "it will eventually pay for itself."

Do owners mingle with hotel guests? 

In most cases, the answer is yes—especially at amenity spaces like the pool and fitness center as well as common areas.

Some resorts separate private residences from rentable hotel rooms, while others don't. If this is important to you, be sure to ask. 

Is it hard to get a mortgage for a unit in a condo/co-op hotel?

Unfortunately, yes, said our experts. As such, most people will need to pay cash for these types of properties.

And according to at least one loan officer, the reason for this is simpler than you might think. "We're not in the business to lend to hotels," she said. "We do residential lending."

However, if the condo/co-op component of the property maintains its financials separately from the hotel portion, some banks may consider it. In these cases, you should have enough liquid assets to cover at least six months’ worth of mortgage payments, a strong credit score and history, and a debt-to-income ratio of no more than 45 percent. 

Check out these condo/co-op hotels in the Hamptons/Montauk area:

6 Soundview Drive, North Deck, Montauk

Part of Dune Resorts' Soundview Montauk seasonal community, this upper-level one-bedroom co-op is listed for $699,000 and has monthly fees of $1,450. The corner unit features double exposures and a wrap-around sun deck and shares an outdoor pool and other resort amenities.   

727 Old Montauk Hwy., #401, Montauk

Asking $539,000, this recently renovated corner studio co-op has double exposures, an oceanview balcony, open efficiency kitchen, and a private storage room in the full basement. The monthly fees are $973. Amenities at The Beachcomber Resort include a heated pool, tennis courts, direct ocean access, and a gym with a sauna.

236 Edgemere St., #406, Montauk

This renovated 580-square-foot one bedroom, listed for $485,000, has one full bath, an open kitchen with granite island, vaulted ceilings, built-in daybeds, an eco-friendly fireplace, and views to Fort Pond Bay, Gardiner's Island, Orient Point, and Plum Island. It's located at Montauk Manor, which offers an on-site restaurant, indoor/outdoor pools, tennis courts, an exercise room, and a grand lawn. Monthly maintenance is $2,184; annual taxes are $1,616. 

236 Edgemere St., #101, Montauk

Also at Montauk Manor, this updated 476-square-foot condo has a loft bedroom and bath, an open kitchen, and a 97-square-foot private patio with direct access to the outdoor pool and courtyard. It is listed for $465,000, with a monthly maintenance fee of $1,416 and annual taxes of $1,033. 

226 Pantigo Road, #310, East Hampton

This listing, priced at $509,000 and with $988 in monthly fees, is part of Dune Resorts' East Hampton House and shares access to a brand-new outdoor heated pool, tennis courts, a fitness room, and a guest laundry facility. The upper-level deluxe studio features a full bath, living room, and an "amenity station" equipped with a mini-fridge, microwave, and coffee maker. A semi-private sun deck overlooks the manicured grounds. 

2062 Montauk Hwy., #28 Amagansett 

A lower-level studio co-op, located at Dune Resorts' Windward Shores, is on the market for $549,000 and has monthly fees of $1,184. The 369-square-foot unit features a full kitchen and bath, as well as an outdoor patio. Amenities include an outdoor heated pool, tennis courts, and a private beach with cabana service during the summer. 

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