Curious how some Mountain Village condos earn like two rentals while living like one home? If you split your time between personal stays and income, a lock-off can offer rare flexibility. You want clear answers on what “lock-off” really means here, how the rules work, and what to verify before you buy. In this guide, you’ll learn the basics, the local checks to run, and how to model rental performance so you can invest with confidence. Let’s dive in.
Lock-off definition and layouts
A lock-off condo is a single property that functions two ways. You can use it as one larger residence or separate it into two smaller, independently rentable spaces by locking an interior door. Many designs include separate exterior entries, multiple bathrooms, and at least one kitchenette to support standalone stays.
Common configurations include:
- Studio + 1-bedroom
- Two 1-bedrooms connected by a lockable door
- Two-bed split that becomes a 1-bedroom plus studio, or two studios
- Hotel-style layouts where a suite adjoins a standard room
The ability to separate spaces depends on the physical layout and the legal setup. Some lock-offs have one deed and one tax ID. Others are two deeded units with a shared lockable connection. The legal structure affects taxes, HOA dues, financing, and rental listing options.
Mountain Village rules to verify
Mountain resort rules change over time, and each building can be different. Treat everything you read as a starting point and verify details with official sources before you make decisions. In Mountain Village, you should confirm town, county, and HOA requirements for short-term rentals and for renting lock-off halves separately.
Permits and taxes to check
Before you rent, confirm:
- Short-term rental permits or business licenses required by the Town of Mountain Village.
- Lodging and sales taxes that apply to your rentals and who remits them.
- Zoning and use permissions for your specific building or complex.
- Whether online platforms collect and remit taxes for you or if your manager does.
Where to confirm: the Town of Mountain Village’s official resources for licensing, lodging tax and zoning; San Miguel County assessor and clerk for deed and parcel details; and the Colorado Department of Revenue for state-level tax rules.
HOA rules that matter
HOA documents will often determine your actual flexibility. Focus on:
- Rental policy. Are short-term rentals allowed? Any caps, minimum stays, or required registration?
- Lock-off use. Can you list each half separately? Can both halves be rented at the same time? Any restrictions on short stays?
- Dues and assessments. Are dues charged per deeded unit, per bedroom, or another formula?
- Rental pool. Is there a mandatory or optional on-site rental program? What are the fees, blackout dates, and revenue splits?
- Insurance. What coverage does the HOA carry and what coverage do you need for STR use?
- Renovations. Are second kitchenettes or access upgrades allowed if you plan to enhance lock-off functionality?
Financing and title notes
Lenders may treat lock-offs differently depending on whether the property is one legal unit or two. Confirm:
- Whether standard second-home or investment loan products are available for the specific legal structure.
- How many deeds and tax parcels are tied to the property and how that affects taxes and dues.
- Resale patterns for the complex and whether buyers in this building value lock-off flexibility.
Management models and listings
A lock-off gives you unique inventory choices. You can rent the whole condo as one listing, rent each half separately, or do both with careful calendar control. Choose an operating model that fits your time, technology, and service expectations.
Management options
- Self-management. Maximum control of listing strategy, pricing, and guest experience. Higher time commitment and more coordination.
- Local property manager. Handles listing, dynamic pricing, cleaning, guest services, tax remittance, and compliance. Fees are usually a percentage of gross revenue or a fixed structure. Confirm how they price and service split inventory.
- On-site hotel operator or rental pool. Common in mixed hotel/condo projects. You get consistency and turnkey service, but fees may be higher and owner usage can face blackout dates.
- Hybrid. You self-manage prime dates and let a manager fill gaps. Requires strong systems to avoid double-bookings.
Listing strategies that work
- One listing for the whole unit. Simple and attractive for families or groups. Fewer housekeeping events.
- Two separate listings for each half. More flexibility and the chance to sell both halves on the same night. Requires lock-off-friendly access control, calendars, and guest coordination.
- Combined approach. List all configurations and set technology to manage availability across parent and child “SKUs.” This can boost nights sold if managed well.
Operational considerations
- Housekeeping and turnover. Renting halves separately increases cleaning events. Budget for more frequent housekeeping and linen replacements.
- Access control. Smart locks and clear instructions are vital when halves rent independently.
- Noise and privacy. Good guest screening and house rules help reduce conflicts between adjacent parties.
- Maintenance. Higher turnover increases wear. Build a maintenance reserve.
- Technology. You may need a channel manager, PMS, and automated messaging to sync calendars and prevent double-bookings.
How flexibility shapes performance
The power of a lock-off is the ability to serve multiple guest types across seasons. That flexibility can lift total revenue, but only if it outweighs the extra costs and complexity.
Revenue drivers to model
- More nights available. You can sometimes book two parties on the same date.
- Market segmentation. Capture couples and solo travelers with a studio while also appealing to families with the full unit.
- Peak pricing control. On high-demand weeks, decide whether the whole-unit rate or the combined half rates produce more revenue.
- Higher total ADR potential. In some cases, the studio plus the one-bedroom together can beat the big-unit ADR for the same night.
Costs and risks to include
- Operating costs rise with turnover. More cleans, linens, consumables, and guest support.
- Management and software. Strong managers and tech tools are essential for split inventory.
- Yield risk. Misjudging demand for halves can reduce ADR or increase vacancy.
- Rule changes. HOA or town adjustments to STR policies could limit separate-half rentals.
Simple modeling framework
When you evaluate a specific property, build a few scenarios. Include:
- Revenue assumptions. ADR for the whole unit and each half. Occupancy by configuration and season. Nights you plan to make available.
- Cost assumptions. Management fees, cleaning by turnover type, platform commissions, HOA dues or rental pool fees, utilities, maintenance reserve, insurance adjustments, property taxes, and local lodging and sales taxes.
- NOI formula. Net operating income equals gross rental revenue minus all operating costs and taxes.
- Scenario analysis. Model conservative (whole unit only), moderate (mix of whole and halves), and aggressive (halves most of the time) across winter, summer, and shoulder seasons.
- Sensitivity checks. Move ADR and occupancy up and down by 10 to 20 percent to see how NOI changes.
- Break-even math. Calculate how many extra half-night bookings you need to cover added cleaning and management costs.
Mountain Village seasonality
Expect a strong winter ski season and a robust summer festival and hiking season. Shoulder periods are quieter. In many resort markets, couples and solo travelers drive demand in shoulder months, which can favor half-unit bookings. High holidays and ski weeks often reward keeping the unit whole if that rate exceeds the combined half revenue. Your manager should tailor pricing to local events and school vacation calendars.
Due diligence checklist
Getting the paperwork and history up front will save time and surprises. Ask for documents and interviews before you go under contract when possible.
Documents to obtain
- Condo declaration, CC&Rs, and bylaws that govern rentals and lock-off use
- Deed and tax parcel records showing single-unit or dual-unit status
- HOA rules and meeting minutes for any recent changes to rental policy
- Rental-management agreement if there is a required operator or prior management history
- Historic nightly revenue and occupancy by season for both halves and the whole unit
- Comparable rental listings for the complex and similar lock-offs nearby
- Insurance coverage details for short-term rental use
- Town and county STR permit status and tax remittance records if available
Questions for HOA, manager, and seller
- Is renting halves separately allowed, and under what conditions?
- Can both halves be rented at the same time? Any minimum-stay rules for halves?
- How are HOA dues calculated and billed for this unit’s legal structure?
- Is there a mandatory rental pool or an on-site operator? What are the fees and owner usage rules?
- Who remits lodging and sales taxes, and are there any outstanding compliance issues?
- What are typical management fees here, and do they differ for half vs whole bookings?
- Can you provide a 12 to 36-month rent roll with ADR, occupancy, fees, and seasonality?
- Are there any recent or pending rule changes that could impact STRs?
Operational questions for a manager
- How will you market halves versus the whole, and on which channels?
- How do you prevent double-bookings and sync calendars across configurations?
- What are average cleaning and turnover costs for this layout?
- How do you approach dynamic pricing and minimum stays for lock-offs?
- Can you share references from other lock-off owners you manage?
Is a lock-off right for you?
If you want to balance personal use with rental income, a lock-off in Mountain Village can be a smart fit. The flexibility to book halves in shoulder weeks and keep the unit whole for prime dates can lift revenue, especially with expert management. The tradeoff is added complexity, more turnover costs, and close attention to HOA and local rules.
The best path is clear due diligence, realistic modeling by season, and a manager who knows how to price and operate split inventory. If you would like tailored guidance on specific buildings, rules, and revenue history in Mountain Village, schedule a conversation with Chris Sommers.
FAQs
What is a lock-off condo and how does it work?
- A lock-off is a single condo designed to operate as one larger home or as two smaller rentals by locking interior doors and using separate entries, baths, and kitchenettes.
Are separate-half rentals allowed in Mountain Village?
- Rules vary by building and can change, so verify with the Town of Mountain Village and your HOA whether separate-half listings and concurrent rentals are permitted.
What HOA rules most affect lock-off performance?
- Key items include STR allowances, minimum stays, whether halves can be rented at the same time, how dues are assessed, and any required rental pool participation.
Do lenders treat lock-offs differently than standard condos?
- Sometimes. Treatment depends on the legal structure, number of deeds, and project type, so confirm loan options with a lender experienced in resort condos.
What management model suits most investors?
- Many owners choose a local manager for pricing, guest services, cleaning, tax remittance, and compliance, especially when listing halves and the whole unit together.
When is it better to keep the unit whole vs split?
- During peak ski weeks and major summer events, the whole-unit ADR may outperform the combined halves; in shoulder periods, halves often capture more nights and revenue.
