Lock-Off Units – More Profitable as One Large Rental or Two Smaller Units?

[Katie Linder-Jesse]

Hey BP Community!

I’m buying an investment property with a lock-off unit, giving me the flexibility to rent it as either one large unit or two separate smaller units. I’ve seen some short-term rental investors take advantage of this setup by adjusting their listing based on seasonal demand, but I’m curious about real-world experiences.

For those of you who have lock-off properties, I’d love to hear:
✅ Which strategy made you more money—renting it as one larger unit or as two smaller ones?
✅ Which was more consistently booked? Did guests prefer a larger space, or did the smaller units stay occupied more often?
✅ What challenges did you face managing it as two separate rentals? (Cleaning, turnover, guest confusion, etc.)
✅ Did seasonality impact your strategy? Did you switch between configurations depending on demand?

I’m trying to determine if this kind of flexibility is worth the effort or if one approach is clearly better for cash flow and occupancy rates. Would love to hear your insights and numbers if you’re willing to share!

Looking forward to your responses—thanks in advance!

Here are a few details in case it matters for responders: Lakefront 1950's gem with docks at Lake of the Ozarks, season is March through September. Currently, upstairs has 3 bed/1 bath and downstairs lock off unit has 1 bed/1 bath.  Both have their own entrances and kitchens. When we purchase we'll add another 1/2 bath upstairs. There is one more 1 bed/1 bath with kitchen and private entrance on the lower level, as well, that I'll leave as a totally separate unit.

[Andrew Steffens]

Congrats sounds like a cool place!

While I do not have experience with lockoffs I do have experience with larger properties that have options to rent together or separate and the answer is: it depends.

If it were a 2/1 with a 1/1 option I would use AirDNA to analyze a 2/1, 1/1, and a 3/2.  I would then check that research against current trend by using enemy method on AirBnb/VRBO sites.  That should give you a pretty good idea right there.  Generally speaking larger is better, but it is worth the research to be sure.  Also, there are advantages of going with 1 unit over 2.  It is half the work more or less.  Less guest inquiries, less actual guests to cater too, less turnover cleans.  Also if you are paying any software costs they usually charge by the listing, so half the cost. For me, I would need to see that running 2 separate units nets about 20% more to consider doing 2 separate over 1 large unit.

Good luck!