Financial Metrics · Intermediate level · 3 min read ·
What is a lock-off unit?
A lock-off unit is a flat designed to split into two independent spaces, each with its own entrance and bathroom, that can be rented separately or together. In short-term rental it lets one unit offer two sizes and adjust to what guests are asking for.
In 30 seconds
- One unit can run as one space or as two independent ones.
- Each part has its own entrance; an internal door joins or separates them.
- More flexibility doesn't mean more income: it depends on each part's occupancy.
Why should you care?
In short-term rental, income depends on how many nights each space is booked and at what rate. A lock-off unit changes that sum because it can be sold two ways.
- You understand why a project can report more rentable units than flats.
- You read each part's occupancy and rate separately.
- You see how a property's design affects how it runs.
Think of it as a table that splits in two
A restaurant with tables that join or separate serves a big family or two couples equally well. A lock-off unit does the same: it opens up for a group or splits for two different guests.
How does a lock-off unit work?
- 1
The design creates two spaces
Usually one part is a flat with a kitchen and the other a studio or room with its own bathroom.
- 2
An internal door connects them
Open, the unit works as one large flat. Closed, they are two independent spaces with their own entrance.
- 3
It is listed to match demand
The operator decides which layout to offer on each date: whole for groups or split for travellers who need less space.
- 4
Each part is measured
Each space's occupancy and rate are tracked separately to see which layout works better.
An example with numbers
As arithmetic, unrelated to any project: in a 30-night month, the whole unit is booked 15 nights at 10 units. Split, the large part is booked 18 nights at 7 units and the studio 20 nights at 4 units.
| Whole unit: 15 nights × 10 | 150 |
|---|---|
| Large part: 18 nights × 7 | 126 |
| Studio: 20 nights × 4 | 80 |
| Split, total | 206 |
In this example, splitting the unit brings in more because each part fills more nights. With different demand the sum could go the other way: that's why each layout is measured rather than assumed.
Where do you see it at Circular Urban?
In hospitality projects, what matters about each unit is how many nights it is booked and at what rate. If a project has units that split, the report reflects it in occupancy and average rate.
- The project report, with monthly occupancy.
- The report's average daily rate (ADR).
What changes in your finances once you get it
You read design as part of the business
You know a property's layout changes how it can be run.
You look at occupancy and rate together
More spaces to rent only add up if they fill.
You expect double costs
Two spaces mean two cleanings, two check-ins and higher operating costs.
Common mistakes
- Myth
A lock-off unit always brings in double.
- In reality
It brings in more only if both parts are booked enough. It also doubles some costs, such as cleaning.
- Myth
It's the same as subletting a room.
- In reality
Each part has its own entrance and bathroom, so it works as independent lodging.
- Myth
Any flat can become a lock-off.
- In reality
It needs a design with two entrances and separate bathrooms, and the use must be allowed in the building.
Test yourself
In a month, the whole unit would bring in 150 units. Split, the large part brings in 110 and the studio 30. Which layout brings in more?
Keep learning
This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.
