Thinking about a foothold in Teton Village but not sure whether a condo-hotel or a traditional condo fits you best? You are not alone. Each option offers a different mix of rental income potential, owner flexibility, fees, and financing. In this guide, you will learn the key differences, what to expect in this market, and how to choose based on your goals. Let’s dive in.
Quick definitions
A condo-hotel is a condominium located within a hotel or resort operation. You own the unit, and the on-site management typically handles marketing, reservations, guest services, housekeeping, and lodging tax collection when you are not using it.
A traditional condo is owned and used as a residential property under the project’s CC&Rs and HOA rules. You control rental activity within those rules and local law, and you can use an independent manager or manage it yourself.
How ownership and use differ
Management and control
- Condo-hotel: A centralized hotel operator runs reservations, staffing, and guest services. You often follow furnishing standards and operating rules set by the hotel. Income is typically distributed under a defined revenue split after fees.
- Traditional condo: You set pricing and availability, choose your manager, or self-manage, subject to HOA and county rules.
Owner use and reservations
- Condo-hotel: Owner stays can be limited by blackout dates, advance booking requirements, and possible owner use fees. Peak periods may prioritize paying guests.
- Traditional condo: You control your calendar. Restrictions depend on HOA rules and local regulations.
Income and costs in Teton Village
How rental income flows
- Condo-hotel: Your payout is based on the hotel’s accounting. Know whether figures are quoted as gross revenue, net to owner, or revenue per available unit. Net income is received after management fees, housekeeping or linen fees, allocated utilities, and taxes.
- Traditional condo: You keep gross rent and pay your own expenses. If you hire a manager, you pay that fee directly. You control pricing and strategy within HOA and county rules.
Typical fees and expenses
- Condo-hotel: Expect higher ongoing costs due to hotel staffing, amenities, and year-round operations. Fees can include management, housekeeping per stay, reserves, and capital improvements.
- Traditional condo: HOA dues may be lower, though resort communities still carry costs for snow removal, common utilities, and amenities. Total carrying costs vary by building.
Seasonality and pricing
Teton Village demand is highly seasonal. Peak ski months and the summer season drive occupancy and rates, while shoulder periods can be slower. Condo-hotels often use centralized revenue management to push peak yields. Traditional condo owners may optimize for longer stays, off-season bookings, or personal use.
Rules, taxes, and contracts
Short-term rental rules
Teton Village sits in unincorporated Teton County. Land use and short-term rental rules are set by the county and can change over time. Always confirm current code, licensing needs, and property-specific CC&Rs before you buy. These rules can affect pricing power, occupancy, and net returns.
Lodging taxes and compliance
Short stays typically trigger lodging or resort tax collection. In a condo-hotel, the management company usually collects and remits these taxes. If you rent a traditional condo privately, you may be responsible for registration and remittance. Confirm current rates and procedures with Teton County and the Wyoming Department of Revenue.
HOA and management agreements
For any purchase, review CC&Rs, bylaws, budgets, reserves, insurance certificates, recent minutes, and assessment history. For condo-hotels, add the rental program agreement and fee schedule. Key items include:
- Whether the rental program is mandatory or optional
- Length and termination terms of management contracts
- Owner use windows, blackout dates, and holdback policies
- How operating and capital expenses are allocated
- Reservation priority and booking rules
- Insurance responsibilities and liability allocation
Financing and insurance
Loan options and challenges
Lenders treat condo-hotels differently. Many condo-hotels are considered non-warrantable, which can limit loan choices and increase down payment and rate requirements. Financing may come from portfolio or specialty lenders. Traditional condos that meet agency guidelines can qualify for conventional programs, subject to project approval.
Insurance differences
Condo-hotel units may require coverage that aligns with transient lodging use. Traditional condos typically use an HO-6 policy alongside the HOA master policy. Verify coverage details, contents and improvements, loss assessment, and any hospitality-related liability needs so there are no gaps.
Who each option fits
- Investor seeking turnkey rental: A condo-hotel offers integrated marketing, reservations, and guest services. You may accept higher fees and less control for operational simplicity.
- Second-home owner who values services: A condo-hotel’s concierge and housekeeping can deliver a hands-off experience.
- Owner seeking flexibility or full-time use: A traditional condo usually offers greater control, potential cost efficiency, and more freedom to adjust rental strategy or live in the unit.
Resale and exit factors
Resale value depends on management quality, historical rental performance, unit condition, the ability to exit or convey the management agreement, and HOA financial health. Buyers often discount properties with unfavorable fee structures or restrictive contracts. Strong branding and proven occupancy can justify a premium.
Buyer checklist
Before you write an offer, gather and review:
- Rental history and unit-level profit and loss for prior years
- Complete fee schedule and any capital reserve details
- Management contract terms, including termination rights and owner use rules
- CC&Rs, bylaws, budgets, reserve study, insurance certificates, meeting minutes
- Current and pending assessments or litigation disclosures
- Verification of short-term rental license and tax compliance, if applicable
- Lender guidance on project eligibility and down payment requirements
Red flags to avoid
- Mandatory long-term management with no owner termination rights
- Opaque fee schedules or unclear owner payout calculations
- Poor HOA reserves or pending special assessments
- Unfavorable cost allocations in the HOA or management agreement
- Non-compliance with county rental or lodging tax rules
Taxes and reporting
Rental income is generally reportable on your federal return. Traditional rentals without substantial services are often reported on Schedule E. Units operated with hotel-like services can be treated differently. Personal use days also affect deductions. Review IRS Publication 527 and consult a CPA experienced in resort rentals.
Your next steps
Clarify your primary goal. Are you prioritizing turnkey convenience, maximum personal use, or net cash flow? Then compare specific buildings and programs, not just labels. In Teton Village, project documents and management contracts shape your experience as much as location. If you want a tailored comparison and access to unit-level financials, let’s talk about your priorities. Connect with David Yoder for a private consultation and a clear plan.
FAQs
What is a condo-hotel in Teton Village?
- A condo-hotel is a privately owned unit inside a hotel operation where on-site management handles reservations, guest services, housekeeping, and lodging tax collection when you are not using it.
How does owner use work in a condo-hotel?
- Owner use often requires advance booking and may include blackout dates or use fees during peak periods; exact rules appear in the management agreement and CC&Rs.
Are condo-hotels easier to rent than condos?
- Often yes, due to centralized marketing and reservations, but owner control is lower and fees are higher compared with traditional self-managed or third-party managed condos.
What financing is available for condo-hotels?
- Financing exists but is more limited and can require higher down payments and rates. Many condo-hotels are non-warrantable, so portfolio or specialty lenders are common.
How are lodging taxes handled for rentals?
- In condo-hotels, management usually collects and remits lodging taxes. For a traditional condo rented privately, you may need to register and remit taxes to county and state authorities.
What documents should I review before buying?
- Review CC&Rs, bylaws, budgets, reserve study, insurance, rental program agreements, fee schedules, unit-level financials, and proof of tax compliance, plus any assessments or litigation.
How does seasonality affect returns in Teton Village?
- Peak ski season and summer drive occupancy and rates, while shoulder seasons can be slower. Returns vary based on pricing strategy, management, and unit features.
