Thinking about a condo at Purgatory and feeling unsure about HOAs, the DMMA, or how the rental pool really works? You’re not alone. These condos come with layered rules and fees that affect your budget and rental income. In this guide, you’ll learn what each organization does, what fees to expect, how rental programs operate, and which documents to review before you buy or sell. Let’s dive in.
How Purgatory condo ownership works
Your building HOA
Your building or community HOA sets the rules for your specific property. It manages items like CC&Rs, budgets, reserves, maintenance, and building policies. Each HOA is different, so you need to review the governing documents for the exact unit you’re considering.
The DMMA master association
The Durango Mountain Master Association (DMMA) is the master association that serves many Purgatory base-area communities. DMMA funds and operates off-slope amenities such as owner facilities and shuttles, and it charges master-level assessments to member owners. You can learn about DMMA and its member associations on the DMMA site.
Resort operations and rental channels
Purgatory Resort operates the mountain, lodging services, and on-site rental programs. If you place your unit in the resort’s program, guest-facing fees and rules in the resort’s lodging terms apply to bookings. Those guest fees impact what your renters pay and what you net as an owner, so it’s important to understand them up front using the resort’s lodging terms and conditions.
What fees to expect
DMMA assessments
Many condos at Purgatory include an annual DMMA dues line in addition to your building HOA dues. Amounts vary by property and ownership type. Always request the DMMA budget and current assessment schedule for the specific unit you’re evaluating from the DMMA owner resources.
Guest-facing resort fees on bookings
Purgatory’s lodging terms list a non-taxable “destination management fee” example of 11 percent and a separate “resort fee” example of 3 percent, plus a damage protection fee example of $10 per night. These are added to guest reservations and can affect your net revenue and price competitiveness. Confirm the current percentages at the time of booking using the resort’s lodging terms.
Management commissions and booking costs
If you enroll in a rental program, expect a management commission plus possible booking or platform fees. Commission structures and inclusions vary by manager. Ask for the full owner agreement and 12 to 24 months of actual P&L before you commit so you understand true net income.
Sales and lodgers’ taxes
Short-term rentals are subject to state, county, and municipal taxes. The City of Durango’s lodgers’ tax rate is listed at 5.25 percent, with licensing and remittance required by the city. Review the city’s current rules on the lodgers’ tax page, and check for county updates, as recent legislation allows counties to ask voters for higher caps as reported by the Durango Herald. Some booking platforms collect certain taxes for you; confirm which taxes are collected and remitted automatically in the platform’s help documentation.
Short-term rentals and rental pool options
Are short-term rentals allowed?
Many Purgatory-area condos permit short-term rentals, but rules vary by building. Minimum stay rules, pet policies, guest access, and registration requirements can differ between HOAs. Always verify the unit’s CC&Rs and rules before you rely on rental income.
On-site program vs independent management
You can often choose among the resort’s lodging program, an independent local manager, or self-management. Each option has different marketing reach, commission splits, standards, and owner-usage rules. Request the contract, fee schedule, and sample statements so you can compare apples to apples.
How guest access fees show up
When your unit is rented, guest access to DMMA and resort amenities is tied to the resort and DMMA fee structure noted in the lodging terms. Clarify how these fees are displayed to guests, who collects them, and whether they affect your owner payout. This helps you price competitively and avoid surprises at settlement.
Due diligence checklist before you buy or sell
Association documents
- CC&Rs, bylaws, rules and regulations for the building HOA.
- DMMA covenants or membership agreement, current budget, and assessment schedule from the DMMA site.
- Current budget, financials, reserve study, and most recent audit or CPA review.
- Board meeting minutes for the last 12 months to spot pending assessments or rule changes.
- Insurance summaries and responsibility matrix for common elements vs interiors.
Rental program and operations
- Owner rental agreement, commission schedule, and payout timing.
- 12 to 24 months of actual occupancy, ADR, and net revenue statements.
- Housekeeping standards, consumables, damage protection and claim handling per the resort’s lodging terms.
- Any exclusive or transferable management contracts tied to the unit.
Financial and tax items
- Current HOA and DMMA dues, any special assessments, and transfer fees.
- City and county sales and lodgers’ tax obligations and licensing steps via the City of Durango.
- Platform or manager tax remittance responsibilities and reporting cadence.
Practical living considerations
- Parking, storage, and ski lockers, plus whether they are deeded or assigned.
- Pet policies and any building-specific restrictions.
- Owner and guest access to amenities and how passes are issued.
Common scenarios in La Plata County
You want rental income without surprises
Focus on verified numbers, not projections. Ask for prior-year monthly statements, clarify every fee that hits gross revenue, and confirm who pays for housekeeping, linens, and replacements. Small differences in commissions and guest fee handling can change your net by thousands each year.
You plan to use the condo often
Choose a management path that supports owner-usage calendars without heavy blackout dates or penalties. Review minimum-stay rules, storage for owner items, and how maintenance is handled during your stays. Make sure your DMMA and building access is seamless for both owners and guests.
Next steps
Buying or selling a Purgatory-area condo is easier when you have a clear plan and the right documents in hand. If you’d like help gathering HOA and DMMA materials, comparing rental options, or understanding taxes and fees for your specific unit, reach out. With more than 20 years in La Plata County, Judi Mora offers local guidance and steady, concierge-level support from offer to closing.
FAQs
What is the DMMA at Purgatory and why does it matter?
- The Durango Mountain Master Association is a master HOA that funds off-slope amenities and services for many base-area communities, and it charges separate assessments to owners. You can review its role on the DMMA site.
How do resort guest fees affect my rental income at Purgatory?
- The resort’s lodging terms show example guest fees such as an 11 percent destination management fee, a 3 percent resort fee, and a $10 per night damage protection charge that appear on bookings and can influence net owner payouts. Confirm current figures in the resort’s lodging terms.
Are short-term rentals allowed for all Purgatory condos in La Plata County?
- Many buildings allow short-term rentals, but each HOA’s CC&Rs set the rules for minimum stays, pets, guest access, and registration. Always verify the specific unit’s governing documents before relying on rental income.
Who handles sales and lodgers’ tax for a Purgatory condo rental?
- Owners or managers must remit applicable state, county, and city taxes unless a platform collects and remits for you. Check the City of Durango’s lodgers’ tax page and your platform’s tax collection guidance.
What documents should I review before buying a Purgatory condo?
- Request the building’s CC&Rs, bylaws, rules, budget and reserve study, the DMMA budget and assessments, 12 to 24 months of rental income history if applicable, insurance summaries, and the last 12 months of board minutes for both the HOA and DMMA.
