Ad Free Information Promoting Financial Health

Rent Your Timeshare

Printer Friendly Version Here

But I Can Rent My Timeshare at A Profit

or Trade to Stay At Another Resort, Right?

The safety net in Timeshare ownership has long been reserved for the ability to create residual income through renting the unit if the owner does not feel using it themselves. This is absolutely recommended if you already own a Timeshare and don’t desire nor can afford the standard vacation that year. On the contrary, it is hard to produce evidence that would support purchasing a Timeshare for the intended primary purpose of renting it out.

Please consider that timeshare rentals often times need to be offered for prices less than the cost of annual maintenance fee’s on the property in order to entice a renter. Do your own research by combing the vacation classifieds on Craigslist Miami and see what is currently available in one of the “hottest” timeshare concentration spots in the nation. Currently there are many ads posted by desperate owners looking to rent their units between $250 and $900 over Thanksgiving week (one of the most desired weeks & initially priced at a premium to reflect that) depending on size, view and accessability to the beach. These factors also impact the initial purchase price and maintenance fees on the unit promoting the idea that if any profit is made on renting your Timeshare, it is minimal to what you likely paid for it that particular year.

A Timeshare owner can in most cases contact the property management company overseeing the development to get assistance with renting out their unit. This method supports a common theme of convenience that likely can be attributed to the buyers decision to purchase the Timeshare in the first place. The developer is going to ask for a fee in helping you facilitate this transaction. They may also be hard pressed to guarantee that they will actually be able to occupy the unit for you. Furthermore, they may offer to instead place you into a “renters pool” which will spread the proceeds of all rentals that week with each participating owner. By doing this, you are likely going to receive less back than if you rented the unit yourself, but at least you are pretty certain to earn back some money with pretty minimal effort on your part.

Another option is to list the Timeshare with an outside real estate or property management company that may aggressively advertise vacation properties in the particular area. Again, this option is likely fee based & may not result in success. However, the real estate or property management company has access to a larger variety of listing resources and you may benefit from their ability to attract repeat clients. The third option is to list the Timeshare yourself to give you complete control of the process. This method certainly requires the most effort but allows you to adjust the price yourself as the time period approaches and gives you the opportunity to maximize rental income through effective advertising. It may also help to look at upcoming events in close proximity to your Timeshare that overlap with your occupancy. Common sense will agree that it is a whole lot easier to rent your Scottsdale unit for a premium during college bowl week.

Trading My Timeshare for One In Another Location?

It is oftentimes not as easy as initially presented to trade your Timeshare with another destination. There are a couple major companies that facilitate such exchanges on your behalf. They will charge you an annual membership fee usually between $60 and $100 and require that your dues are paid from the date of listing through your travel dates at the very least. You will ultimately enter your Timeshare into a “space bank” which is an extensive data base of all units up for trade at that particular time. Your request will be graded (often by colors) to reflect the trading power based on the resort and seasonal desirability of the location. For a fee that ranges between $150 and $200 you will be able to trade for a like minded Timeshare.

This adds value for owners of premium Timeshares and frustration for those who may have bought into a regional resort that may have fulfilled a personal taste that may be obsolescent with the widespread vacationing public. In other words, if you own a Timeshare in Aspen during peak ski season you would be more successful in trading into a resort almost anywhere. If you control one in North Dakota far from hunting season, you might have trouble producing a desirable swap.

Part One: What Should I Expect If I Sell My Timeshare Now?

Part Two: I Want To Buy A Timeshare, How’s The Math Look?

Part Four: If Timeshares Are Bad, Why Do Some People Enjoy Theirs?

%d bloggers like this: