Tips for renting your timeshare
Website design By BotEap.comMany timeshare owners know how difficult it is to sell a timeshare. But not many timeshare owners know how difficult it is to rent your timeshare. The truth is that many owners do not take the right approach to renting out their timeshares to interested parties. The wrong approach can not only increase your net rental loss, but also, in some cases, your unit can remain vacant without being rented. But by adopting the right strategy and approach, you can greatly minimize this liability. Basically there are two approaches which are discussed in the following paragraphs.
Website design By BotEap.comOne approach is to go to your timeshare complex and tell them to rent your unit. Although it seems an easy option that saves us the hassle of advertising. But timeshare resorts usually charge a fee to rent the unit. The resort pools rental income with other timeshare owners. The resort then splits the revenue if the unit was not rented for a full week.
Website design By BotEap.comThis is reality and timeshare resorts tell their owners up front not to expect the unit to be rented for the entire week. It can be 2 or 3 days or 3 or 4 days or rarely it can be a week. And the worst thing about renting through the resort is the huge 30-40% commission, which is a huge loss for the timeshare owner. Let’s do a quick number calculation.
Website design By BotEap.comIf you rent the unit for $150 per night and assume someone rents it for 3 days. So the total rental for three days should be $450. If the resort charges a $150 commission, then you only have $300 left, which is your net rent. Now, if you pay $400 in annual maintenance, your net loss will be $100. Now you have to ask yourself if this is really worth it. Obviously the answer will be no. Let’s forget for a moment that you want to make a profit on your rent, but at least you don’t want a loss as well, or for practical purposes, a minimal loss.
Website design By BotEap.comNow let’s look at another option of going through a broker to rent your timeshare unit. When I say broker, be careful, like any other industry, the timeshare industry is also susceptible to scammers and fraud. Make sure the broker is a licensed broker and specializes in timeshare rentals and sales. A reputable name will be a safe bet in this regard. OK, now, he went to a licensed broker and he charges twenty-five percent commission, which is a little better than his resort company. There was a huge rush of people to rent the units from him.
Website design By BotEap.comYou wait a week, two weeks and it’s been months and there’s still one month left to rent your timeshare. Now that you have to pay your annual maintenance fee, you feel like you haven’t done enough to manage your rental property properly. Now consider other options.
Website design By BotEap.comThe other option is to market your timeshare property yourself, which is the best and most reliable option. What are the available options? You can place a rental ad in newspaper classified ads or through Timeshare Resort managed classifieds that target the right people, ie those who are willing to rent a timeshare. The other option is to list your unit on auction sites like eBay. And keep in mind that your timeshare will appear in the travel section, but not in the real estate section.
Website design By BotEap.comYou must get pre-approval from Square Trade, which can take up to five days. The plaza merchant will also need proof of ownership of the timeshare unit’s preemptive deed or maintenance bill. After this, the unit is auctioned on the website. Remember to cooperate with the bidders and answer all their inquiries and provide them with the complete information about the unit. Your timeshare unit could be as close as your maintenance fee and therefore fewer losses. The end result of renting your timeshare is never to expect a profit on the rental, but less loss.