Sixty percent of Americans are living paycheck to paycheck. High-income earners also feel the strain, with 45% relying on the next payday to cover bills. Despite best efforts to manage personal finances, the holiday season for Americans often means living in the red.
Two-thirds of Americans report that November, December, and January are the most financially stressful months of the year. For the 10 million timeshare owners in the United States, it also coincides with the due date for their annual maintenance fee, $1,170 on average. With 92% of timeshare resorts offering a rental program, most owners have options to generate money to help pay their timeshare bills.
Timeshare Rentals Are a Big Opportunity
Last year, travelers rented 11.6 million nights at timeshare resorts, averaging $235 a night and totaling more than $2.7 billion. Despite numerous rental options for owners, only 27% are renting theirs out.
“Just like the timeshare resale market, a huge secret not shared with the vast majority of owners is the option to rent their timeshare out to other travelers,” says Brian Rodgers, who runs Timeshare User Group (TUG), the oldest and largest timeshare owners group and advocacy organization.
“For those who haven’t used their timeshare in ages and don’t want to pay for a membership to a timeshare exchange company such as RCI or Interval International to deposit to their week, renting it out is an outstanding alternative to cover some or all of your annual maintenance fees,” he continues.
“Sometimes, it is simply a lack of knowledge. Many owners do not rent out their timeshares because they do not know the option exists. Once aware, it can become a feasible option for many owners who enjoy receiving the rental income when the property is not in use,” says Shauna Norris, Senior Vice President of Sales at Timeshares Only, who talks to owners regularly.
“Renting their timeshare is a great way for them to recoup money for their maintenance fee. It allows the owner to stay current and not incur any late fees or penalties. Renting makes good financial sense,” Norris adds.
“If owners choose to rent their timeshare, we suggest they do their homework and make sure they’re working with a reputable and effective company. One place they can find such a list is on our website, which includes ARDA member companies who provide those services,” advises Jason Gamel, President and CEO of the American Resort Development Association (ARDA).
How To Get Started
If you’d like to join the 2.7 million owners renting out their timeshare, the first step is to check your timeshare agreement to understand your resort or chain’s rules and policies on rentals. If you choose your resort’s direct rental program, understand the pros and cons.
“For over 15 years, we’ve rented our extra timeshare weeks through our resort directly,” says Daniel, who owns a Vail Resorts fractional ownership. “While it is completely hands-off, and all we do is cash the checks, they take almost half of the rental amount as part of the agreement.”
Expert Advice For Successful Rentals
Timeshare owners overseeing the rental can keep more revenue in their pockets. However, it requires time, research, and varying levels of involvement. From marketing to finalizing contracts with renters to taking payment, it can be a lot to manage personally.
“Do your homework on reputable timeshare rental websites and compare what other owners ask for the same resort, unit size, and week. It’s important not to over-price your unit but to make it competitive,” advises Norris.
“See what it actually rented for, not just what it was listed for,” adds owner Alexia Kaz, who regularly rents hers. “What dates did it rent for? Was it a Friday to Friday or Saturday to Saturday that rented? Do seven days seem to rent more, or five days?”
Consider The Various Listing Options
There are more options than ever for timeshare owners to rent out their unused time at their home resort. Be realistic with your comfort level managing contracts and payments and the time needed to answer potential renters’ questions and queries.
“Though I know many people that use Facebook or Craigslist to rent out their unused timeshare successfully, I prefer to use RedWeek because it gives me far more security as the platform protects my money and my property,” says Anthony Martin.
“If I have the spare time to set up the rental, I use their DIY verified and protected option, but it’s nice to use the Full-Service option when I’m too busy to organize everything. Their team sets the rental up from start to finish for about $120 more than you’d pay if you did it yourself, but the ease of maintenance and security is well worth it in the end.”
“Timeshare owners can choose to have us handle their entire listing, from posting and managing rental requests to lease preparation and payment processing. The platform provides owners with a recommended rental agreement. We assist with pricing optimization using a rental tool that leverages historical data, week, and unit size,” explains Maurice Aubrey, Founder of RedWeek, a timeshare rental site with over 3 million users globally. “We also advertise the property on its different channels, such as its newsletter, maximizing the likelihood of successfully renting and, thereby, fee recovery.”
Always Trust Your Gut
Timeshare owners have reported that once their rental listing is live, they’ve received large offers, but it requires significant upfront listing or document fees. Once paid, the rental never materializes, and they realize it’s a scam. Additionally, businesses impersonating timeshare exchange companies such as RCI and Interval International are cold calling owners, offering to rent unused bonus exchange weeks for a hefty sum. This increasingly popular scam violates the membership agreement and requires a hefty initial sign-up fee for income that never comes the owner’s way.
