How to Rent Out Your Timeshare

Difficulty: Moderate

Instructions

Step 1

You must plan in advance. Last second planning for rental never works. For one reason, you cannot get the reservations in the prime locations. Secondly, if you do get a good location, you never get the unit that is desired. Points are more flexible and easier to get the reservations, but fixed weeks will work too. You must make sure that you make key reservations as soon as possible. You must have a plan to get the top locations a year in advance. For points owners, this is easy. For fixed week owners, you might need to exchange into RCI or II and this has to be done farther in advance to give yourself an opportunity to advertise.
Step 2

Location, location, location. I find it funny when I look on the internet and see some poor owner who has a timeshare listed for Nashville, TN in Feb. What do you think the odds of that timeshare renting are? Not good! If you plan and do some research to see where the prime locations are, you better your chances even more. Look online to see what the major events are around the country. Here are some examples: Mardi gras, the Jazz festival, the Final four for NCAA basketball, the Super Bowl, Bike Week in Daytona, and the list goes on. You must think about when families travel and does it make sense. Odds are, if you would not go during that time, neither will others.
Step 3

The size of the unit. Too often when I used to speak with owners and do what we in sales called “training”. I found that many owners had no idea what size unit to reserve for rental. Let’s think about this for a minute. The average family who takes a vacation will normally, not in all cases, but normally, will try to get as many people in a condo as possible. With that being said, it makes sense that you should make reservations for one bedroom deluxe versus the two and three bedroom units. Now, there are exceptions to the rule. Bike week, the Super Bowl, Fourth of July in Newport are all events that people with more money go to and would probably want the privacy. Spring break vacations are not a time for two or three bedroom units.
Step 4

Length of reservations. AAA did a survey a couple of years ago and stated that the average family only vacations for 4.7 days per vacation period. Additionally, the average family only vacations once per year. More importantly, with our current economy, this will more than likely stay true. With that being said, why would you make a reservation for a week period when you own points? You are just wasting your points and more than likely it will not rent. Look for long weekends unless it is a week long event. The majority of summer time vacationers stay for 5 days and use the other two to travel.
Step 5

Know your competition. One of the biggest problems I see is that too many owners are over pricing their timeshare. Take some time and do some research. Look at other options for the area that you have a reservation in and see what the highs and the lows are and go somewhere in the middle. Another thing to ensure that you do is always be willing to negotiate with the potential renter.
Step 6

Where are you going to advertise your rental? Are you going to use EBay or Craigslist, or are you going to use a company like Endless Vacations, Extra Holidays, or redweeks. There are other companies out there, but you must ensure that you do not pay for the service prior to the rental happening. This is a major scam and too many owners fall prey to this every month. If you do it yourself, ensure that you keep an eye on the listing and if you are not getting hits, look at other options.
Step 7

Know when your cancellation period is. If you have a rental on the market and it gets to within your cancellation period, ensure that you cancel the reservation, or decide to take the vacation yourself. This can be an expensive lesson if you do not pay attention. There are many tools you can use to assist with this. One is Microsoft Outlook; make a calendar entry three days before your cancellation period so you can call and cancel before you forget and it is too late to do anything.
Step 8

One great way to rent your timeshare to a family member or friend. I have had owners that knew a family member was taking a trip and they were able to make a reservation and the family member would cover the cost of maintenance fees. Another option is to have the person going on vacation do some research to find out how much a two bedroom condo would cost for a week in a desired location. Once they tell you how much it would cost them, give them an opportunity to rent yours for 50 percent less. You will still come out on the plus side and they get great accommodations.
Step 9

Be sure to look at co-workers as well. Co-workers are a great resource to use your timeshare as a rental as you would in number eight. If you are a teacher, nurse, factory worker, or pastor everyone likes to vacation. The majority of timeshare owners never let anyone even know that they are owners. Use this to your advantage and find out who likes to vacation at work. If you are uncomfortable with this, then just post something on your bulletin board at work.
Step 10

If you have children is school, or grandchildren in school many families as you well know like to vacation. The problem is that many cannot afford it or they do not have any resources to take one. This can be a great way to help a family take a vacation and make some money as well. Do it the same way as the last two. Have them do the research and let you know what they think it would cost, and then give them a big discount. You will become popular over night and be the envy of everyone. There is nothing like helping others.

Comments

veryfaraway said

on 4/7/2009 I've often thought about putting my Timeshare up for Rent. I have a Timeshare in Kissimmee during Daytona Speedweek in February. Will rent to the highest bidder! Except I want to go...