Renting timeshares for income -- better to specialize, or diversify?

[JudyS]

Apparently you didn't comprehend the "one person ponzi scheme" aspect of his strategy that I was referring to. It had nothing to do with buying and selling of timeshares....

I knew exactly what you were referring to. Others here have already noted why it is not a Ponzi scheme.

...I have owned inner city rental property where I collected my rent at the door. negotiating with the corner drug dealer my share of our common customer's welfare check. ...

You're braver than me, Ron! One of the reasons I like timeshare rentals is that renters in most locations are families with children or older couples, rather than "partying" singles who might damage the rooms. I'm not sure I'd want to rent out Mardi Gras in New Orleans, as you do.

Hopefully, none of my timeshare renters will be paying with their welfare checks! :rofl:

 

[JudyS]

I would never do this, unless I knew the person....

Do you mean you would never rent a timeshare from a private owner?

I agree that many people find it too risky to rent from a private owner. That is a big hurdle for timeshare owners who want to rent out their weeks -- convincing customers that it is not a scam. There are various ways to reassure renters that one is legitimate. As a last resort, one could offer to escrow the rental funds.

 

[Tahiya]

Renters who trash or steal from your timeshare

For those of you who rent out timeshares, have you had much of an issue with renters either trashing your timeshare or stealing things? I've thought of doing a tiny rental business (5 weeks a year or so just for a little extra cash), but the fact that I would be on the hook for whatever the renters do is daunting. Maybe this isn't a business that should be entered at a small scale? (No LLC involved.) Your thoughts?

 

[am1]

Hopefully, none of my timeshare renters will be paying with their welfare checks! :rofl:

Why? Are they limited to what they can spend their money on? I welcome all customers who want to go on vacation. I do think is part of why the travel industry is doing so well the last 7 years.

 

[DeniseM]

For those of you who rent out timeshares, have you had much of an issue with renters either trashing your timeshare or stealing things? I've thought of doing a tiny rental business (5 weeks a year or so just for a little extra cash), but the fact that I would be on the hook for whatever the renters do is daunting. Maybe this isn't a business that should be entered at a small scale? (No LLC involved.) Your thoughts?

Almost all resorts require the guest to run a credit card at check-in and any damages or room charges go on the card. That being said, damage by renters is pretty rare - we almost never hear of it on TUG.

 

[dsmrp]

You're braver than me, Ron! One of the reasons I like timeshare rentals is that renters in most locations are families with children or older couples, rather than "partying" singles who might damage the rooms. I'm not sure I'd want to rent out Mardi Gras in New Orleans, as you do.

Do you mean you would never rent a timeshare from a private owner?

I agree that many people find it too risky to rent from a private owner. That is a big hurdle for timeshare owners who want to rent out their weeks -- convincing customers that it is not a scam. There are various ways to reassure renters that one is legitimate. As a last resort, one could offer to escrow the rental funds.

I'm one of those leery of rentals, just because of our last rental years ago from a ski area condo owner thru a small management company. We rented for 3 nites, and noticed the DVD player and a couple of other items weren't functional the first nite. We notified the rental management company immediately and even took pictures. They never returned our damage deposit and gave us song and dance about how it was coming from the condo owners. We had no problems from previous rentals from different groups. Just happened on a bad one, I guess.

How do timeshare rentees handle potential damage to the units any differently than other rental businesses?

 

[dsmrp]

Almost all resorts require the guest to run a credit card at check-in and any damages or room charges go on the card. That being said, damage by renters is pretty rare - we almost never hear of it on TUG.

Our posts passed in the stream.
So people who rent out their timeshares don't usually ask for an additional deposit beyond the agreed upon rental price?

 

[DeniseM]

Our posts passed in the stream.
So people who rent out their timeshares don't usually ask for an additional deposit beyond the agreed upon rental price?

No, and it is a poor rental practice that will discourage most potential renters - I would not do it.

 

[JudyS]

Why? Are they limited to what they can spend their money on? I welcome all customers who want to go on vacation. I do think is part of why the travel industry is doing so well the last 7 years.

I meant I wanted to rent out my timeshares for substantial amounts of money -- more than someone on welfare can afford. (Welfare is typically just a tiny bit of cash, although people who get cash welfare benefits usually also get food stamps, some sort of health care program, and maybe some subsidized rent.)

I doubt many people on welfare get to take vacations. Maybe some drive to a relative's house or camp in a tent. Even that would be hard to afford for most welfare recipients. Gas costs money.

I have had situations in the past where timeshare weeks only rented for around $300 a week. I have no reason to think the renters received any welfare benefits, but when renting for such small sums of money, various problems crop up. For example, one renter showed up at the resort and didn't have a credit card. I didn't want to ruin their kids' vacation, so I agreed to give the resort my own credit card number in case they damaged anything. I also rented to someone who could put down a cash deposit at the resort, but had a hard time paying me because they didn't qualify for a credit card *or* a checking account. Luckily, neither renter damaged their room, but it was a hassle and a risk, and I hope not to do it again. (And as you can guess, I was losing money on these rentals.) I no longer have weeks that rent for so little.

I feel like many of the things I say on this thread get taken the wrong way.

 

[JudyS]

For those of you who rent out timeshares, have you had much of an issue with renters either trashing your timeshare or stealing things? ...

Not much problem at all. Over the past decade, I've done over a hundred rentals at least. I have had one damage issue and one non-payment issue. The damage was from a renter whose kids peed on the sofa and smeared food on the walls. She contacted me all angry because the resort wanted something like $250 in cleaning fees. She did eventually pay it, however. So, I didn't lose any money on this. (I think she would have been better off offering the cleaning staff $50 or $100 to do the extra cleaning on their own time, rather than arguing with me and the resort.)

My only big loss was years ago, when someone paid via PayPal using a stolen credit card, and PayPal didn't find out the credit card was stolen until after check-in. PayPal billed me for the entire rental fee and there was nothing I could do about it. However, that is one of the worst losses ever reported here on TUG. (Also, I should have been more suspicious -- the name on the PayPal account didn't match the name for check-in. Now, I am very careful if the names don't match. If the names don't match, I generally want proof that the address of the person checking in is the same as the address on the PayPal account.)

 

[slip]

I for one think you can do it. I have been renting out 15 to 17 weeks a year and have
Never had to adjust my price or had a week go unrented. I use three to four weeks of
My ownerships every year and my rentals cover the maintenance fees for the ones
That I use. I've been getting free flights to Hawaii with my miles so I've had some
Pretty cheap Hawaii vacations.

It only comes out to a little over a rental a month. The last three years, I have been
Rented out by June. For 2017 , I only have two, one bedroom units left and I am just
Waiting for a repeat renter to email me. She already told me she wanted to rent again,
She just needs to decide on her dates.

When I first started, I was told my mid-tier resort wouldn't rent but I could easily
Rent twice as many weeks. The last few years I have rented out my weeks plus 10 to
12 weeks for other owners.

I would specialize in a coup!e areas at different times of the year. Like summer in
Mrytle Beach and some ski weeks in a popular area. There are other event weeks in
Some areas that will work also.

You can pm me if you have any other questions about what I do. Good Luck!!

 

[ronparise]

Not much problem at all. Over the past decade, I've done over a hundred rentals at least. I have had one damage issue and one non-payment issue. The damage was from a renter whose kids peed on the sofa and smeared food on the walls. She contacted me all angry because the resort wanted something like $250 in cleaning fees. She did eventually pay it, however. So, I didn't lose any money on this. (I think she would have been better off offering the cleaning staff $50 or $100 to do the extra cleaning on their own time, rather than arguing with me and the resort.)

My only big loss was years ago, when someone paid via PayPal using a stolen credit card, and PayPal didn't find out the credit card was stolen until after check-in. PayPal billed me for the entire rental fee and there was nothing I could do about it. However, that is one of the worst losses ever reported here on TUG. (Also, I should have been more suspicious -- the name on the PayPal account didn't match the name for check-in. Now, I am very careful if the names don't match. If the names don't match, I generally want proof that the address of the person checking in is the same as the address on the PayPal account.)

That's the way most of us learned, Judy,, by our mistakes

Live and learn as they say

 

[icydog]

I used to have a timeshare rental business that did very well indeed. Then the market dropped out of the economy and I lost everything. I sold all my timeshares and bled money. Then a few years ago I figured I would specialize in two systems. I bought more timeshares (way too many timeshares) All with the idea of renting them out. That has not panned out. Not at all. I have a ton of maintenance fees. A bunch of ads for rentals that nobody notices, yah Redweek.com I am looking at you, and I am at wits end as to what to do NOW!

I am traveling all the time to avoid losing the weeks but for how long can I keep this up? I have very high value timeshares but this is definitely not a business model I would recommend. I find myself putting weeks into II rather than lose them. Now I have 14 weeks in II. This is no way to run a business!! Unless the economy picks up, and/or timeshares become a household word, I see no happy ending here.

I can sell what I own BUT FOR NOW I am still traveling. When I am unable to do that any longer I will sell them all.
So no, I do not think a timeshare rental business is a lucrative, or even smart, business decision!!

 

[buzglyd]

It's Redweek's fault?

 

[DeniseM]

icy dog - If you have desirable timeshares, and desirable dates, priced competitively - they should rent.

When you post your Ads, do you look at the Comps to be sure your prices are competitive? Do you post your Ads plenty early? 12-8 mos. is best.

 

[am1]

I used to have a timeshare rental business that did very well indeed. Then the market dropped out of the economy and I lost everything. I sold all my timeshares and bled money. Then a few years ago I figured I would specialize in two systems. I bought more timeshares (way too many timeshares) All with the idea of renting them out. That has not panned out. Not at all. I have a ton of maintenance fees. A bunch of ads for rentals that nobody notices, yah Redweek.com I am looking at you, and I am at wits end as to what to do NOW!

I am traveling all the time to avoid losing the weeks but for how long can I keep this up? I have very high value timeshares but this is definitely not a business model I would recommend. I find myself putting weeks into II rather than lose them. Now I have 14 weeks in II. This is no way to run a business!! Unless the economy picks up, and/or timeshares become a household word, I see no happy ending here.

I can sell what I own BUT FOR NOW I am still traveling. When I am unable to do that any longer I will sell them all.
So no, I do not think a timeshare rental business is a lucrative, or even smart, business decision!!

I am sorry your business failed twice. Hopefully people thinking of getting in to renting resorts take your story into account. Not everyone will be able to make it work but if done right it works.

 

[1Kflyerguy]

icy dog - If you have desirable timeshares, and desirable dates, priced competitively - they should rent.

When you post your Ads, do you look at the Comps to be sure your prices are competitive? Do you post your Ads plenty early? 12-8 mos. is best.

What is the best way to check the comps for a rental? Is that as simple as checking multiple rental sites to see what is being asked for a same season / unit type as i would hope to rent Or is there a better way?

 

[DeniseM]

What is the best way to check the comps for a rental? Is that as simple as checking multiple rental sites to see what is being asked for a same season / unit type as i would hope to rent Or is there a better way?

That's how you do it.

 

[ronparise]

What is the best way to check the comps for a rental? Is that as simple as checking multiple rental sites to see what is being asked for a same season / unit type as i would hope to rent Or is there a better way?

As an example: I was trying to set a price for studios during Mardi Gras, I called the local hotels to get their pricing and set mine slightly lower.

I firmly believe that their is a buyer for everything, its all a matter of price. Set your price right and you shouldnt have a problem

 

[ronparise]

What is the best way to check the comps for a rental? Is that as simple as checking multiple rental sites to see what is being asked for a same season / unit type as i would hope to rent Or is there a better way?

just be careful that what you are looking at arent overpriced

 

[DeniseM]

As an example: I was trying to set a price for studios during Mardi Gras, I called the local hotels to get their pricing and set mine slightly lower.

I firmly believe that their is a buyer for everything, its all a matter of price. Set your price right and you shouldnt have a problem

This might work for moderately priced timeshare, but with the high end timeshares, the resorts are often charging twice as much as owners, so asking a little less than the resorts, will put you way above the rest of the resale market.

 

[DazedandConfused]

I have very high value timeshares but this is definitely not a business model I would recommend. I find myself putting weeks into II rather than lose them. Now I have 14 weeks in II. This is no way to run a business!! Unless the economy picks up, and/or timeshares become a household word, I see no happy ending here.

I can sell what I own BUT FOR NOW I am still traveling. When I am unable to do that any longer I will sell them all.
So no, I do not think a timeshare rental business is a lucrative, or even smart, business decision!!

First of all, thanks for your honest posting.

However, in my opinion, the economy has been fantastic for the past 6 or more years and is in danger of a slowdown. Look at the stock market, the residential market, and unemployment. In almost all measures, the US is doing fantastic over the past 5-6 years.

If you can't make a profit now, it is not a fault of the economy, it is a fault of marketing. I tried redweek and that produced zero results. I had great luck with Homeaway and VRBO and probably would have done well with eBay.

If you can sell now for a profit or break-even, then I think you really need to consider that as IF and WHEN the economy really slows down, timeshare values will crash again.

Right now, I believe, it is a good time to be a seller or even a renter and a less good time to be a buyer.

 

[icydog]

icy dog - If you have desirable timeshares, and desirable dates, priced competitively - they should rent.

When you post your Ads, do you look at the Comps to be sure your prices are competitive? Do you post your Ads plenty early? 12-8 mos. is best.

I just lowered the price of one of my timeshares by 1/2. I like the suggestion of trying other rental sites. Redweek is just NOT working.

First of all, thanks for your honest posting.

However, in my opinion, the economy has been fantastic for the past 6 or more years and is in danger of a slowdown. Look at the stock market, the residential market, and unemployment. In almost all measures, the US is doing fantastic over the past 5-6 years.

If you can't make a profit now, it is not a fault of the economy, it is a fault of marketing. I tried redweek and that produced zero results. I had great luck with Homeaway and VRBO and probably would have done well with eBay.

If you can sell now for a profit or break-even, then I think you really need to consider that as IF and WHEN the economy really slows down, timeshare values will crash again.

Right now, I believe, it is a good time to be a seller or even a renter and a less good time to be a buyer.

I will definitely think long and hard about this. Thank you.

 

[DeniseM]

icydog - before you lowered the price, how did your prices compare to other listings on Redweek for the same resort/unit size/view/season?

Redweek works well for me, so I think it has to be something else.

 

[DazedandConfused]

icydog - before you lowered the price, how did your prices compare to other listings on Redweek for the same resort/unit size/view/season?

Redweek works well for me, so I think it has to be something else.

I think this bbs is biased towards Redweek and that is cool because there are lots of listings, but the general public is totally ignorant of redweek, has no idea why it is called redweek, and definitely do not want anything to do with timeshares. In addition, the fees for redweek, especially the new verified week are expensive if you do not rent your week.

HomeAway and VRBO are owned by the same company and allows you to pay only with a booked rental and the management and money tools are outstanding. Also, the marketing is fantastic. Finally, this is totally accepted by the general public and they really don't care (or even realize) the rental is a timeshare as they assume it is a condo at a resort in a town they want to visit.