For the nearly 10 million timeshare owners in the U.S., there is no better time to grab a slice of the $2.2 billion timeshare rental business.
According to a recent Bloomberg report, resort prices have increased 33%, yet that's not stopping people from traveling or spending more money on vacations. Most Americans surveyed by OnePoll said they expect to spend more on their 2022 getaways. If you’re not vacationing in your timeshare this year or could use the money to help pay your annual maintenance fees, consider renting your condo resort room to travelers.
Timeshare Rentals: An Often Untapped Opportunity
“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 to deposit to their week, renting it out is an outstanding alternative to cover some or all of your annual maintenance fees,” Brian continued.
“Rental is a great option for owners who are unable to use their timeshare for whatever purposes. It's also a great way for the traveling public to experience a timeshare and understand all of the value it brings to their vacation experience,” added Jason Gamel, President and CEO of the American Resort Development Association (ARDA), a timeshare industry group.
“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.”
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4 Reputable Places to List a Timeshare for Rent
ARDA’s State of the Vacation Timeshare Industry: United States Study revealed that in 2021, almost 11 million nights were rented at timeshare resorts. Here are four trusted websites to list your available room in front of interested travelers and secure rented nights for your unit.
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1. Home Resort
With 92% of timeshare resorts offering some type of rental program, most timeshare owners have at least one option to generate income to cover their timeshare bills. While these programs are often of the set-it-and-forget-it type, make sure to read the agreement paperwork carefully to understand any exclusivity clauses and what percentage of the rental they’ll take for their services.
Redweek is an A+ Better Business Bureau-rated 20-year-old company with an audience of almost 3 million people listing and booking timeshare rentals. It is the largest online marketplace for by-owner timeshare rentals and a favorite of timeshare owners. They have three different listing options, from DIY to full-service.
“Though I know many people that use Facebook or Craigslist to rent out their unused timeshare successfully, I prefer to use Redweek. It gives me far more security as my money and my property is protected by the platform,” said Anthony Martin, a long-time timeshare owner.
“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.”
Koala is a new timeshare rental marketplace created by a timeshare industry veteran. They have a listings marketplace similar to Redweek and some innovative rental programs for timeshare owners.
For example, they find renters first and then place those opportunities on their hub. So if you're a Club Wyndham or Hilton Grand Vacations owner, you can quickly and easily turn unused points into a confirmed rental. They offer payouts as high as 22 cents an HGV point (plus $59) and $9.50/1,000 points for Club Wyndham rentals.
4. Timeshare Users Group
The first and largest website for timeshare owners, TUG, also has a marketplace where they've rented $20 million worth of timeshares in the last 29 years. With a $15 membership, you receive unlimited rental ads to announce your available rental to interested travelers.
Tips for Successfully Renting a Timeshare
Interested timeshare owners should do their homework and consider all the options available with each company to increase the odds of securing a renter. For example, according to Koala’s research, travelers are up to three times more likely to book a listing that offers a flexible cancellation policy. If you’re managing the rental contract yourself, use one of the three sample rental agreements available for free on Timeshare User Group.
Lastly, “Do your research,” said owner Alexia Kaz. “Go on one of the rental websites, search for your timeshare, and look at the rented ones. What was the cost of the rental? What dates did it rent for? Was it a Friday to Friday or Saturday to Saturday that was rented? Do seven days seem to rent more or five days?”
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This article was produced by Planner at Heart and syndicated by Wealth of Geeks.
Featured Image Courtesy: Unsplash.
Monica Fish helps her fellow adventurers live a financially savvy life so they can travel and explore our beautiful world no matter their budget. She writes about smart timeshare ownership, vacation tips and tricks, NYC Metro Area trips and activities, and frugal, yet rich, living at PlannerAtHeart.com.