Tip 24 - Rentals

If you are unable to use or exchange your timeshare unit, rentals provide a third usage alternative for owners and an opportunity for renters to experience the benefits of timeshare ownership at a reasonable rate. In some cases, a rental may result in a sale. As result, some companies may ask you for your usage week for a potential buyer to use. Never give up your usage week without a comparable exchange option or reasonable compensation.

ALTHOUGH A RENTAL MAY EXPOSE YOUR TIMESHARE UNIT TO A POTENTIAL BUYER, NEVER GIVE UP YOUR USAGE WEEK WITHOUT A COMPARABLE EXHANGE OPTION OR REASONABLE COMPENSATION.

Keep the following in mind, when considering giving up your usage week to a any company:

  Comparable Exchange Option Questions

   1. How long has the company been exchanging weeks?
   2. Does the company have adequate exchange weeks?
   3. Does the company provide nationwide coverage?
   4. Is the company a licensed timeshare resale broker?   
   5. Do you have 1 year to exercise your exchange option?
   6. Is your total exchange fee less than $100

  Reasonable Compensation Analysis

   1. Potential buyers and renters are looking for a
      rental bargain - price unit accordingly.
   2. Your goal should be to cover your maintenance fee.
   3. One approach is to ask 2 times your maintenance fee.
   4. Another approach is to ask 50% of comparable hotel
      rack rates.
   5. Each approach will probably translate into an asking
      rental price of anywhere from $300 to $3,000 per week.
   6. Expect to pay a commission of anywhere from 20% to
      50% (subject to a minimum) of the rental price.