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What You Need To Know Before Renting Out Your Timeshare

By Arthur Meyer Timeshares are good ideas for people who want to vacation in the same spot each year. Instead of renting a hotel room, you...

By Arthur Meyer


Timeshares are good ideas for people who want to vacation in the same spot each year. Instead of renting a hotel room, you can stay in a luxurious condo or townhouse located in a complex loaded with amenities. At some point you will own a share in the property. If you cant use your time, you might be able to rent it, but there are certain things you need to know before renting out your timeshare.

Before you make any arrangements to rent the unit, you need to get in touch with the complex manager or reread your contract. Some complexes have rules that prohibit owners from letting their units. Others place restrictions on the times letting is allowed. If you don't do this first, you will end up wasting money on advertising something you can't do.

Once you have determined that you are allowed to rent the timeshare, you have to decide how much to charge the tenants. You need to charge a price commensurate with what you would have paid. You might contact others in the complex, who rent out their times, and find out what they charge. You can also get in touch with management and ask how they charge non-owner guests.

The next thing you have to determine is when you are going to offer the property. You must make sure you won't want the residence for yourself before you make a commitment to let someone else use it. The management may be planning to have bonus or exchange days throughout the year, and you probably won't be allowed to rent during those times.

When you are letting family or friends use the unit, you won't have to worry about advertising. If you want to open your share to the general public, you'll need to advertise in online and print newspapers. Classified line ads are the least expensive way to go there. You might consider listing the unit on an online auction site. You will get maximum exposure that way at an affordable rate.

Don't be fooled into thinking a contract between you and the renter is unnecessary. In order to avoid a lot of headaches, you have to create a binding, legal document that details everything the two of you agree to. That includes the dates the unit will be occupied, the cost of the security deposit, and how extending days will be handled.

Once the renters leave, you have to designate someone to inspect the unit to see if it was damaged or left in an unacceptable condition. You need to hold the security deposit until this has been determined. Once you are satisfied everything is okay, you should refund the deposit.

If you have a timeshare, you want to get your money out of it. When you can't use scheduled dates yourself, it just makes sense to rent it to someone else. This way the investment won't be wasted and the renters can take advantage of an empty unit.




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