Renting a timeshare: How safe is it?

I'm new to renting out my timeshare. What is the best way to handle the finances? Should I go through the escrow company or should I do a rental contract? Also, there are several current postings that range in price from $1800 to $3200 for the same week. How do you determine what price to ask. If it's a holiday week (Christmas), does the price increase as you get closer to the date, or is it better to rent as soon as possible for a lower price? Thanks, Bonnie

bonnied41 wrote:

I'm new to renting out my timeshare. What is the best way to handle the finances? Should I go through the escrow company or should I do a rental contract?

I would definitely require a rental contract. There is a smaple rental contract in the Buying, Selling and Rental forum that states how finances are handled. As far as using an escrow service, that would be up to the renter. It depends on how comfortable you are with the owner via communication and what the contract states.

Quote:

Also, there are several current postings that range in price from $1800 to $3200 for the same week. How do you determine what price to ask.

There are several factors concerning what an owner is asking for a rental. I would definitely try negotiating the best price for the same unit/week you are interested in.

Quote:

If it's a holiday week (Christmas), does the price increase as you get closer to the date, or is it better to rent as soon as possible for a lower price?

I would imagine the owner has decided what they are going to ask for their rental before placing the ad on Redweek. I doubt the price would increase closer to a holiday week.

jayjay wrote:

bonnied41 wrote:

I'm new to renting out my timeshare. What is the best way to handle the finances? Should I go through the escrow company or should I do a rental contract?

I would definitely require a rental contract. There is a smaple rental contract in the Buying, Selling and Rental forum that states how finances are handled. As far as using an escrow service, that would be up to the renter. It depends on how comfortable you are with the owner via communication and what the contract states.

Quote:

Also, there are several current postings that range in price from $1800 to $3200 for the same week. How do you determine what price to ask.

There are several factors concerning what an owner is asking for a rental. I would definitely try negotiating the best price for the same unit/week you are interested in.

Quote:

If it's a holiday week (Christmas), does the price increase as you get closer to the date, or is it better to rent as soon as possible for a lower price?

I would imagine the owner has decided what they are going to ask for their rental before placing the ad on Redweek. I doubt the price would increase closer to a holiday week.

======== As far as pricing the unit you want to rent out is concerned, the unit which has an actual reserved week might reasonably ask for more because the "floating" time people may not be able to secure that week if it is special. Be sure to figure out what your own total costs are for the week you are offering. Think about maintenance fees, Guest Confirmation, point value (if you have a point system resort; NOT RCI Points). What would YOU be willing to pay?

Sometimes when you read the details on an offered week there are differences. Of course, one owner may have overvalued his week and another is far too humble! MD

Thanks for your advice. Bonnie

Plenty of legit sites to rent from directly with decent prices. I have used a couple: Berkshire Concepts and VRI.

I believe Bonnie was a owner planning to "rent out" some time, not a person looking for a vacation resort.

Actually, from the owner's viewpoint, I think this is pretty safe. The resorts do require a credit card at check-in which would be changed for damages in most cases rather than having them charged to the owner. Also, if the prospective renter has not paid in full by an agreed upon date before checking in, the owner can simply cancel the reservation. I get a deposit early and then change the Guest name to the renter's when final payment is received.

I agree with the escrow comment. You can rent a week and keep the funds in an escrow account. You can use a site like escrow.com for this for a small fee with instructions to release the funds to the unit owner only after your stay has completed or once you have checked in.

As an owner, I find that advice uncomfortable. I tried to rent an excellent week through a Wyndham related organization a while back which did not pay the owner at all until after the reservation was used. Result? The person who agreed to rent canceled out at the last minute so I was left holding a useless reservation without any chance of getting my investment back. These ARE NOT HOTEL ROOMS. The owners are paying hundreds in maintenance fees for their units each year. The renter should expect to make a deposit which is not refundable after an agreed upon date far enough ahead of check-in for the owner to find another user or cancel the reservation entirely and rebook. I ask for this deposit when I prove that I hold the reservation and do not put it into the renter's own name until full payment if received. I suppose that the money could be held in escrow but payment should not be dependent on the renter using the unit if the unit was reserved as per the contract. Trip insurance may be available if the renter must cancel for health reasons. MD

adahiscout wrote:

As an owner, I find that advice uncomfortable. I tried to rent an excellent week through a Wyndham related organization a while back which did not pay the owner at all until after the reservation was used. Result? The person who agreed to rent canceled out at the last minute so I was left holding a useless reservation without any chance of getting my investment back. These ARE NOT HOTEL ROOMS. The owners are paying hundreds in maintenance fees for their units each year. The renter should expect to make a deposit which is not refundable after an agreed upon date far enough ahead of check-in for the owner to find another user or cancel the reservation entirely and rebook. I ask for this deposit when I prove that I hold the reservation and do not put it into the renter's own name until full payment if received. I suppose that the money could be held in escrow but payment should not be dependent on the renter using the unit if the unit was reserved as per the contract. Trip insurance may be available if the renter must cancel for health reasons. MD

This is why a rental agreement should always be in place stipulating the terms of the rental and the deposit required. There are some owners that do not accept cancellations at all ..... they demand the entire rental fee upon signing the rental agreement .... Denise (moderator on Tug is one such person).

jayjay wrote:

they demand the entire rental fee upon signing the rental agreement .... Denise (moderator on Tug is one such person).

She usually mentions to the renter that, if the renter feels he may need to back out sometime down the road, he should purchase cancellation insurance.

Property management is Rental buying and selling all the term shares.