Wasting money is never fun. And if you’ve bought a timeshare and you’re not using it, you’re not having fun. Add escalating property fees to the increasing demands of family and work lives that may be hindering travel plans, and you could be facing a financial crisis. It may even prompt you to consider renting your timeshare. It seems to make sense: Shouldn’t rental income be a way to offset potential financial loss? The answer isn’t so simple. What many timeshare resorts don’t tell owners is that renting their timeshares can be more trouble than it’s worth. Take a look at six things you should consider before renting your timeshare to someone else:
1. Listing your timeshare for rent in and of itself can put the very people you are trying to attract on alert. After all, if your property is so great, why aren’t YOU using it?
2. Advertising your timeshare will undoubtedly cost money. You will need to make sure you choose a platform that is affordable, visible to the right types of renters and doesn’t negate any potential value.
3. Renting your timeshare can lower the overall value of your resort by accommodating one-time users who might not feel a need to be invested in the culture of the property. Think of those spring break partiers who bust in to town, make a mess and then leave? Sometimes renters can be equally troublesome.
4. If you want the resort to help you vet potential renters and oversee the details of their stay, there will be associated administrative fees to cover the resort’s time and effort. Frequently, these fees are non-refundable and due regardless of the resort’s ability to secure a rental agreement with someone.
5. Should you prefer (and the resort allows you) to oversee the rental process yourself, you will be gambling on any damages that your renters may incur. You could also be responsible for any injuries that may occur during their stay. Assuming the liability for property destruction and/or medical care after an injury can quickly surpass any money you might have lost had you not rented your timeshare in the first place.
6. Payment for a rental agreement is not necessarily guaranteed. If your renters cancel at the last minute, you will need to determine how to recoup your loss. Even if a contract specifies a non-refundable deposit, enforcing it can cause possible attorney fees, making the process less appealing and less profitable. Even the simple process of accepting payment (especially via a credit card) can prove difficult and will typically cost you a percentage of the overall transaction.
As you can see, renting your timeshare can often be as burdensome as getting out of a timeshare altogether. If you decide you need help canceling your timeshare obligations, contact our team at Step Zero. We can help you make financial sense out of your timeshare investment.