Renting out your timeshare can be the opportunity to make some money off your property, but being a landlord is not for everyone. Timeshare owners are constantly missing the mark because they don’t know how to get the most money out of their investment. If you’ve never done this before, you risk missing out on a huge financial opportunity.
The idea of renting out a unit intimidates many owners. They know it should be their next step, but don’t really know how to get started. And who would? Any rental information you need is just a few clicks away, but if you don’t know where to start you can easily get lost.
Renting shouldn’t be complicated, at least not with us. Therefore, we developed a fool-proof guide to making sure you understand what you are getting yourself into. If you want to rent your timeshare out by yourself, here are some things we encourage you to keep in mind.
Understand the time commitment
This might be the biggest indicator of renting alone versus going through a company. You can’t just decide you’re going to rent your timeshare, put out a few ads online, and expect the money to roll in. If you want results, you need to work hard for them. You may have to spend hours looking over listings at sites like Craigslist or similar renters sites. To even post on these sites, you want to make sure you have up-to-date pictures and can accurately list the amenities of your unit. You could also be answering lots of emails or calls from potential renters that end up going nowhere.
Prepare your unit for rental
Going along with a time commitment comes the necessity to prepare your unit. You may need to make some repairs you’ve been putting off or clean some things that haven’t seen the light of day in years. Nobody wants to stay in a place with broken appliances or amenities promised that don’t exist. If your number one priority isn’t the condition of your unit, a renter will look elsewhere.
Understand the market
Owners rarely understand the rental market which ends up costing them big. Depending on when you list your unit, you may see a decrease in traffic for a variety of reasons. You also need to be prepared for the unit not to get an actual renter for a minimum of five months. You have to remember that you are competing with other renters who are trying to fill their units at differing prices. People will make the mistake of thinking they can list their place in a short amount of time and don’t financially plan if that is not the case.
Make sure you have the right insurance coverage
You’ll need to research your insurance options as a renter. Many big rental companies have contracts or liability policies that will cover them, but you need to make sure you’re properly covered. Forgoing this step could be costly, especially from a legal perspective.
Consider your costs
Ask yourself, what will it cost to maintain the property while it’s being rented out and how much money do you expect to make in rent? Make sure you know what the basic costs are and that they’re manageable from a financial standpoint. If you end up with a bad renter and nothing to protect you, you will want to make sure you saved up enough money for what they may cost you. You may make a profit but don’t be unprepared if it is not enough to cover your annual fees or cost accumulated with a rental.
Prepare for every type of renter
Make sure you know what the unit looks like before any renters use it. Documenting it could save you from any con artists looking to make money off your inability to prove they caused any damage. You should come up with some kind of agreement in writing to ensure you won’t get screwed over. Be ready for potential problems from tenants, such as not paying rent on time or breaking items that are part of the rental agreement. As the owner, you need to make sure you are protected.
Get a credit check from prospective renters
This is one of those steps owners often skip. Before signing anything, you should have some idea of who these people are. Getting a credit check from prospective renters could save you from future headaches. Just because they have the money now doesn’t mean that will be the case in six months. Avoiding a renter who won’t pay on time can save you in the end. Make sure that you’ve put your property in the right hands and save enough money for any potential late fees.
Check with local laws
Some states will require you to have a license to rent out your unit. Check with local laws to see the requirements in place to rent. Be sure to also check the state or country where your unit is located. These laws could also hold any clauses protecting you as the renter.
Don’t Count Us Out Just Yet!
Our nine rules of thumb are not meant to discourage anyone from renting out their timeshare. As former timeshare owners ourselves, we understand the attraction to it and want owners to explore their options. If you follow these nine steps, you will be better able to gauge what rental may look like for you.
Timeshare Rental Pros prioritizes the owner first. We were once in your position, trying to rent our unit, and found the options to be misleading and confusing. Our team believes nobody should have to go through the process alone, which is why we created a tried-and-true solution to timeshare rental.
Seems Overwhelming? Consider Renting with a Company
We will tell you right away what most timeshare rental companies won’t. Our nine tips encourage transparency within the industry; something we rarely see. Timeshare developers try to sell you your unit with the promise that you can eventually resell or rent it out and make back your money. You can do that, but you need the realities of the process.
Renting on your own is a lot of work and can be risky. Working with our team will give you that peace of mind you are missing out on. When you rent with us, you don’t have to deal with the anxiety of wondering whether your unit will get booked.
Instead, we pay you upfront. That’s right. Renting with us means getting cash right away, even if we can never book your unit. We rent out points from timeshare owners, not properties. We have found that doing it any other way doesn’t get our clients the results they are looking for.
Maybe you have some unused timeshare points. Chances are, you might have more than you think. Or maybe you’re always forgetting to book your vacation because it’s hard to find the time. This leads to your points going to waste and expiring. Whatever the case may be, we are putting an end to it all.
If you’re looking to get started now, our team is dedicated solely to helping owners find renters for their properties without all the hassle! Calling us today will get you on the phone with one of our team members within 24 hours. Your decision to act today can get you paid tomorrow. With Timeshare Rental Pros, renting out your timeshare has become more profitable than ever.