# Marriott's New Rental Program



## Quilter (Mar 20, 2007)

Before listing my Aruba Ocean Club week with Marriott for rental I waited to see how much I was receiving from them for this years rent.   I wasn't going to listi with them if the new amount was way below what I've received in the past.  

Well the check came this week for $2,900 (1 bedroom, President's Week).  I just called to see how much they'd quote me to list with them next year.  I couldn't get a quote because they've already accepted all the President's Weeks they want and wouldn't tell me how much they were offering.  The representative did say that it would probably be around $1,500.   

I'm  trying to find out if I'll do business with their rental department in the future.  Does anyone know how much Marriott Rentals offered for a 1 bedroom week in Aruba with a 2/16/08 check in date?


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## Dave M (Mar 20, 2007)

The info you got should be reasonably accurate. All of the reports on this forum indicate that actual offers under the new program are usually significantly below net rental payments under the old program. 

Whether you do business with Marriott on rentals in the future should be decided each time. Make your reservation early and call to ask for a rental quote. Then decide based on that particular offer whether you want to rent through Marriott or do something else with your week. Offers will likely vary depending on how much Marriott "needs" a particular week.


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## hipslo (Mar 20, 2007)

Dave M said:


> The info you got should be reasonably accurate. All of the reports on this forum indicate that actual offers under the new program are usually significantly below net rental payments under the old program.
> 
> Whether you do business with Marriott on rentals in the future should be decided each time. Make your reservation early and call to ask for a rental quote. Then decide based on that particular offer whether you want to rent through Marriott or do something else with your week. Offers will likely vary depending on how much Marriott "needs" a particular week.



This thread has just sparked my interest.  I am contemplating renting out one or more Mountainside ski weeks in 2008.  Last year I was offered $1,970 by Marriott, which I thought was kind of absurdly low, but nice to know it was there as a "last resort" if I couldnt otherwise rent on my own (which I was able to do).  As a result of this thread I just called to check what they were offering for 2008 and was quoted $2,765.  That is a HUGE jump from last year (around 40%) and, while still somewhat on the low side for the real "prime" ski weeks, is no longer so low that it is worth dismissing out of hand. That would be even more the case for some of the less "prime" ski weeks.  I havent yet decided what to do, but thought it was interesting and warranted reporting.


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## Quilter (Mar 20, 2007)

Dave M said:


> Whether you do business with Marriott on rentals in the future should be decided each time. Make your reservation early and call to ask for a rental quote. Then decide based on that particular offer whether you want to rent through Marriott or do something else with your week. Offers will likely vary depending on how much Marriott "needs" a particular week.



I've got to say when the Owner Services rep said they weren't accepting any more President's weeks it surprised me.  I had tried finding out their offer weeks (months?) ago shortly after I had the week reserved.  I was told then that the amount hadn't been decided and I should call back. 

If any Aruba owners did get a quote for the week, I'm still curious as to what it was.  

Thank you,
Suzzanne


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## ownsmany (Mar 20, 2007)

*will they take resale wks?*

will they rent your week if you bought it resale?


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## Sunbum (Mar 20, 2007)

I just  called Marriott about renting out my 1 bedroom at the Aruba Ocean Club for new years week. All they came up with is $1475 less some taxes. They are renting it out that week for $825/night. ($5775/week). Good profit for them.


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## MOXJO7282 (Mar 20, 2007)

ownsmany said:


> will they rent your week if you bought it resale?



This is a very good question. I personally don't know. Anyone?


Also, you do get a W-2 from Marriott, which needs to be considered.

Regards.
Joe


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## hipslo (Mar 20, 2007)

MOXJO7282 said:


> This is a very good question. I personally don't know. Anyone?
> 
> 
> Also, you do get a W-2 from Marriott, which needs to be considered.
> ...



I have been told that Marriott will take a resale week, though I do not yet have any first hand experience with this and would also be interested if anyone has done this with a resale week.

As to the w-2 (probably a 1099, actutally), all rental income is properly reportable, whether it is received from Marriott or from a third party.


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## Quilter (Mar 20, 2007)

Sunbum said:


> I just  called Marriott about renting out my 1 bedroom at the Aruba Ocean Club for new years week. All they came up with is $1475 less some taxes. They are renting it out that week for $825/night. ($5775/week). Good profit for them.



Thanks Sunbum.  That New Years week could be a comparable rent quote.   I gave them a New Years week a couple years ago and my take on that one was $3K.  

My week is a resale.  Marriott has rented it for me several times.  I sure did like the old 35/65 split.  Why did they have to mess with that?  :annoyed:


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## hipslo (Mar 20, 2007)

Ok, so here's a question.  Would anyone have any qualms about offering one or more weeks to Marriott to rent where the weeks were used to secure reservations 13 months out?  Let's assume that all weeks have separate confirmation numbers, and that the offer would not occur until no sonner than 12 months from the end of the last week reserved at 13 months out?  Any anecdotal experience with this out there?


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## Icarus (Mar 20, 2007)

hipslo said:


> As to the w-2 (probably a 1099, actutally), all rental income is properly reportable, whether it is received from Marriott or from a third party.



If you get a 1099, can you write off that years maint. fee against the income? Can you write off anything else against the rental income?

-David


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## Quilter (Mar 20, 2007)

hipslo said:


> Ok, so here's a question.  Would anyone have any qualms about offering one or more weeks to Marriott to rent where the weeks were used to secure reservations 13 months out?  Let's assume that all weeks have separate confirmation numbers, and that the offer would not occur until no sonner than 12 months from the end of the last week reserved at 13 months out?  Any anecdotal experience with this out there?



I think I was following you for the first 2 sentances.  You wanted to know if anyone would offer a week for rent if it was reserved using the 13 month rule--right?

Then when you said "Let's assume. . ."  I was lost.   

I've rented weeks I've reserved with the 13 month rule.    I've even told the owner services person I was planning to give it to rentals when we were working on reserving it.     Why then should I have any qualms about renting it?


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## GrayFal (Mar 20, 2007)

hipslo said:


> Ok, so here's a question.  Would anyone have any qualms about offering one or more weeks to Marriott to rent where the weeks were used to secure reservations 13 months out?  Let's assume that all weeks have separate confirmation numbers, and that the offer would not occur until no sonner than 12 months from the end of the last week reserved at 13 months out?  Any anecdotal experience with this out there?


Quilter is able to sleep at night - and so should you.

And the offer could certainly occur prior to the 12 month mark, they know historically which weeks rent well and which ones they want year to year.

Q, it is VERY hard to believe  that Marriott 'had enough' President week units in Aruba!


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## Dave M (Mar 20, 2007)

I believe the question is posed because Marriott's written rules for the 13-month reservation program, at least per the MVCI website, state (bold emphasis added):





> If you are a multiple-week owner, who wants to reserve concurrent or consecutive weeks *to occupy*, you may make reservations beginning 13 months prior to the requested check-in date.


However, it's clear that Marriott has never enforced this "rule". Perhaps that's because it isn’t a rule! The "to occupy" restrictive language doesn't appear in any of the various legal documents that I have for three resorts.


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## hipslo (Mar 20, 2007)

Quilter said:


> I think I was following you for the first 2 sentances.  You wanted to know if anyone would offer a week for rent if it was reserved using the 13 month rule--right?
> 
> Then when you said "Let's assume. . ."  I was lost.
> 
> I've rented weeks I've reserved with the 13 month rule.    I've even told the owner services person I was planning to give it to rentals when we were working on reserving it.     Why then should I have any qualms about renting it?



Isn't there something somewhere that maybe says that to use the 13 month rule, the reservations have to be with respect to a unit that is "to occupy", whatever that means?  I thought I had read that somewhere here at some point, and that thus there was perhaps some concern that either depositing a week or renting a week that had been reserved using the 13 month rule could be problematic.  If that were the case, actually renting through Marrriott would seem the most direct route to potentially running into trouble on this front.  If that is not something I need to be concerned about, it would be good to know.


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## hipslo (Mar 20, 2007)

hipslo said:


> Isn't there something somewhere that maybe says that to use the 13 month rule, the reservations have to be with respect to a unit that is "to occupy", whatever that means?  I thought I had read that somewhere here at some point, and that thus there was perhaps some concern that either depositing a week or renting a week that had been reserved using the 13 month rule could be problematic.  If that were the case, actually renting through Marrriott would seem the most direct route to potentially running into trouble on this front.  If that is not something I need to be concerned about, it would be good to know.



I see Dave M has clarified what I was thinking of.  Makes it quite tempting for me to go for Marriott's offer on one or more of my Mountainside weeks, and not have to incur redweek, myresortnetwork or vrbo fees, deal with tenant inquiries, etc.  Not sure I'd even be giving up all that much rental income (some, but not too much), given the offer I got today from Marriott.  This is very helpful, thank you everyone.


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## Cathyb (Mar 21, 2007)

Went to Owner's meeting at DSV yesterday and rental questions came up. We were told that too many owners were grabbing the popular weeks like Thanksgiving and Easter, then renting them out -- making it near impossible for other owners to get those weeks to enjoy them themselves.  Sounds like the right thing happened from my perspective


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## hipslo (Mar 21, 2007)

Cathyb said:


> Went to Owner's meeting at DSV yesterday and rental questions came up. We were told that too many owners were grabbing the popular weeks like Thanksgiving and Easter, then renting them out -- making it near impossible for other owners to get those weeks to enjoy them themselves.  Sounds like the right thing happened from my perspective



Couldnt those owners just rent on their own, though, and perhaps even get higher rental rates to boot?


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## hipslo (Mar 21, 2007)

Cathyb said:


> Went to Owner's meeting at DSV yesterday and rental questions came up. We were told that too many owners were grabbing the popular weeks like Thanksgiving and Easter, then renting them out -- making it near impossible for other owners to get those weeks to enjoy them themselves.  Sounds like the right thing happened from my perspective



As a follow up, though I have heard this sentiment expressed by others, previously, as well,  I am not sure I understand it, or the true nature of the concern.  Once an owner has been successful in reserving a popular week, such as Thanksgiving or Easter, in your example, that week is no longer available to other owners to reserve, regardless of the use made of the week by the reserving owner.  So, why should it really matter to anyone else whether the reserving owner then (i) uses the week, (ii) rents the week to Marriott, (iii) rents the week on their own, (iv) deposits the week with II, (v) lets a friend or family member stay there for little or no charge,  (vi) donates the week to charity, (vii) trades the week in for points, or (viii) lets the unit sit there vacant all week?  The reserving owner has paid for the week, and pays mf's, just as all other owners do.  If the reserving owner then desires to utilize the reserved week in a manner other than occupying it (which all owners have the right to do), I guess I am just not understanding  why that seems to be a sore spot with folks?


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## m61376 (Mar 21, 2007)

hipslo said:


> As a follow up, though I have heard this sentiment expressed by others, previously, as well,  I am not sure I understand it, or the true nature of the concern.  Once an owner has been successful in reserving a popular week, such as Thanksgiving or Easter, in your example, that week is no longer available to other owners to reserve, regardless of the use made of the week by the reserving owner.  So, why should it really matter to anyone else whether the reserving owner then (i) uses the week, (ii) rents the week to Marriott, (iii) rents the week on their own, (iv) deposits the week with II, (v) lets a friend or family member stay there for little or no charge,  (vi) donates the week to charity, (vii) trades the week in for points, or (viii) lets the unit sit there vacant all week?  The reserving owner has paid for the week, and pays mf's, just as all other owners do.  If the reserving owner then desires to utilize the reserved week in a manner other than occupying it (which all owners have the right to do), I guess I am just not understanding  why that seems to be a sore spot with folks?


While you are right- every owner has an equal right to book the week they want, I think fundamentally most people buy timeshares to use and enjoy. As such, it is irritating to lose out on reserving a coveted week because someone else reserved it to make a buck rather than using it. Of course, the renter/trader's perspective is that they paid for the week so they are entitled, just like everyone else, to get the best week they can and if they have the knowledge to maneuver the system better...well, that's to their advantage and they are allowed. But, the less savvy or perhaps less lucky owner who has a little longer wait time and gets closed out of the week they were really looking forward to sharing with their family will, understandably, be resentful.

Personally, I can see both sides of the coin. Others may really jump down my throat for saying this, but what I do think is very unfair is all the multiple weeks bookings to get the 13 month advantage, with one or more weeks then being rented, traded or exchanged. I think that's circumventing the intent of the program and someone's gain is someone else's loss. That's not to say I wouldn't take advantage of the ability to do that- but I recognize it is unfair.


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## Dave M (Mar 21, 2007)

hipslo -

To both of your posts....

Yes, owners could rent their week on their own and (usually) net more than if Marriott takes the week. However, many owners don't want to be bothered with renting it on their own. How many of people avoid doing something worthwhile simply because they have never done it before and don't know how to start? Zillions (well, almost that many), I'll bet.

Further, only a very tiny fraction (less than 1/2 of one percent of U.S. timeshare households) are registered on this BBS! Thus, the overwhelming majority of timeshare owners don't have access to the type of advice on renting that they can get here.

Why do some owners get upset when others reserve the best weeks solely for rental purposes? You are correct that ownership carries with it the right for any of the uses you listed. That's factual. However, the emotional side of many of us could easily argue that it's "not fair" that more owners can't use those most popular weeks at their timeshare for personal use. 

Perhaps it's because of complaints to Marriott about that issue that Marriott is limiting the number of units it will accept, even if it could rent. If that discourages a lot of owners from reserving weeks solely for rental purposes, those owners who want to reserve for their own use will be much happier.


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## hipslo (Mar 21, 2007)

Dave M said:


> Perhaps it's because of complaints to Marriott about that issue that Marriott is limiting the number of units it will accept, even if it could rent. If that discourages a lot of owners from reserving weeks solely for rental purposes, those owners who want to reserve for their own use will be much happier.



I suppose, though that's assuming that those owners wouldn't simply continue to make those same reservations for their own use, or the use of family/ friends.  At the end of the day, the only difference would be the identity of who it is is that actually occupies the reserved high demand unit, which other owners wouldn't even necessarily be congnizant of.  It strikes me that the real issue ought to be with the nature of a floating system and the difficulty of reserving high demand weeks (which is an inherent aspect of the Marriott system), rather than with the use ultimately put to those weeks by some owners.


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## Quilter (Mar 21, 2007)

A timeshare salesperson once told me he sold "X" amount of Aruba weeks to a buyer who's intent was to just turn around and rent them through Marriott.  I wonder what that buyer thinks about the rental program now.

Our Aruba purchase followed a tour of the Customs House where the salesperson there told how he owned at Customs House, reserved graduation weeks (Harvard, Boston College) and rented them.  Then he told how he made a purchase at the then newly offered Surf Club for the same purposes.  We looked into Surf Club and decided it wasn't that great a rental income investment.  Then I found in the TUG classifieds my Aruba Club 1 bedroom (thanks again Glenn Wallace).    The 65/35 rental split and the ability to reserve holiday weeks were 2 benefits the Ocean Club had over the Surf Club.  To recoup most of our purchase price we decided we'd rent it for at least 4 years before using it since we didn't need it for use quite yet.  

So when you say "unfair", who have been our tutors?  Besides TUG we've had a fair share from the Marriott salesteam, that's who.   When you sit at their tables what weeks do they entice you with to make the sale?  Those popular weeks.  What do they say you can do with them?  Occupy, trade, rent.  Buy 2, use the 13 month rule.  Do they stress that's only for occupancy.  No way.  Why bring up that little tidbit of miscellaneous information.  

Besides, in a year's time between reservations and occupancy how do you know for sure you'll occupy?  Plans change.   You could reserve President's Week with full intent of occupying and end up at a family wedding in Podunk.   What to do with that wonderful President's Week???? No problem--why don't you just try renting it or exchange it for another great vacation.  

We purchased our timeshare weeks for many reasons, current use, future use, rentals to cover m/f's, points.   We don't have time to use every one of the weeks in a given year.  Each year the reservation weeks vary.  It's not a given as to how many we'll exchange or rent.  It's a vacation lifestyle and sometimes it's a business.  Just the way we found it could be when we looked into how to maximize our ownership.


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## hipslo (Mar 21, 2007)

Quilter said:


> We purchased our timeshare weeks for many reasons, current use, future use, rentals to cover m/f's, points.   We don't have time to use every one of the weeks in a given year.  Each year the reservation weeks vary.  It's not a given as to how many we'll exchange or rent.  It's a vacation lifestyle and sometimes it's a business.  Just the way we found it could be when we looked into how to maximize our ownership.



Precisely! And well said.


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## Retired TSO (Mar 21, 2007)

ownsmany said:


> will they rent your week if you bought it resale?



YES. I  rented my Aruba Surf Club through Marriott which was bought on a resale..


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## ciscogizmo1 (Mar 21, 2007)

Well.... I'm disappointed with the change in the rental program.   I really liked it before.  We bought a timeshare so that we wouldn't have to deal with maintenance issues & renting like you do with a cabin or beach cottage.  So for us the Marriott system was great because it allows for so many options with your week including renting.  Anyways, currently, I'm trying to rent a week I own and it is not as easy as it seems.  I've had an ad out for 3 months in 3 different locations and so far I've only gotten about 10 responses.  None have panned out.  One person wanted me to lower my rate.  But they wanted to lower to the point that it was the same price that Marriott was offering.  I think, renting on your own for places like Aruba, Hawaii are gonna be easy.  But renting in places like Lake Tahoe & New Jersey is going to be more difficult.  So the new rental program is gonna hurt those that buy in less popular places.  JMHO...


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## bogey21 (Mar 21, 2007)

Sounds like another Marriott bait and switch to me.  When I owned my 4 Marriotts I had great success with the old rental program.  As I understand the new program it would cut my income in half.  Marriott sold 2 of my 4 weeks for me and I was very satisfied with the net proceeds.  With the new program, I'm not so sure I would be a happy camper.

George


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## Quilter (Mar 21, 2007)

ciscogizmo1 said:


> Well.... I'm disappointed with the change in the rental program.   I really liked it before.
> 
> Anyways, currently, I'm trying to rent a week I own and it is not as easy as it seems.  JMHO...



I'm disappointed too but only with regards to the Aruba week.   It was a no brainer to list it with Marriott with the 35/65 split.  The resorts we own that had a 50/50 split I rent myself.  But as you say, it's not so simple.  And now with more owners listing themselves the competition on redweek, myresortnetwork and TUG is growing.


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## cmi (Mar 21, 2007)

I think, renting on your own for places like Aruba, Hawaii are gonna be easy.  But renting in places like Lake Tahoe & New Jersey is going to be more difficult.  So the new rental program is gonna hurt those that buy in less popular places.  JMHO...[/QUOTE]



Not necessarily so for Hawaii.  Last year we had no luck renting our week ourselves. Marriott took our week immediately and paid us nicely.  This year Marriott doesn't want our week at all.  And if it's going to get more competitive on Redweek, Tug, Myresort, then I'm afraid more competition means lower rental prices.


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## Cathyb (Mar 21, 2007)

hipslo: From my standpoint,as an owner, if I am trying desperately to get Easter week for a family reunion and discover that another owner got the week and rented it out to a non-owner -- it just doesn't sit right.  I guess financial greed isn't my cup of tea.


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## hipslo (Mar 21, 2007)

Cathyb said:


> hipslo: From my standpoint,as an owner, if I am trying desperately to get Easter week for a family reunion and discover that another owner got the week and rented it out to a non-owner -- it just doesn't sit right.  I guess financial greed isn't my cup of tea.



I suppose that one person's "financial greed" is another person's means of funding carrying costs, plus a modest return (6 - 7% or so, in my experience) on the outlay involved in acquiring the week, in a year in which an owner is not able to use the week.  Believe me, there are much easier and safer means to earn a 6 - 7% return on invested capital than "investing" in Marriott timeshares.  Why should one owner's desire to occupy during a particular week this year outweigh another owner's desire to realize a modest return on invested capital in a year in which they are not able to occupy a unit so as to enable that owner to continue to own the week and enjoy it with their family in  later years?  Characterizing the need to rent a unit for a modest profit (which is made easier to do when a prime week is reserved) as "financial greed" I think reflects a fundamental misunderstanding of the economics involved.  At the end of the day, I think your real issue is with the inherent nature of the difficulty in securing certain weeks in a floating week system, rather than with the use that certain owners choose to make of the weeks that they have reserved, and that owners who rent out the weeks that they have reserved (and have paid for just as you hvae) are but a convenient target against which to express some of that frustration.


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## hipslo (Mar 6, 2008)

Dave M said:


> I believe the question is posed because Marriott's written rules for the 13-month reservation program, at least per the MVCI website, state (bold emphasis added):However, it's clear that Marriott has never enforced this "rule". Perhaps that's because it isn’t a rule! The "to occupy" restrictive language doesn't appear in any of the various legal documents that I have for three resorts.



Had an interesting experience today that is inconsistent with what ahd appeared to be the consensus view on this issue.  I have previously made reservations for March 7 and March 14, 2009 at Mountainside, using the 13 month rule.  I called today to see whether Marriott would be interested in renting the March 7, 2009 week.  They said that they would take it and offered 2805.  However, they said that if I did this prior to March 14, 2008, my March 14, 2009 reservation would be cancelled since it wouldnt have been eligible to be made on its own prior to 12 months out.  This is what they told me even though the two reservations have separate confirmation numbers.  I declined the offer and told them that I'd check back after March 14.  Just thought folks might be interested in hearing about this.


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## Beverley (Mar 6, 2008)

Quilter said:


> Besides, in a year's time between reservations and occupancy how do you know for sure you'll occupy?  Plans change.   You could reserve President's Week with full intent of occupying and end up at a family wedding in Podunk.   What to do with that wonderful President's Week???? No problem--why don't you just try renting it or exchange it for another great vacation.



Where is "Podunk"?    Just had to ask .. 

Beverley


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## Beverley (Mar 6, 2008)

hipslo said:


> Had an interesting experience today that is inconsistent with what ahd appeared to be the consensus view on this issue.  I have previously made reservations for March 7 and March 14, 2009 at Mountainside, using the 13 month rule.  I called today to see whether Marriott would be interested in renting the March 7, 2009 week.  They said that they would take it and offered 2805.  However, they said that if I did this prior to March 14, 2008, my March 14, 2009 reservation would be cancelled since it wouldnt have been eligible to be made on its own prior to 12 months out.  This is what they told me even though the two reservations have separate confirmation numbers.  I declined the offer and told them that I'd check back after March 14.  Just thought folks might be interested in hearing about this.



WOW!

Beverley


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## KathyPet (Mar 6, 2008)

Beverly,  The last time I was there it was in Iowa.


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## Beverley (Mar 6, 2008)

Thanks Kathy,

Beverley


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## jimf41 (Mar 6, 2008)

*Location of Podunk*

Podunk is evidently a real place. The following link explains it.

http://www.straightdope.com/classics/a3_132.html


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## Beverley (Mar 6, 2008)

OKay guys, now you have me going ... I checked mapquest and lo and behold I found 6 locations for Podunk,    CT, MI, NY, VT ... no Iowa?

:rofl: 

Beverley


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## JoeZuke (Mar 29, 2008)

Icarus said:


> If you get a 1099, can you write off that years maint. fee against the income? Can you write off anything else against the rental income?
> 
> -David



Did you ever get an answer to this question?


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## bogey21 (Mar 29, 2008)

I don't know if you should.  What makes sense to me is to deduct MF, Marriott's Commission, and Property Taxes

George

PS Maybe there is no commission under the new program.  I was thinking of the old one.


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## Dave M (Mar 30, 2008)

See this Income Taxes and Timeshares article from the TUG Advice section for how to handle rental income and allowable deductions. The treatment is the same whether or not you receive a 1099.


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## tahoeJoe (Mar 30, 2008)

Quilter said:


> Before listing my Aruba Ocean Club week with Marriott for rental I waited to see how much I was receiving from them for this years rent.   I wasn't going to listi with them if the new amount was way below what I've received in the past.
> 
> Well the check came this week for $2,900 (1 bedroom, President's Week).  I just called to see how much they'd quote me to list with them next year.  I couldn't get a quote because they've already accepted all the President's Weeks they want and wouldn't tell me how much they were offering.  The representative did say that it would probably be around $1,500.
> 
> I'm  trying to find out if I'll do business with their rental department in the future.  Does anyone know how much Marriott Rentals offered for a 1 bedroom week in Aruba with a 2/16/08 check in date?



I was told by a salesman that Marriott takes a 50% cut from all rentals. So if they send you a check for $1500 then the unit grossed $3000. Does anyone know if that is true? 

Also, if they 1099 the income do they report it as $1500 or $3000 (in the above example)?

-TJ


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## luv2vacation (Mar 30, 2008)

I thought there was a Podunk in Alabama.  That's the one Hubby always refers to!


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## IngridN (Mar 30, 2008)

tahoeJoe said:


> I was told by a salesman that Marriott takes a 50% cut from all rentals. So if they send you a check for $1500 then the unit grossed $3000. Does anyone know if that is true?
> 
> Also, if they 1099 the income do they report it as $1500 or $3000 (in the above example)?
> 
> -TJ



Under the old rental program, Marriott's cut was 50% of the actual rental costs.  The check stub listed the details, gross and net $. The 1099 shows the net amount only.

Under the new program, who knows how much their cut is.  You call and see if your week is eligible and if so, they tell you how much they will give you and you get the check at that time rather than waiting until the rental period has passed.

Ingrid


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## Dave M (Mar 30, 2008)

IngridN said:


> ...and you get the check at that time rather than waiting until the rental period has passed.


And the amount of that check is what will show on the 1099 that Marriott sends to you.


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## nanceetom (Mar 31, 2008)

*Rental*

Being a teacher, I can only vacation during February (presiden't break) in the winter.  We could not get president's week for 09 at our Ocean Club Aruba so I reserved the following week 2/20 thinking it might get a decent trade or rental.  I was told they already had their quota for rentals.  Just the other day, I called for another item and thought I'd ask again.  They did take our week and paid $2900 for a 2 bedroom.  I don't know if it was a give away or not, but it took the stress away from waiting for a place for next February.


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## floyddl (Apr 7, 2008)

Dave M said:


> And the amount of that check is what will show on the 1099 that Marriott sends to you.



Dave, I received a revised 1099 for my Marriott Mountainside rental in 2007 this weekend.  It shows the amount Marriott received for renting the unit and not the amount I received.  I contacted owner services and they put me in contact with someone in the rental dept. and they said they are required to report the amount received on the 1099.  I told them that I had never seen one before for the full rental amount and they claimed this was not a change from previous years and that I should report other 1/2 as rental commission.  Something is very wrong here.


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## hipslo (Apr 7, 2008)

floyddl said:


> Dave, I received a revised 1099 for my Marriott Mountainside rental in 2007 this weekend.  It shows the amount Marriott received for renting the unit and not the amount I received.  I contacted owner services and they put me in contact with someone in the rental dept. and they said they are required to report the amount received on the 1099.  I told them that I had never seen one before for the full rental amount and they claimed this was not a change from previous years and that I should report other 1/2 as rental commission.  Something is very wrong here.



Sounds like someone screwed something up, thats how it would have worked under the old program, but not the new one.  I also rented a unit at mountainside through the marriott rental program in 2007 and (at least so far) I have not received a revised 1099 like the one you describe, just the original one showing the amount paid to me by marriott.


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## floyddl (Apr 7, 2008)

hipslo said:


> Sounds like someone screwed something up, thats how it would have worked under the old program, but not the new one.  I also rented a unit at mountainside through the marriott rental program in 2007 and (at least so far) I have not received a revised 1099 like the one you describe, just the original one showing the amount paid to me by marriott.



Did you receive this email last week?  I can't for the life of me understand how they can mess this up.  The first one was right and they now issue a revised one and say this has always been the way it is done.

Dear Valued Owner:

You recently received an IRS Form 1099-MISC reporting 2007 miscellaneous income from your rental proceeds. Unfortunately due to processing problems, your original Form 1099-MISC contained errors in the amounts shown in Box 1 (Rents).

A corrected Form 1099-MISC will be mailed to you by Wednesday, April 2, 2008. Please note the "X" in the box at the top of the form indicates that it is the corrected version. This form will reflect the accurate information and should be used to complete your Federal Income Tax return. These corrected amounts will be reported to the Internal Revenue Service. 

If you received a form 1099-INT for interest earned on your Escrow account, the amount reported on that 1099 form is still reportable. The form 1099-INT would have been received from Marriott Ownership Resorts, Inc. reported under Tax ID 52-1320904.

We regret any inconvenience our original error might have caused you. If you have additional questions, please consult with your tax adviser.

If you have further questions, please contact a Financial Services Representative at 800-443-4391. They are available to assist you Monday through Friday from 9 a.m. to 8 p.m. Eastern time.

Sincerely,


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## Dave M (Apr 7, 2008)

Yes, Marriott has made a mistake. [Edited to note, however, that this post should be read in context with my next post - below.] The amount in box #1 is supposed to be the total that Marriott paid to you, because that's the amount of rent that Marriott is paying you for the week you own and is equal to the amount shown in your contract with Marriott. Also, the Form 1099 instructions make it clear that they are supposed to show the gross amount of what they were supposed to and did pay to you. 

As an example of how ridiculous Marriott's incorrect 1099 position is, if they hadn't rented your particular unit, they would presumably show zero rental income for Marriott and would not have sent you a 1099, even though they sent you a check. Obviously that's wrong, too!

Yes, under the old rental program, Marriott would show the gross amount that Marriott rented your week for to someone else, but that's because the old arrangement was a commission arrangement.

It's best to have a corrected 1099. However, if you are trying to get your tax return done for filing next week, simply show the full amount (per the 1099) on Schedule E and offset it with the amount (on the Commissions line) necessary to get to the net you received. 

Don't forget to claim your MFs and depreciation as rental income deductions. See the Income Taxes and Timeshares article in the TUG Advice section for more info.


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## ciscogizmo1 (Apr 7, 2008)

floyddl said:


> Dave, I received a revised 1099 for my Marriott Mountainside rental in 2007 this weekend.  It shows the amount Marriott received for renting the unit and not the amount I received.  I contacted owner services and they put me in contact with someone in the rental dept. and they said they are required to report the amount received on the 1099.  I told them that I had never seen one before for the full rental amount and they claimed this was not a change from previous years and that I should report other 1/2 as rental commission.  Something is very wrong here.



Floyddl.  I got the same e-mail but I assumed it is for rental income from the old program.  I've never rented under the new program.  Since, under the old program you got your monies several weeks after the rental that would make sense to me.  My dh will just deduct the commission paid to Marriott to get the actual rental proceeds.  So, I believe Marriott did it correctly.


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## hipslo (Apr 7, 2008)

floyddl said:


> Did you receive this email last week?




nope... how strange.

But, wait, I just realized that, although I entered into the transaction with marriott, and received the proceeds, in 2007, what I rented at that time was a 2008 reservation.  So, if you rented a 2007 reservation, perhaps you did so under the OLD program, got paid for the unit in 2007, and the 1099 you got properly reflects the old program?  Werent 2007 reservations handled under the OLD rental program?  I'm not sure when the rental program changed, but maybe this is the method to the madness?


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## Dave M (Apr 7, 2008)

hipslo said:


> So, if you rented a 2007 reservation, perhaps you did so under the OLD program, got paid for the unit in 2007, and the 1099 you got properly reflects the old program?


That's quite possible and is something I forgot about when I posted above.

The new rental program was instituted on or about June 19, 2006. Thus, a rental agrement made with Marriott a full year in advance would have been under the old program if the rental week was during the first five+ months of 2007. And in such a case, the _gross_ rent that Marriott received would be the total that should be shown in box #1 of the 1099.


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## IngridN (Apr 7, 2008)

I received the same letter last week and the revised 1099 came on Saturday.  I rented through the old Marriott program...2006 weeks, however, because of a "computer problem" did not receive the proceeds until 2007.  In fact, when I received the first 1099, I thought it was in error because it showed the net amount they paid me.  When I rented other, earlier weeks through them, the 1099 was for the gross amount from which I deducted Marriott's commission, mf, and property taxes.  It's a good thing we owe the IRS and are waiting until the last minute to send off the check  .


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## rwroth (Apr 7, 2008)

I have two comments to make on this thread:
1) As noted above, I also received two 1099 Forms for renting two Desert Springs 1BR units (one red & one white) in 2006, being paid in 2007: an original 1099 for my net of $2,779 (for both rentals) and then the corrected 1099 for a gross of $4275 – including Marriott’s 35% commission. Both were under the “old rental program”.
2) My net on the red 1BR unit, for Christmas week 2006, was $1,862. For 2007 I was “offered” under the new rental program $1050 for the entire 2BR unit. (MVCI would not take only the 1BR.). I did not accept this $1050, but split the unit & used each section in exchanges. For 2008, MVCI would not take even the 2BR for rent – still Christmas week, so I am trying to rent it on my own – not always an easy task.

I have voiced my opinion many times to MVCI about their reneging on the original sales promotion when I bought the property, to rent the unit, if I desired, but have found only deaf ears. I don’t understand why Marriott has turned away from this nice 35% profit!


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## taffy19 (Apr 7, 2008)

Dave M said:


> I believe the question is posed because Marriott's written rules for the 13-month reservation program, at least per the MVCI website, state (bold emphasis added):However, it's clear that Marriott has never enforced this "rule". Perhaps that's because it isn’t a rule! The "to occupy" restrictive language doesn't appear in any of the various legal documents that I have for three resorts.


Personally, I think it is very unfair that people rent these units out for a big profit, if they don't even own there, while owners of one week only are not able to make reservations for the week they like to occupy in their own resort. JMHO.  

It drove us crazy as we fell in this category so we finally decided to get rid of our single week and upgraded to a fixed unit, fixed week in Maui. We have no regrets as we know that it is waiting for us next year.

We spoke with other fixed week owners and they like the idea too as you still can exchange if you want to do that. Some people were complaining how hard it was to get in unless you own multiple weeks and then you hope to have a decent view.


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## ciscogizmo1 (Apr 7, 2008)

iconnections said:


> Personally, I think it is very unfair that people rent these units out for a big profit, if they don't even own there, while owners of one week only are not able to make reservations for the week they like to occupy in their own resort. JMHO.
> 
> It drove us crazy as we fell in this category so we finally decided to get rid of our single week and upgraded to a fixed unit, fixed week in Maui. We have no regrets as we know that it is waiting for us next year.
> 
> We spoke with other fixed week owners and they like the idea too as you still can exchange if you want to do that. Some people were complaining how hard it was to get in unless you own multiple weeks and then you hope to have a decent view.



YOu know what makes me mad is that because of the POPULAR places like Maui or ski weeks, etc.. that Marriott had to change their rental program.  I own at places that do not book up immediately.  In fact when I go online at two of my resorts all weeks are available in 2009 including president's week & spring break weeks.  I think at one resort the Sat check-ins are not available for some weeks but not all (you can still check in on Sunday or Friday).  

So, it is frustrating because there are other owners out there but because there are a few bad seeds at Maui the whole program had to be revamped.  

I've wanted to say this for a long time so, I hope you don't think I'm directing to you as an owner but it is frustrating for other non-Maui owners.  JMHO...


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## hipslo (Apr 7, 2008)

iconnections said:


> Personally, I think it is very unfair that people rent these units out for a big profit, if they don't even own there, while owners of one week only are not able to make reservations for the week they like to occupy in their own resort.



I may have misunderstood what you feel is unfair, but so far as I know there is no way to rent out a unit (for a big profit, or otherwise) in a resort that one does not own at.


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## taffy19 (Apr 7, 2008)

I am not taking it personally at all. We bought all our timeshares for use only but have done some exchanges if we couldn't go at the last minute. Our exchanges were for our own use too and were satisfactory with both exchange companies.

What I have a problem with is that the Marriott Company "punished" the one week owners when they went to the 13 months booking system as it became much harder for us to reserve a week at our home resort. Some people can only afford a single week.  It is no longer our problem but I felt shortchanged by the Marriott and complained bitterly but not about the rentals. I didn't even know that you could rent exchanges.

I would feel very unhappy too if I would receive much less money for my rental now through the Marriott while they rent it for the same high price but that is capitalism. The bottom line is more important to them than their current or loyal customers but that may change one day when it will get harder to sell developer weeks or points. They are pricing themselves out of the market.

We are happy with our fixed weeks and fixed units and I am sitting on my balcony now gazing at the ocean while I am typing this.


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## hipslo (Apr 7, 2008)

iconnections said:


> I didn't even know that you could rent exchanges.



So far as I know, exchanges can NOT be rented out.


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## taffy19 (Apr 7, 2008)

hipslo said:


> So far as I know, exchanges can NOT be rented out.


If I understand it well, people own multiple Marriott resorts so can book 13 months out or even sooner. Because of this, they are able to reserve the best weeks at Maui or at the ski resorts too or any resort in high demand, if they own there. They are their own weeks so they are not renting exchange weeks out but they are taking advantage of the earlier booking arrangement at the expense of a single week owner. I guess, they don't care about us. 

Marriott doesn't seem to condemn it even though they say that booking early is for personal use only. They favor multiple week owners over us single week owners so we can take it or leave it which we did. 

I know this is not making me popular with some of you or with the Marriott either but it is the truth as I see it.  :annoyed:


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## hipslo (Apr 8, 2008)

iconnections said:


> If I understand it well, people own multiple Marriott resorts so can book 13 months out or even sooner. Because of this, they are able to reserve the best weeks at Maui or at the ski resorts too or any resort in high demand, if they own there. They are their own weeks so they are not renting exchange weeks out but they are taking advantage of the earlier booking arrangement at the expense of a single week owner. I guess, they don't care about us.
> 
> Marriott doesn't seem to condemn it even though they say that booking early is for personal use only. They favor multiple week owners over us single week owners so we can take it or leave it which we did.
> 
> I know this is not making me popular with some of you or with the Marriott either but it is the truth as I see it.  :annoyed:



Oh, ok, I understand, that's a rather different point.


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## thinze3 (Apr 8, 2008)

*Give the new rental program a little time.*

There has been much discussion about the "fairness" of people booking the best weeks and then renting them out year after year - no "timesharing" involved. I understand both sides, as Marriott does promote this as a sales pitch.

I also think that Marriott's new rental program will ultimately result in slightly less rental activity, as many folks do not want the hassel of renting the unit out themselves.  These owners may "throw in the towel" and either use or sale their timeshares.  This in turm could possibly result in more availablity for other Marriott owners/users.

Just a thought.


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## wa.mama (Apr 15, 2008)

thinze3 said:


> I also think that Marriott's new rental program will ultimately result in slightly less rental activity, as many folks do not want the hassel of renting the unit out themselves.  These owners may "throw in the towel" and either use or sale their timeshares.  This in turm could possibly result in more availablity for other Marriott owners/users.
> 
> Just a thought.



I think you're on the right track.  I called Marriott today to see what I'd get for renting out my Waiohai Christmas week.  Ready for this?----->$1200  .  The agent then asked, 3 times in succession, "are you ready to deposit this", "are you ready to trade this in", and "shall I cancel your reservation".  She was very eager to get the week, but not by actually renting it at a reasonable rate.


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