What are the Best Rental Areas?

[gkbiiii]

Here are some basic questions that I have and that I believe would benefit the Tug Group as a whole:

For someone new to the timeshare world, what you all say are the best areas for possible timeshare rental income?

What are the worst areas, to avoid?

What companies do you recommend and why?

What companies should be avoided?

Are there better times during the year to buy?

What are the key contract terms, we should look for?

I notice there are some big TUG Wyndham point owners, what are the advantages, compared to guaranteed income, from DVC points?

Is it worth paying higher Annual dues for such places as Atlantis, the Manhattan Club, & the Four Seasons properties?


If you all have any useful incites, please feel free to post them!!

 

[ronparise]

When I first started thinking about renting my timeshares, I asked the same questions as you. My wife told me that she wasnt paying another mf...She said "You better find a way to rent this S#$&" So I really had no choice but to find the answers

The answer I got was that anyone that knew what they were talking about was keeping their favorites secret. Now I understand why. There are so many timeshares, and so few really good rental weeks that anyone who has found something that works...keeps it to themselves

The other advice that I got was dont do it, its too risky, and too hard...the big boys will crush you

So I ignored that advice (I had no choice, remember what my wife said) and now I am becoming one of the big boys myself,. I may be too confident or too cocky, but Im not afraid to share what I think Ive learned, and that is SPECIALIZE....find your own niche and work it.

The things that seem to work best are what I call "Special Places at Special Times" Places where there are few timeshares and huge demand for accommodations....There are folks here that specialize in the South Florida Beaches in the winter and market to Snowbirds from "up north", Others make a ton of winter weekend reservations at resorts with indoor waterparks and market to families in nearby metropolitan areas. I met a couple that puts together golf packages at one particular resort. and Ive heard of a guy that does ski weekends. He arranges the accommodations, and lift tickets and bus transportation for large groups. I know a Washington DC specialist and a Hawaii specialist and a guy that does a ton for Bike Week in Daytona. I know Bluegreen, Marriott, Disney, Wyndham and Worldmark specialists and they are all successful... As for me...Im one of the guys to call if you want to go to a festival or event in New Orleans. So pick your poison and go to work

Try to cut in on our turf however, and chances are you will be on your own, but find your own niche and you can count on all the help you need.

 

[b2bailey]

About ten years ago I started buying timeshares with a two-fold plan. (1) as a piece of our future retirement plan and (2) in the meanwhile, reserve and rent the units.

Here is what actually happened: I discovered that I had somehow 'missed' the rule that says you can't rent-out a week that was exchanged through RCI and II.

Please be sure you understand that caveat before you go ANY further with your plan.

From postings I've read on TUG it would appear there are people who disregard this rule -- and somehow don't get 'caught' doing it. I'm not one of those people.

 

[Egret1986]

Correct! SPECIALIZE

I specialize in Virginia Beach and the Outer Banks. I have lived and vacationed in these areas all my life. I know the resorts. I know the demand. If need be, I can get to either area in a short window of time. I know the staff at the resorts and am very familiar with each resort. Repeat business is gold. If need be, I can give very personalized service.

I really think it helps when you know what you're renting. I've been renting and reselling since 2006. There weren't too many folks doing this in these areas. The last two years, I've seen a major influx of others doing what I'm doing. I've seen a real need this year to change up my business strategy, as far as rentals. It worked for a number of years, but as competition increases and with some of the pricing going lower and lower, it's time to change gears or get out for me. I enjoy it most of the time, and most of the time things go smoothly. It would leave a hole in my life that would need to be filled with something else. I live and breathe vacations.

SPECIALIZE, as Ron said. Every time that I try and go out in another area that I'm not familiar with, I usually regret it and remind myself, "stick with what you know."

 

[ronparise]

I specialize in Virginia Beach and the Outer Banks. I have lived and vacationed in these areas all my life. I know the resorts. I know the demand. If need be, I can get to either area in a short window of time. I know the staff at the resorts and am very familiar with each resort. Repeat business is gold. If need be, I can give very personalized service.

I really think it helps when you know what you're renting. I've been renting and reselling since 2006. There weren't too many folks doing this in these areas. The last two years, I've seen a major influx of others doing what I'm doing. I've seen a real need this year to change up my business strategy, as far as rentals. It worked for a number of years, but as competition increases and with some of the pricing going lower and lower, it's time to change gears or get out for me. I enjoy it most of the time, and most of the time things go smoothly. It would leave a hole in my life that would need to be filled with something else. I live and breathe vacations.

SPECIALIZE, as Ron said. Every time that I try and go out in another area that I'm not familiar with, I usually regret it and remind myself, "stick with what you know."

Like you I know the staff, room layout, nearby restaurants, public transportation schedules, etc etc at my favorite resort.

 

[DeniseM]

There have been a number of people on TUG who jumped into the vacation rental business, bought a bunch of timeshares, and then discovered that they bought timeshares with poor rental potential. Then they gave away the timeshares on TUG and gave up - wiser, but poorer.

Before the OP buys any timeshares as rentals, he should take 6 mos. or more to really study the market and find a niche that is under-served. He's asking the right questions, but he's not there yet.

 

[vacationhopeful]

I believe Egret1986 is absolutely correct - there are MORE people who are undercutting the traditional markets areas. They have way TOO many points or renting exchanges or gotten a mailing list of DESPERATE OWNERS (anything is better than nothing) or it is the RESORTS themselves who are renting below MF costs thru a broker.

Also, who do YOU think is cruising the seas in those MONSTER ships? With endless dining, free entertainment, 4 to a cabin ... etc And doing it last minute for the BIG DISCOUNTS.

The internet and Google searches are NOT our friends.

 

[ace2000]

To the OP... very few (Ron being the exception to the rule) are going to just willingly share specific locations where they're making their money. If you want ideas and are willing to put some of your time into it, just look at the TUGgers who rent and place web links at the bottom of their posts. Go to the web sites and look. It doesn't take too much effort to see where the majority of their efforts are focused on. Craigslist is a good source too.

However, it's not that simple. Many of the mega-renters are able to make money on their rentals due to their lower costs - lower MFs, VIP plans, and making good decisions on their purchases; and then just making smart decisions on when and where to book.

 

[Egret1986]

You can't rent out exchanges.....but apparently RCI inventory can be rented out.

...you can't rent-out a week that was exchanged through RCI and II.

Please be sure you understand that caveat before you go ANY further with your plan.

From postings I've read on TUG it would appear there are people who disregard this rule -- and somehow don't get 'caught' doing it. I'm not one of those people.

Apparently, there are some on TUG who actually have the ability to rent out RCI inventory. I didn't know that was the case and called someone out on it. It's always been the mantra on TUG that you can't rent out exchanges. I saw some units that had been on RCI and were listed here on TUG in the Rentals Offered Forum. The person indicated a Guest Certificate would be needed. My flag went up. It was a new poster and they quickly changed their TUG name.

I was called out and corrected that not all these postings of inventory are disallowed. So, how do you actually know which are allowed and which aren't?

Those of us that do a lot of rentals, but would like more inventory to rent, would welcome the opportunity to get more info on this avenue for additional inventory. Anyone want to share how to get into that? You can PM me if you like.

I've noticed these folks must get this inventory fairly cheap (great weeks last minute for $499-$699). It all appears last minute. However, RCI no longer discounts the points on any inventory (even three days from check-in) if it remotely has any value. They used to discount inventory at 45 days, then 30 days, then 14 days, then 7 days. Some stuff is discounted, but not much anymore.

 

[suzannesimon]

Since I have been renting timeshares successfully for a relatively short period of time, what worries me the most is the next recession. Those of you who were doing it in
2008, would you share how the rentals were after the crash? My biggest fear is sitting with a lot of inventory, no renters and huge maintenance fees.

 

[DeniseM]

High End timeshares are less impacted by a down-turn in the economy. People who are renting timeshares for $500 a night or more tend to be more financially stable during a recession than the guy who lives pay-check to pay-check and is looking for $100 a night.

 

[vacationhopeful]

I...Also, who do YOU think is cruising the seas in those MONSTER ships? With endless dining, free entertainment, 4 to a cabin ... etc And doing it last minute for the BIG DISCOUNTS.

The internet and Google searches are NOT our friends.

My comment reflects the timeshare world's competition in renting weeks. If you have a 2/2 unit in PRIME season for $1400 (only $200 per night) and a cruise ship offers FREE FOOD and FREE SHOWS along with 4-5 cities visit for the same $1400 or $1750 (only $50 per night more) ... you as a timeshare person says, "I have a full condo, not a small cabin" ... the person with the money is thinking, "Free Food and 4/5 different cities plus all the ship to explore with free entertainment. No Brainer as I am only going to sleep in the cabin (which has housekeeping all day)".

Remember the ending of the "Dirty Dancing" movie, when the band leader is listening to the Resort Owner talking about the kids going to Europe. The summer hotels in the Catskills or Poconos or Maine or North Carolina existed for almost a 100 years - a family tradition. A cultural experience. My sisters did Europe in both summers of 1975 & 1976 - 10 days and 5 countries with the parents. That was the NEW AGE of jets and experiences.

 

[DeniseM]

Apparently, there are some on TUG who actually have the ability to rent out RCI inventory. I didn't know that was the case and called someone out on it. It's always been the mantra on TUG that you can't rent out exchanges. I saw some units that had been on RCI and were listed here on TUG in the Rentals Offered Forum. The person indicated a Guest Certificate would be needed. My flag went up. It was a new poster and they quickly changed their TUG name.

I was called out and corrected that not all these postings of inventory are disallowed. So, how do you actually know which are allowed and which aren't?

Clarification - this is the statement at the top of the Last Minute Rentals forum. It is intended to protect Tuggers from the possible consequences of renting exchanges. TUG is not in the business of enforcing other company's rules, but we do try to provide those rules to our members, for their own protection.

IMPORTANT: Major exchange company rules prohibit the rental of time deposited with them or of exchanged weeks, bonus weeks, etc.,obtained through them. Further, exchange companies have been known to take disciplinary action against violators of their rules when discovered via online sources such as this one. We discourage such rental offers on this board, and caution users of this practice.

Whenever this topic comes up, there are many Tuggers who feel very strongly about renting exchanges, and others who couldn't care less. Those are their personal opinions.

 

[suzannesimon]

My comment reflects the timeshare world's competition in renting weeks. If you have a 2/2 unit in PRIME season for $1400 (only $200 per night) and a cruise ship offers FREE FOOD and FREE SHOWS along with 4-5 cities visit for the same $1400 or $1750 (only $50 per night more) ... you as a timeshare person says, "I have a full condo, not a small cabin" ... the person with the money is thinking, "Free Food and 4/5 different cities plus all the ship to explore with free entertainment. No Brainer as I am only going to sleep in the cabin (which has housekeeping all day)".

Remember the ending of the "Dirty Dancing" movie, when the band leader is listening to the Resort Owner talking about the kids going to Europe. The summer hotels in the Catskills or Poconos or Maine or North Carolina existed for almost a 100 years - a family tradition. A cultural experience. My sisters did Europe in both summers of 1975 & 1976 - 10 days and 5 countries with the parents. That was the NEW AGE of jets and experiences.

Yes, but those people sleeping 4 to a cruise cabin are each paying $1,400 (less for kids), where you can comfortably sleep 8 in most 2 bedroom timeshares. I like cruising a lot but it's not for everyone every year. I took my family of 10 on a cruise a few years ago. Have you ever been trapped on a cruise ship with a seasick 2 year old and a 25 year old with food poisoning? I bought my timeshares the following year!

 

[vacationhopeful]

I had the sick 12yo nephew in my Alaskan cruise cabin ... his mother and father worried as he refused to have me leave so his parents could "care for him". And 2 nights late, he woke me up at 2AM instead of his mom (who was sleeping on the other half of the king size bed) as he had chills, head congestion and a fever in a motel room.

But there are many DEEPLY discounted cruises -- kids cruise free, inside cabins --where port charges are better than 50% of the total costs. And no one includes the port excursions or alcohol costs (you just charge them to your cabin).... and they go to the credit card bill.

 

[gkbiiii]

Sheraton Vistana Villages, New Years Week??

I just bought on ebay, the Sheraton Vistana Villages, 2 bedroom Amelia unit, which is a Platinum Season Unit. I can book week 52 New Years and all other holidays.

My question is, what should the rental list price for a New Years rental be and what should I accept for it?

Also, in the future, if I use it for trade on II, what would a SVV Platinum week be worth? :whoopie:

 

[vacationhopeful]

I don't own VV, but I know to buy in Key West section for the Star Options (?) as they transfer to the new owner. .. I believe there is another section or two which also transfer to resale owners... but NOT the section you brought in.

As for Week 52 in Orlando ... crowded, closed parks and chaos? Out of the world airfares. Rental car rates setting new records?

And HOW are you going to pay for 2015 MFs? They come due on Jan 1, 2015 and if you rent week you have NOT reserved yet, you might get paid around Nov 1st ... 10 months after MFs were paid.

And if you don't rent that Week 52, what are your options come Dec 20 -- banking with II gets you Last Minute choices? You and the family going to spend Christmas money on 2016 MFs or on a LM trip to Disney? After all the Santa presents have been brought -- more Santa expenses?

Sure, you should not get buyer's remorse?

 

[DeniseM]

I just bought on ebay, the Sheraton Vistana Villages, 2 bedroom Amelia unit, which is a Platinum Season Unit. I can book week 52 New Years and all other holidays.

My question is, what should the rental list price for a New Years rental be and what should I accept for it?

Assuming that you can actually reserve New Year's week, go to www.redweek.com, and look up the Comps for the exact same unit/date, and price your week between the low and the average.

Also, in the future, if I use it for trade on II, what would a SVV Platinum week be worth? :whoopie:

Floating weeks only get the predetermined "average trading power" for the whole season, and Florida has more supply than demand, so that hurts the trading power.

For a high trading power, you want a true fixed New Years or Christmas week.

As advised above, I wouldn't buy TS's in Orlando for rentals, because there is more supply than demand for Orlando.

 

[vacationhopeful]

Yes, DeniseM is right on NYE/Xmas trading power values ... my NYE 2/2 get 66 TPUs. My NYE/Xmas weeks rent for almost double MFs. My week 52 are FIXED WEEK units with the Week 53 option. Actually, 2 of them have FORCED Week 53 included. I think I have 4 of them -- none of them are in Orlando ... in a warmer and beachier location.

<=== See my Avartar? Beachier ...

 

[gkbiiii]

I am looking at getting StarOption resale contract there, with 80,000 points, in the Key West or Bella buildings.

 

[gkbiiii]

I don't own VV, but I know to buy in Key West section for the Star Points(?) as they transfer to the new owner. .. I believe there is another section or two which also transfer to resale owners... but NOT the section you brought in.

As for Week 52 in Orlando ... crowded, closed parks and chaos? Out of the world airfares. Rental car rates setting new records?

And HOW are you going to pay for 2015 MFs? They come due on Jan 1, 2015 and if you rent week you have NOT reserved yet, you might get paid around Nov 1st ... 10 months after MFs were paid.

And if you don't rent that Week 52, what are your options come Dec 20 -- banking with II gets you Last Minute choices? You and the family going to spend Christmas money on 2016 MFs or on a LM trip to Disney? After all the Santa presents have been brought -- more Santa expenses?

Sure, you should not get buyer's remorse?

I have 2014 usage which I hope will pay a good percentage of the 2015 dues. I used to worked at Disney and you could not pay me, to be a the parks in the Holidays!!!

With StarOption points (for future Key West & Bella purchases) I could pay low dues at SVV and use the points to book high cost properties such as Harborside. The possible rent there, should more than cover my annual dues. Unlike with RCI & II, Starwood Owners can rent, with their internal exchanges.

 

[DeniseM]

I have 2014 usage which I hope will pay a good percentage of the 2015 dues. I used to worked at Disney and you could not pay me, to be a the parks in the Holidays!!!

Suggestion: As part of your purchase agreement, as the seller to reserve New Years week for you, with a Dec. 27th check-in.

 

[uscav8r]

I have 2014 usage which I hope will pay a good percentage of the 2015 dues. I used to worked at Disney and you could not pay me, to be a the parks in the Holidays!!!

With StarOption points (for future Key West & Bella purchases) I could pay low dues at SVV and use the points to book high cost properties such as Harborside. The possible rent there, should more than cover my annual dues. Unlike with RCI & II, Starwood Owners can rent, with their internal exchanges.

Suggestion: As part of your purchase agreement, as the seller to reserve New Years week for you, with a Dec. 27th check-in.

Will there even be availability for this December at this late time? That is only 5 months off. Or are you talking about Dec 2015, Denise?

 

[DeniseM]

Will there even be availability for this December at this late time? That is only 5 months off. Or are you talking about Dec 2015, Denise?

I checked on the Starwood website, and at this time, 2014 is still available.

Which is a good example of how even the best week of the year does not not have the demand that you would expect, in Orlando.

 

[gkbiiii]

Thanks for the advice, Denise I am requesting the 2014 New Years from the current owner. This was a good idea, I have not bought any other property in Orlando, due to the over supply.

I may in the future, use the SVV as a way to build StarOptions points, I really like the system, even if my rental business does not work. Anyway, the adventure has begun!