Starting A Timeshare Rental Business

[HaroldW]

Good afternoon! I'd like to start a timeshare rental business that I can easily scale. I personally have acquired 2 timeshares for free here on TUG that I've used for years. As a businessman, I naturally see an opportunity here.

Any advice on getting started the right way from those here who have done it successfully? Anything I should avoid? I do have an LLC I could use and have experience advertising and running an online sales business.

Full disclosure, I'm also a former realtor. I know timeshares are a completely different animal though, which is why I'm coming to you fine people for advice!

Sent from my SM-N975U using Tapatalk

 

[WyndhamWyzrd]

Utilize marketing and book "Last Calls" in Prime seasons -
I usually advertise, get the inventory people are desiring most
Book the last calls within the alluded booking windows
Then confirm the bookings with the potential/new clients,.

Easy way to scale without having to purchase insane amounts of ownership points and deeds.

 

[AwayWeGo]

I've typed this before & no doubt I'll type it again . . .

For our 1st few years of timeshare ownership (resale all the way), we regularly rented out our own paid-for time for enough to cover maintenance fees plus enough left over to pay for our own RCI Last Call & Instant Exchange reservations -- practically like vacationing for free.

Then maintenance fees went up. It took longer to find renters. The margin shrank between rental income & maintenance fee outgo. It got so the game was no longer worth the candle.

Shrewder people than we are still might be able to make a go of it renting out timeshares profitably. Shux, I knew 1 guy who used to be the virtual Timeshare King Of Williamsburg, Virginia, because of all the Williamsburg timeshares he owned that he was able to rent out profitably. Whether he's been able to keep that up in view of changed economic conditions & a general tightening of timeshare rules is anybody's guess.

Meanwhile, The Chief Of Staff & I are happy just enjoying luxury timeshare vacation accommodations at Motel 6 & Super 8 rates.

Is this a great country or what ?

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[AwayWeGo]

Utilize marketing and book "Last Calls" in Prime seasons -
I usually advertise, get the inventory people are desiring most
Book the last calls within the alluded booking windows
Then confirm the bookings with the potential/new clients,.

Easy way to scale without having to purchase insane amounts of ownership points and deeds.

That plan is brilliant -- almost.

The problem -- major or minor, and possibly not only major but also serious -- is that renting out Last Call reservations is against the rules, bigtime.

If RCI finds out about it, they can cancel the reservation(s) & toss you out of RCI.

I'm sure it happens, & no doubt people get away with it for a while.

As a business model, however, it's still playing with fire.

Maybe the other timeshare exchange companies beside RCI are OK with renting out exchange reservations & Last Calls, etc., I don't know. But I wouldn't count on it.

Good luck.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[bizaro86]

That plan is brilliant -- almost.

The problem -- major or minor, but possibly not only major but also serious -- is that renting out Last Call reservations is against the rules, bigtime.

If RCI finds out about it, they can cancel the reservation(s) & toss you out of RCI.

I'm sure it happens, & no doubt people get away with it for a while.

As a business model, however, it's still playing with fire.

Maybe the other timeshare exchange companies beside RCI are OK with renting out exchange reservations & Last Calls, etc., I don't know. But I wouldn't count on it.

Good luck.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

Yeah, certainly it wouldn't be a scalable opportunity, imo.

 

[Free2Roam]

Good afternoon! I'd like to start a timeshare rental business that I can easily scale. I personally have acquired 2 timeshares for free here on TUG that I've used for years. As a businessman, I naturally see an opportunity here.

Any advice on getting started the right way from those here who have done it successfully? Anything I should avoid? I do have an LLC I could use and have experience advertising and running an online sales business.

Full disclosure, I'm also a former realtor. I know timeshares are a completely different animal though, which is why I'm coming to you fine people for advice!

Sent from my SM-N975U using Tapatalk

Small bit of advice... don't include Club Wyndham in this plan. They keep changing the rules. The latest change limits guest reservations at certain resorts in prime time (even for family & friends.)

I have had good success renting my fixed week ownerships over the years... and I don't pay fees to add guest names.

 

[TheTimeTraveler]

Good afternoon! I'd like to start a timeshare rental business that I can easily scale. I personally have acquired 2 timeshares for free here on TUG that I've used for years. As a businessman, I naturally see an opportunity here.

Any advice on getting started the right way from those here who have done it successfully? Anything I should avoid? I do have an LLC I could use and have experience advertising and running an online sales business.

Full disclosure, I'm also a former realtor. I know timeshares are a completely different animal though, which is why I'm coming to you fine people for advice!

Sent from my SM-N975U using Tapatalk

Why buy Timeshares to start your business? Instead, get the word out that you are willing to rent out timeshares (i.e. a rental agent for owners) for a fee. This way you won't have the annual financial responsibilities and tie up your assets.

If successful you could then grab some select Timeshares to enhance your offerings (i.e. juicy beach and ski locations during winter weeks).



.

 

[dioxide45]

Why buy Timeshares to start your business? Instead, get the word out that you are willing to rent out timeshares (i.e. a rental agent for owners) for a fee. This way you won't have the annual financial responsibilities and tie up your assets.

If successful you could then grab some select Timeshares to enhance your offerings (i.e. juicy beach and ski locations during winter weeks).

This might require a real estate license. Not an issue if you rent weeks you own yourself.

 

[WVBaker]

As a hobby fine, but as a business, that's a time consuming way to make a few bucks. Most resorts, hotels, etc., are intent on keeping their prices in check with others in the same area. You'll need to see what their rates are and keep your rental prices below that. Meanwhile, if you look at AirBnB, VRBO, etc., the market is saturated with others doing the same thing. All it takes is someone to post some low rental price and others need to follow by reducing theirs in order to get rentals. It seems to just snowball. All this time you have ever increasing maintenance fees cutting into your profits. And let's not forget and perhaps it never happens again but, something like Covid comes along and crushes your business. You're stuck with no renters and still have those maintenance fees.

 

[Andrearr]

Don't do it.
They'll just tighten the rules for the rest of us who are only renting occasionally to get out of personal bookings or due to changing circumstances.

 

[daverunfast]

I think it's a trickier business than it seems. You'll be very dependent on resort partners who view owners as vacationers rather than landlords. Owning to rent may be profitable in some cases but only to the extent it's allowed or can be achieved by gaming one of the reservation systems. There may be some opportunity in HOA controlled independent resorts but the MF vs Rent and occupancy math often isn't good.

 

[WyndhamWyzrd]

That plan is brilliant -- almost.

The problem -- major or minor, and possibly not only major but also serious -- is that renting out Last Call reservations is against the rules, bigtime.

If RCI finds out about it, they can cancel the reservation(s) & toss you out of RCI.

I'm sure it happens, & no doubt people get away with it for a while.

As a business model, however, it's still playing with fire.

Maybe the other timeshare exchange companies beside RCI are OK with renting out exchange reservations & Last Calls, etc., I don't know. But I wouldn't count on it.

Good luck.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

I doubt this "businessman will be plowing through the massive amount of rental business needed to get on the radar of cooperate.
I'd say if you're averaging a few rentals a month in different resorts , different areas of the country. Make a few extra bucks, have some side hustle energy, I doubt there's much downside.
Yes, worst case you may see a rejection out of RCI but in the long run, that's not a huge concern of mine and maybe not his.

In the words of Captain Jack , Take What You Can, Give Nothing Back

 

[The Colorado Kid]

I doubt this "businessman will be plowing through the massive amount of rental business needed to get on the radar of cooperate.
I'd say if you're averaging a few rentals a month in different resorts , different areas of the country. Make a few extra bucks, have some side hustle energy, I doubt there's much downside.
Yes, worst case you may see a rejection out of RCI but in the long run, that's not a huge concern of mine and maybe not his.

In the words of Captain Jack , Take What You Can, Give Nothing Back

@WyndhamWyzrd I hope you are correct since I am also trying to do this side hustle! ALSO...my street is CAPTAIN JACK LANE!

 

[grupp]

Really? I am all for pushing the boundaries and working things to my advantage. But you guys are morons and I hope RCI catches on.

 

[tschwa2]

Why buy Timeshares to start your business? Instead, get the word out that you are willing to rent out timeshares (i.e. a rental agent for owners) for a fee. This way you won't have the annual financial responsibilities and tie up your assets.

If successful you could then grab some select Timeshares to enhance your offerings (i.e. juicy beach and ski locations during winter weeks).
.

I think most states require you to be a licensed (and insured) broker to rent out something that you don't own. Companies can get around it claiming that the service they offer is advertising the rental for a fee. Even then, if your services go beyond advertising than you can get in trouble for acting as a broker without a license if you are able to actually grow the business enough to get noticed by the wrong people.

 

[Ty1on]

I doubt this "businessman will be plowing through the massive amount of rental business needed to get on the radar of cooperate.
I'd say if you're averaging a few rentals a month in different resorts , different areas of the country. Make a few extra bucks, have some side hustle energy, I doubt there's much downside.
Yes, worst case you may see a rejection out of RCI but in the long run, that's not a huge concern of mine and maybe not his.

In the words of Captain Jack , Take What You Can, Give Nothing Back

RCI and II pay professionals that do nothing all day but comb the internet for rental offers and determine if they are exchange or last call type inventory that contractually cannot be rented out. What they do when they catch you is cancel the reservation cold, making you look like a scammer in the eyes of the renters, and then boot you off their platform. Good luck, you aren't the first to come up with this brilliant plan.

 

[escanoe]

RCI and II pay professionals that do nothing all day but comb the internet for rental offers and determine if they are exchange or last call type inventory that contractually cannot be rented out.

Is this a statement of fact or something you suspect? What is their financial incentive to do this? I am a bit skeptical. It might be a fun side gig to do this for the exchanges. I believe if they really did this, it would not be so easy to find eBay sellers so obviously trying to make a buck on these.

 

[dioxide45]

Is this a statement of fact or something you suspect? What is their financial incentive to do this? I am a bit skeptical. It might be a fun side gig to do this for the exchanges. I believe if they really did this, it would not be so easy to find eBay sellers so obviously trying to make a buck on these.

We know they have some staff that checks for rentals. At least II does. Are they "professionals"? I am not sure how that term is defined in this context. They work for II or RCI, but I doubt it is a full time job of theirs and they may have one employee on the lookout for obvious violations that they can easily match to a member.

 

[WyndhamWyzrd]

Really? I am all for pushing the boundaries and working things to my advantage. But you guys are morons and I hope RCI catches on.

Haters gunna hate XOXO

 

[WyndhamWyzrd]

Is this a statement of fact or something you suspect? What is their financial incentive to do this? I am a bit skeptical. It might be a fun side gig to do this for the exchanges. I believe if they really did this, it would not be so easy to find eBay sellers so obviously trying to make a buck on these.

Exactly. These getaways are all over Ebay / Online Rentals / ect. all the time. Any of us that scour these sites for desirable deeds see them.
Like I said, may be some risk. I agree some states may require brokerage/licenses but as a licensed travel agent, this isn't something I take too seriously.
IF they're going to spend the time going after individual rental owners, wouldn't they shut down the ebay/online rental scammers first?
At less than $14k annual income off the program it doesn't even need to be claimed on year end income forms.

Good luck Tuggers

 

[dioxide45]

but as a licensed travel agent

I am not aware of any state that requires a license for a travel agent?

IF they're going to spend the time going after individual rental owners, wouldn't they shut down the ebay/online rental scammers first?

I think it is more about matching up a rental listing with a member. Probably a pretty hard thing to do given the volume of rentals II and RCI turn.

At less than $14k annual income off the program it doesn't even need to be claimed on year end income forms.

You must not live in the United States?

 

[WyndhamWyzrd]

I am not aware of any state that requires a license for a travel agent?

"California, Florida, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Rhode Island, Virginia, and Washington"

it's more of a certification really. You're paying for a title to advertise as a travel agent. $360 and some paperwork

Ex. AAA has a division of travel agents to plan trips. In order to advertise certain rates in competition (kinda) with the developers the agents staffed need a cert. that can be obtained online.

 

[dioxide45]

"California, Florida, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Rhode Island, Virginia, and Washington"

it's more of a certification really. You're paying for a title to advertise as a travel agent. $360 and some paperwork

Ex. AAA has a division of travel agents to plan trips. In order to advertise certain rates in competition (kinda) with the developers the agents staffed need a cert. that can be obtained online.

So your worried about registering as a travel agent or seller of travel in these states, but no issues with renting other peoples deeded real estate without a realtor license. States seem to be far more stringent when it comes to license for real estate than it does for registering as a seller of travel.

 

[WVBaker]

At less than $14k annual income off the program it doesn't even need to be claimed on year end income forms.

That's quite the income not needing to be reported. Are we talking state or federal income? Can you offer a link for verification?

One thing you don't want to do is poke the bear, known as the IRS, too many times.

 

[dioxide45]

That's quite the income not needing to be reported. Are we talking state or federal income? Can you offer a link for verification?

One thing you don't want to do is poke the bear, known as the IRS, too many times.

Perhaps the $14K is a limit set by whatever payment processor they are using? I know Paypal will issue a 1099 when you have $20K and 200 payments. However, just because you don't get a 1099 doesn't mean the income isn't reportable.