Who used to own timeshares and now just rents them?

[heathpack]

Although there may be pockets or locations where this makes sense, I am skeptical that this is universal based on where we travel. We always check if it is more cost effective to rent vs trade and 9 times out of 10 it is cheaper to own/trade.

I just priced out a 2bdrm rental at Maui Hill and it was $2100+ fees (VRBO $2,734 total) to $2793 (resort) for a July 4 week garden view. We are exchanging via RCI for a July 4 week and it will only be about $1100, trading hybrid points. If we used MF points only from our Vegas Hilton property to trade it would only be $658 for the entire week to trade. That's a savings of $2,135+ of owning vs. renting - we could afford an extra week of renting on that savings alone.

If you know how to find rentals at 4 star+ 2 bdrm accommodations on Maui or Waikiki that don't face a parking lot during late June to July for $700 and under, please let me know. P.S. The cleaning fees, security and rental fees also add significantly to the cost of VRBOs.

This is our problem too.

Personally I find that an AirBnB usually works out to be more expensive for me. Maybe I’m picking “nicer” AirBnB’s or otherwise doing it wrong- I was looking for Sedona last Thanksgiving, for example, wanted a pet friendly place. It was easily 2x to stay in a pretty unappealing AirBnB vs $800ish all in for my timeshare exchange. I’m considering Bend, OR next summer. Found a pet-friendly AirBnB house right on the river- great place! But $2200 all in for the week. Hmm. That’s a lot.

Definitely renting TS weeks makes sense. But somehow if I’m paying cash, I’d rather find a pet friendly place. Not terribly logical, I’m the same way with credit card rewards. If I earn a cash perk, I just use the money on everyday stuff. If I earn a travel perk, I figure out ways to travel really well...

 

[tugcccsp]

How much did you pay to rent this unit in July? I'll bet it was more than $2500 as evidenced by the listings on Redweek.

Yes. It was more than the maintenance fee. Also, I like to consider the annual value of the money that was used to purchase the timeshare. If renting rather than purchasing, the purchase money could be earning income. Of course with timeshares purchased at bargain prices, there would be minimal return if the money was invested. I will only rent occasionally as needed. Ownership is the most economical way with frequent use. For me, renting has worked well to get dates that are difficult to obtain. Newport Coast has many July weeks for rent, but I read that some people have struggled to get those using owned timeshares. Yes, convenience comes at a cost.

 

[Fredflintstone]

This is our problem too.

Personally I find that an AirBnB usually works out to be more expensive for me. Maybe I’m picking “nicer” AirBnB’s or otherwise doing it wrong- I was looking for Sedona last Thanksgiving, for example, wanted a pet friendly place. It was easily 2x to stay in a pretty unappealing AirBnB vs $800ish all in for my timeshare exchange. I’m considering Bend, OR next summer. Found a pet-friendly AirBnB house right on the river- great place! But $2200 all in for the week. Hmm. That’s a lot.

Definitely renting TS weeks makes sense. But somehow if I’m paying cash, I’d rather find a pet friendly place. Not terribly logical, I’m the same way with credit card rewards. If I earn a cash perk, I just use the money on everyday stuff. If I earn a travel perk, I figure out ways to travel really well...

I must say I really scour to get the deals. Yes, there are some Airbnb’s that are very expensive. I do a filter from low to high in the area I want. Then, I ️ the ones I like to sniff and voila....sweet place in nice locale for about 100 a night.
My method does take some time but it works and I find sniffing the deals fun.
I suppose it would be fun to to find that sweet timeshare that someone is giving away with an awesome MF. Never know, could happen for me


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[bogey21]

Back when I was active in TimeSharing I thought about renting but ended up owning Fixed Week/Fixed Unit Weeks at 6 Resorts in 6 different cities. Two reasons - First, most of my Weeks were tied to events. An example was the Quarter Horse All American Futurity in Ruidoso, NM. And Second, at other Resorts I owned the type unit and view I wanted. An example was a corner 2nd floor Unit with a large balcony overlooking the beach in Deerfield Beach, FL. It was well worth the cost of Ownership (resale naturally) vs the hassle of trying to find what I wanted in the Rental Market year after year...

George

 

[CalGalTraveler]

I also enjoy the hunt of the deal. I don't mind renting timeshares if the price is right, and I trade TS and have had no problems getting what I want during peak season because I book at midnight when the reservation window opens.

However AirBnB/VRBO makes my head explode in two ways:

1) Every property is unique and it takes a lot of research time to compare apples to apples in a given area.
2) The quality of the properties varies. We've had some nice AirBnB rentals and we have had some disasters which had declined markedly since the photos were taken and were dirty.

With timeshares, no matter whether renting or owning - you pretty much know what you are going to get.

 

[Fredflintstone]

I also enjoy the hunt of the deal. I don't mind renting timeshares if the price is right, and I trade TS and have had no problems getting what I want during peak season because I book at midnight when the reservation window opens.

However AirBnB/VRBO makes my head explode in two ways:

1) Every property is unique and it takes a lot of research time to compare apples to apples in a given area.
2) The quality of the properties varies. We've had some nice AirBnB rentals and we have had some disasters which had declined markedly since the photos were taken and were dirty.

With timeshares, no matter whether renting or owning - you pretty much know what you are going to get.

I agree that accomodations vary on Airbnb but they vary with timeshares too. For example, a Marriott quality is normally different than a legacy resort. Also I have stayed in dirty unmaintained timeshares too. So really I have noticed the same issues for airbnb and timeshares.


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[Egret1986]

If you are fortunate to be retired, flexible with your vacation, have time to dig for deals, can fit in a studio, and can travel at the last minute that certainly works.

For those of us who adhere to work schedules, need larger units, and/or peak times at premium locations, or need to book in advance to coordinate with family member schedules, then owning (with an occasional rental) seems be more cost effective.

Agree totally. Our 34 years of owning timeshares was the best thing for our family. Like everything else, things change. Yes, I believe it's still a cost effective way to travel for families and others. Our sons are now 24 and don't travel with us. We have more flexibility now and just want to try other vacation options. We've almost exclusively used timeshares for our vacations since we bought our first one in 1984.

I'm not arguing with your posting. I fully agree with it.

Talk to me when you've been into timeshares for 34 years, kiddo. Things may have changed up by then for you.

 

[CalGalTraveler]

I am not disagreeing that renting can make sense. What I am pointing out is that different segments have different needs and those for which renting makes sense have different characteristics e.g. retired/flexible schedule, not needing to travel with family so a studio/hotel works, willing to take on risks of AirBnB uncertainty.

Perhaps there are life stages:

Young - rent (no money)

Family - need large units - timeshare

College kids/partial empty nest - timeshare (family)/ rent (couple)

Empty nest/early retiree travel years - rent / cruise etc.

Late retiree - timeshare (I could envision hanging out in waikiki, Maui or other place for a few weeks in a 1 bedroom or studio).

 

[heathpack]

I agree that accomodations vary on Airbnb but they vary with timeshares too. For example, a Marriott quality is normally different than a legacy resort. Also I have stayed in dirty unmaintained timeshares too. So really I have noticed the same issues for airbnb and timeshares.


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The thing with timeshares is that all the research you do to find good places is part of a cumulative learning process. I can study up on my various timeshare options and be able to apply that info to not just my current but to future trades. For example, I can learn that Marriott, Hyatt, Westin, Grand Luxxe, Disney, and Hilton timeshares will work for me. I can read on TUG about smaller or independent resorts that are good. I can go to a timeshare and like it and try to trade in to another property of that timeshare group in a different locale. I can develop a sense for which timeshares will help me out if something is wrong with the unit, or the property. Or say I arrive in a snowstorm- I can be pretty sure in a timeshare my first order of business is going to be making myself a cup of tea rather than shoveling the driveway so I can get into the place...

For AirBnB’s I have to do de novo research every time I go anywhere (and then also look at VRBO, HomeAway, rental agencies). If I like a place and want to go there again and someone else books it, I start my research process all over again looking for some other unit. I have to research dozens of specific locations rather than a handful. If I book early to get the great place and then I need to cancel, I may be out 50% or 75% of the costs of my rental. Vs a timeshare where I can retrade.

Don’t get me wrong, I’ll do the AirBnB thing when it makes sense. And of course you have to keep up with the nuances of TSing too. If there was a TUG-like board for AirBnB rentals, maybe that would help, we could develop some cumulative wisdom. But for me, just doing AirBnB travel would be too much work. It’s great if it works for you but it’s definitely not for everyone.

 

[klpca]

The thing with timeshares is that all the research you do to find good places is part of a cumulative learning process. I can study up on my various timeshare options and be able to apply that info to not just my current but to future trades. For example, I can learn that Marriott, Hyatt, Westin, Grand Luxxe, Disney, and Hilton timeshares will work for me. I can read on TUG about smaller or independent resorts that are good. I can go to a timeshare and like it and try to trade in to another property of that timeshare group in a different locale. I can develop a sense for which timeshares will help me out if something is wrong with the unit, or the property. Or say I arrive in a snowstorm- I can be pretty sure in a timeshare my first order of business is going to be making myself a cup of tea rather than shoveling the driveway so I can get into the place...

For AirBnB’s I have to do de novo research every time I go anywhere (and then also look at VRBO, HomeAway, rental agencies). If I like a place and want to go there again and someone else books it, I start my research process all over again looking for some other unit. I have to research dozens of specific locations rather than a handful. If I book early to get the great place and then I need to cancel, I may be out 50% or 75% of the costs of my rental. Vs a timeshare where I can retrade.

Don’t get me wrong, I’ll do the AirBnB thing when it makes sense. And of course you have to keep up with the nuances of TSing too. If there was a TUG-like board for AirBnB rentals, maybe that would help, we could develop some cumulative wisdom. But for me, just doing AirBnB travel would be too much work. It’s great if it works for you but it’s definitely not for everyone.

Many good points here. Not to mention that the Airbnb world is changing too. Cities are starting to push back. It started out as a way to rent out a room in your home but has morphed into people permanently renting out homes as vacation rentals. The city of San Diego just limited short term rentals to one's own residence, not homes owned by non-residents. It is going to take a lot of inventory out of the short term rental market. I still think that timeshares are a great solution - sited like a hotel (i.e. not in a residential neighborhood) and run like a hotel (offering services and amenities) but like a home with kitchens/laundry. Own them if it works for you, rent them if that works out better.

 

[Panina]

The thing with timeshares is that all the research you do to find good places is part of a cumulative learning process. I can study up on my various timeshare options and be able to apply that info to not just my current but to future trades. For example, I can learn that Marriott, Hyatt, Westin, Grand Luxxe, Disney, and Hilton timeshares will work for me. I can read on TUG about smaller or independent resorts that are good. I can go to a timeshare and like it and try to trade in to another property of that timeshare group in a different locale. I can develop a sense for which timeshares will help me out if something is wrong with the unit, or the property. Or say I arrive in a snowstorm- I can be pretty sure in a timeshare my first order of business is going to be making myself a cup of tea rather than shoveling the driveway so I can get into the place...

For AirBnB’s I have to do de novo research every time I go anywhere (and then also look at VRBO, HomeAway, rental agencies). If I like a place and want to go there again and someone else books it, I start my research process all over again looking for some other unit. I have to research dozens of specific locations rather than a handful. If I book early to get the great place and then I need to cancel, I may be out 50% or 75% of the costs of my rental. Vs a timeshare where I can retrade.

Don’t get me wrong, I’ll do the AirBnB thing when it makes sense. And of course you have to keep up with the nuances of TSing too. If there was a TUG-like board for AirBnB rentals, maybe that would help, we could develop some cumulative wisdom. But for me, just doing AirBnB travel would be too much work. It’s great if it works for you but it’s definitely not for everyone.

The alternative versus renting sometimes are the getaways. At times they are priced so low, that they are better then using ones timeshare, better then privately renting and not too much work.

 

[CalGalTraveler]

Many good points here. Not to mention that the Airbnb world is changing too. Cities are starting to push back. It started out as a way to rent out a room in your home but has morphed into people permanently renting out homes as vacation rentals. The city of San Diego just limited short term rentals to one's own residence, not homes owned by non-residents. It is going to take a lot of inventory out of the short term rental market. I still think that timeshares are a great solution - sited like a hotel (i.e. not in a residential neighborhood) and run like a hotel (offering services and amenities) but like a home with kitchens/laundry. Own them if it works for you, rent them if that works out better.

I agree that inventory is going to reduce due to cities cracking down.The county just added regulations based on the strict regulations that South Lake Tahoe adopted. Some neighbors in South Lake Tahoe are so against having anyone in "their forest" that they lodge complaints just to make it difficult for the landlords to rent. If the landlord is issued 3 fines then they cannot rent for 2 years. The neighbors want this to happen so renters cannot be in the neighborhood.

The fines in our area are not as steep but South Lake Tahoe's fines hit national news because renters could end up with a $2000 parking ticket. Owners are also assessed $1000 and will pass any fees to the renter as damages.

That great deal on an AirBnB may not be so great after all...

https://www.rgj.com/story/money/bus...rbnb-lake-tahoe-vhr-fine-ordinance/460517002/

 

[klpca]

I agree that inventory is going to reduce due to cities cracking down.The county just added regulations based on the strict regulations that South Lake Tahoe adopted. Some neighbors in South Lake Tahoe are so against having anyone in "their forest" that they lodge complaints just to make it difficult for the landlords to rent. If the landlord is issued 3 fines then they cannot rent for 2 years. The neighbors want this to happen so renters cannot be in the neighborhood.

The fines in our area are not as steep but South Lake Tahoe's fines hit national news because renters could end up with a $2000 parking ticket. Owners are also assessed $1000 and will pass any fees to the renter as damages.

That great deal on an AirBnB may not be so great after all...

https://www.rgj.com/story/money/bus...rbnb-lake-tahoe-vhr-fine-ordinance/460517002/

I was talking to a guy (at the dog park, lol) who was a retired city planner. He was telling me about a small city a bit north of us that does not have a police force, so no real way to enforce noise/parking complaints by short term renters. (And we are talking about typical suburban neighborhoods with kids riding bikes and folks getting up at 6:00am to get ready for work - nothing particularly vacation-like) So instead of banning them outright they instituted some policies: 1. Charge a fee to register your property as a short term rental. 2. Post the owners phone number in a conspicuous place on the front of the rental that can be used to report issues 24 hours per day. 3. Allow neighbor complaints to be made to the city council - one complaint = a warning, two complaints = a fine, three complaints - lose your license. He indicated that it was working well for everyone involved.

Anyway, my only point is that Airbnb/VRBO/Home Away (all of which I have used - with varying amounts of satisfaction) isn't a perfect answer and the short term rental industry is going to be changing. The cheap rentals may not be so cheap any more - and maybe not any cheaper than timeshares. And timeshares are much easier on the neighbors.