Licensure for Renting out other people's timeshares

[Weimaraner]

I sometimes have people ask me to rent their timeshares out on their behalf and I've always declined because I only rent out a few of my unused weeks. But it has me wondering since I quite a few requests from renters - could I rent out units in the US or Caribbean if I had the proper Michigan licensure? I asked our state licensing department if a real estate and/or travel agent license is required but they declined to interpret the law related to timeshare rental. I notice a lot of people renting out several units but never see mention of licensure. Any advice from those who rent on large scale basis or have researched the idea? I would go to my Atty but my bill is already $2k this month and want to get some background before I start racking up more billable hours. So yes free advice is appreciated

 

[easyrider]

Legally, in most states you need to be a licensed real estate broker or real estate agent to rent or sell time shares unless you own the time shares. Time shares are a mortgaged back security.

You can sell and rent your own time share inventory in all of the states.

If you are dealing with friends and relatives you would probably be fine renting their weeks out for them, especially if you know the renter and owner, however, if you were to advertise or market other peoples time shares without the proper brokers license and some one complained you could have a problem.

Bill

 

[Teresa]

Why don't you just refer people to these other owners (and help them with the rental logistics) and they can, in turn, take you to lunch or buy you something nice as a gesture of good will? This way, you're helping them get their unit rented but you are not acting as their agent (which is what you need licensure for). I'm not sure what the license law for real estate agents in Michigan are, but in Ohio I'm only allowed to sell or rent Ohio property. If the timeshares are in Florida, I'm not 'authorized' under my Ohio license.

You can have them give you all their information regarding the unit and you can have people call them direct. As long as they are not obligated to pay you a set commission or fee and you're not negotiating anything for them you're not acting as an agent. If they choose to do a 'good will gesture' for helping them - that's their choice.

Why would you refer people? Because you remain the person to call when they want to travel next time.

 

[vacationhopeful]

Renters will and do get funny. And I really have a HARD time justifying multiple hours of 'communicating' (hand holding) with a renter for a NET PROFIT measured in a dinner off the McDonald's Dollar Menu.

 

[Sandy VDH]

Renters will and do get funny. And I really have a HARD time justifying multiple hours of 'communicating' (hand holding) with a renter for a NET PROFIT measured in a dinner off the McDonald's Dollar Menu.

I'm with you, work smarter, not harder.