Can resorts stop owners from renting? (spin-off from another thread)

[SueDonJ]

[I split these posts off from the other thread (Feed back please - bad rental) so that this side-topic can continue. Please do not post about the other thread here - those posts will be considered off-topic, and will be deleted. - DeniseM Moderator]

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Reading all the posts in this thread from those of you who act as landlords in a good number of timeshare rental transactions brings up a topic that I've always been curious about but have never been brave enough to ask point-blank, and attempts to bring it up in a roundabout way have always been ignored. So here goes. You talk about how it costs you paypal/ad/etc fees, how you invest a lot of time into your rentals ... Bruce even asked me upthread, "do you work for free?" Obviously you're making money at this, or maybe not "obviously" but IMO it would be ridiculous to put all this time into rental ventures if you weren't making money.

My question is, do your timeshare contracts contain any type of stipulation that prevents rentals which could constitute "a commercial activity?" (Mine do.) If not, great! But if so, how are you justifying your actions, and how is it that you all castigate timeshare developers for skirting to within an inch the rules while you're doing the exact same thing? And if so again, how can you expect a Court to side with your unspoken Rental Commandments when by doing so, they'd be effectively rubber-stamping actions against the contracts?

Please don't kill me.

Owners have the right to rent their own timeshares - I think you are misinterpreting the rules.

Could be, and to be fair the "commercial activity" stipulation in my docs has never been completely spelled out by Marriott. I don't know how Marriott would define "commercial activity" and I don't know if they've ever charged an owner with engaging in it. I just know that despite the docs spelling out that owners are allowed to rent their Weeks, there is a separate provision written that prohibits "commercial activity." And, I know that bringing the topic up for discussion seems to be taboo on TUG.

Last year or the year before, Disney took a concrete step which made it appear that they were trying to enforce the "commercial activity" prohibition that's included in a DVC contract (or at least some disboards.com DVC'ers interpreted it that way.) They did it by putting an annual limit to the number of point transfers allowed into/out of an owner's account. IF Marriott was to limit the number of reservations to which an owner could attach a guest name, I'd surmise that as one way for Marriott to enforce the CA prohibition.

 

[rickandcindy23]

And, I know that bringing the topic up for discussion seems to be taboo on TUG.

It's not taboo. It's understood that your deeded weeks are your own property, they are real estate, which you can rent to someone else. The salespeople actually say that at the sales table, which is about the only true statement that comes from their lying lips.

That makes it a closed case for most of us, so no conversations take place with some agreeing and some disagreeing. Real estate is real estate, and no one is going to tell me I cannot rent what I own. Not Starwood, not Wyndham.

Disney took a concrete step which made it appear that they were trying to enforce the "commercial activity" prohibition that's included in a DVC contract

Wyndham did the same thing. It's really a lot about someone claiming, "I didn't authorize this transfer," according to Wyndham. DVC still allows owners to rent reservations. Check eBay for many listings...

 

[SueDonJ]

It's not taboo. It's understood that your deeded weeks are your own property, they are real estate, which you can rent to someone else. The salespeople actually say that at the sales table, which is about the only true statement that comes from their lying lips.

That makes it a closed case for most of us, so no conversations take place with some agreeing and some disagreeing. Real estate is real estate, and no one is going to tell me I cannot rent what I own. Not Starwood, not Wyndham.

.....

Wyndham did the same thing. It's really a lot about someone claiming, "I didn't authorize this transfer," according to Wyndham. DVC still allows owners to rent reservations. Check eBay for many listings...

I guess what I'm asking is, with the clear contradiction in the contracts how is it possible to come to the conclusion that it's a closed case?

I know timeshare contracts give owners the right to rent their units/weeks/points/whatever. But some (don't know which ones other than Marriott and DVC, and Wyndham if I'm reading you correctly) also expressly prohibit an amount of rentals which could conceivably constitute "commercial activity." Knowing that DVC and Wyndham at least have taken steps which may curtail rentals, do you not have any concern that they'll try other means as well, or that other timeshare companies will at some point try to do the same thing by whatever means they can? Is it a matter of just pretending the various "commercial activity" prohibitions don't exist?

 

[DeniseM]

Sue - I just can't see how the management companies could ever prevent owners from renting what they own. Yes, they can make it inconvenient, but if they actually tried to stop it, I think they would be infringing on the legal rights of owners to use their own property as they see fit. Remember - owners own the resorts - not the management companies. In theory, the management companies work for the owners, under the direction of the board of directors.

 

[SueDonJ]

Sue - I just can't see how the management companies could ever prevent owners from renting what they own. Yes, they can make it inconvenient, but if they actually tried to stop it, I think they would be infringing on the legal rights of owners to use their own property as they see fit. Remember - owners own the resorts - not the management companies. In theory, the management companies work for the owners, under the direction of the board of directors.

I get stuck at the same place, too - there is no way that the right to rent can be denied by the manager, it just can't happen. But if they can somehow invoke that "commercial activity" prohibition to the point that renting for a profit becomes impossible, what then? Can they force you to disclose your rental agreements to them? Force you to disclose that you're not making money on rentals? I have no idea, it's just a fascinating subject to me.

About owners having rights to "use as they see fit" - owners don't have such unlimited rights! They have rights to use that are clearly spelled out, everything from how many people an owner can invite to visit a unit all the way to where an owner can park his car while onsite to what time the facilities at the site will be open to yes, whether or not a certain rental is within the scope of what's allowed or not, and everything and anything in between. I do know that owners own the resort, but IMO that "in theory" makes absolutely no difference when the management company has the right to unilaterally sever the contract between itself and the owners. If that happens with a Marriott or Starwood or DVC or any other of the "big" developers/managers, wouldn't the owners' value be much less protected than that of the d/m?

 

[T_R_Oglodyte]

I get stuck at the same place, too - there is no way that the right to rent can be denied by the manager, it just can't happen. But if they can somehow invoke that "commercial activity" prohibition to the point that renting for a profit becomes impossible, what then?

Generally the "commercial activity prohibition" kicks in when someone is part of a Club or mini-system arrangement, where it's usually written into the Club rules. Are there situations where resorts have tried to apply it to deeded ownerships?

Not sure how it works in trusts where the trusts are not part of a vacation club. For example, with Diamond Resorts members of The Club are prohibited from making any commercial use of a reservation made through The Club. But if the ownership is not in The Club (meaning the owner has either a Trust interest or a deeded ownership) I believe the prohibition on commercial use no longer applies. At that point you are free to use your ownership in whatever manner you wish that is consistent with the rules of the trust and/or resort.

 

[brucecz]

Reading all the posts in this thread from those of you who act as landlords in a good number of timeshare rental transactions brings up a topic that I've always been curious about but have never been brave enough to ask point-blank, and attempts to bring it up in a roundabout way have always been ignored. So here goes. You talk about how it costs you paypal/ad/etc fees, how you invest a lot of time into your rentals ... Bruce even asked me upthread, "do you work for free?" Obviously you're making money at this, or maybe not "obviously" but IMO it would be ridiculous to put all this time into rental ventures if you weren't making money.

My question is, do your timeshare contracts contain any type of stipulation that prevents rentals which could constitute "a commercial activity?" (Mine do.) If not, great! But if so, how are you justifying your actions, and how is it that you all castigate timeshare developers for skirting to within an inch the rules while you're doing the exact same thing? And if so again, how can you expect a Court to side with your unspoken Rental Commandments when by doing so, they'd be effectively rubber-stamping actions against the contracts?

Please don't kill me.

I see some have already replyed.

Do you work for free or exspect no pay from for doing overtime work and absorb extra exspences caused by others actions?

Over 90% of our ownerships are deeded that are older and not as restricted as points.

Yes, my renters can not rent out to a third party for several important reasons and here is that part of my rental agreements that states those terms.

15. The tenant may not sublease the unit or assign this lease without the landlord’s prior written consent.

There are about 22 to 25 items our various rental agreements address so the reason for this string should not happen to us.

One unlike RCI rentals I bought and paid for my ownerships and I could liable for any damages if they can not get the renter to pay if they are dead beats. RCI does not have those MF costs and risks.

I do not like renting to third party rental people as they in most cases do not care to who they rent to.

I do not charge the renter a membership fee and a exchange fee like RCI does but they will get thier vacation week from me that they paid for, but you have to take your chances with RCI or any Developer unless you buy a fixed week.

Bruce

 

[SueDonJ]

... My question is, do your timeshare contracts contain any type of stipulation that prevents rentals which could constitute "a commercial activity?" (Mine do.) ...

I see some have already replyed.

Do you work for free or exspect no pay from for doing overtime work and absorb extra exspences caused by others actions?

Over 90% of our ownerships are deeded that are older and not as restricted as points.

Yes, my renters can not rent out to a third party for several important reasons and here is that part of my rental agreements that states those terms.

15. The tenant may not sublease the unit or assign this lease without the landlord’s prior written consent.

There are about 22 to 25 items our various rental agreements address so the reason for this string should not happen to us.

One unlike RCI rentals I bought and paid for my ownerships and I could liable for any damages if they can not get the renter to pay if they are dead beats. RCI does not have those MF costs and risks.

I do not like renting to third party rental people as they in most cases do not care to who they rent to.

I do not charge the renter a membership fee and a exchange fee like RCI does but they will get thier vacation week from me that they paid for, but you have to take your chances with RCI or any Developer unless you buy a fixed week.

Bruce

We might be misunderstanding each other. My question above isn't about the contracts/agreements that you use when renting your timeshares to other people; it's about the terms stipulated between you as an owner and the developer/manager in the contracts/governing docs of the timeshares you own, and whether they contain a provision that prohibits you from renting your timeshares in such a way that can be defined as a "commercial activity."

I'm not sure why you keep asking me if I work for free. Of course I don't! And I don't expect anybody else will, either. But renting for a profit is different from renting to cover your fees, and "for a profit" is where a timeshare developer/manager could conceivably invoke the CA prohibition. I think.

 

[ampaholic]

Owners have the right to rent their own timeshares - I think you are misinterpreting the rules.

Suedonj: the rules against "commercial use" are to do with the Marriott Club or Wyndham Club or RCI Club and are NOT "rules" on your deed - those would be covenants, conditions or restrictions and would be spelled out in the deed itself. I doubt any timeshares have CC&R's limiting "commercial activity" per se.

Your deed is your ownership title doc - a previous owner may have enrolled the interval into a club (with rules) and you need to either follow those rules or risk getting jettisoned from the club - but no one one earth can change your deed without your permission once it is recorded - so they can't "make" you not rent.

Just remember 2 different things: deed and timeshare membership or club.

Hope that helps - you could start a thread if you want more enlightenment grasshopper.

 

[SueDonJ]

Generally the "commercial activity prohibition" kicks in when someone is part of a Club or mini-system arrangement, where it's usually written into the Club rules. Are there situations where resorts have tried to apply it to deeded ownerships?

Not sure how it works in trusts where the trusts are not part of a vacation club. For example, with Diamond Resorts members of The Club are prohibited from making any commercial use of a reservation made through The Club. But if the ownership is not in The Club (meaning the owner has either a Trust interest or a deeded ownership) I believe the prohibition on commercial use no longer applies. At that point you are free to use your ownership in whatever manner you wish that is consistent with the rules of the trust and/or resort.

Do you mean like the typical arrangement between II and Marriott/Starwood/etc, wherein exchanges/Getaways reserved through II cannot be subsequently rented to a third-party? I'm not sure what else could be considered a Club or mini-system if I'm relating everything to the Marriotts I own.

I don't know of anybody being called out by Marriott for CA renting. All I know is that the Timeshare Declaration and Management Agreement governing docs (of mine and many other Marriotts) both contain CA prohibitions where "CA" is undefined, and I'm wondering how and why a developer/manager might choose to specifically define and enforce it in an effort to prevent owners from making a profit through rentals. It's just something I've always wondered about and took a chance on asking here.

 

[ampaholic]

Do you mean like the typical arrangement between II and Marriott/Starwood/etc, wherein exchanges/Getaways reserved through II cannot be subsequently rented to a third-party? I'm not sure what else could be considered a Club or mini-system if I'm relating everything to the Marriotts I own.

I don't know of anybody being called out by Marriott for CA renting. All I know is that the Timeshare Declaration and Management Agreement governing docs (of mine and many other Marriotts) both contain CA prohibitions where "CA" is undefined, and I'm wondering how and why a developer/manager might choose to specifically define and enforce it in an effort to prevent owners from making a profit through rentals. It's just something I've always wondered about and took a chance on asking here.

Maybe you don't own a deed, just a membership?

 

[SueDonJ]

Maybe you don't own a deed, just a membership?

No, I have deeds. Let me see if I can find what I'm referencing in the docs and type enough of it here to help people understand me. Because obviously if enough of you don't understand then I'm doing something wrong.

 

[cotraveller]

Your deed is your ownership title doc - a previous owner may have enrolled the interval into a club (with rules) and you need to either follow those rules or risk getting jettisoned from the club - but no one one earth can change your deed without your permission once it is recorded - so they can't "make" you not rent.

With a true fixed week deed you own a specific week in a specific unit which is listed on the deed. How is the deed structured for a floating week ownership? What do you actually own in an arrangement where you have a deed but you can still book any time within a given time interval and that time is in different units from year to year?

 

[brucecz]

We might be misunderstanding each other. My question above isn't about the contracts/agreements that you use when renting your timeshares to other people; it's about the terms stipulated between you as an owner and the developer/manager in the contracts/governing docs of the timeshares you own, and whether they contain a provision that prohibits you from renting your timeshares in such a way that can be defined as a "commercial activity."

I'm not sure why you keep asking me if I work for free. Of course I don't! And I don't expect anybody else will, either. But renting for a profit is different from renting to cover your fees, and "for a profit" is where a timeshare developer/manager could conceivably invoke the CA prohibition. I think.

When you ask questions and you get answers then if you are asked a question then you should answer them.

I will anwser your question for a second and last time.

We have mostly older deeded ownerships that have not been sold for years and years andthat do not have a lot of the restrictive "stuff" the newer Points type of "Club ownerships" MAY have.

So I not not going spend a lot of time debating all of the various types of ownerships.

Renting for profit is the same as MF's as both are rentals for money. But if people are more comfortable renting from RCI who has no investment that is your choice.

So if when exchange a week for a Marriott that has MFs far higher than ours MFs if prorated and including a housekeeping fee , would I in a sense be making a "Commerial" profit on that exchange that we made and used this late April at the Marriott New Port Coast Villas?


Bruce

 

[ampaholic]

With a true fixed week deed you own a specific week in a specific unit which is listed on the deed. How is the deed structured for a floating week ownership? What do you actually own in an arrangement where you have a deed but you can still book any time within a given time interval and that time is in different units from year to year?

I only have one with such an arrangement: a 1-52 Platinum Floater - Fox Hills in Wisconsin.

The deed says I own an undivided 1/51st co-tenancy in villa 10-B week 22 in building 10 of Fox Hills Villas....

So I own a fixed piece of "real estate" with that.

The deed goes on to say in essence: subject to the addendum dated ... to the declaration of condominium recorded at ...

So I own a "condo" with that.

Together with the rights of use, occupancy and possession associated with the Platinum season as described in the aforementioned declaration of condominium.

So I own a Platinum Floater with that.

My deed and /or Declaration of Condo say nothing about "commercial activities" or "rentals" - but there is a clause saying I can't run a business out of this residential space per the zoning laws.

Perhaps that is what your DofC says as well - I suggest you read it to get a definitive answer.

 

[SueDonJ]

Sorry, got sidetracked. Plus I'm so lost at this point that it's probably useless to continue talking about "commercial activity" prohibitions. Truthfully, I can't figure out if people understand what I'm saying or if I'm misunderstanding what they're saying or what. Especially all this talk about a "Marriott Club." I've never heard of such a thing!

We have an "Indenture Limited Warranty Deed" for each of the Marriott weeks we own. Each deed specifies a Building Number and Unit Number but stipulates that usage is floating; the numbers on the deed serve only to specify the view (oceanside, gardenview, etc.) and unit configuration (2BR, 3BR, etc) purchased. The deeds don't contain any of the usage rules but reference the underlying governing docs - Master Deed, Timesharing Declaration, and Management Agreement - in which all of the rules are stated.

Renting by an owner to a third party is expressly allowed, stated in several places throughout the docs. But everywhere where it's mentioned it's followed by a caveat similar to this one: "Purchaser/Owner should not purchase/use a Time Sharing Interest as an investment or for profit upon its rental or resale." If anyone is still interested in continuing this discussion, I'll search through all 376 pages of the SW governing docs to find the exact "commercial activity" prohibitions.

Bruce, I still don't understand why you're mentioning "Clubs" but I think I do now understand what you're saying about profits. You're right - it's vague enough that maybe there's never going to be a way for a management company to enforce any "commercial activity" prohibitions that do exist. That's why I brought up the subject, to figure out what I'm missing. Thanks.

 

[SueDonJ]

... My deed and /or Declaration of Condo say nothing about "commercial activities" or "rentals" - but there is a clause saying I can't run a business out of this residential space per the zoning laws.

Perhaps that is what your DofC says as well - I suggest you read it to get a definitive answer.

Rick, no. There is a clause similar to that, as well as a few more that protect the developer's/manager's rights to engage in "commercial activity" in certain areas of the property (restaurants/sundry store/etc.)

But there is also specific language somewhere in the docs that says an owner cannot rent his Weeks to the extent that would constitute "commercial activity." When I first saw it I did a double-take and wondered what good it served to put it in the docs because it can't be enforced unless it's defined. That's what I'm wondering, if anyone else has ever thought about how it could be enforced.

 

[rickandcindy23]

Renting by an owner to a third party is expressly allowed, stated in several places throughout the docs. But everywhere where it's mentioned it's followed by a caveat similar to this one: "Purchaser/Owner should not purchase/use a Time Sharing Interest as an investment or for profit upon its rental or resale." If anyone is still interested in continuing this discussion, I'll search through all 376 pages of the SW governing docs to find the exact "commercial activity" prohibitions.

It is illegal for a salesperson to say, "This is a great investment that will go up in value, and you can sell it for more than you paid." So if the salesperson tells you it's an investment, the docs are saying, "It's not an investment."

If I allow a renter to use my week, it's none of Starwood or Wyndham, or any other company's business as to whether I made money or not. What are they going to do? Ask every single person who comes into the resort as a guest? They can't do it, and even if they did, the owner could tell their renters to say, "None of your business."

I have a different way of looking at Wyndham and Starwood than most people. I believe they are management and are expendable. They don't think they are expendable, that's for sure. I would love to see VRI, a very well-respected management company, take over the mgmt of Wyndham tomorrow. It would be my IDEAL.

Wyndham gets $99 for every guest we send--PURE PROFIT for Wyndham. Sickening. And in the case of the OP, to bring it back on track, the guest name has to be on the reservations the day of the rental, if the rental is < 2 weeks out. So we would immediately be out $99, if we held a date for this OP, plus points are non-refundable at < 15 days out, too. Wyndham automatically cancels overlapping reservations with no guest names listed and takes away those points.

 

[stevedmatt]

Could be, and to be fair the "commercial activity" stipulation in my docs has never been completely spelled out by Marriott.

I think commercial activity in this sense means operating a business out of the unit. I could very well be wrong, just my interpretation.

 

[cotraveller]

I only have one with such an arrangement: a 1-52 Platinum Floater - Fox Hills in Wisconsin.

The deed says I own an undivided 1/51st co-tenancy in villa 10-B week 22 in building 10 of Fox Hills Villas....

So I own a fixed piece of "real estate" with that.

The deed goes on to say in essence: subject to the addendum dated ... to the declaration of condominium recorded at ...

So I own a "condo" with that.

Together with the rights of use, occupancy and possession associated with the Platinum season as described in the aforementioned declaration of condominium.

So I own a Platinum Floater with that.

My deed and /or Declaration of Condo say nothing about "commercial activities" or "rentals" - but there is a clause saying I can't run a business out of this residential space per the zoning laws.

Perhaps that is what your DofC says as well - I suggest you read it to get a definitive answer.

My main interest is in WorldMark, which does not have deeds. I am quite aware of what the various WorldMark documents say concerning rights and restrictions on use. I asked the question to get an understanding of how a deeded system with floating weeks work. I perhaps should have saved the question for another thread since it is OT from the original theme of this thread.

Thank you for your reply, it gives me a somewhat better understanding of that type of system concerning what you own, as specified on the deed, and the rights and restrictions that are placed on your ownership, as specified in the declaration of condominium associated with that deed. That is similar to WorldMark in that the WorldMark credits that you own give you a right to use WorldMark resorts and that rights and restrictions on your useage are controlled by the governing documents.

 

[MOXJO7282]

I think commercial activity in this sense means operating a business out of the unit. I could very well be wrong, just my interpretation.

Without a clear definition of "commercial activity" its open to interpretation and therefore difficult to enforce.

Is someone "commerical" if they rent some of the weeks they own in a given year? At what point do they become commerical? 5 weeks, 10 weeks rented?

When they're making a profit? What's the definition of profit vs a return on your initial investment?

 

[vckempson]

S
Renting by an owner to a third party is expressly allowed, stated in several places throughout the docs. But everywhere where it's mentioned it's followed by a caveat similar to this one: "Purchaser/Owner should not purchase/use a Time Sharing Interest as an investment or for profit upon its rental or resale." If anyone is still interested in continuing this discussion, I'll search through all 376 pages of the SW governing docs to find the exact "commercial activity" prohibitions.

.

Cindy hit the nail on the head. This is a cover your *ss clause for Marriott so you can't say the salesman told you it was a great investment or that you can rent it for big profits.

Note that it says "should not" which is distinctly different than "cannot". "Should Not" isn't a prohibition, it's a caveat.

Not sure if the other clauses are like this, but that's certainly my take on this one.

 

[e.bram]

RCI weeks ,RCI points, Festiva and Innseason points are engaged in commercial commercial activities. So called private exchange companies(SFX,DEA etc)are commercial enterprises. If they are not stopping them they can't stop you. PCCs are commercial entities as well.

Selling joints and turnings tricks are a different story.

 

[ronparise]

Restrictions on use of your real property dont have to be spelled out in your deeds. The restrictions can be spelled out in your condo docs, or association rules. there can also be restrictions spelled out in local law..

So dont fall back on the argument...its my property, I can do what I want...You cant put 10 people in a studio unit, you cant choose to take down one painting and replace it with another, you cant park on the grass, you cant use the pool after midnight, you cant wash your underwear and hang it on the lanai to dry..etc etc

Why not? its my property isnt it? Yes! but when you bought it you agreed to be governed by certain rules, and more than that you agreed to a board that can change the rules...perhaps with only a vote of the board

The question for each of us is: what are our associations rules and in a trust and points system like Wyndham's; can the trust make rules (or have they) to override or supplement the rules of each association.

This year in the Club Wyndham Plus owners directory, they slipped in a new paragraph in the section entitled "Program Disclosures"...

The program is for a members own personal use and enjoyment and not for any commercial purposes.

How to interpert this?? and what does it mean to renters and mega renters?

before I give my answer I want to point out that on the same page there is a paragraph that says....

Members may terminate their membership in the program at any time by giving written notice of termination to the trustee and upon any termination the members use rights in the timeshare interest and all rights incident to it shall automatically be returned to the terminated member.

This clearly does not mean that I can terminate my ownership, nor does it mean I can terminate my membership in a property owners association, nor does it mean that I can stop paying my maintenance fees

What it does mean Im not sure, But it clear to me that The Program being discussed here is the things that the trust does...ie: the reservations system and the website and the rci portal and membership.

Im not sure how I would use my UDI ownership, without the points allocated by the trust, if my rights were returned to me. But it is clear that there is a distinction being made between my membership in "The Program" and my ownership of a piece of real property.

My read on this is that it is the Program that cant be used for commercial purposes.

I think that means I cant rent my points, and that I cant sell the use of my points, but does it mean I cant rent the real estate that underlies those points?.... I dont think so

I realize that's a subtle distinction. and maybe no distinction at all when it comes to UDI or club Wyndham Access, but for weeks converted to points I think Im safe renting my timeshares

Wyndham has already prohibited the transfer of points from one member to another, and prohibited renting points and I think that's what they are referring to in the commercial purposes paragraph cited above....but I dont think that they can go the next step and prohibit renting the real estate

 

[Mel]

Restrictions on use of your real property dont have to be spelled out in your deeds. The restrictions can be spelled out in your condo docs, or association rules. there can also be restrictions spelled out in local law..

So dont fall back on the argument...its my property, I can do what I want...You cant put 10 people in a studio unit, you cant choose to take down one painting and replace it with another, you cant park on the grass, you cant use the pool after midnight, you cant wash your underwear and hang it on the lanai to dry..etc etc

Why not? its my property isnt it? Yes! but when you bought it you agreed to be governed by certain rules, and more than that you agreed to a board that can change the rules...perhaps with only a vote of the board

This is exactly right. The rules could even keep you from using your own property in certain circumstances. You are 20 years old, and inherit a timeshare property from your grandmother. The resort has restrictions in place requiring anyone checking in to be 21 or older. Guess what? You own the property, but you can't use it without having someone 21 or older to check in for you! Perfectly legal, as long as the restriction is applied equally to everyone.

In the case of renting, the management company cannot place such restrictions on your use of your own property, but the other owners could. Perhaps the 75% of owners who use the resort themselves don't want renters coming in. They can place such restriction in the governing documents, and you are bound by them, just as an HOA in a planned development can restrict the color of siding you use, or the height of your fence. If they think renters will be more likely to damage the resort, they can institute a fee for anyone other than you using the unit - and fines for you if you don't disclose your rental.

As the person wanting to rent the unit to someone else, this may sound unfair, but from the perspective of the other owners, they are protecting their own interest in the property. Remember, this is not a private piece of real estate owned just by you - this is joint ownership with 50 other owners for your unit, and who knows how many for the whole resort.