Considering a 2nd unit at MOC (MMO)

[NTP66]

After years of being a renter, I purchased my first timeshare at MMO, an EOY (even) 1BROV unit for $4k. While I haven't even been able to use this unit yet, I'm seriously considering an additional unit in the old building to both extend our vacations in Maui every other year, and to also rent out a portion of the new unit.

Therein lies my question/problem. As of right now, I'm looking at EOY (even) 2BR Mountain/Garden view units. They've consistently been available for under $6k, while the OV units have been between $9-10k.

Personally, outside of Island View, I don't think you can really go wrong with any of the views. However, I'm wondering what others think of these two views, and whether or not it truly would be worth it to spend the extra cash on a 2BR OV. Realistically, I'd be looking to rent either side of the 2BR unit that I purchase 9 out of 10 visits, and nearly always in mid-September during our wedding anniversary; the other visit would be in mid-February for whale season, which I know I would never have an issue renting.

 

[GregT]

After years of being a renter, I purchased my first timeshare at MMO, an EOY (even) 1BROV unit for $4k. While I haven't even been able to use this unit yet, I'm seriously considering an additional unit in the old building to both extend our vacations in Maui every other year, and to also rent out a portion of the new unit.

Therein lies my question/problem. As of right now, I'm looking at EOY (even) 2BR Mountain/Garden view units. They've consistently been available for under $6k, while the OV units have been between $9-10k.

Personally, outside of Island View, I don't think you can really go wrong with any of the views. However, I'm wondering what others think of these two views, and whether or not it truly would be worth it to spend the extra cash on a 2BR OV. Realistically, I'd be looking to rent either side of the 2BR unit that I purchase 9 out of 10 visits, and nearly always in mid-September during our wedding anniversary; the other visit would be in mid-February for whale season, which I know I would never have an issue renting.

The two issues I see with the strategy is that I've not found the Studio side to be a great rental property. I've tried it twice (with an OF unit) and both times just ended up depositing it into II. It was a paid dealing with questions (I only want to stay 6 nights; can you make it a Friday check-in, etc). So, it wasn't a great experience renting a Studio.

The second issue is that you have different view categories, necessitating a room change. I would prefer to buy a matching 1BROV that lets you stay two weeks in the same unit -- but that may be a personal preference. We lose a day when we pack and switch, and I don't love it.

The positive is that I think that the Mountain/Garden views in the original tower often have a view that other properties classify as OV. You may find that if you buy one, you may one day buy a second and rent out your 1BROV.

I hope this is helpful, good luck with the consideration!

Best,

Greg

 

[NTP66]

I was actually planning on doing the opposite - staying in the studio, and renting out the 1BR side. Neither myself nor my wife care which side we'd actually stay in, and I think it'd be easier to rent. I could always try renting the studio portion and just switching it if I was having trouble.

As for repacking, my wife would side with you on that, but to me it's not much of a big deal. With exception to 2011, we have always had to pack up and either switch locations or rooms. I can get everything packed in under an hour, and the front desk can store the bags until the second week's unit is ready.

I'm certainly open to purchasing a second 1BROV unit, but figured that if I aimed for a 2BR, I'd at least be able to pay for most of the MF by renting part of it out. If I didn't/don't buy a second unit, I'd likely be renting from another owner or staying at a hotel, which is why I'd prefer just owning and being in control of my entire stay.

I do appreciated the feedback, and figured you'd be the first to respond!

 

[vacationtime1]

If I were planning on renting part of the unit every year, I would buy OV. The additional purchase cost is a one time expense, but the extra rent you will receive will be every year (MF's are the same regardless of view). I also suspect that it will be easier to rent OV.

But you should look carefully at the number of Maui Ocean Club rentals on Redweek and MyResortNetwork. You will have a lot of competition for renters, especially for non-prime season.

 

[NTP66]

But you should look carefully at the number of Maui Ocean Club rentals on Redweek and MyResortNetwork. You will have a lot of competition for renters, especially for non-prime season.

I don't mind undercutting everyone else, especially in my scenario where anything is better than nothing at all. I do this every year for my parents who rent out their OceanWatch at Grande Dunes 99% of the time.

 

[BocaBoy]

Personally, outside of Island View, I don't think you can really go wrong with any of the views. However, I'm wondering what others think of these two views, and whether or not it truly would be worth it to spend the extra cash on a 2BR OV.

It is a matter of individual taste and preference, but I personally would buy the ocean view. The extra cost would be worth it to me. An ocean view would also be easier to rent and would have a higher rental value.

 

[Bill4728]

IMHO I'd not buy anything more. Buying a TS, with the idea you want to rent it most of the time,to me doesn't make sense.

Since you already rent, rent what you want if you want to extend your visits.

 

[NTP66]

IMHO I'd not buy anything more. Buying a TS, with the idea you want to rent it most of the time,to me doesn't make sense.

Since you already rent, rent what you want if you want to extend your visits.

Well, being able to rent either side of the lockoff would just be a bonus, at this point. Most of the time, we'd be occupying both weeks.

I do have a feeling that my wife is going to try and talk me out of spending any money, for no reason at all.

 

[GaryDouglas]

There is only a few hundred dollars maintenance fee difference between a 1 and 2 bedroom unit, and there is no cost difference between views. So the primary cost difference is the purchase cost for 1 and 2 bedroom unit. For us, getting 2 bdrm units was the only thing that made sense...

 

[NTP66]

I've been going back and forth with my wife about this, and am pretty sure that buying a 2BR unit is now out of the question (I've got to pick my battles). That being said, I'm looking at either another 1BR oceanfront or ocean view unit, and leaning towards the latter. Despite the fact that we generally go in September over our anniversary, we will be doing whale season ever few trips, and the difference in the number of oceanfront units (18) versus ocean view units (92) is a big factor. We'd be much more likely to get whichever dates we wanted with an ocean view unit, a fact I've essentially confirmed over the past 2 years myself by randomly checking availability with Marriott.

 

[NTP66]

It took a month, but my wife and I finally agreed on a direction to go with this. We're now in the process of purchasing a 2BR ocean view unit for what I consider to be an outstanding price, given what I've seen them go for over the past two years.

I do have a question regarding the reservation, though, as this is an every other even year unit with first use in 2016. We're already set in 2016 with our 1BR unit, and I plan on immediately renting this one out simply because next year is going to be very busy with vacation time. If I have the current owner make reservations, will that reservation transfer to me once everything is said and done? I know that he can add me to his reservation, but since I don't plan on using the week, I've got to think that this would hinder me from adding the future renter to the reservation.

As always, I appreciate the advice.

 

[GregT]

It took a month, but my wife and I finally agreed on a direction to go with this. We're now in the process of purchasing a 2BR ocean view unit for what I consider to be an outstanding price, given what I've seen them go for over the past two years.

I do have a question regarding the reservation, though, as this is an every other even year unit with first use in 2016. We're already set in 2016 with our 1BR unit, and I plan on immediately renting this one out simply because next year is going to be very busy with vacation time. If I have the current owner make reservations, will that reservation transfer to me once everything is said and done? I know that he can add me to his reservation, but since I don't plan on using the week, I've got to think that this would hinder me from adding the future renter to the reservation.

As always, I appreciate the advice.

Yes, the reservation will transfer to you as new owner so I would ask them to make a reservation as soon as possible.

Congrats on your purchase!

Best,

Greg

 

[jtdillian]

With all of this rental talk I am wondering how everyone takes care of taxes? Especially with this airbandb San Francisco situation going on. Does everyone think they will go after people that rent their timeshare next? Also what happens if someone trashes the place? Who is responsible? Is there any timeshare rental insurance out there? Have always been curious on these points!

 

[NTP66]

With all of this rental talk I am wondering how everyone takes care of taxes? Especially with this airbandb San Francisco situation going on. Does everyone think they will go after people that rent their timeshare next? Also what happens if someone trashes the place? Who is responsible? Is there any timeshare rental insurance out there? Have always been curious on these points!

I've never looked into any sort of rental insurance, but do know that when I rent out my parents' timeshare in Myrtle Beach, there's always verbiage that the renter is responsible for all charges and damage. My guess is that the resort would likely handle this directly, since they require a credit card at check-in.

 

[SueDonJ]

I've never looked into any sort of rental insurance, but do know that when I rent out my parents' timeshare in Myrtle Beach, there's always verbiage that the renter is responsible for all charges and damage. My guess is that the resort would likely handle this directly, since they require a credit card at check-in.

The governing docs for the resorts we own say that the owner is ultimately responsible for damages or unpaid folios, and the resorts aren't responsible for enforcing any private rental contracts to which the owner is a party. Theoretically couldn't a renter provide a credit card at check-in and then cancel it after the hold is placed, which I think would result in the resort going after the owner for damages and incidentals charged to the unit?

Good communication is key for private timeshare rentals. We've done it a few times but always with the understanding of how each party may be held responsible.

 

[NTP66]

The governing docs for the resorts we own say that the owner is ultimately responsible for damages or unpaid folios, and the resorts aren't responsible for enforcing any private rental contracts to which the owner is a party. Theoretically couldn't a renter provide a credit card at check-in and then cancel it after the hold is placed, which I think would result in the resort going after the owner for damages and incidentals charged to the unit?

Good communication is key for private timeshare rentals. We've done it a few times but always with the understanding of how each party may be held responsible.

Ah, I see. Either way, if they're signing a rental contract with you, I see no reason why it wouldn't hold up in court if you had to go that route.

 

[NTP66]

Greg,

I'm trying to figure out the chances of this passing ROFR using your metrics, but had one question. Since this is an EOY unit, outside of week 51, should I just take the highest DC points value for a full week, cut that in half and then use that number? Doing that, I'm at 23.5%. My EOY 1BR OV passed ROFR at 26.6%, in comparison.

 

[nygiants11991]

It took a month, but my wife and I finally agreed on a direction to go with this. We're now in the process of purchasing a 2BR ocean view unit for what I consider to be an outstanding price, given what I've seen them go for over the past two years.

I do have a question regarding the reservation, though, as this is an every other even year unit with first use in 2016. We're already set in 2016 with our 1BR unit, and I plan on immediately renting this one out simply because next year is going to be very busy with vacation time. If I have the current owner make reservations, will that reservation transfer to me once everything is said and done? I know that he can add me to his reservation, but since I don't plan on using the week, I've got to think that this would hinder me from adding the future renter to the reservation.

As always, I appreciate the advice.

Once all is said and done, please post the outcome. I am always curious of what passes ROFR.

 

[GregT]

Greg,

I'm trying to figure out the chances of this passing ROFR using your metrics, but had one question. Since this is an EOY unit, outside of week 51, should I just take the highest DC points value for a full week, cut that in half and then use that number? Doing that, I'm at 23.5%. My EOY 1BR OV passed ROFR at 26.6%, in comparison.

Sorry, I just saw this - yes my opinion is that this will pass. I hope you get it and please post the results!

Best,

Greg

 

[NTP66]

I'll definitely post the results. From looking at the older ROFR data, I'm hopeful that this'll pass. Now, if Marriott can make their decision quickly, I'd be happy.

 

[NTP66]

TRCS is sending the waiver to Marriott today, and told me that they've seen Marriott take 2 weeks lately to respond, so I guess the countdown starts now.

 

[SueDonJ]

Ah, I see. Either way, if they're signing a rental contract with you, I see no reason why it wouldn't hold up in court if you had to go that route.

Yes, I'd expect that an executed contract could be legally upheld. But in the meantime an Owner would have to pay the incidentals/damage fees or risk MVW putting a hold on the account because technically we're not allowed usage unless all fees are current. Plus, there will be court costs involved, and, it's not unheard of for people who are ordered by a Court to ignore or somehow drag out the order.

For all that the risk really is minimal, just something to keep in the back of our minds if we choose to rent out our owned timeshares.

 

[NTP66]

Yes, I'd expect that an executed contract could be legally upheld. But in the meantime an Owner would have to pay the incidentals/damage fees or risk MVW putting a hold on the account because technically we're not allowed usage unless all fees are current. Plus, there will be court costs involved, and, it's not unheard of for people who are ordered by a Court to ignore or somehow drag out the order.

For all that the risk really is minimal, just something to keep in the back of our minds if we choose to rent out our owned timeshares.

In that scenario, I'd be inclined to cover the damages myself and go after the renter for reimbursement. It's always a risk, though like you said, I believe it to be minimal. In my particular case, I'd be inclined to believe that anyone dishing out the cash for a Hawaiian vacation would be more likely to not trash the place, but you never know.

In other news, does anyone know what Marriott has been exercising their ROFRs on lately? The woman I'm working with on this transfer told me that they execute heavily on stuff they really want inventory on. I've been reading through old threads to see if anyone has recently purchased at MOC, but have only really found my own threads.

 

[NTP66]

I'm happy to report that Marriott waived their ROFR on our 2BR OV EOEY unit, and did so in just under two weeks! I'll add this to the 'Ongoing ROFR' thread. Special thanks to Greg (again/as usual).