Does your timeshare make you liable if you rent?

[Panina]

I was just looking into alternatives, such as privately renting, if I wasn’t well enough to go to Key West later in the month. This darn flu hopefully will be gone so I can go. So got the paperwork from the resort, $50 fee, plus $15 a day resort fee for guest but what got me was

I would be responsible for damages caused by my guests to the grounds or my unit. Makes me uncomfortable so wondering is this standard?

 

[WinniWoman]

I was just looking into alternatives, such as privately renting, if I wasn’t well enough to go to Key West later in the month. This darn flu hopefully will be gone so I can go. So got the paperwork from the resort, $50 fee, plus $15 a day resort fee for guest but what got me was View attachment 16177
I would be responsible for damages caused by my guests to the grounds or my unit. Makes me uncomfortable so wondering is this standard?

I am going to say yes, though I personally have never rented out our units. I just hope you get well quickly and can go. After the year you had it would be good for you.

 

[CalGalTraveler]

Cant say for timeshares, but for rental homes, many rental agencies take a credit card for damages, and/or require the renter to buy rental damage insurance with the agency as an also insured.

 

[Panina]

Cant say for timeshares, but for rental homes, many rental agencies take a credit card for damages, and/or require the renter to buy rental damage insurance with the agency as an also insured.

Yes, and I believe for most timeshares too. I love my Key West timeshare and feel it is not totally fair. I believe they want you to do the rentals through them but they don’t have anyone on the waiting list for a duplex. When they rent for me I am not liable, the guest is but if I rent I pay additional fees and I am liable.

 

[tschwa2]

I think typically they take a credit card and put a hold on x dollars. If they can easily charge for damages and the rental guests don't dispute and pay done is done. On the other hand if damage is more than the hold and the rental guests dispute the charges or are using a stolen credit card or have other issues, the timeshare doesn't want to deal with it. They will bill you the owner and let you deal with getting re-imbursed from your rental guests. If you are letting the resort do the rental and they are charging the 30-40% ish commission or you are depositing with RCI or Interval then it takes you out of the equation.

I think it is pretty normal these days.

 

[WinniWoman]

Yes, and I believe for most timeshares too. I love my Key West timeshare and feel it is not totally fair. I believe they want you to do the rentals through them but they don’t have anyone on the waiting list for a duplex. When they rent for me I am not liable, the guest is but if I rent I pay additional fees and I am liable.

Smuggs does a lot fo stuff like this to discourage private rentals and encourage renting through them instead.

 

[geist1223]

We know at the Residence Club in Seaside Oregon they do make the renter provide a Credit Card but only a $100.00 Hold is put on it. The Owner of week rented is responsible for all damages over $100.00. Several years ago a group of people in their 20's and 30's decided in the middle of the night to build sand castles in the Living Room. Owner that rented to them got a big Bill. Then there is the renter that decided to use the Spa Tub in the en suite after a night of drinking. Got up turned on the water to fill the tub. Fell back to sleep. There was about 4 inches of water in the unit when the renter woke up. Plus all the damage to the floors below. That is why when we rent out we use a reliable Broker. He buys insurance. He takes a 20% cut. But it is worth it. Plus we do not need to deal with finding renters or dealing with the renters.

 

[Panina]

We know at the Residence Club in Seaside Oregon they do make the renter provide a Credit Card but only a $100.00 Hold is put on it. The Owner of week rented is responsible for all damages over $100.00. Several years ago a group of people in their 20's and 30's decided in the middle of the night to build sand castles in the Living Room. Owner that rented to them got a big Bill. Then there is the renter that decided to use the Spa Tub in the en suite after a night of drinking. Got up turned on the water to fill the tub. Fell back to sleep. There was about 4 inches of water in the unit when the renter woke up. Plus all the damage to the floors below. That is why when we rent out we use a reliable Broker. He buys insurance. He takes a 20% cut. But it is worth it. Plus we do not need to deal with finding renters or dealing with the renters.

I have always used the in house brokers. Being I got sick so close this is the first time I was thinking of putting it on Tugs LMR. Showed my other half what we had to sign and he rather lose the money. My cousin said she can use a few days in week 3 if we don’t go. Week 4 I still have time to deposit in II until Saturday. If I am feeling better we will take a chance I will be well enough to go by then.

 

[MOXJO7282]

I think this is ;like worrying about getting hit by lightening.

 

[theo]

View attachment 16177
I would be responsible for damages caused by my guests to the grounds or my unit. Makes me uncomfortable so wondering is this standard?

Generally speaking, if a resort (any resort) obtains a renter for you (...usually for a hefty 25-40% commission, of course) , the resort then also assumes full responsibility for any damages caused by tenant(s) they obtained.

On the other hand, if you obtain your own tenant(s) without any resort involvement, you (as the interval owner of record) remain fully responsible for any damages by your tenant(s). Yes, resorts may take a credit card imprint (with a meager dollar amount) from the tenant as a "security deposit" measure and you might have (difficult to enforce) "tenant liability" language in your rental contract to (try to) shed responsibility for your tenants' actions --- but (as already referenced in a post above) the resort will chase you (not the tenant) for any repair costs exceeding the authorized credit card deposit amount. Collecting from the offending tenant(s) will be your problem.

In my experience and opinion, tenant damage is not usually a concern. That said, however, I always enforce a minimum age of 25 in my infrequent rental agreements, to completely avoid the only demographic that really concerns me --- college-age "students" seeking someplace to collectively party while on their Spring "Break". Not at my place, thanks --- look elsewhere.