How to rent out a floating week (not yet reserved)

[bobpark56]

We have a week [prime Caribbean rental] that we are thinking of renting out in 2017. Are there any special issues or words of advice here for renting out a floating week that has not yet been reserved?

(Advice appreciated. This will be our first experience in renting out a week.)

 

[scootr5]

In looking at Interval International's travel demand index for that resort, of your float period the last three weeks (48-50) show as highest demand for the range, with 50 being the highest of the bunch). I would reserve one of those at the first opportunity.

 

[DeniseM]

In general, it does not work well to rent a floating week, because by the time you get a request from a renter, the best weeks will be gone. It works far better to find out what the highest demand week is, and reserve it, and offer that week for rent. The highest demand weeks are school holidays.

*Christmas and New Years are very high demand, but you may not be able to reserve them. Early December is not nearly as strong, because school is in session, and people are focusing on the holidays. President's week or Easter would be good choices, or July - all the times the kids are out of school.

 

[tschwa2]

If you can get Thanksgiving week, it is going to be higher demand than the other weeks. I own a summer week at HRA and thought it would be better to avoid 4th of July because there is less competition for non holiday summer weeks. This year I decided to reserve the 4th for next year. Turns out I rented it out within 48 hrs of listing immediately after reserving 12 months in advance for $300 more than the late July the year previous which took about 4 months to find a renter.

 

[DeniseM]

If you can get Thanksgiving week, it is going to be higher demand than the other weeks. I own a summer week at HRA and thought it would be better to avoid 4th of July because there is less competition for non holiday summer weeks. This year I decided to reserve the 4th for next year. Turns out I rented it out within 48 hrs of listing immediately after reserving 12 months in advance for $300 more than the late July the year previous which took about 4 months to find a renter.

I have to disagree with Thanksgiving - because most kids are only out of school for 2 days, it isn't as good as Christmas, New Years, President's week, Easter week, and July.

 

[tschwa2]

But having to happen to see the weeks that are available in his season, those other weeks aren't an option. This is a fall season. So suggestion he reserve summer or Easter won;t help. Also a studio isn't really a bring the kids type of vacation and doesn't have the same restrictions as renting out a 2 or 3 br unit. If a couple can have 2 days off without using vacation, they are more likely to pick that week over another week where they have to take the whole week. I work with HR in a retail business now but when I worked at HR at a college, almost all of the office workers took the entire TG week off and about 1/3 of the professors did as well.


Your advice is spot on for Hawaii weeks that float the whole year or Caribbean weeks in Platinum season.

 

[DeniseM]

But having to happen to see the weeks that are available in his season, those other weeks aren't an option.

Good point - I over-looked the season, but my experience has been that Thanksgiving isn't a strong rental, but probably the strongest for his season.

 

[tschwa2]

My other suggestion would be to market it to places that have fairly easy access to that island and places that are already quite cold by late November. So I would look large cities in the north Atlantic and upper mid west to see if there are any carriers with either non stop flights to the closest airport or other budget carriers that have easy non stop or one stop connections to the closest airport.


Just as an example I live near Baltimore and I can get to Punta Cana in DR with more than one carrier in 3-4 hrs (at least on Saturdays) but it would take me over 10 hrs in multi connection flights to get to Puerto Plata in DR from where I live.

 

[Ty1on]

I have to disagree with Thanksgiving - because most kids are only out of school for 2 days, it isn't as good as Christmas, New Years, President's week, Easter week, and July.

Judging strictly by points charts, it seems to me that depends on the location. TxG comes up as prime in many locations, and low season in others. I particularly noticed low season TxG in the midwest and inland south. This was just in one system.

 

[DeniseM]

Judging strictly by points charts, it seems to me that depends on the location. TxG comes up as prime in many locations, and low season in others. I particularly noticed low season TxG in the midwest and inland south. This was just in one system.

My experience has been that across the board, Thanksgiving is not as popular as most other school holidays. YMMV

 

[pchung6]

Is Christmas or New Year the still best rental of the year? I see Orlando xmas or nye has the highest tdi, but it is very low for south carolina. Not sure why such big gap in demand for these 2 areas.

 

[DeniseM]

Is Christmas or New Year the still best rental of the year? I see Orlando xmas or nye has the highest tdi, but it is very low for south carolina. Not sure why such big gap in demand for these 2 areas.

South Carolina is a summer beach destination - Orlando is a Disney/School Holiday destination.

 

[Carlsbadguy]

Does anyone have a suggestion for Kauai what would be the best week to reserve to rent. I can reserve week 1-52.

I did try the just listing any week for rent and that did not work.

 

[DeniseM]

Does anyone have a suggestion for Kauai what would be the best week to reserve to rent. I can reserve week 1-52.

I did try the just listing any week for rent and that did not work.

School holidays: Christmas, New Years, President's week, Easter week, July.

But unfortunately, Kauai does not have the rental demand that Oahu and Maui do.

 

[bobpark56]

Thanks everyone

Thanks everyone. The unit we would be renting is a studio, so the suggestions made re reserving a Thanksgiving week seem on point. As "studio" means we will be targeting couples primarily (not families), working couples may be more likely to seek to extend a Thanksgiving break than to schedule a full week of their own off. A close second choice would seem to be week 50.

The more I think about it, offering a floating week before it is reserved (my original idea) seems to involve complications. What if a renter backs out after you reserve the week he/she requested you to reserve? Has anyone tried going this route...with success?

 

[ronparise]

Thanks everyone. The unit we would be renting is a studio, so the suggestions made re reserving a Thanksgiving week seem on point. As "studio" means we will be targeting couples primarily (not families), working couples may be more likely to seek to extend a Thanksgiving break than to schedule a full week of their own off. A close second choice would seem to be week 50.

The more I think about it, offering a floating week before it is reserved (my original idea) seems to involve complications. What if a renter backs out after you reserve the week he/she requested you to reserve? Has anyone tried going this route...with success?

Short answer is no

I have always had the best results making the reservation and then marketing it.

 

[DeniseM]

The more I think about it, offering a floating week before it is reserved (my original idea) seems to involve complications. What if a renter backs out after you reserve the week he/she requested you to reserve? Has anyone tried going this route...with success?

Sometimes a guest will ask for a week that I don't have, but can get. Before I make the reservation for them, I collect a nonrefundable $100 deposit.

If the reservation that I'm making for them is non-cancellable, or will be restricted if it's cancelled, I ask for a higher non-refundable deposit.

If I get the reservation for the guest, and they don't proceed with the rental, they lose their non-refundable deposit.

You need to develop your rental terms, before you start advertising.

 

[molemay]

Renting floating weeks.

I always rent my floating Hawaii weeks as floaters. I ask people to tell me what week they want. I let people know that it is best to rent 12 months in advance and I charge $100 for making the reservation which goes to the total rental amount. If they cancel after I make the reservation they don't get that money back. I have never had that happen and I have been renting for over 10 years. After I get the reservation I send them a rental agreement and get 1/2 the rent up front with the rental agreement and then get the 2nd 1/2 90 days before checkin. It works for me. I don't want to be pinned to a certain week.

I actually have repeat customers who ask for different weeks each year.

Monika