I need help renting my timeshare

[ibraszo]

I am new to the timeshare rental business. I could not get the
week I wanted so I booked [details deleted]

 

[Dave M]

Welcome to TUG!

For help in determining the rental value of your timeshare and how to go about renting it without getting scammed, please read the "how to rent" article located at the top of the list of topics for the Buying, Selling. Renting forum. Then if you have more questions, come back and ask. We'll help!

Please avoid providing details of where you own. Doing so and expressing an interest in renting or selling is treated as an unallowable ad.

 

[Jya-Ning]

I saw your post before Dave delete the detail information and accidentially the question. I believe you are asking how to determine the asking price.

There is no guarantee what price will guarantee to get renter. As an owner and landlord, I believe you should try your best to protect your interest try to get the max rental income the market can afford. On the other hand, if you can not rent out, I don't know what is your back up plan, so you may want to seek the most reasonable price that can attract most renters to contact you.

I believe you have a lot of measurements
One way is look at the link provide by Dave go to the rental site, then try to figure out the advantage and disadvantage of each site and try to do some observations to figure out the renters and their behavior in each site. Then you probably will be able to determine how much you want to ask that give you the max profit and the best chance to rent out.

the other way is to look at your own resorts rental outlet, try to see how much they charge, and make a guess what kind of discount other renters will be happy to get.

The other way is to look at what other way you can do, and what is the cost, I know yours probably is not a point system, but some point system do allow owners to rent out just point between each other, and that price is pretty stable, so if for some chance your is that kind of situation, you should try to ask the price higher than you can get from this way.

The other way is to look at what you think is the reasonable profit you think you should get after deduct the MF for all your efforts and ask for that, then if you take that approach, you need to determine which site(s) will give you best chance to fetch that kind of deal.

That say, for your week, I believe you will get renters pretty early and very easy to rent out if you price a med. asking price in any site.

Jya-Ning

 

[Dave M]

I don't agree with everything in Jya-Ning's post. The first two alternatives are covered in detail at the link I provided. I agree that the third is probably not applicable here. However, I believe the fourth (determining rental price based on a calculation of reasonable profit) is a poor way to determine an asking price. It is an appropriate way to help judge whether renting is worthwhile, but using that method ignores the realities of the marketplace.

If, for example, I set an asking price of $1,500 based on a determination that it gives me a reasonable profit, but most of the other ads are for about $1,000, it's very likely that my week will not be rented.

Some people suggest asking a multiple (e.g., 2X) of annual maintenance fees. That's just as likely to result in failure because it ignores market conditions.

 

[DeniseM]

Actually, if you want a quick rental, you need to be the lowest price for a comparable week (season/size/view) on the sites where you advertise. If you are in the mid-range, all the weeks that are priced lower than yours will rent before yours does, and your week may never rent. If all other things are equal, renters are going to take the lowest prices first. You may not even be able to cover your maintenance fees, but it is better than nothing. Unless you own a very popular week, at an upscale resort, you should be happy to get your maintenance fees covered. In general, renting your timeshare is not a big money maker.

 

[Dave M]

I agree.

From the "how to rent" article linked in my first post:

...if you really want to rent it, price it below what others are asking....

 

[Jya-Ning]

If, for example, I set an asking price of $1,500 based on a determination that it gives me a reasonable profit, but most of the other ads are for about $1,000, it's very likely that my week will not be rented.

Although I agree what Dave says. And I think he says that for the best interesting of any people since it gives you the best chance to success rent out your week. However, when one tries to rent something out, IMHO there are two different sitiuations. The 1st one is one owns TS for the purpose of using it, and for some situation, (s)he can not use it in one year or other, and it is temp. changes. The other is for someone try to do it for profit.

For the 1st situation, if after all the calc, you find out a number and after look at serveral site, you realize it highly unlikely you can compete in those site, you need another approach. The week you reserved or owned will not serve your purpose. You have to choice 1) try to find some places where you can get a chance to rent out (for example amongst people that don't have any idea of TS and don't really know the cost of TS, but your TS rental price are much cheaper than the near-by hotel cost), 2) try to accept a loss that you can accept 3) determine if you can use some exchange company to extend the live of your timeshare usage 4) or you need serious think if you want to keep the ownership, but need to realize that it may take a long while to get rid of this ownership thus you will still need to rent it out.

If you purchase the TS just for the purpose of making rent income, then you should not expose yourselves to this situation.

For other situation, I would think one should set up the loss situation and determine the time you will take the loss or find out what exchange company they want to use as back up plan, but try the best to get whatever you need. Then say within the predetermined time period you still don't have a taker, you take the 2nd or 3rd approach.

Most of the sites listed in here are constantly refered by tugger, and majority of tuggers are very cost cautioned. However, I do know situations and people that are not that cost cautioned (the easiest example is just look at the % of owner every years that purchased TS from developers), and I do believe TS when against a hotel or rent by owner has certain advantage (in other word, you will be providing a value added service and not just a rip off the un-educated general public). And if you just have temp. problem, and try to deal with it, I do believe you have a chance to find those people.

Keep in mind, even if one follows all the suggestion listed, there is still a chance that the week will have no takers. Just simply pull the eBay vacation lodge and see how many of it get unbid. At the busiest time, I believe the occupancy rate is not 100%. So don't get too upset and think your week is worthless if that happen. But you should always prepare for the worse situation.

Personally, it is your own choice. But if it is me, and I don't need to do this as business, and I have problem to rent it out, I would be very happy to take a loss and find some friends or relative to use it.

All I said is, we all know the TS is not a prefect market, it is very segregated. eBay, bidshare, redweek, tug all have different buyers. Although there maybe a good % of people in a lot of these makets. There are more bigger % of people that does not come to any of these markets. If you look at one market and realize the value of the week is really laugable, you should not try to compete in that market even if that means you will have less chance to rent it out. Try to find someplaces that have not been explored. If you can not find, then you need serious look at the way you valued your week and determine if you want to continue the ownership.

As I said in my first reply, I don't believe it will be your case. I think your selected week is good.

Jya-Ning

 

[Blondie]

I think tying the asking price to your predeterminded profit margin is a mistake. You are only going to get what someone is willing to pay-- no matter how you rationalize your asking price. I price mine lower than everyone else's- period.

 

[easyrider]

It kind of depends on where you put your add. If you put the add in the nickle saver , newspaper classified, or creigs list you will have more people looking at it. Most of these people might use Expedia and other travel sites to determind a value. Most of these people dont know about tug and timeshares.