Practical Experience of Renting at Aruba Ocean Club

[AlmostRetired]

Background
I am trying to plan for eventual retirement so I am looking to buy the best premium weeks I can find, at a reasonable cost that have good good rental/MF ratio. I just picked up a summer Monarch week for 5K. I own an summer oceanfront Monarch week so I know the rental market.

I might have an opportunity to pick up an oceanfront 2 br gold unit at the Marriott Aruba Ocean Club for under 7K. It also adds a lockout to our portfolio which I like.

To current owners
I know the units are floating weeks so how difficult is it to lock in a summer (July/Aug) week? My sense is because of school being closed, it is the best time for families hence rentals.

What have you rented a 2 br for? If you rented only a 1 br, this would be helpful too.

To Renters
What have you paid to rent a 2 (1) Br.

In general, I know redweek is a good guideline for rentals but the fact is you really never know what someone really got/paid. My wife is a little nervous about what I am doing so I would like to be a real world as I can.

Thanks

 

[Bob B]

Checking on Redweek.com, rentals that have come off the market for this summer for a 2br went for $2500-2800. Given that the maintenance fees are very high in Aruba, not sure you want to pursue that location. I used to own there but the fees just got too high for me. My guess is that they are now over $1600.

 

[gmarine]

Keep in mind that Redweek shows the asking prices, not the actual rental prices. Also, maintenance fee increases have been outpacing rental rates and if that continues the profit on rentals will continue to erode as it has for several years now.

 

[AlmostRetired]

I understand Redweek may not be actual. This is one of the reasons I posted the question.

My oceanfront unit at the monarch rented for 2700 last year. This year I rented for 2500 and it was gone in two days. The rental to MF ratio was over 2. The new unit I have on redweek. It is a not an ocean front and I am asking 2200. I will see. If I don't get it I will actually use it.

The killer in Aruba is the utility charge which is tied to the price of oil. One would expect that portion of the maintenance would go down 25 to 50%. This may not be the case. In any case the starting point is having actual rental data.

 

[ilene13]

The maintenance for the 2 bedroom unit is $1693.00. We own platinum units. I usually get between $3200-$3600 for weeks 51 and 52. I hope that helps. Aruba is very popular in the winter, although the weather is the same all year. IMHO I wouldn't want to go in the summer, we save the Caribbean and Mexico for the winter.

 

[Seaport104]

The maintenance for the 2 bedroom unit is $1693.00. We own platinum units. I usually get between $3200-$3600 for weeks 51 and 52. I hope that helps. Aruba is very popular in the winter, although the weather is the same all year. IMHO I wouldn't want to go in the summer, we save the Caribbean and Mexico for the winter.

$3,200-3,600 for a 2BR in Week 51 and 52? Wow that is really low for that week. I always thought it would be in the $4,000- $5,000 range given the demand.

 

[m61376]

$3,200-3,600 for a 2BR in Week 51 and 52? Wow that is really low for that week. I always thought it would be in the $4,000- $5,000 range given the demand.

I think Irene has1BR unts. The 2 BR units do go for 4-5k for the holiday weeks.

 

[ilene13]

$3,200-3,600 for a 2BR in Week 51 and 52? Wow that is really low for that week. I always thought it would be in the $4,000- $5,000 range given the demand.

I do own 1 bedroom units. Actually the 2 bedroom units go between 6,000-7000.

 

[Seaport104]

I do own 1 bedroom units. Actually the 2 bedroom units go between 6,000-7000.

Yes, that makes more sense. My friend went to aruba for this past NYE and she paid 700 a night at holiday inn for a hotel room. Too bad she told me 2 weeks before she was leaving. I told her to join redweek for next time.

 

[AlmostRetired]

The cost of a nye is not within I am looking to spend even though the rental to MF is high. I actually enjoy April- September in Aruba. This all being said, if I can get the week cheap enough and the rental is good enough, it would be worth it. Does anyone have actual rental experience gold time in Aruba?

Thanks

 

[suzannesimon]

I'm trying to do the same thing - rent some of my timeshares to pay for the trips to the other ones after I retire next year. I recently bought a summer Aruba Surf Club 3 BR Gold. The reserved week was in July and it rented 15 minutes after I put it on Redweek for $1600 over maintenance. I like 3 BR's because there aren't many 3BR rentals. I also have 2 Gold weeks in the Bahamas that rent for $2200 over maintenance. I have holiday weeks at MFC that rent $4000 over maintenance, but I'll never recoup the cost because it was a developer purchase.

Basically just buy any popular vacation spot that is not overbuilt with timeshares during a season when kids are out of school.

 

[ilene13]

Basically just buy any popular vacation spot that is not overbuilt with timeshares during a season when kids are out of school.

Many people have done that at the Aruba Ocean Club. They have bought multiple platinum units to rent out. In fact they have created businesses. The problem with that is that many owners who own 1 or 2 weeks have been having trouble getting the holiday weeks for their own use. I have friends that own 2 platinum 2 bedroom units. 2015 will mark the 8th year they have been unable to book week 52. Meanwhile there are owners who have multiple week 51's and 52's up for rent on Redweek.
We bought our first timeshare in 1980. They were sold to us as guaranteed vacations, NOT investments. We have never looked at them as such. When I rent out an OC unit it is one that my children don't want to use.
Please excuse my rant as this is such a touchy subject. I have too many friends at the OC who have been unable to enjoy school vacations with their families due to the folk who have made timeshare rentals into a side business.

 

[suzannesimon]

That's why I do the rentals. I rented a Surf Club last year from another owner and then rented the week I had to recoup the $. Still, all the Platinum owners should have equal access to Week 52. I call in and log in as soon as the week I want opens up. If I don't get what I want, I reserve a different week and rent the one I want. It's like tickets scalpers - someone is willing to stand in line all night to get tickets to a popular concert and sell them at a premium to the people who didn't want to stand in line. The early bird catches the worm.

When I bought 2 Week 51 at MFC from Marriott, I bought them to use. However, the salesman told me most of them were purchased by investors because the rentals were so good. I used them a couple times and traded them twice and realized it wasn't a fair trade. You can argue it isn't fair in Aruba because of the RTU, but most Marriotts are deeded real estate ownership and the owners can use their weeks anyway they wish - as a vacation home, trade it with another owner or rent it. It is the right of the owner of real estate.

 

[SueDonJ]

... When I bought 2 Week 51 at MFC from Marriott, I bought them to use. However, the salesman told me most of them were purchased by investors because the rentals were so good. I used them a couple times and traded them twice and realized it wasn't a fair trade. You can argue it isn't fair in Aruba because of the RTU, but most Marriotts are deeded real estate ownership and the owners can use their weeks anyway they wish - as a vacation home, trade it with another owner or rent it. It is the right of the owner of real estate.

I don't think using timeshares as rentals is "unfair" at all, because it's a usage option that's clearly bestowed by the governing docs of all Marriott resorts (regardless if RTU or perpetual.) But like Ilene I'd be very happy if MVW were to begin imposing rental guidelines in compliance with the restrictions/limitations related to vaguely-defined "commercial activity" restrictions and "lottery" reservation systems that are also in the docs.

I'm not saying, and I don't think Ilene is either, that the owners who rent out their timeshares are doing something wrong. We're just saying that we'd like to see a priority advantage given to owners staying at their owned timeshares, at least during the highest-demand periods.

 

[suzannesimon]

But how could they enforce it since the owner can just add the renter to the reservation as an additional guest? When I checked in as a renter at Aruba Surf Club, they asked me if the owner would be joining us and I told them no. They continued to call all week to schedule an owner's update and would ask for the owner by name. I can't imagine how the staff could police it - or even want to for that matter.

 

[SueDonJ]

But how could they enforce it since the owner can just add the renter to the reservation as an additional guest? When I checked in as a renter at Aruba Surf Club, they asked me if the owner would be joining us and I told them no. They continued to call all week to schedule an owner's update and would ask for the owner by name. I can't imagine how the staff could police it - or even want to for that matter.

Disney polices rentals by limiting the number of Points transfers allowed in and/or out of Members' accounts to one per year, and by flagging for review (according to a similar "commercial activity" restriction in their docs) any accounts with a certain number of reservations that have had guest names added. There's no impediment to MVW enforcing similar limitations.

As far as the "lottery" reservation system, where it's included in the governing docs (and I'm not aware of any MVC resorts where it's not included) it's stipulated that MVW could impose a quasi-lottery system so that owners aren't allowed to book the highest-demand intervals during consecutive years, that every owner must be given the chance to reserve those intervals on a rotating basis and/or that owners must use those reservations as owner stays. If implemented that would prevent an owner from repeatedly reserving the same high-demand intervals year-after-year for any usage options, without any need for the onsite staff to have to police any aspect of it because it would be a function of Owner Services.

 

[ilene13]

I agree with what Sue has said. Renting a unit or two is one thing, but there are OC owners who own in excess of 15 weeks. They rent them all out annually. There is language in the OC documents saying that they could not be used for a commercial business. I know that Marriott is looking into the situation.

 

[suzannesimon]

I'm really surprised they didn't sell 51 and 52 as fixed weeks.

 

[AlmostRetired]

I agree with what Sue has said. Renting a unit or two is one thing, but there are OC owners who own in excess of 15 weeks. They rent them all out annually. There is language in the OC documents saying that they could not be used for a commercial business. I know that Marriott is looking into the situation.

It will be interesting when Marriott looks into this. MVCI and Marriott are different companies. You can rent OC from the Marriott reservation system representing a very big commercial business. While I agree it is very unfair to 1 and 2 week owners, they have to find a way of fixing the way MVCI gives out the weeks.

 

[suzannesimon]

I still fail to see how these big investors are able to book up all the Week 52's when we all have the same access to the reservation process.

 

[ilene13]

I still fail to see how these big investors are able to book up all the Week 52's when we all have the same access to the reservation process.

They also own multiple gold weeks and they can book out very early.

Actually it is MVCI who is looking into the situation. Old habit of considering them one and the same.

 

[suzannesimon]

So someone owns 10 Platinum weeks and they call at the 13-month mark and Marriott will book all 10 weeks for them for Week 52? They still only release 50% of the weeks at 13 months. Everyone lives with the same booking rules. All the people booking multiple weeks have the right to be on the phone at 9 am, and all the single week owners can call or log on at 9 am 12 months out. I don't "buy" that investors win the battle of the dial tone every time unless they are more motivated than the owner occupants who may be sleeping in until 9:15 and losing out on a prime week. If you are on the phone at 9:am and you never get your first choice week, then there is a problem. I've heard of people being outraged when the holiday week was totally gone when they tried at 11 months, however.

Adding to the problem is the owners who converted to Destination points back in September. I think those weeks are probably held for other points owners trading into Aruba, not weeks owners using their weeks. Then there's the problem with the Premier owners who can book less than a week so that unit can't be booked for a full week by anyone else. I would like to see holiday weeks be limited to 7 day reservations only.

 

[ilene13]

I own 3 weeks. I call on or about 11/11 and I book a 50/51/52. If I owned 3 gold and 3 platinum I could call in mid October and book a 47/48/49/50/51/52. Then I call back a week later and flip the week 47 for a second week 52. This process continues. The more weeks you own in the two seasons the further out you can book. Also the more concurrent weeks you can book at once. Very few OC platinum owners convert their weeks to DP. When we are there weeks 51/52 we have never met anyone on points.
I understand what you are saying about booking the weeks, but I will tell you that when I called on 11/11 for 2015, I only got 2 week 50's and 1 week 51. Yet the next day on Redweek one owner already had 8 units up for rent. They were all week 51 or 52. I did eventually get the weeks I wanted but it took 5 phone calls. I finally got 2 week 50's and 1 week 52.

 

[suzannesimon]

Would they let a 47 Gold week be changed to a 52 Platinum? I totally understand the concurrent weeks even if you are a snowbird who is spending a month or more and not renting your units. Nothing can be done now, but holiday weeks should really be fixed weeks. They have a similar problem at KoOlina. Everything except 51 and 52 are Platinum weeks so you have 50 weeks of owners all trying to book spring break and summer.
Aruba, though, is the only place I've heard of that has so many multiple week owners and 51 and 52 not fixed ownership.

 

[dioxide45]

51 and 52 are event weeks at the Surf Club but only platinum at the Ocean Club. If a gold owner owns multiple weeks they can still only book in the gold season, so if booking consecutive weeks, their last possible week to reserve consecutively would end at week 50.

As we know, at some resorts Marriott over reached on the seasons. Newport Coast is one case as well as Hawaii. While all year is popular in Hawaii, there are obviously more peak times and getting reservations for those times is not easy. It does seem that the seasons for Aruba are fairly reasonable. I think HHI has the most reasonable seasons.