Renting Your Timeshare For Highest Profitability - What Are Your Best Strategies?

[The Colorado Kid]

If you are willing to share your "secret-sauce" for generating highest timeshare rental profitability please do!

I understand the very best strategies might be best kept secret, ha!

Would enjoy keeping this thread to the topic and not whether people agree/disagree on renting for profit in general.

 

[TheTimeTraveler]

One of the things that I think are important is to list it well in advance; i.e. maybe 10 months in advance. This allow folks to do proper planning, buy airline tickets, etc.

I also think your rental income will be better well in advance (10 months before check in) versus last minute (1 month before check in).




.

 

[chapjim]

First, is your reservation fixed, floating, or points-based? If it's a fixed week, you want to get it sold so you need to be flexible on price. Be prepared to reduce the price, make offers to watchers on eBay, etc.

Once I had a reservation for my floating weeks, I generally treated them as if they were fixed. That may or may not be a good strategy, depending on the charge to cancel and re-reserve or to exchange to a later week, if that's possible.

If it's a points-based reservation, you may be able to cancel the reservation without penalty some number of days (weeks/months) before check-in. You can be a bit more insiistent on getting your price. Watch out for the end of the year.

No particular secrets here. Most experienced renters probably do similar things.

 

[The Colorado Kid]

First, is your reservation fixed, floating, or points-based? If it's a fixed week, you want to get it sold so you need to be flexible on price. Be prepared to reduce the price, make offers to watchers on eBay, etc.

Once I had a reservation for my floating weeks, I generally treated them as if they were fixed. That may or may not be a good strategy, depending on the charge to cancel and re-reserve or to exchange to a later week, if that's possible.

If it's a points-based reservation, you may be able to cancel the reservation without penalty some number of days (weeks/months) before check-in. You can be a bit more insiistent on getting your price. Watch out for the end of the year.

No particular secrets here. Most experienced renters probably do similar things.

make offers to watchers on eBay...I had not thought of this...thanks!

 

[kanerf]

You should see what the rental history looks like for your resort and what the average prices were. Some of this you can find on eBay if other renters have used it.

 

[vol_90]

Build a portfolio of low maintenance fees per point, book weeks at high demand properties (does not have to be highest demand weeks) that allow you to price below most competition, post rentals early and pay your taxes on profits. Don't forget to use some for yourself!

 

[ocdb8r]

Don't get trapped thinking booking "hard to get" holiday weeks is an easy recipe for success. I have found so many people use this strategy that it often depresses pricing as there are SO MANY weeks put up for rent (4th of July or President's week, for example) compounded with the fact that transport costs are typically higher for these weeks. Consider places with more general "demand" in a longer season.

Also, consider that "highest profitability" can also equate to biggest headache or difficulty. Aside from the potential "competition" factor for renting, the more you squeeze out of a renter, the higher their expectations are. I personally prefer to cover my maintenance fees and a bit of personal "administrative" cost rather than get every last dime. More often than not that allows me to rent more easily and to renters who have reasonable expectations. Everyone here on TUG knows that timeshare stays are rarely "perfect" and having a reasonable renter goes a long way when there are minor difficulties.

 

[MOXJO7282]

Don't get trapped thinking booking "hard to get" holiday weeks is an easy recipe for success. I have found so many people use this strategy that it often depresses pricing as there are SO MANY weeks put up for rent (4th of July or President's week, for example) compounded with the fact that transport costs are typically higher for these weeks. Consider places with more general "demand" in a longer season.

Also, consider that "highest profitability" can also equate to biggest headache or difficulty. Aside from the potential "competition" factor for renting, the more you squeeze out of a renter, the higher their expectations are. I personally prefer to cover my maintenance fees and a bit of personal "administrative" cost rather than get every last dime. More often than not that allows me to rent more easily and to renters who have reasonable expectations. Everyone here on TUG knows that timeshare stays are rarely "perfect" and having a reasonable renter goes a long way when there are minor difficulties.

I'm not sure what property you own that gives you this perspective about "hard to get weeks" but for my high demand Marriotts that is not accurate from my experience. I would say these high demand weeks do rent for more and rent easier, and quicker. Yes I would say it's better to own a resort that has a longer high demand season but even for those the highest demand weeks do rent for more and rent faster.

I'm curious as to what properties you're talking about? I have a feeling its not a high demand resort you have experience with because somewhere like Orlando, yes holiday weeks don't get more and those factors you mention likely do come into play. However for high demand locations the best units, during the highest demand, rent for more and rent usually as soon as you list them, as long as they aren't way over priced.

 

[CaliJoe]

Here's what I do every year for the weeks I want to rent (typically 2-3 weeks/year):

1- Demand Analysis: Figure out which weeks have been historically busy/will be busy in the year you're renting. Redweek has a heat map that shows busy times for a property per year. Use that as a starting point
2- Pricing Analysis: Figure out what your per night price should be. Again, use Redweek heat map, current listings, TUG listings etc and price somewhere in the middle of the range. I dont have a high profit motive for rentals.. generally looking for a little bit over MF
3- List as early as possible: (10-12 months out) on Redweek, TUG Marketplace, Local FB groups for families, Nextdoor etc

If you've followed these steps your until will rent no problem.

4- If your unit is not listed 6 months out, engage an agent and start looking at reducing the price by a $50/$100 every few weeks. When you update your listings, they also will show up on the top and help with discoverability. An agent will charge $350-500 per rental on contingency, so factor that into your pricing.
5- Worst case, you use the unit yourself or bank the points (depending on how far out you are from the reservation) to use the following year. I had to do this in early 2022 when Omicron hit. I refunded my rentals, minus admin fee, because it was the right thing to do. Thankfully, Vistana was understanding and let me rebook for later in the year.

Its also important to have a clear process for renting. When someone contacts me with interest, I send them a canned email I use for all outreach. It explains how the process works, how the renter can confirm the booking, costs charged directly to the renter during the stay etc. Renter then submits a non-refundable $250 deposit via Venmo/Zelle. Once the renter does that I get their name on the reservation and they are required to submit the rest of the payment and electronically sign a rental contract (modified version of Redweek rental contract) via a esignature tool. I send them a screenshot and ask them to remit payment and complete the contract. Once they do that, they get a confirmation and I tell them both the Vistana and Marriott confirmation #s.

At this point, most reasonable renters are satisfied and do not get back to me until the following year if they're looking to visit the same property again.

Screen renters who are not responsive, love drama, and keep wearing you down/asking for things last minute.

Once in a while some folks will continue to contact me with basic questions (answerable using Google but hey they'd rather lean on someone else than use their brain) or try to back out of the deal. Depending on the situation (aka Omicron), I do the best to help but if they are a nuisance, I choose not to deal with them the following year. You'll be surprised how often the "squeaky" renters will contact you after renting for the first time... probably looking for anyone who would put up with their BS.

After doing this a couple of years, you will know what to price your weeks for and how much you can increase every year. Good luck!

 

[dioxide45]

I'm not sure what property you own that gives you this perspective about "hard to get weeks" but for my high demand Marriotts that is not accurate from my experience. I would say these high demand weeks do rent for more and rent easier, and quicker. Yes I would say it's better to own a resort that has a longer high demand season but even for those the highest demand weeks do rent for more and rent faster.

I'm curious as to what properties you're talking about? I have a feeling its not a high demand resort you have experience with because somewhere like Orlando, yes holiday weeks don't get more and those factors you mention likely do come into play. However for high demand locations the best units, during the highest demand, rent for more and rent usually as soon as you list them, as long as they aren't way over priced.

I think they may be referring to say a 4th of July week in HHI vs just any June or July week in HHI. Do you tend to find those holiday weeks work better than the non holiday, but still prime season week?

 

[The Colorado Kid]

Here's what I do every year for the weeks I want to rent (typically 2-3 weeks/year):

1- Demand Analysis: Figure out which weeks have been historically busy/will be busy in the year you're renting. Redweek has a heat map that shows busy times for a property per year. Use that as a starting point
2- Pricing Analysis: Figure out what your per night price should be. Again, use Redweek heat map, current listings, TUG listings etc and price somewhere in the middle of the range. I dont have a high profit motive for rentals.. generally looking for a little bit over MF
3- List as early as possible: (10-12 months out) on Redweek, TUG Marketplace, Local FB groups for families, Nextdoor etc

If you've followed these steps your until will rent no problem.

4- If your unit is not listed 6 months out, engage an agent and start looking at reducing the price by a $50/$100 every few weeks. When you update your listings, they also will show up on the top and help with discoverability. An agent will charge $350-500 per rental on contingency, so factor that into your pricing.
5- Worst case, you use the unit yourself or bank the points (depending on how far out you are from the reservation) to use the following year. I had to do this in early 2022 when Omicron hit. I refunded my rentals, minus admin fee, because it was the right thing to do. Thankfully, Vistana was understanding and let me rebook for later in the year.

Its also important to have a clear process for renting. When someone contacts me with interest, I send them a canned email I use for all outreach. It explains how the process works, how the renter can confirm the booking, costs charged directly to the renter during the stay etc. Renter then submits a non-refundable $250 deposit via Venmo/Zelle. Once the renter does that I get their name on the reservation and they are required to submit the rest of the payment and electronically sign a rental contract (modified version of Redweek rental contract) via a esignature tool. I send them a screenshot and ask them to remit payment and complete the contract. Once they do that, they get a confirmation and I tell them both the Vistana and Marriott confirmation #s.

At this point, most reasonable renters are satisfied and do not get back to me until the following year if they're looking to visit the same property again.

Screen renters who are not responsive, love drama, and keep wearing you down/asking for things last minute.

Once in a while some folks will continue to contact me with basic questions (answerable using Google but hey they'd rather lean on someone else than use their brain) or try to back out of the deal. Depending on the situation (aka Omicron), I do the best to help but if they are a nuisance, I choose not to deal with them the following year. You'll be surprised how often the "squeaky" renters will contact you after renting for the first time... probably looking for anyone who would put up with their BS.

After doing this a couple of years, you will know what to price your weeks for and how much you can increase every year. Good luck!

@CaliJoe Great detail and thanks for sharing your expertise!

 

[DanCali]

One of the things that I think are important is to list it well in advance; i.e. maybe 10 months in advance. This allow folks to do proper planning, buy airline tickets, etc.

I also think your rental income will be better well in advance (10 months before check in) versus last minute (1 month before check in).




.

I've found that is dependent on where the resort is.

For Hawaii/Caribbean, where airfare is involved and can be expensive at times, then listing early and renting early is advantageous.

But for resorts in that may be within driving distance for many, sometimes the exact opposite holds. In particular, a resort like Marriott's Newport Coast Villas has 20 million people within driving distance. The cheaper weeks will go first but the more expensive weeks will usually rent as well (as long as not they are not overpriced) - it just might happen within the 60-day window or even the 30-day window. Some renters don't feel the need to plan well in advance if no airfare is involved and are willing to pay a bit more for the luxury of procrastinating.

 

[Quilter]

Here's what I do every year for the weeks I want to rent (typically 2-3 weeks/year):

1- Demand Analysis: Figure out which weeks have been historically busy/will be busy in the year you're renting. Redweek has a heat map that shows busy times for a property per year. Use that as a starting point
2- Pricing Analysis: Figure out what your per night price should be. Again, use Redweek heat map, current listings, TUG listings etc and price somewhere in the middle of the range. I dont have a high profit motive for rentals.. generally looking for a little bit over MF
3- List as early as possible: (10-12 months out) on Redweek, TUG Marketplace, Local FB groups for families, Nextdoor etc

If you've followed these steps your until will rent no problem.

4- If your unit is not listed 6 months out, engage an agent and start looking at reducing the price by a $50/$100 every few weeks. When you update your listings, they also will show up on the top and help with discoverability. An agent will charge $350-500 per rental on contingency, so factor that into your pricing.
5- Worst case, you use the unit yourself or bank the points (depending on how far out you are from the reservation) to use the following year. I had to do this in early 2022 when Omicron hit. I refunded my rentals, minus admin fee, because it was the right thing to do. Thankfully, Vistana was understanding and let me rebook for later in the year.

Its also important to have a clear process for renting. When someone contacts me with interest, I send them a canned email I use for all outreach. It explains how the process works, how the renter can confirm the booking, costs charged directly to the renter during the stay etc. Renter then submits a non-refundable $250 deposit via Venmo/Zelle. Once the renter does that I get their name on the reservation and they are required to submit the rest of the payment and electronically sign a rental contract (modified version of Redweek rental contract) via a esignature tool. I send them a screenshot and ask them to remit payment and complete the contract. Once they do that, they get a confirmation and I tell them both the Vistana and Marriott confirmation #s.

At this point, most reasonable renters are satisfied and do not get back to me until the following year if they're looking to visit the same property again.

Screen renters who are not responsive, love drama, and keep wearing you down/asking for things last minute.

Once in a while some folks will continue to contact me with basic questions (answerable using Google but hey they'd rather lean on someone else than use their brain) or try to back out of the deal. Depending on the situation (aka Omicron), I do the best to help but if they are a nuisance, I choose not to deal with them the following year. You'll be surprised how often the "squeaky" renters will contact you after renting for the first time... probably looking for anyone who would put up with their BS.

After doing this a couple of years, you will know what to price your weeks for and how much you can increase every year. Good luck!

Where is the “heat index” on Redweek? I know about the TDI on II but not Redweek

 

[DanCali]

Where is the “heat index” on Redweek? I know about the TDI on II but not Redweek

I believe it's the following perhaps:

What's my timeshare worth? | RedWeek

If you are considering selling or renting your timeshare, you need to find out what it is worth. Our free tool makes it easy to see what other owners are asking for their units at your resort.

www.redweek.com

Which generates charts like this:
(would be more useful if they did it by BR/View, not just number of bedrooms)

 

[ocdb8r]

I'm not sure what property you own that gives you this perspective about "hard to get weeks" but for my high demand Marriotts that is not accurate from my experience. I would say these high demand weeks do rent for more and rent easier, and quicker. Yes I would say it's better to own a resort that has a longer high demand season but even for those the highest demand weeks do rent for more and rent faster.

I'm curious as to what properties you're talking about? I have a feeling its not a high demand resort you have experience with because somewhere like Orlando, yes holiday weeks don't get more and those factors you mention likely do come into play. However for high demand locations the best units, during the highest demand, rent for more and rent usually as soon as you list them, as long as they aren't way over priced.

I'm talking about Spring Break or 4th of July weeks in Hawaii, President's week in Park City. I rent primarily on Redweek and typically there are triple or more rentals available for these weeks compared to other weeks (say, the remainder of summer for Hawaii or the remainder of February for ski weeks). As such, I don't see them renting any faster, and often because of the number of weeks, there is more "competitive" pricing. In my experience, I need to be at the low end of the pricing spectrum to rent "quickly" or price what I think is "fair" and cross my fingers and wait (and then sometimes I end up very close to check-in and feel pressured to lower my price to get the week rented. I don't rent as a business, so maybe my experience isn't typical for those who rent regularly. However, I've been timesharing for 25 years and early on when I had a week I wasn't going to use I would always attempt (not always successfully) to book one of these "prime" holiday weeks...over time I found my experience renting was easier with high demand (but not holiday) weeks and I often could rent for more than the lowest priced holiday weeks for the same resort based on Redweek listings.

Please also consider your tone when posting. I did not post as if my view was dispositive and posting with a tone of "you don't know what you're talking about" or "you must not have any real experience" isn't necessary.

 

[ocdb8r]

I believe it's the following perhaps:

What's my timeshare worth? | RedWeek

If you are considering selling or renting your timeshare, you need to find out what it is worth. Our free tool makes it easy to see what other owners are asking for their units at your resort.

www.redweek.com

Which generates charts like this:
(would be more useful if they did it by BR/View, not just number of bedrooms)

View attachment 71674

This is actually somewhat of decent an example of my experience. Look at week 7/8 (one of which would be President's week) vs weeks 8-16...no reason for me to try to battle the MVC reservation system to get that holiday week and rent it (likely working against all the mega renters) rather than a slightly later week. I would assume weeks 13/14 were spring break weeks....also not a significant bump in average pricing for those weeks compared to other spring weeks (for which, in my experience, there would be less weeks listed for rent and less pricing pressure).

 

[grupp]

I guess my experience has been different for the popular weeks. Yes there are might be more listing, but quite a few of them have unrealistic expectations and list them at very high prices and not really a factor if trying to rent my week during that time. I do not know the accuracy of these charts from Redweek, but the Marriott Mountainside chart shows spikes around Christmas/New Years and week 7/8. I am surprised there is not a spike around week 4 for the Sundance Film Festival. Weeks 7, 51 and 52 are all Platinum Plus Fixed weeks which could explain the higher prices since you have to own them to book them.

 

[SteelerGal]

I tend to rent 2-3wks as well. Splitting the 2bdrm is a plus. Since we are sports fans, I book weeks based on what even is happening in the area. Also Conventions and Music Festivals are quite popular.

 

[YuzuYou]

I guess my experience has been different for the popular weeks. Yes there are might be more listing, but quite a few of them have unrealistic expectations and list them at very high prices and not really a factor if trying to rent my week during that time. I do not know the accuracy of these charts from Redweek, but the Marriott Mountainside chart shows spikes around Christmas/New Years and week 7/8. I am surprised there is not a spike around week 4 for the Sundance Film Festival. Weeks 7, 51 and 52 are all Platinum Plus Fixed weeks which could explain the higher prices since you have to own them to book them.

View attachment 71819

What website is this data spread from?

 

[DeniseM]

From post: charts from Redweek

 

[montygz]

There are always a few renters that take the aspirational approach -- listing a unit for big bucks in hopes that someone will come along who won't care what they pay, resulting in a huge profit.

Or perhaps they just came from a presentation where the salesperson said their unit will rent for $1,000 a night or something.

Anyway, there are always a few outliers in Redweek and Ebay listings.