Suggestions on using Red Week's full service for renting a week.

[csodjd]

To be clear, the only difference between sending out a 1099 and not is that if a 1099 is sent out its hard to “forget” to include that money on your tax return since the IRS knows about it. They will expect to see a Schedule E and if they don’t you’ll get a letter.

 

[TXTortoise]

Be aware that VacationCandy adds $ to the asking price ($500 in my experiences with them). So Redweek rentals are potentially cheaper, though those renting out units there often have an inflated view of their what their units are worth.

VC does have a 10%, min $500 commission, but rental prices tend to be much higher than Redweek. For Hawaii properties, they also collect and pay TAT/GET as part of the gross rent. My net with VC has been similar or greater than low-ball Redweek rates, with a lot less hassle....granted, Maui OF. Every rental channel attracts a different demographic of renters, so often worth using all channels. I expect Redweek Full Service and other brokers will generate a 1099-K this coming year, which should start to drive Redweek pricing higher for folks to start netting their minimum ask.

 

[jme]

i have been contacted by concierge for my week. It is advertised onredweek. If I were to go with concierge is redweek then cut out of it? I’m co fused on the interplay between the two.

Concierge Realty has their own clientele looking for weeks to occupy at great resorts, and they contacted Concierge to help them find options to rent.
Concierge knows about Redweek as a source, and will search for available rentals, knowing that there's a lot of inventory there.
They would then turn around and negotiate with the owner or owners who have a prospective listing on Redweek. They express their interest to the renter of the week,
and if Concierge feels they can rent the week out for the client and still make a little money, the deal is done.
Concierge is a great alternative because they actually market your week to others. You should tell Concierge exactly what you wish to "net" from the rental
and they will take it from there. I've rented out a week twice through Concierge and I never asked what fee was charged to the client.
They use contracts and do everything professionally.
I highly recommend them. I have worked with Heidi Rustic, but all the reps are great.

 

[csodjd]

A slightly different question, but wondering whether, assuming you have a Maui OF 2BR that can be rented as that, or spilt into a 1BR and a studio, and you’re going to rent (either Concierge or Redweek), which way will likely generate a better combined net? What would Concierge tell you is best? Will you have to pay Concierge double on their fees?

 

[GregT]

Hello All,

I have rented my weeks out via DeniseM and Redweek and to Vacation Candy, and Concierge Realty.

This year I listed with Redweek, and I noticed (after starting the listing and getting an interested third party) that when creating the ad, it defaults to needing to use their escrow service. This is different than in previous years as I did not want to do that.

I’m renting all five of my 2023 Maui weeks and that’s a lot of money to tie up with an unknown third-party escrow (Redweek).

My only point here is that if you list with Redweek, be very careful whether not you want them to handle the transaction. Others may be comfortable having them hold onto your money until the reservation check in starts, I am not.

Best,

Greg

 

[csodjd]

Hello All,

I have rented my weeks out via DeniseM and Redweek and to Vacation Candy, and Concierge Realty.

This year I listed with Redweek, and I noticed (after starting the listing and getting an interested third party) that when creating the ad, it defaults to needing to use their escrow service. This is different than in previous years as I did not want to do that.

I’m renting all five of my 2023 Maui weeks and that’s a lot of money to tie up with an unknown third-party escrow (Redweek).

My only point here is that if you list with Redweek, be very careful whether not you want them to handle the transaction. Others may be comfortable having them hold onto your money until the reservation check in starts, I am not.

Best,

Greg

I think there is an element of how active or involved, or lazy and uninvolved, one wants to be with the process. I don’t think you can have it both ways… if you have the time, interest, or $ at risk to be actively involved in the process then you neither want or need a “full service” process. But if you’re busy or lazy and don’t really have the time or interest to handle it yourself, a full-service option is great even if it means you give up some control or the terms aren’t exactly what you’d want (like when it is paid, who holds the money, etc.)

If you’re renting out 10 units, that’s a business and you can and probably should manage it yourself. But if you’re just renting your one unit because you’re not using it this year, that may not warrant the time, learning curve, etc., and full-service is a nice option.

 

[TXTortoise]

A slightly different question, but wondering whether, assuming you have a Maui OF 2BR that can be rented as that, or spilt into a 1BR and a studio, and you’re going to rent (either Concierge or Redweek), which way will likely generate a better combined net? What would Concierge tell you is best? Will you have to pay Concierge double on their fees?

You should net more renting those specific units separately. That said, I usually start with the 2BR by itself and would be happy to be done with it. As we get within 90 days I'll start to list the two or three variations and see what hits first. I find there are a lot more studios offered, so it tends to be a race to the bottom on pricing. That said, I just rented my 28 Jan 2023 Lahaina studio a couple of weeks ago, so demand is there.

 

[hcarman]

Consider VacationCandy.com also. Great customer service and captures a different market channel.

My concerns with Redweek Full Service are around the fact you don't get final payment until after the renter has checked in/completed the rental. I want final payment at least 61 days prior, or full payment within 60 days.

That is my issue too with Redweek full serve. But when you do it on your own it seems you get a lot of inquiries of people wanting you to change dates or cut price in half, or say they are interested but then disappear. So I too have been using Vacation Candy or TUG (but you seem to more often get people wanting a total bargain on TUG).

 

[DRH90277]

Redweek is fine. When we have excess, I look at the options of renting, Interval deposit, depositing for points, etc. I usually choose to rent using Redweek and we use the intermediate package for $29.99 plus a verificaton charge of $14.95. So, this totals about $40. My experience has been an easy one, no dickering over price, people don't even ask me about rescheduling, etc. I do like the ease of Redweek's process, don't mind the payment to me after check-in, and I like them to collect So. Carolina's new resort tax payments, etc. I placed three rentals with Redweek last evening.

One thing I don't like is the apprehension by Redweek to disclose the South Carolina 10% resort fee liability "for rentals" in the rental listings. I suspect this will come out and owners and renters will feel compelled to conform to the law. As an example, it took a while, but Redweek eventually clarified Newport Coast rental listings by addressing the fact that there was no assurance of a particular view in the listings and that villa assignments were at the discretion of the resort.

 

[rickandcindy23]

Anything you list on Koala (go-koala.com) is free to list, but they do make money on the back end. Not having to deal with renters and cancellations is why you use either Koala or Redweek full service, but only one has an upfront cost (not expensive but still an upfront cost).

I like both and use both, so this is not an advertisement for Koala or Redweek. Redweek has been 100% fair and easy to work with. Koala is just my preferred for the no fee and still full service. You have to figure the costs on the back end.

 

[BreakingAway]

Anything you list on Koala (go-koala.com) is free to list, but they do make money on the back end. Not having to deal with renters and cancellations is why you use either Koala or Redweek full service, but only one has an upfront cost (not expensive but still an upfront cost).

I like both and use both, so this is not an advertisement for Koala or Redweek. Redweek has been 100% fair and easy to work with. Koala is just my preferred for the no fee and still full service. You have to figure the costs on the back end.

I appreciate hearing others thoughts. My thinking is that timeshare owners rent their weeks far too low. This provides an opportunity for third parties to re-rent the weeks and make enough money to make it worth their time and provide a service to their clients. I have no problem with this because their clients are their clients, As an example of rental rates, looked at Grande Ocean rentals posted on Redweek for next summer and saw owners asking as low as $3,200. With Marriott member discount, the week is $7,427 with taxes. The general advice given on TUG is to post your rental at the low end in order to rent it. As a result, rental ads on TUG tend to be the lowest with potential renters asking for discounts. I suggest advertising at the high end rather than the low end. Once the bottom feeders have their fill, owners can get closer to market value for their property.

 

[VacationForever]

I appreciate hearing others thoughts. My thinking is that timeshare owners rent their weeks far too low. This provides an opportunity for third parties to re-rent the weeks and make enough money to make it worth their time and provide a service to their clients. I have no problem with this because their clients are their clients, As an example of rental rates, looked at Grande Ocean rentals posted on Redweek for next summer and saw owners asking as low as $3,200. With Marriott member discount, the week is $7,427 with taxes. The general advice given on TUG is to post your rental at the low end in order to rent it. As a result, rental ads on TUG tend to be the lowest with potential renters asking for discounts. I suggest advertising at the high end rather than the low end. Once the bottom feeders have their fill, owners can get closer to market value for their property.

The problem is that when you are renting through timeshare rental sites, your competition is not Marriott. You are competing with other timeshare owners. If you find many rental listings at low prices, you cannot ask for more if you want your week to be rented. It is just a matter of supply and demand.

 

[csodjd]

The problem is that when you are renting through timeshare rental sites, your competition is not Marriott. You are competing with other timeshare owners. If you find many rental listings at low prices, you cannot ask for more if you want your week to be rented. It is just a matter of supply and demand.

There is more to the process of pricing a unit for rental, isn’t there?

My units are premium oceanfront Maui and Oahu. I reserve good or high demand weeks, around spring break and/or mid-summer. Then I look to see BOTH what comparable units at the same time are renting for AND how many of them are there. If there is only one, or none, I push the price higher. If there are 4 or 5, I’ll price above the lowest but not near the highest. I assume that if they are the same — same specs, location, week -- they will rent in price order, lowest to highest. So it is how many choices there are that is really key.

 

[BreakingAway]

The problem is that when you are renting through timeshare rental sites, your competition is not Marriott. You are competing with other timeshare owners. If you find many rental listings at low prices, you cannot ask for more if you want your week to be rented. It is just a matter of supply and demand.

I fully agree with your statement of supply and demand. My opinion is that many owners price their rentals much lower on the commonly used rental sites than they could. I anticipate the huge increase in price Marriott is charging for high demand resorts in high demand seasons influences owners who rent to increase their prices for 2023. Actually, the huge increase in maintenance fees will probably provide an incentive for owners to increase rent prices next year.

 

[vol_90]

I fully agree with your statement of supply and demand. My opinion is that many owners price their rentals much lower on the commonly used rental sites than they could. I anticipate the huge increase in price Marriott is charging for high demand resorts in high demand seasons influences owners who rent to increase their prices for 2023. Actually, the huge increase in maintenance fees will probably provide an incentive for owners to increase rent prices next year.

It will be interesting to see the % increases in maintenance fees across the resorts for 2023 given the inflationary pressures (wage, utilities, supplies, etc.). I believe we will see some resorts with ~10% increases which will drive many to increase rental expectations and likely have an impact driving down resale prices as some owners will want to drop the annual MF commitment.