RentShare Blog

Renting Your Timeshare? Avoid These 7 Mistakes.

Renting Your Timeshare? Avoid These 7 Mistakes.

The 7 Biggest Mistakes to avoid when renting out your timeshare

In this complete overview, we will cover the biggest pitfalls most people face when trying to rent out their timeshare. Don’t attempt to rent your timeshare before reading these tips: you will most likely lose money, points, or both. 

What are your timeshare developer benefits?

The number one mistake when it comes to renting your timeshare is a lack of understanding or knowledge about which timeshare benefits you own. At a minimum, you must know the following: 

  1. Usage Period/Use Year - When you do you get allocated your points every year?
  2. How many Reservation Transactions do you receive annually?
  3. How many Guest Confirmations do you receive annually?
  4. What are the out-of-pocket expenses when you run out of Reservation Transactions/Guest Confirmations?
  5. Are you a VIP Timeshare owner? If so, what added advantages do you receive and when?

Knowing the answers to these questions will help you devise a more logical approach to making reservations. 

Ensure you add a Guest Certificate/Confirmation

Nothing is worse than a guest arriving at your resort after hours of travel, only to be told they cannot check-in. At best, their trip will be delayed and at worst they could be left stranded without accommodations. This is an easy to prevent mistake that is often made by first timers. If it helps, make a check-list and add dates to your calendar that remind you to add the Guest Certificates/Confirmations before the renter arrives for the reservation. 

Failing to do so will likely result in negative reviews on your listing marketplace (Airbnb, VRBO, etc.)

Cancel reservations that are not rented

 Always cancel reservations that are unbooked/rented prior to your points cancellation window. If you get all points refunded at the 30 day mark, then if a unit is unrented, your safest bet is to cancel the reservation and receive those points back to attempt another booking. Losing points is the same as losing money. Your timeshare company will not refund your maintenance fees because you could not rent out your timeshare. Although that may sound harsh, the truth is that you must plan and prepare when attempting to rent out your timeshare.

Do not overbook your timeshare resort

Every major timeshare developer has rules in place to prevent abuse of their reservation systems. Regardless of whether you agree with these rules, they are ultimately in place to ensure timeshare owners have availability to the resort network they bought into. This means that attempting to book an entire floor of a resort or large, overlapping reservations may alert your developer which could result in booking cancellations, penalties, or, even worse, your account being flagged as a ‘megarenter’ account.

Although, it may seem unfair. The best practice is to avoid overrenting a particular resort. Be reasonable and things will work out to your benefit. The dangers of being flagged a megarenter is one reason timeshare owners have opted for timeshare points rental pools, where this hazard has been eliminated. 

Set competitive pricing for your timeshare rental

Attempting to overcharge for your resort will lead to failure. You must do research and figure out when you can book at a profit for your reservation. The math is easy: how much do the points cost in maintenance fees vs. how much does the market support for the reservation?

Oftentimes, we want to charge what we feel is ‘fair’ based on our cost, but the reality is that the market determines what a reservation is worth. Competition is increasingly tough because of the number of apps that make nightly rate info available to prospective renters. 

Overpricing a rental reservation will prevent your booking from renting. It’s that simple.

Know the rules of your booking platform

This is a critical piece of the equation that is overlooked most of the time. Each booking platform - Airbnb, VRBO, Flipkey, Tripadvisor, etc. - has their own expectations on conduct and what rental advertiser should adhere to. Things like failing to communicate, failure to honor advertised prices and stays, or complications with the stay (i.e. failure to add guest confirmations) will result in your account being suspended, terminated, or penalized in search results. 

It’s simple - you have to know what the rules are prior to embarking on this journey or you will fail.

Ensure you’re protected from any and all liability

Most renters will not damage the property, but if they do - are you protected? You must check the bylaws for your timeshare developer and ensure that you are covered. Also, research the booking platform to see what coverages and protections are emplace. It’s a fact that we live in a litigious society. 

The saying ‘ignorance is not a defense’ is how our judicial system works. It is your responsibility to know the law and rules before entering into any agreement. Unfortunately, a few mistakes can cost you a lot of time and money. Although it is rare to be in this situation, ensure you protect yourself before renting your timeshare out.

In Conclusion

We hope these tips help you rent your timeshare successfully. Renting a timeshare out requires time and energy to do it right. Failing to do your homework can result in losing money, points, or both. Take your time and heed our advice. If you do, you will be successful in renting your timeshare.

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Frequently Asked Questions

How often will I get paid from renting my timeshare?

We pay our clients monthly for every completed reservation.

What makes your company different than other options?

We have the highest yield per points of any timeshare property management team. This is from our Data Driven Rental process. We don't book your points and hope for a renter. The secret sauce of RentShare is predictive analytics.

Do you take all timeshares/clients?

Unfortunately we do not. We earn  revenue by providing a profitable service to our clients. If we cannot rent your timeshare for a profit, we will not accept you as a client.

Which timeshare resorts/brands qualify?

Most major brands and resorts qualify for our services. We try to assist as many timeshare owners as possible, while still ensuring the business model remains profitable for everyone.

Do I need to be a VIP Owner?

Most timeshare developers charge for 'reservation transactions' when you are not a specific VIP level of ownership. Renting your ownership correctly requires a tremendous amount of adjustments to the reservation profile, so if you are limited in reservation transactions, rental may not be worth it.

Can I get in trouble from my developer for renting?

If you overextend your vacations to rentals ratio, you may be flagged as a 'mega-renter' which is why our program ensures we maximize your profitability, but not to such an extent you're at risk of being flagged.

Will I lose points renting?

We have never lost points for a client, but things can happen and travelers can cancel last minute. Although it is highly unlikely you would lose points.