RentShare Blog

How Renting a Timeshare Works

How Renting a Timeshare Works

How to Rent Your Timeshare

A guide to renting your timeshare. Learn how to rent your timeshare effectively and what pitfalls to avoid. Renting a timeshare is an effective way to offset maintenance fees and utilize points that you may otherwise lose.

How does renting a timeshare work?

This is the biggest question we get asked on a daily basis. Timeshare owners are curious how they can rent their timeshares out, and are concerned about the effectiveness of renting their timeshare. Renting a timeshare successfully is just like any other endeavor - to be successful it requires planning, preparation, and a lot of research before attempting to rent. 

The most important aspects that are required to know before renting are: 

  1. How many points are you willing to set aside for the rental process
  2. Does your level of ownership have limited reservation transactions or guest confirmations? If so, what are the limitations?
  3. When must a reservation be canceled to receive a full refund of the points?
  4. Which resorts offer a good value (the ratio of points to $ per night is favorable)?

Once you know the answers to these questions, you will be able to begin preparing for listing your points to rent. The next step is to then find the best marketplace to advertise your points listing, which begs the question:

Where should I list my timeshare for rent?

This is a relatively simple question we are also asked quite frequently. The answer is to use multiple listing marketplaces. Why? Because you don’t know where the buyer (or renter) will pop up for your listing. Popular vacation rental marketplaces are abundant and easy to navigate, the hard part is making the effort needed to manage the different listing sites. At a minimum you need to be responsive to inquiries from potential renters on a daily basis. Companies like Airbnb want to ensure a good experience for potential renters. If you fail to answer inquiries or display a  lack of communication, expect your listings to be penalized - likely resulting in your listings being at the bottom of the search results. 

Which resort should I book for my timeshare rental?

Another important consideration is which resort or resorts should you book and then list. It’s no secret that each destination has periods that are seasonally more popular than others. That doesn’t mean though, that you should only target prime seasons and units. This process is somewhat of a guessing game without using predictive rental analytics software or hiring a reputable timeshare rental agency. The best way to protect your points is to ensure you cancel any listings that do not rent by the cancellation window. 

Example: If you can cancel a booking within 15 days of the reservation and receive a full points credit, and your listing has not been rented by the 15th day, then it would be wise to cancel the listing.  

How much should I charge for my timeshare rental?

Again, research is critical prior to posting your timeshare rental listing. You need to know the average nightly rate per unit (room size) and accommodation rating (stars of the resort). You can always adjust your listing if needed, but it’s also important to know the cost of the points you used to book. 

Example: If you used 100,000 points to make the reservation and those points cost $1,000 in maintenance fees, then you need to get at least $1,000 for your rental to break even. 

Can I rent my timeshare on my own?

It depends on how much time and energy you have to focus on renting your timeshare. The more you rent your timeshare, the more experience you will get on what works and what does not. It is a very time intensive process to make it profitable. However, if you have an excess of points and are not really worried about the overall profitability of renting your timeshare, then go for it. It’s not to say you cannot learn how to rent your timeshare, it’s just like any other process and takes time to master.

Will I get in trouble for renting my timeshare?

Almost every major timeshare company has rules in place to ensure their reservation systems stay available to the owners and do not become blocked out by a few owners renting on a massive scale (a term they refer to as ‘megarenting’). Therefore it’s wise to approach renting your timeshare with caution. Activities like booking numerous rooms at the same time at the same resort can be flagged by your company and potentially canceled. Using caution and acting reasonably is your best bet at ensuring compliance with your timeshare developer’s rules and bylaws. 

Should I hire a timeshare rental company?

If you want a hands-off, reliable way to rent your timeshare, then this is definitely a great option. Most rental companies will earn a percentage of the booking for successfully renting your timeshare. Just like any other industry, some companies are better than others and offer better service. 

We always recommend using a company that offers - 

  1. No money out of pocket to start
  2. Has good a reputation and no negative reviews 
  3. Offers at least a 60/40 split
  4. Has a reliable process that isn’t going to get you in trouble with your timeshare company

In closing, we hope this helps you embark on your timeshare rental journey successfully. To learn more about RentShare and how we can help you. Click ‘get started’ below to connect with our team.

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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.