The American Resort Development Association reports that the US timeshare industry generates more than 10 billion dollars per year. There were over 13 million nights rented at these resorts. Timeshare resorts contribute more than 90 billion dollars to the economy.
If you were thinking of one of these arrangements for your next vacation, then this article is for you. Check out this helpful guide to learn more about timeshare rentals and ownership. Read up on each model so that you’ll know how you can make them work for you. invest.
Timeshare Rentals vs. Ownership
If you’re ready to move forward with this vacation choice, study these timeshare basics. Know these elements ahead of time before you step foot inside one.
What’s a Timeshare?
A timeshare is a condo-style unit that’s more spacious than a regular hotel room. The best timeshare rentals have additional features such as kitchens, laundry facilities, and private bedrooms. Timeshare properties have more than one owner that owns individual periods of time at the same property like a cabin or a condo.
Timeshare owners share all property-related fees. These expenses range from maintenance fees to property taxes. Timeshare owners also pay a portion of utility fees and repair expenses as well. Timeshare owners pay these fees whether they are staying at the property or not.
How Do You Rent a Timeshare?
You can find available timeshare rentals through either a professional company like VRBO or Airbnb. Enter your preferred location and features on these websites to find out what’s available to rent. Since timeshares operate in week-long increments, you should specify the week you plan to be in the area.
If you are trying to rent a timeshare owned by a private owner, you’ll need to find out who that owner is. If your chosen vacation spot is at a resort, call the resort office and ask them about private owners.
They’ll let you know if a particular timeshare is privately known. Once you have this information, you can negotiate with the owner directly for availability and terms.
How Do You Purchase a Timeshare?
You’re first stop to find the best timeshare purchases should be a real estate office or website. For example, Trulia.com and Zillow.com offer data on price ranges for timeshare purchases.
Download a free, online buyer’s checklist that will help you prepare for a timeshare investment. You’ll also discover ways to calculate any total timeshare costs and compare these expenses with other listed properties.
You’ll also avoid the stress of the buying process when you personally visit more than one listing. That way you can see, firsthand, what the building’s condition looks like. You can also talk with the neighbors and ask them to share their personal experiences.
You can also ask a real estate agent to represent you. When you meet your agent for the first time, it’s best to it in writing, how you expect them to represent you. This includes writing out the details covering the services they’ll provide during the transaction as well as what fees they’ll charge.
What Are The Different Types of Timeshare Ownership?
A timeshare investment can come in three different forms. These forms include fee-simple contracts, right-to-use contracts, and vacation club options. Here’s a run-down on all three models:
A fee simple contract provides a group of timeshare owners with the title and ownership rights to a specific building. Fee simple timeshare arrangements allow owners to rent, sell or loan their share when it’s convenient for them.
Right-to-use contracts let owners buy the rights to occupy the property during specific times of the year. Right-to-use owners don’t own the building itself. Resort developers or management companies own the property’s title.
Vacation Club Point Systems
This timeshare format lets you buy points to stay at a timeshare rental located near a popular vacation destination.
Disney timeshare rentals, for example, uses a point system to rent timeshares near one of their resorts.
You can also use these same points to rent other vacation properties within the same club network.
These club networks might also allow you to use points for your other vacation costs such as airline tickets or rental cars.
What’s Does Timeshare Exchange Mean?
A timeshare exchange means timeshare owners exchange their earlier scheduled vacation time with another timeshare owner.
Timeshare owners can also trade their scheduled stay periods to property located somewhere else. This exchange function is only available to members in the same exchange network.
Exchange networks manage lists with available time slots and timeshare units to trade for. Timeshare owners pay a membership fee when they join these exchange networks.
What Are Timeshare Maintenance Expenses?
As mentioned above, timeshares have a list of maintenance costs for maintaining the buildings in a timeshare community. Timeshare companies collect these fees to pay for costs for property-related expenses such as:
- Property liability insurance premiums
- Onsite gym or swimming pool maintenance costs
- Front office or security employee salaries
- Landscaping or gardening costs
Do your homework in advance and familiarize yourself with any previous maintenance expense trends for the properties you’re looking at buying. Are these costs fixed or do they increase dramatically? Collecting these trends in advance will help you get an idea of what you might expect your ongoing expenses to look like.
What is a Timeshare Occupancy Rate?
A timeshare occupancy rate refers to how many timeshare units in a community are occupied compared to the total number of available units. Timeshares that have a high occupancy rate are a good sign. That means that owners are happy with the site and actively using it.
What Are Your Next Steps?
Still wondering if timeshare rentals or ownership is the best option for you? If you’re ready to buy, download a buyer’s checklist to refer to when you’re looking at potential properties. You can find a qualified agent with real estate firms to represent you from the Better Business Bureau.
If you only want to rent, visit the VRBO or Airbnb websites today. Specify your preferred vacation week and locations. Check-in with any resorts to find out which units are privately owned.
You can also visit our website for more timeshare advice. We’ve got information there on the legalities for timeshare ownership. Let us help you find out if this vacation arrangement is right for you.