Tag Archives: timeshare rentals

Three Scenarios to Consider When You Sell a Timeshare

Selling a timeshare does not have to be a difficult procedure and if you find yourself weighed down under the unnecessary burden of maintenance fees and a monthly payment consider selling the property and making a profit or at the very least getting out and saving the monthly payment. Here are some considerations that you need to remember when you sell a timeshare.

You are Upside Down

This is common with timeshare rentals and as it is lately in the overall real estate market. The good part about a timeshare loan is that it is usually significantly less than a home loan. If you need to take a hit on a couple of thousand dollars you can usually work out a payment plan with the bank. Learn the lesson and move on. If this is not an option then keep on paying the monthly fees, one way will be cheaper, you have to find that cheaper option.

Selling a timeshare

Selling Timeshare Rentals

Way Upside Down

This happens too, what seemed like a good idea at the time isn’t such a good idea now. If you owe a lot more on your timeshare than you can sell it for you may need to get creative. This means you might have to refinance, you may have to cover the extra with a home equity loan, or you might need to put the extra on a credit card and then pay it off with a home equity loan. Builder loans or famously high priced, so if you did finance through a resort, chances are that you could finance for a much lower price through a bank.

Out of Pocket Expenses

Selling a timeshare is not like selling a residential home. The agents operate under a different payment scheme and climate of business. To them it is a volume game and they will often require an upfront payment for listing as well as their other services. They don’t stand to make as much per sale as a residential agent so they find other ways to cover the cost, that means that you will pay more for their services.

Timeshares can be a great investment in your vacation future but should really not be considered as any type of stepping stone to a real estate investment career.  They can also lead you to a broker pulling your hair out and saying, “help, sell my timeshare now.”  If you are interested in buying a timeshare, consider the numbers and realize that if you don’t buy right you could may be soliciting the services of a selling agent very soon.

Understanding Timeshare Rental

Complicated vacation planning became a thing of the past with the advent of timeshares. A timeshare is a type of shared ownership, usually in a resort condominium unit. Several people buy a share in the unit and each is entitled to a specified amount of time to use the condo each year. All costs are divided and shared among the owners. Timeshares are fully furnished and ready for occupancy and make short work of planning a vacation.

Timeshare rental contracts are usually flexible and allow the owner to sell or rent his interest or time in the unit. The owner might be entitled to several weeks usage and choose to rent all or part of it out. The terms of the original agreement should be checked for any stipulations before letting the dwelling.

timeshare rental

timeshare rentals

Finding A Renter

First the owner must find a suitable renter. This might occur naturally among friends and family who would enjoy a vacation. Notices can be place on bulletin boards at work. The Internet provides a lot of advertising sites for timeshare rentals. These sites charge a fee and serve as a connection between the owner and the prospective renter.

Damage
Since the unit is fully furnished there could be a great monetary loss with a careless tenant. There should be a guarantee that the property will be returned to the owner in it’s original condition. This can be handled by the owner charging the renter a damage deposit. This deposit is usually placed with a third party escrow service and returned to the renter after the condo has been checked for damage.

Agent
While the owner stands to make the most money from handling the timeshare rental process himself, using an agent has many advantages. There are specialty agencies that deal mainly in vacation rental properties. As noted on sell my timeshare news the agent will advertise, handle the transaction and inspect the unit before and after the tenant takes possession. If the timeshare is in a distant location, it may be difficult or impossible for the owner to rent it without the assistance of a third party.