Timeshares are possessions, frequently vacation homes or condos, in which multiple parties reserve a right to use the house for a fixed quantity of time on an annual basis. These parties do not own the land outright, but, should they choose to not use it, they are frequently allowed to let it out to somebody else during their allocated time.
Know the Rules
Prior to attempting to lease out the timeshare, check with the company that owns the house for principles regarding rentals, as most have restrictions about how and when the timeshare can be leased. Many timeshare management businesses will also be willing to handle the rental for you, but be aware that this service comes with a cost. According to the site Timeshare Resales, many timeshare companies will charge a 40 percent commission to lease out the land to another party.
Pick a Price
When choosing a rental cost for the timeshare, take several factors under consideration. To begin with, cheaper timeshares will be more inclined to move than more costly ones. While renting a timeshare at less than you’re paying for it can be debilitating, it is much better than leaving it vacant and collecting nothing. Additionally, consider how long you’re prepared to lease the house for. Even though you may have the timeshare for a week, some renters may be only interested in 2 or 3 times; consider chopping the rental period into smaller components and then supplying a reduction if renters need the full week.
A timeshare that goes on the rental market well in advance of the rental date is much more likely to transfer than one recorded immediately before. Try to plan ahead and provide your timeshare a great deal of time to pull interested parties.
Utilize a Lease Agreement
When renting the timeshare, make sure to use a proper lease agreement that spells out that the renter’s and the landlord’s duties and obligations. This will stop you from being responsible for any damages or other fees incurred during the time on the lease. Many owners also like to have their renters put down a security deposit, to replace broken or stolen items.
Inspect the Property Before and After
Be sure to inspect the house thoroughly before and after leasing it out, taking a careful inventory of its conditions and the items present and documenting your findings. If you can’t be there to do it yourself, ask the help of a friend or other person you trust to do it for you. In the event the tenant damages the house, this documentation can prove to be a legal lifesaver.