July 16, 2021
By Jessica Burke-Crosby, Virginia Beach Timeshare Rentals
Questions Jessica Burke-Crosby answered during our interview:
1. Is the cost to rent more or less than what the owner pays in maintenance fees?
2. Can existing members rent out points or just deeds?
3. Do some timeshares prohibit renting or have restrictions?
Renting through a licensed real estate broker is safe. Virginia Beach Timeshare Rentals holds all funds in an escrow account to protect both parties and there is always a rental agreement that clearly spells out rental terms. Jessica is a licensed real estate broker and has lived in the Virginia Beach area most of her life.
Jessica’s TIMESHARE TALKS interview explains why for some vacationers, renting a timeshare is a better option than buying one:
https://www.youtube.com/watch?v=3zH_EbJsGBQ
Virginia Beach Timeshare Rentals
https://www.vbtimesharerentals.com/
Timeshares have little to no resale value
Part of the American Dream is to own a home. Why? Because when you buy a home, the home buyer expects to build equity. When the time comes to sell, the homeowner expects to sell at a profit. The opposite occurs when purchasing a timeshare.
According to recent court documents, the median purchase price of a timeshare in Osceola County, Florida in 2016 was $22,990. The average resale price, two years later, was approximately $10. A timeshare becomes a liability in that the annual maintenance fee often exceeds what you can sell the timeshare for immediately after purchase.
When does renting a timeshare make more sense than buying one?
Renting is a way for consumers to explore timeshare lifestyle before expending a huge outlay of cash, or financing one at 12.99% to 17.99%. Older buyers especially should amortize their initial purchase price over their travel life expectancy before buying, to weigh the economics.
Timeshare members should check their resort’s restrictions before renting out their timeshare. Bluegreen and Wyndham have issued cease and desist letters, and suspended accounts, accusing some of their members of commercial activity. Diamond Resorts, acquired by Hilton Grand Vacations, does not allow renting to anyone you don’t know, or through the use of a third party platform.
If something happens immediately after purchasing a primary residence and you need to sell, your loss may only be the seller’s commission, typically around 7%. Since timeshare buyers must be bribed with substantial gifts to listen to a timeshare presentation, commission and marketing costs can be 50% or higher. Hence, little to no resale value.
In the Osceola County example above, you would be out $22,980 if you paid cash. If you financed, there is virtually no chance of resale, so your only option may be a default and a credit score drop of up to 200 points.
For all of the reasons above, many vacationers feel renting a timeshare is a better option than owning one. And the best part:
THERE IS NO TIMESHARE TOUR OR TIMESHARE PRESENTATION REQUIRED WHEN YOU RENT A TIMESHARE OWNER’S UNIT!!!
Other Rental Options
Koala founders Mike Kennedy and James Burbridge are upcoming TIMESHARE TALKS guests. They will be talking about their rental platform for those who desire to vacation worldwide. https://www.go-koala.com/
Related article: The Benefit of Off-site or On-site Resale Programs
https://tarda.org/blog/41-experts/199-legacy-solutions-hoas-benefit-from-timeshare-resale-programs