If you’re a timeshare owner, it’s essential to be aware of people’s common mistakes when renting out their properties. By avoiding these mistakes, you can maximize your rental income and ensure a smooth experience for you and your guests. If you want to sell your property, you can review how to sell a timeshare to gain your funds. In this blog post, we will discuss the most common timeshare rental mistakes owners should avoid!
Setting the Price Too High
One of the most common mistakes timeshare owners make is setting the rental price too high. When renting out your property, it’s essential to be competitive with other similar properties in the area. If your rental price is significantly higher than others, you’re likely to have a hard time finding renters. To correctly price your timeshare rental, comparable research properties in the area, and price yours accordingly.
Listing Low Demand Stays
Another common mistake timeshare owners make listing low demand stays during high demand periods. For example, if you own beachfront property, you’re likely to get more rental inquiries during the summer months than during the winter. Similarly, if you own a ski resort property, you’re likely to get more rental questions during winter than summer. As a general rule, you should list your property for rent during times of the year when it is in high demand.
Paying High Upfront Fees
Many timeshare rental companies will require you to pay upfront fees to list your property on their website. Depending on the company, these fees can range from a few hundred dollars to a few thousand dollars. While paying these fees may seem like a necessary evil, it’s essential to do your research and ensure you’re not being taken advantage of. Several companies charge exorbitant fees and don’t provide a good return on investment. Ensure you’re working with a reputable company before paying any upfront fees.
Setting Strict Cancellation Policy
Another mistake timeshare owners make is setting a strict cancellation policy. While it’s essential to protect yourself from last-minute cancellations, you don’t want to make it difficult for renters to cancel that they’re discouraged from renting your property altogether. A good rule of thumb is to allow renters to cancel up to 30 days before their stay with a full refund. This will give you plenty of time to find a replacement renter and minimize the financial impact of cancellations.
Timeshare rentals can be a great way to generate income, but only if you avoid these mistakes. By following our advice, you can ensure that your property is well-maintained and booked solid.
