Timeshare Rental vs. Ownership: Which One Saves You Money?
Vacations are meant to be temporary breaks from your life. The idea of owning a vacation home, then, is seductive: It’s a vacation that never ends. Because most of us don’t have the money for that, timeshare companies tried to sell us the dream of “vacation ownership.” However, even a quick glance at travel websites will show that you can rent timeshares as easily as buy them. But when considering timeshare rental vs. ownership, which is the better option?
Timeshares were created and are marketed as ownership products, but knowing that those same properties are available as vacation rentals may give you pause.
Let’s take a closer look at timeshare rentals and how they compare to timeshare ownership. We’ll dive into the overall costs of rentals vs. the hidden costs that come with becoming a timeshare owner. We’ll also determine if there are benefits to timeshare ownership (like a resale market) that make it a valuable investment. In the final analysis, we’ll answer once and for all if it’s better to rent a timeshare for your vacation rather than own one.
Timeshare Rental vs. Ownership: How Do They Differ?
When considering a timeshare rental vs. ownership, you might not have the clearest idea of what the options are. You might think that buying a timeshare means that you have greater choice over when you stay, or that renting a timeshare means you are renting from people who have bought them and are looking for rental income.
Neither one of those ideas is quite right, though.
First, owning a timeshare — even with points or a “floating week” — doesn’t mean that you get to decide exactly when you want to go. You still have to make a reservation, and it can be extremely hard to get a reservation at the time and place you want. (For instance, these reviews from owners detail the horrendous process of even getting a vacation booked with Marriott Vacation Club.)
Second, if you rent, you would likely be renting from a timeshare resort directly, as they put their own unsold units/rooms up for rental to the public. You’ll find this to be the case both with smaller companies as well as the larger vacation clubs like Wyndham, Hilton Grand Vacations, or Disney. Oddly, you might find the scheduling problem a bit easier while renting because the resort is booking you instead of the resort owners.
So, if you rent instead of own, you don’t really have to worry about the particular timing of a fixed-week deeded timeshare or matching your plans to someone else’s schedule. The timeshare company is happy to offer flexibility (at the expense of owners), even though they will disrespect your time later.
How Much Do Timeshare Rentals Cost Compared to Ownership Fees?
With the differences between ownership and renting more clear, let’s look at the costs of each. If you own a timeshare, you will generally be subject to the following costs:
The purchase price of the timeshare: The average transaction price of a timeshare is $24,170. If you can’t pay for the timeshare in cash (something most people can’t do), that means that you will need to get a timeshare mortgage, which is vastly more expensive than a traditional real estate mortgage. Interest rates can be 20% or more on timeshare mortgages.
Annual maintenance fees: These fees cover the charges associated with the property management company, maintenance, and repairs. These fees cost thousands of dollars every year. According to the American Resort Development Association (ARDA), average maintenance fees for a timeshare unit are $1,260 per year. That’s after shelling out $24,000 or more for the timeshare itself.
Special assessments: If your timeshare company wants to improve a vacation property or make emergency repairs, that money is coming out of your pockets, not theirs. Special assessments can total thousands of dollars, and they’ll be levied when you least expect them.
When renting a timeshare condominium from a developer, the process is much like renting a hotel room.
Let’s say you want to take your family to Orlando, Florida, for a week in July. Renting a timeshare from Marriott Vacation Club directly will cost you about $2,100 for the week. That amount would likely be only a little more than what the owners would pay for maintenance fees in a year. That doesn’t mean, however, that there aren’t going to be significant costs.
Resorts will happily charge you occupancy taxes and nightly fees for the privilege of staying. Which can be $50 per night or more, tacking hundreds of dollars onto a week’s stay. Exchange fees and guest certificate fees might add hundreds of dollars more to the final bill.
Nor is nickel-and-diming the only thing you have to worry about as a renter. The developer might still try to suck you into a lengthy, high-pressure sales presentation, either for upgrades to your stay or to buy a timeshare. Though these presentations don’t come with a direct monetary cost, they’re hassles that can eat into your precious vacation time.
Are There Hidden Costs in Renting a Timeshare vs. Owning One?
While owning certainly brings about more than its share of downsides and hidden costs, don’t be fooled into thinking that timeshare companies won’t hit renters with some hidden fees on rentals as well.
You can expect nightly timeshare taxes, and perhaps amortized property taxes, to be added to your stay. There will also be environmental taxes and occupancy taxes applied to your billed, even if you’re technically not a member of the timeshare resort or vacation club.
Even if you are renting the timeshare of someone you know — or staying at it for free — timeshare developers and exchange clubs can still charge you hidden fees. A common example is the guest certificate fee, which will almost certainly be passed on to you. Expect to pay over $100 for this fee.
Even with all of those fees, though, it must be said that the overall cost of renting a timeshare is far lower than the expenses of actually owning a timeshare, as we discussed above.
So, Is It Better to Rent a Timeshare or Buy One?
In virtually all cases, in the timeshare rental vs. ownership battle, timeshare rentals are the better option. Pushy sales staff at timeshare sales presentations will try to tell you about the supposed benefits to ownership, like being able to sell your timeshare on the resale market.
But the truth is that the vast majority of timeshare owners can’t sell their timeshare because there is simply no demand for them. As the Better Business Bureau put it, “There is virtually no resale market for timeshares. Timeshare units can be found selling online for as little as $1.” One can only conclude, then, that timeshare ownership is a bad investment, and there is likely no resale value.
Add the fact that you are spending thousands every year on fees, and it becomes clear that timeshare ownership is a terrible option. While a short-term rental may come with a few extra fees, timeshare ownership comes with hidden and rising costs year and year for the rest of your life.
Need to Get Out of Timeshare Ownership? Ask Centerstone Group for Help
Maybe you already considered a timeshare rental vs. ownership and ended up signing on the dotted line. What should you do if you’ve come to realize that timeshare ownership wasn’t what you expected? How can you get out of it?
As the top timeshare exit company, Centerstone Group has decades of experience in the timeshare industry, and it has helped thousands of timeshare owners free themselves from oppressive timeshare purchase contracts.
As a BBB-accredited, A+-rated company with a 4.77-out-of-5-star client rating, Centerstone Group can handle all sorts of timeshare exits, from cancellations or timeshare transfers to our proprietary pressure campaign against developers.
If you’re a timeshare owner that is struggling with the weight of your timeshare contract and fees, contact us today for a free consultation.
Vacations are meant to be temporary breaks from your life. The idea of owning a vacation home, then, is seductive: It’s a vacation that never ends. Because most of us don’t have the money for that, timeshare companies tried to sell us the dream of “vacation ownership.” However, even a quick glance at travel websites will show that you can rent timeshares as easily as buy them. But when considering timeshare rental vs. ownership, which is the better option?
Timeshares were created and are marketed as ownership products, but knowing that those same properties are available as vacation rentals may give you pause.
Let’s take a closer look at timeshare rentals and how they compare to timeshare ownership. We’ll dive into the overall costs of rentals vs. the hidden costs that come with becoming a timeshare owner. We’ll also determine if there are benefits to timeshare ownership (like a resale market) that make it a valuable investment. In the final analysis, we’ll answer once and for all if it’s better to rent a timeshare for your vacation rather than own one.
Timeshare Rental vs. Ownership: How Do They Differ?
When considering a timeshare rental vs. ownership, you might not have the clearest idea of what the options are. You might think that buying a timeshare means that you have greater choice over when you stay, or that renting a timeshare means you are renting from people who have bought them and are looking for rental income.
Neither one of those ideas is quite right, though.
First, owning a timeshare — even with points or a “floating week” — doesn’t mean that you get to decide exactly when you want to go. You still have to make a reservation, and it can be extremely hard to get a reservation at the time and place you want. (For instance, these reviews from owners detail the horrendous process of even getting a vacation booked with Marriott Vacation Club.)
Second, if you rent, you would likely be renting from a timeshare resort directly, as they put their own unsold units/rooms up for rental to the public. You’ll find this to be the case both with smaller companies as well as the larger vacation clubs like Wyndham, Hilton Grand Vacations, or Disney. Oddly, you might find the scheduling problem a bit easier while renting because the resort is booking you instead of the resort owners.
So, if you rent instead of own, you don’t really have to worry about the particular timing of a fixed-week deeded timeshare or matching your plans to someone else’s schedule. The timeshare company is happy to offer flexibility (at the expense of owners), even though they will disrespect your time later.
How Much Do Timeshare Rentals Cost Compared to Ownership Fees?
With the differences between ownership and renting more clear, let’s look at the costs of each. If you own a timeshare, you will generally be subject to the following costs:
When renting a timeshare condominium from a developer, the process is much like renting a hotel room.
Let’s say you want to take your family to Orlando, Florida, for a week in July. Renting a timeshare from Marriott Vacation Club directly will cost you about $2,100 for the week. That amount would likely be only a little more than what the owners would pay for maintenance fees in a year. That doesn’t mean, however, that there aren’t going to be significant costs.
Resorts will happily charge you occupancy taxes and nightly fees for the privilege of staying. Which can be $50 per night or more, tacking hundreds of dollars onto a week’s stay. Exchange fees and guest certificate fees might add hundreds of dollars more to the final bill.
Nor is nickel-and-diming the only thing you have to worry about as a renter. The developer might still try to suck you into a lengthy, high-pressure sales presentation, either for upgrades to your stay or to buy a timeshare. Though these presentations don’t come with a direct monetary cost, they’re hassles that can eat into your precious vacation time.
Are There Hidden Costs in Renting a Timeshare vs. Owning One?
While owning certainly brings about more than its share of downsides and hidden costs, don’t be fooled into thinking that timeshare companies won’t hit renters with some hidden fees on rentals as well.
You can expect nightly timeshare taxes, and perhaps amortized property taxes, to be added to your stay. There will also be environmental taxes and occupancy taxes applied to your billed, even if you’re technically not a member of the timeshare resort or vacation club.
Even if you are renting the timeshare of someone you know — or staying at it for free — timeshare developers and exchange clubs can still charge you hidden fees. A common example is the guest certificate fee, which will almost certainly be passed on to you. Expect to pay over $100 for this fee.
Even with all of those fees, though, it must be said that the overall cost of renting a timeshare is far lower than the expenses of actually owning a timeshare, as we discussed above.
So, Is It Better to Rent a Timeshare or Buy One?
In virtually all cases, in the timeshare rental vs. ownership battle, timeshare rentals are the better option. Pushy sales staff at timeshare sales presentations will try to tell you about the supposed benefits to ownership, like being able to sell your timeshare on the resale market.
But the truth is that the vast majority of timeshare owners can’t sell their timeshare because there is simply no demand for them. As the Better Business Bureau put it, “There is virtually no resale market for timeshares. Timeshare units can be found selling online for as little as $1.” One can only conclude, then, that timeshare ownership is a bad investment, and there is likely no resale value.
Add the fact that you are spending thousands every year on fees, and it becomes clear that timeshare ownership is a terrible option. While a short-term rental may come with a few extra fees, timeshare ownership comes with hidden and rising costs year and year for the rest of your life.
Need to Get Out of Timeshare Ownership? Ask Centerstone Group for Help
Maybe you already considered a timeshare rental vs. ownership and ended up signing on the dotted line. What should you do if you’ve come to realize that timeshare ownership wasn’t what you expected? How can you get out of it?
As the top timeshare exit company, Centerstone Group has decades of experience in the timeshare industry, and it has helped thousands of timeshare owners free themselves from oppressive timeshare purchase contracts.
As a BBB-accredited, A+-rated company with a 4.77-out-of-5-star client rating, Centerstone Group can handle all sorts of timeshare exits, from cancellations or timeshare transfers to our proprietary pressure campaign against developers.
If you’re a timeshare owner that is struggling with the weight of your timeshare contract and fees, contact us today for a free consultation.