No-Strings Timeshares
Renting someone else's vacation spot can land you a deal on a great place to stay.
By Sean O'Neill
From Kiplinger's Personal Finance magazine, May 2005
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Maybe it's because timeshare means sales pitch in many people's minds that a timeshare is the last place they'd think to spend a vacation. Or maybe it's the misconception that timeshares are swapped solely among their owners. To rent a timeshare, you do not have to listen to an investment pitch, nor do you have to have a timeshare to trade. About 6% of timeshare weeks are rented each year. Says industry expert Mark Silverman: "This is one of the least-known vacation options, although it can be a great deal."
Mark and Ingrid Ruth of Edmonton, Alberta, rented a timeshare at Marriott's Cypress Harbour resort, in Orlando, for a week starting last December 26. The condominium's two bedrooms and sleeper sofa provided separate quarters for the couple and their two children, ages 15 and 21. The cost for the seven-night stay was $1,500; two comparable hotel rooms would have cost an additional $600. Rental prices, in general, are cheaper than shelling out for a luxury hotel room.
And a timeshare can outdeliver a hotel room by offering accommodations that are, well, more accommodating. Kitchens are the rule and multiple bedrooms are the norm. Typical spiffs include whirlpool tubs, barbecue grills and washing machines.
Timeshare units available for rental are typically on the property of resorts, which often provide such free amenities as pools, playgrounds, saunas and tennis courts. Resorts also tend to be near theme parks, casinos, beaches and golf courses. For example, the Ruths stayed just ten minutes from Disney's Orlando destinations and Universal Studios.
You'll find the most timeshares in Florida, California, South Carolina, Colorado, Hawaii, North Carolina and Nevada. The best digs are usually at resorts run by brand-name companies, such as Disney, Hyatt, Marriott and Sheraton. You can rent timeshares directly from those companies through their Web sites, but be sure to compare their rates with those offered by individual owners, who may significantly underprice the resorts. (You can reach owners at the sites mentioned below.)
Timeshare rentals are prepaid from a week to a year in advance. In high season, timeshares tend to be rented out by the week. At other times, if you would prefer a shorter getaway, you can often rent for less than a week without paying a full week's price.
Three suggestions: Before you rent, ask the owner if all fees, such as for housekeeping (whether weekly or daily), are included on your bill. To protect yourself against fraud, consider contacting the resort to confirm that the owner has visiting rights to the property when you'll be renting it. Finally, use an escrow service, where available, to make the transaction more secure.
We found two Web sites that offer ample timeshare-rental listings. (The sites also list timeshares for purchase and trade.) Each site offers a model contract form, which you can adapt for your own contract.
- RedWeek.com is the largest resort Web site, and it offers escrow accounts. You are allowed to browse rental listings free, but only members (who pay a fee) can contact listers. The membership fee is $10 for six months.
- Timeshare Users Group is tops for its reviews of resorts, which only members may view, for a membership fee of $15 for 12 months. Rental listings and contact information are free. No escrow service is offered.
--Research: Jessica Anderson