Is it possible to gain a financial return on your timeshare ownership through vacation rentals such as Airbnb? The answer to this question, for the most part, is yes! Airbnb has certain rules and stipulations to join the platform, as do certain timeshare resorts, but provided you follow the guidelines, it is pretty easy to earn some passive income from your timeshare through rentals.
There are a few considerations and checklists you will need to go over before putting your timeshare up for Airbnb:
- Airbnb guidelines are fairly regimented and in order to have your property listed, be sure to familiarize yourself with these stipulations.
- Timeshare resorts have varying rules and regulations surrounding ‘subletting’ your vacation time, so be sure that you have an understanding of these requirements.
- Considerations: Cancellation policy, damages to property, competitive rental rates, and cleaning prior to and after each rental.
Airbnb Guidelines & Stipulations
In addition to offering and listing basic amenities,taken directly from the Airbnb site, they also requires the following:
“To help create comfortable, reliable stays for guests, we ask all hosts to meet these basic requirements for each listing:
- Be responsive: Maintain a high response rate by replying to booking inquiries and reservation requests within 24 hours.
- Accept reservation requests: Make guests feel welcome by accepting requests whenever you’re available.
- Avoid cancellations: We take cancellations seriously and ask all hosts to avoid cancelling on guests – their travel plans depend on it.
- Maintain a high overall rating: Guests like to know they can expect a consistent level of quality, no matter where they book.” (2)
As long as you are able to maintain the requirements for Airbnb, you, as the owner of a timeshare, are set to go with a passive income, provided your specific resort location allows Airbnb rentals.
Does Your Timeshare Location Allow ‘Sublets’ Or Airbnbs?
The next step you will need to take is to contact the location where your timeshare is located and find out what their specific regulations are regarding renting out your timeshare.
Most resorts are open to Airbnbs and in fact this platform of vacation rentals is prolific among timeshare owners, but not all locations allow for Airbnb rentals.
For example, many neighborhoods with year long residents have restrictions surrounding Airbnb. City and regional bi-laws may prevent you from using Airbnb. The good news however, is that most timeshares are not located in urban centers where Airbnbs tend to be prohibited but rather in vacation destinations.
Be sure to check in with the county or regional bi-laws surrounding Airbnbs, as well as with your specific resort.
Final Considerations Before Listing Your Timeshare On Airbnb
While it is true that renting out your timeshare on Airbnb may be a great way to create some passive income, how passive is it really? The moment you decide to rent out your property regardless of whether it is a timeshare or not, you become a landlord, and with that title comes many responsibilities.
- You must stay current with your Airbnb listing, and be responsive to inquiries: this takes both time and attention.
- Understand the rental market so that you set your price at a competitive rate
- You must maintain your timeshare property both for the renters (who may damage property), and also for the other owners coming in next.
- Your property must be cleaned before and after each rental.
- Develop a fair and reasonable cancellation policy, travelers will need at least thirty days notice, if you need to cancel.
Renting out your timeshare is not necessarily a passive income, in fact when you consider all of the responsibilities involved in renting out a property it becomes quite ‘active’.
Timeshares Can Be Listed On Airbnb: Is It Worth It To You?
Yes, it is more than reasonable to expect that you will be able to rent your timeshare on Airbnb provided your timeshare resort allows this. Be sure to consider all of the implications of part-time landlord life, and understand it is not always quick and easy money, but may in fact be an energy drain.
If you are losing money on your timeshare and are unable to sell it, renting it out on Airbnb may be just the ticket you were looking for to regain some of your lost investment.
Always, double check the regional legislature surrounding Airbnbs, as these can change frequently as well as the rules of your timeshare resort. Good Luck!