Alternatives to selling your timeshare

I got an email the other day from a person asking- "well, does it make sense to sell a timeshare in a market like this?" As a real estate investor, I would NEVER sell my properties- I would like to retain it till the end of time. This is ofcourse presuming all goes well for me, and I do not have a dire need for money at some point in my life. Then maybe, I will be left with no choice but to sell, but till then.... nope. This is because you can never go wrong with real estate- it is like wine- the longer you keep it, the better (financially) it gets. But here is the BIG difference, and VERY important to remember that timeshare is not a real estate investment, and hence you need to wear a different thinking hat.

Well, to sell or not to sell depends on many factors: which market it is that you own your timeshare for demand-supply and price point, your financial situation- i.e. whether or not you need to pull money out, and ofcourse your personal choice. But, it is important to know that there are alternatives to selling.

If selling is something you don’t want to consider yet or your unit has been on the market for sometime and you want to consider alternatives, here are some. I will go into further details in my later posts.

1. Rent- Might be an easier way than selling, in order to recoup your expenses on the unit. But  do make sure you consult with your resort on their rules, speak to a real estate agent, have a rental agreement in place with the renter and the resort, get a security/ damage deposit, use paypal as a secure way of payment, etc. - just common things you would think of while renting any property.

If your timeshare is in a different country, things would become a little more complicated, in which case, might be worth the money to consult with a tax attorney or someone who understands international tenancy laws just to understand the process. Determining rent generally follows the same rules as determining a sale price- your real estate agent will be able to guide you better, based on your specific market.

2. Trade/ Exchange – At  resorts like Marriott for example, which are present worldwide, you can have an option to trade your week for any other resort for any other time, for a comparable timeshare. Companies like RCI (Resort Condominiums International) are called exchange companies; these exchange companies work with your resort, and can help you look for a comparable timeshare wherever you want.

3. Donate to charity- Folks do this in order to get a big tax break. Consult with your tax attorney before taking this step. Also, keep in mind, there are limited charities that accept timeshares.