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Re: Successful Resales & Rental Feedback Wanted (by Beck):

adahiscout wrote:

Peter, I'd love to find those rich renters! Seems like most are looking for 5 Star places at Super 8 prices. Adding about $200 in RCI fees to your base rental rate does not improve your competitive edge against actual owners who want to rent out the same resorts and your client is subject to possible eviction. Can you imagine paying big bucks for a timeshare rental, flying your family across the country for this once in a lifetime vacation, and then...........? MD

I'd like to find those rich renters also, but as I said I was unable to make that a reality.

I don't follow your comment though about the $200 exchange costs and cancellation of exchange reservations.

First, you make it sound like every unit reserved thru RCI and then rented is discovered and the reservation is cancelled. I'm pretty certain, from what I read on the rentals here at RW and other sites, there are a large number of exchange units being offered for rent. That is a very strong sign people have learned by experience they are able to rent out their exchanged units without being discovered. And customers pay for those units because I strongly believe those are amonng the lowest price units for rent. Customers are either willing to take the risk, find a way to believe they don't have risk, or don't realize there is a risk because the "owner" gives them a legitimate reservation.

Second, I think you are focusing on the $200 exchange costs too much and forgetting my example. Look back at my Westin Kaanapali example. Owners pay $3,000 for a 2BR unit. Allocate $1,800 to the 1BR half and $1,200 to the Studio half. Without exchange their cost is higher than a non SVO owner with a 2BR LO who uses each side of their LO to secure a 1BR or 2BR unit, either thru patiently waiting and using the search features for exchange or waiting for a last minute deposit. This non SVO owner might have annual fees of $800-$1,500 for their 2BR LO. Even with two $200 exchange fees, their cost is lower than the Wesin Kaanapali owner and thus they can offer the unit they secure thru exchange for less than the direct owner.

And in 2008-2009 it was my experience that the guaranteed OV and Ocean Front owners were not realizing much of a premium for their view guarantee units over a non view guarantee unit. To make matters worse, the island view owners and even the exchangers make statements that they requested an OV unit, creating the impression the renter stands a chance they might get or will certainly get the OV unit rather than IV unit.

Until there is clear evidence the exchange companies actually cancel large blocks of reservations after a guest certificate is issued (the first sign the unit might be rented out), there is very little in your argument which appears to hold true to life. Exchange units are being rented, a lot of them cost the "owner" less than a direct owner pays for maintenance, people are paying the lower prices, and the exchange companies might have a policy against renting but they are not enforcing it.

After all, how can the exchange companies determine which units are for guests of owners vs the ones being rented between strangers?