To rent out your timeshare, confirm that your purchase agreement and resort allow owner rentals, set a price below the resort’s direct rate, list the week on a timeshare marketplace, screen the guest and sign a written agreement, then transfer the reservation into the guest’s name through the resort. Whether you owe federal tax on the income depends on how many days you rent during the year.
Check Whether Your Contract Allows Renting
Pull your original purchase agreement or recorded deed and look for language about transferring usage rights to third parties. Some contracts permit rentals outright, some require prior written approval from the resort, and a few prohibit outside rentals altogether. You also need to know what type of ownership you hold: a fixed week tied to specific dates, a floating week you reserve within a season, or a points-based system where you redeem points for stays. Each type affects how you book and assign a reservation.
Call the resort’s owner services department and confirm your account is current. Resorts generally suspend booking and guest-assignment privileges when maintenance fees or special assessments are overdue, and those privileges stay frozen until the balance is paid. While you have them on the phone, ask whether owner-directed rentals are allowed, what documentation is required, and whether any fees apply to add a guest name to a reservation. Some resorts restrict rentals to your home resort only, meaning you cannot book a week at a sister property in the network and rent that week out.
Your resort’s Declaration of Covenants, Conditions, and Restrictions sets occupancy limits and guest-access rules that apply to every owner. Falling out of compliance can bring fines or a suspension of your usage rights, so read it before you list.
Set a Price That Will Actually Rent
Start with the resort’s own published rate for a direct booking during the same dates and unit size. That rack rate is your ceiling. Renters shop the secondary market because they expect a discount, and a price roughly 30 to 50 percent below the resort’s direct rate tends to draw serious inquiries while still covering your annual costs.
Season matters. A peak week at a beachfront resort commands far more than the same unit in the off-season. Check comparable owner listings on RedWeek or the Timeshare Users Group to see what similar weeks are actually renting for, and adjust based on your specific dates, view, number of bedrooms, and any recent resort upgrades.
Factor in what the guest will owe at check-in, particularly transient occupancy taxes (sometimes called hotel or bed taxes). These vary by jurisdiction but commonly fall in the range of 10 to 15 percent of the nightly rate. Disclose them in your listing so your asking price reflects what the guest will actually spend.
List the Week
Specialized timeshare marketplaces put your listing in front of travelers already shopping for this kind of stay. The two most-used are RedWeek and the Timeshare Users Group (TUG), and they charge differently.
- RedWeek’s full-service rental option costs roughly $60 upfront plus about $99 when the rental closes. RedWeek handles guest communication, payment processing, and coordination with the resort.
- TUG includes rental listings with membership, so there is no per-listing charge, but you handle every inquiry, payment, and resort transfer yourself.
If you list on your own, you field every inquiry, verify the renter, collect payment, and coordinate the guest transfer with the resort. A full-service or broker option shifts most of that work in exchange for a commission or flat fee. Commission structures vary; compare the total cost before signing on.
Whichever route you take, a strong listing helps. Upload high-resolution photos of the unit and the resort’s amenities, describe the floor plan and sleeping arrangements, and call out location advantages like beach access, ski-in proximity, or on-site dining. Specifics draw more inquiries than vague superlatives.
Screen the Renter and Sign an Agreement
When you handle the rental yourself, you are the only person vetting who stays in your unit. At a minimum, collect the guest’s full legal name (matching the ID they will present at check-in), phone number, email, and a copy of a government-issued photo ID. Compare the name on the ID to the name on the payment method.
Third-party guest-screening services can cross-reference the guest’s identity against criminal databases, sex-offender registries, and records of problem stays. That is worth considering on a higher-value week. Avoid relying on a guest’s social media profile alone; making rental decisions on subjective impressions rather than verified data can expose you to liability under fair-housing and consumer-protection laws. If you use a full-service platform or broker, guest verification is usually included, but confirm exactly what they check.
A written agreement, signed by both parties before any money changes hands, protects both sides. Even a simple contract should cover:
- The exact check-in and check-out dates, resort name, unit size, and reservation confirmation number.
- The total price, when payment is due, the accepted payment method, and any upfront deposit with a balance due later.
- Cancellation terms. Resort cancellation windows vary; some impose penalties starting 60 days before arrival, others allow changes up to 15 days out. Your terms should align with or be stricter than the resort’s own timeline so you are not left holding a week you can no longer use.
- A clause requiring the guest to follow resort rules, occupancy limits, and quiet-hour policies, and holding the guest financially responsible for damage.
- A hold-harmless provision covering use of resort amenities at the guest’s own risk.
- A clear statement that resort fees, parking, and occupancy taxes are the guest’s responsibility at check-in.
Electronic signatures are fine. Signing before payment creates a record you can point to if a dispute arises.
Transfer the Reservation to Your Guest
With a signed agreement and payment in hand, add the guest’s name to the reservation so the resort will check them in. Most resorts handle this through a guest certificate or a guest-name update, submitted through an online owner portal or by phone. Resorts charge a processing fee. RCI, for example, charges $109 for a guest certificate, and fees at other resorts and exchange networks generally fall in a similar range.1RCI. How Much Does an RCI Guest Certificate Cost
A third-party escrow service adds security for both sides. The escrow company holds the guest’s payment in a neutral account and releases it to you only after check-in. The guest is protected because the money is not sitting in your personal account before arrival, and you are protected from a last-minute reversal of a direct payment. Several timeshare rental platforms offer built-in escrow or can recommend a service.
Once the resort confirms the name change, send the guest the reservation confirmation number, check-in instructions, resort address, and any parking or gate-access details. The resort handles the on-site experience from there. You remain the contact for ownership-level issues like a billing discrepancy on your maintenance fee statement, but day-to-day guest service is on the resort.
Taxes on the Rental Income
Rent Fewer Than 15 Days and Owe Nothing
If you rent your timeshare for fewer than 15 days during the tax year, federal law lets you keep the income without reporting it. Under 26 U.S.C. ยง 280A(g), when a dwelling unit you use as a residence is rented for fewer than 15 days, the income is excluded from your gross income entirely. You also cannot deduct expenses tied to that rental use, but for a single-week rental the tax-free income usually beats the lost deductions.2Office of the Law Revision Counsel. 26 U.S. Code 280A – Disallowance of Certain Expenses in Connection With Business Use of Home, Rental of Vacation Homes, Etc. IRS Publication 527 confirms this and notes that rental activity under the 14-day threshold should not be reported on Schedule E.3Internal Revenue Service. Publication 527, Residential Rental Property (Including Rental of Vacation Homes)
Rent 15 Days or More and Report It
Reach 15 days or more of rental in a tax year and all of the rental income becomes reportable on Schedule E (Form 1040), the same form used for other rental real estate.4Internal Revenue Service. Instructions for Schedule E (Form 1040) You can also deduct expenses tied to the rental use, including the portion of your annual maintenance fees allocable to the rental period, advertising, platform listing fees, guest-certificate charges, and broker commissions.5Internal Revenue Service. Topic No. 414, Rental Income and Expenses
Keep organized records of every expense: receipts for maintenance fees, screenshots of listing charges, escrow invoices, and correspondence about the rental. You need to be able to document both income and deductions if the IRS audits the return.6Internal Revenue Service. Tips on Rental Real Estate Income, Deductions and Recordkeeping
Watch Out for Rental Scams
Timeshare owners are frequent fraud targets. The FBI warns that scammers pose as rental brokers or sales reps, contact owners out of the blue, and pressure them to pay upfront fees or taxes to “secure” a deal. Paying money upfront to someone who contacted you is the biggest red flag; legitimate platforms and brokers do not work that way.7Federal Bureau of Investigation. Timeshare Fraud
Other warning signs the FBI flags:
- Requests to sign a power of attorney. No real rental transaction requires you to hand legal authority to a stranger.
- Unsolicited calls claiming a renter is already lined up for your week.
- Callers posing as government officials who threaten arrest or prosecution unless you send money. No real official will contact you that way about a timeshare.
Before working with any rental broker, verify a valid real estate license in the state where they operate. The Association of Real Estate License Law Officials (ARELLO) runs a national license-verification database covering brokers and salespersons in participating jurisdictions. If a company will not give you a verifiable license number, walk away.