Investing in vacation property is often seen as a lucrative opportunity, with many investors drawn to the allure of rental income that promises high returns. Westgate Resorts, one of the largest timeshare and vacation ownership companies in the United States, markets itself as a prime option for those looking to delve into this sector. However, there can be a significant disparity between the anticipated rental income and the reality experienced by property owners.
Westgate Resorts offers an enticing proposition: invest in a timeshare or vacation property and enjoy regular rental income when you are not using it yourself. The promise is simple – capitalize on the booming travel industry and let your investment work for you. The marketing material often highlights high occupancy rates and substantial demand for their properties, which are located in popular tourist destinations.
In theory, owning a piece of paradise that pays for itself sounds ideal. Investors are led to believe that they will receive consistent rental income streams that could potentially cover mortgage costs, maintenance fees, and even generate profit. However, this optimistic outlook does not always align with reality.
One major issue lies in overestimated occupancy rates presented during sales pitches. While certain seasons might see high demand due to holidays or local events, off-peak periods often result in low occupancy levels. This fluctuation can significantly impact annual revenue projections made at purchase time.
Additionally, management fees charged by Westgate Resorts travel review can eat into potential profits more than initially expected. These fees cover various services such as marketing efforts to attract renters but may also include unexpected charges related to upkeep or renovations deemed necessary by resort management without owner consent.