I am interested in making an offer to guests in our resort condo. I would like to offer them the opportunity to get a substantial discount on vacation rentals at our property by pre-paying for a few years worth of rentals. I am not offering any ownership interest in the condo and I am not charging any additional annual maintenance fees like with a timeshare. Additionally, I would be collecting lodging tax like I do on any other rental. Is this legal to do or would it be considered a timeshare, which I do not believe I would be allowed to operate as a single private owner of one condo?
If you want/need more specifics ... The condo is located in Maryland. One example package would be to rent any off-season week for $2,990 and the guest would get that week for 10 years. The normal rate for an off-season week is currently $500 (plus 5% increases each year). The idea is they pre-pay for a few years and get a few years free. The term for in-season weeks would be 7 years. My goal in doing this would be to raise enough money to pay off the mortgage, in order to help manage the other rising costs of ownership and reduce the stress of filling the calendar each year. I would take reservations before collecting any money, and fulfillment of the reservations would be contingent on receiving sufficient reservations to pay off the mortgage.
Appreciate any professional advice!!
If you want/need more specifics ... The condo is located in Maryland. One example package would be to rent any off-season week for $2,990 and the guest would get that week for 10 years. The normal rate for an off-season week is currently $500 (plus 5% increases each year). The idea is they pre-pay for a few years and get a few years free. The term for in-season weeks would be 7 years. My goal in doing this would be to raise enough money to pay off the mortgage, in order to help manage the other rising costs of ownership and reduce the stress of filling the calendar each year. I would take reservations before collecting any money, and fulfillment of the reservations would be contingent on receiving sufficient reservations to pay off the mortgage.
Appreciate any professional advice!!
