Fractional Homes as STRs

[Lou Smith]

Has anyone had any success (or horror stories) with fractional ownership of a second or vacation home as a rental?

My understanding is that fractional ownership is different from a timeshare as the buyer owns a portion of the actual home (generally from 1/2 to 1/8), not just a right to use it. So, property value appreciation accrues to the owner and can be realized upon a sale--plus any income associated with the rental of their share. Generally, these are implemented as a special purpose LLC with owners buying and selling out of the LLC--with all owners sharing costs such as property tax, insurance, maintenance, utilities, etc.

Do you think this is good approach to limit the size of an investment, or do the risks of the other owners outweigh any potential benefit?