The timeshare companies don’t support selling and making profit on your timeshare and could cause revocation of your membership.

@Basit Siddiqi It is a land trust so it is going to be a revocable grantor trust.

The beneficial owner will be the LLC, but there would be no recorded document linking it to the property.Most revocable trusts don't provide any asset protection, but they also don't cost anything.You can use your living trust, or better, you can create a personal property trust.

The lease says they do not have the right to hold over without consent.

Again, I reserve the right to be wrong, but I don't think that's even a close call.I think that would be true even if the licensee purchased the property and without adding value, immediately resold it.If the Board got wind of it, I suspect that it would result in fines and/or license suspension/revocation. 

You are probably referring to a living revocable trust in which case - yes.

Fannie/Freddie will NOT allow you to vest in a LLC or any entity other then a revocable trust. 

OCCUPANCY: Only those persons whose names appear on the lease may occupy your apartment without our prior written consent except guests for no more than 7 consecutive or 14 total days.

:Take plenty of pictures and a GFI testerRe taking pics - be sure you get permission or consent from the tenants if their possessions will be in  the images. ... 

My suggestion would be to get the revocable living trust in front of an underwriter, see if it ticks the boxes for your friend to refinance it in their name once a tenant is in place.