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Using Paypal when renting

Catazog

Catazog

TUG Member
Joined
Mar 11, 2007
Messages
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We are about to rent our WKORV 2BR LO :)banana: ) and will be using Paypal. However, there are several options for how to receive payment. If the renter uses a credit card, then we are charged a 3% service charge -- bad. But they can also us something called an E-check, which appears to only have a $5 fee. What is your experience using Paypal? What do you recommend as the best way to receive payment? Thanks!!
 
Receiving Timeshare Rental Money Instantly Via PayPal.

Catazog said:
What is your experience using Paypal? What do you recommend as the best way to receive payment?
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Nice thing about getting paid via PayPal is that it's quick & it's sure. That is, we log on & check our PayPal balance & -- WHAP ! -- there's the timeshare money paid by our renters.

We just absorb the fee charged by PayPal. So it goes.

Even though we're just renting out our non-Sheraton & non-StarWood & non-WKOR timeshare in Orlando FL, I'm pretty sure the PayPal aspects of the transaction(s) would be about the same.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​
 
Catazog said:
We are about to rent our WKORV 2BR LO :)banana: ) and will be using Paypal. However, there are several options for how to receive payment. If the renter uses a credit card, then we are charged a 3% service charge -- bad. But they can also us something called an E-check, which appears to only have a $5 fee. What is your experience using Paypal? What do you recommend as the best way to receive payment? Thanks!!
Click to expand...

Congrats - I just rented our WKV villa during SuperBowl week (I think...)

I just absorb the fee - it is worth it (IMO) for the convenience and security. I just had someone pay with PayPal (as mentioned in another thread) before anything more than an email confirming that the rental was still available. Strange (and maybe there is a new scam out there...), but I have their funds in my PayPal account.
 
I use Paypal exclusively for my rentals - I absorb the fee because it is worth the convenience and security for me. Currently I am leaving my money in the Paypal Acct., because if you convert it to a Paypal money market Acct., it is paying 4.70% interest, which, over time, will pay off the Paypal fees. I realize there is some risk in leaving it in the acct., because it isn't secured by the FDIC, and it is possible that a disgruntled renter could freeze the acct., but I think the chance of that happening is insignificant.

Another option is to tack the 3% onto your rental fee, which I may try in the future.
 
The fee for receiving echeck payments is capped at $5 for premier and business accounts.
 
DavidnRobin said:
Congrats - I just rented our WKV villa during SuperBowl week (I think...)
Click to expand...

David - I would love to hear the details, since I'm trying to rent mine as well. PM me if you don't want to post on the board.
Thanks!
 
I've rented some of my DVC points using PayPal. The fee that they deduct is not noticeable to me. And IMO the convenience of fast and secure payment is worth the small percentage that they charge.
 
The fees are significant to me, so I factor them into my asking price. It's worth the convenience, especially if you can pass the fees on to the renter.
 
DeniseM said:
David - I would love to hear the details, since I'm trying to rent mine as well. PM me if you don't want to post on the board.
Thanks!
Click to expand...

I will post here after this settles - I have no problem posting here since it seems as if my life is an open book for those who know how to research properly (esp deed searches).
 
how long does it take starwood to send you a new confirmation with the renters name on it?

they take forever to e-mail something.
 
It took about 2 weeks the last time and I had to request it several times. I have the most luck requesting it through mystarcentral.com
 
I TOTALLY charge the renter the 3% fee. I say something like "we accept personal check or credit cards for payment. However, we do charge back the 3% PayPal credit card processing fee, so paying by personal check is a slightly less expensive way for our guests to pay."

For last minute rentals, I only take PayPal and then depending on how I feel I charge them the 3% or not....
 
DeniseM said:
I use Paypal exclusively for my rentals - I absorb the fee because it is worth the convenience and security for me.
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I think the convenience and security are your renters, not yours. You are basically paying for them to get airline points when they charge their rental on a credit card. Tell them they have a choice, but credit cards are going to incur the 3% fee PayPal charges to process the payment. The only time PayPal is superior to cash is when you are dealing with renting a place right away. Otherwise, there is more than enough leadtime to ensure a check processes properly.
 
Hi Rocky - My concern is depositing a check that bounces and of course the delay in receiving payment. I don't want to deal with that. My understanding is that with a bad check, you could have a fee from your bank as well. What would you do in that case?

With Paypal, I don't have to wait days for a check that might or might not come, and then wonder if the check is OK. In that sense, it gives me some security too. I have the payment immediately and it's a done deal.
 
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But what's the harm of dealing with a bad check when you have 6 months or more lead time on the rental? Frankly, if I was renting a place I would NEVER bounce the check six months out because it gets me nothing but trouble. I might try bouncing if you agreed to take a check a week before check-in, because once I check-in..... you can't come get me out.

I have never had a check bounce renting my timeshare or home. I make people pay to reserve and the balance 60 to 90 days out. For the timeshare they have to pay in full when they reserve...... and a bounced check is $15, not 3% of the total cost of the rental....... which is more like $100+ bucks.

In general, these people WANT the place and don't want you to rent it to someone else.... and they are very obliging about paying as asked.
 
I see what you are saying, but I don't want to deal with people backing out or defaulting 60 to 90 days out. With Paypal, they pay and it's done. I don't have to worry about collecting a future payment or trying to find another renter. A lot of the potential renters I get emails from seem kind of flaky and I had one guy who even forfeited his $100 deposit - but that was a week later, not 60 to 90 days out. You are probably right that most of the time people will follow through, and I guess I am paying the price for not wanting to deal with the ones that flake out!
 
Two of my three renters paid me by paypal this year. I told them that if they used their credit card to pay, I would charge them more for paypal fees. I put in the contract that they are responsible for paypal fees. When they choose to pay via e-check (which both of them did) the fee is only $5 and I didn't charge that back to them.

When a renter pays by e-check, paypal will "hold" the money in your account for 4 days or so until it "clears", just like a regular check. Then it takes a few days to move it over to your bank account. So you don't have it instantly, but it is convenient, and renters seem to like having paypal between renter and rentee. If that makes them feel more comfortable, I'm fine with that.
 
With a certified check, you are still on hold for a week to 10 days wondering if the renter really sent it. If the check is never sent, because the renter backs out or whatever, you have taken it off the market for a week to 10 days, and possibly lost another renter, while you are waiting for a check that never arrives.

Plus, the scams where they send you a check for too much, and want part of it back, have all been with phony bank checks. So I don't think they are much more secure than personal checks.

I just added a paragraph to my Ads. From now on, I am going to add the 3% to my rental price if the renter uses a credit card. Thanks for the idea.
 
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PayPal Pay All The Way.

DeniseM said:
With a certified check, you are still on hold for a week to 10 days wondering if the renter really sent it. If the check is never sent, because the renter backs out or whatever, you have taken it off the market for a week to 10 days, and possibly lost another renter, while you are waiting for a check that never arrives.

Plus, the scams where they send you a check for too much, and want part of it back, have all been with phony bank checks. So I don't think they are much more secure than personal checks.
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That's why we're OK with PayPal -- quicker, safer, surer, more secure all round.
From now on, I am going to add the 3% to my rental price if the renter uses a credit card.
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Instead of that, we'll just jack up the asking price a tiny tad for everybody. For reasons I can't quite articulate, I feel semi-funny about the idea of offering different timeshare rental prices according to proposed payment method.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​
 
DeniseM, Alan, DavidnRobin, or whoever else has done this a few times,

Would you mind sharing your steps to getting the payment and making the reservation for the renter?

I'm thinking of trying to rent out my first unit. I've read the TUG advice article, and it's helpful, but I guess I'd like a little more hand holding. I'm pretty clear on what I'll do for advertising (Craigslist, TUG, maybe Redweek and Myresortnetwork). I'm a little less clear on the process once someone contacts you, and says they'd like to rent.

What kind of timeframe to get payment to you (I think I'd go with PayPal)?

Do you ask for payment in full? Or a deposit? If the latter, how much and do you then send them the reservation? After they get the reservation, how long do you give them to send full payment?

Also, I'm assuming that to accept payment via PayPal, one should have a premier account. Is that correct?

Thanks!

Glorian
 
Gloria - I am going to send you a pm with a link to my Ad and terms.
 
Semi-Rookie & Semi-Doofus Timeshare Rental Advice.

grgs said:
Would you mind sharing your steps to getting the payment and making the reservation for the renter?
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Click here for a description of how we do it -- not necessarily the right way, just our way. (Trying to keep it simple -- not overcomplicate things, etc.)
I'm assuming that to accept payment via PayPal, one should have a premier account. Is that correct?
Click to expand...
I have no idea what kind of PayPal account we have -- Premier, Basic, Advanced, Turbo, Super-Duper, Fur Lined, Genuine Leather, Triple-A Platinum Plated, or just exactly what-all. I think the PayPal web site shows us as having a "confirmed" account, whatever that means -- I don't try to keep up with the nuances. We just use PayPal for buying stuff at eBay & for receiving miscellaneous payments for timeshare rentals, Craig's List sales, etc., & it all seems to work OK. Every now & then I make sure PayPal takes money out of my PayPal balance & sends it over to my linked checking account. If there's too much in my PayPal balance, then I'm tempted to bid higher then I ought on eBay horns, etc.

(People say buying timeshares is easier than selling'm. I'm here to testify that the same thing goes for buying horns . So it goes.)

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​



 
What I did was, when someone said they wanted to rent it, I emailed them a pdf of the rental agreement, and explained that I would "hold" the unit for 7 days. I explained that if I didn't receive payment by the 7th day, the hold would expire and it would go back on the market. This is spelled out in the agreement, as well. This gives them time to drop a check in the mail, or set up a paypal account, if need be.
 
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