My tenant has a question

[gores95]

Hi all. My tenant asked me a question and I wanted to run it by all the experts on TUG! We are renting our Aruba studio through Redweek for the 2008 Fourth of July week for $1500. I followed the directions on TUG to a "t" and printed out the contract, which both parties have signed. They sent me a check for $750 a couple of months ago, which I cashed and the balance is due 60 days prior to check in. I added their name to the reservation which of course still shows my name as well. I then forwarded the email confirmation that I received (which shows both our names) to the renter. All seemed well and then she sent me this email:

I called there and they said they could not pull up any information until 3 months prior, so I called the direct No. and they told me there was no guarantee. Is there a guarentee through redweek that the room goes to my brother? I trust you, but they told me if you decide to show up that week we would be out of luck. Thanks.

Now as I understand it TRUST certainly plays a major role in these type of transactions. We have communicated via email and over the phone. I have rented myself through VRBO/Cyberrentals and I placed my trust in landlords which all have worked out!

So is there anything else I can give her to make her feel comfortable about this transaction? Again she is in for half already.

Sorry for the long post.

Thanks.

 

[JoeMid]

" I trust you"

What else is needed, why would any owner show up after renting it out. If they're worried they should be worried about you renting it out ten times, tell them that.

 

[theo]

An observation, not a recommendation....

So is there anything else I can give her to make her feel comfortable about this transaction? Thanks.

RedWeek (or, more accurately First American Title, referred by RedWeek) offers an escrow service for rentals. I'm not certain about the cost --- it's either $50 or $100. However, 60 days in advance of the rental date is the minimum time period required to engage this service, and since you already have a contract of your own in place, they might decline to get involved at all with the transaction being already halfway completed. This is not a recommendation (I have never used the service, I am merely reporting that it exists as something to consider as a means to mollify an antsy renter).

 

[Dave M]

You can give them some added comfort by getting their Marriott Rewards number and having Marriott Owner Services enter it into the reservation. Then they can look up the reservation - in their name - at Marriott.com

Alternatively or in addition, say to your renter something like, "I can only imagine how much a court would award you in damages plus attorneys fees if, despite the clearly written contract that states that week belongs to you, I show up or otherwise do something that violates what's in that contract!"

 

[camachinist]

You can give them some added comfort by getting their Marriott Rewards number and having Marriott Owner Services enter it into the reservation. Then they can look up the reservation - in their name - at Marriott.com

This is what I've always done. Never a problem. I always tell them to sign up for MR if they haven't and then consider attending a sales presentation It's gotten me three referrals so far.

Pat

 

[gores95]

Thanks for all your suggestions. I actually sent her the link to Redweek Escrow Service and told her if she wanted to foot the bill I might consider that. I also mentioned about adding their MR number to the ressie and I also cut and pasted Dave's quote!

Thanks again!

 

[camachinist]

http://www.google.com/search?q=redw...ient=firefox-a&rls=org.mozilla:en-US:official

I'm impressed that your most recent posting already shows up on Google.

Just wanted to pass on some relevant posts on Redweek's escrow service. YMMV.

Pat

 

[Phill12]

If they're worried they should be worried about you renting it out ten times, tell them that.

If the renters are this worried about owner showing up I don't think I would tell them about renting to ten others!

Talk about throwing more wood on the fire.
That would scare the heck out of them!

 

[gores95]

http://www.google.com/search?q=redw...ient=firefox-a&rls=org.mozilla:en-US:official

I'm impressed that your most recent posting already shows up on Google.

Just wanted to pass on some relevant posts on Redweek's escrow service. YMMV.

Pat

That is why Google will end up owning all of us!!!! Perhaps I should give them the link of this chain???

 

[DeniseM]

I'm sorry, but this makes no sense. Your renter is afraid that they are going to show up and you are already going to be there? Then what, you'll arm wrestle to see who gets the unit?

If they have irrational worries like this, they should start worrying about their plane crashing, a hurricane, and aliens attacking the earth!

 

[Blondie]

Well of course that is always a possibilty. If she is conjuring up these scenarios then next time she should rent directly from the resort and pay double what you are charging and I would tell her that. She has to have a mini leap of faith or stop renting- it is as simple as that. Of course there is no guarantee either through redweek or the resort that a renter won't be scammed so what does she expect them to tell her? Either she is comfortable or not and there is little you can do to assure her. She is just going to have to trust you now isn't she?? Every renter of every unit on redweek faces the same issue. Have you ever rented before and could your tenant provide a reference? Perhaps this would allay her fears. I personally would not bother with trying to soother her worries- I'd just tell her to relax and stop freaking out over unlikely scenarios.This sort of renter will drive you batty.

 

[PerryM]

What you need is a "Think free zone"....

Add the name of the renter to the reservation BEFORE any money is sent and then ask for 100% of the money up front and the renter has finished with the deal and moves on to other things.

Ask for the last half 60 days before check-in and the whole thing opens up again and the renter starts thinking, and worrying.

A thinking renter is a lot of problems.

 

[Tokapeba]

There is no guarantee that if the renter rented directly from the resort that they won't overbook. It's a common practice. I worked for hotels for many years and "walking" guests when there was no rooms available was a tricky situation.

Andy.

 

[caribbean]

I would remind them that you are also taking a risk. You are trusting that they will pay the remaining 50% on time. If they don't, it probably will be too late for you to rent to someone else and you will be out the rent. You are also taking a chance that they will trash the place and you would be held responsible for damages. It is a two way trust situation and you both benefit monitarily in that they get the unit for less than what the resort charges and you get the rent to off set your costs. You are both at risk.

 

[DeniseM]

How about this: email them that you have another renter, and if they want to back out and get their deposit back, you need to know within 24 hours.

BTW - I agree with the others about getting the rent in full up front. I actually charge $100 to send them a confirmation in their name, and the balance in full within 24 hours of receiving the confirmation.

 

[johnmfaeth]

Denise,

It's a rare thing but I disagree with you strongly on this one. No way I would offer a penny back. Either they complete the transaction or they forfeit their deposit.

The ball is in their court to perform, not the owner. The owner has taken reasonable steps and informed them of added ways to get protections. Why should the owner be financially damaged by the renter's unreasonable fears?

John

 

[DeniseM]

Hi John - I wouldn't expect them to back out - I would hope this statement would say to them, "put up or shut up."

And if they back out, maybe it's for the best. People like this could whine and vacillate forever....

 

[wbtimesharer]

Hi all. My tenant asked me a question and I wanted to run it by all the experts on TUG! We are renting our Aruba studio through Redweek for the 2008 Fourth of July week for $1500. I followed the directions on TUG to a "t" and printed out the contract, which both parties have signed. They sent me a check for $750 a couple of months ago, which I cashed and the balance is due 60 days prior to check in. I added their name to the reservation which of course still shows my name as well. I then forwarded the email confirmation that I received (which shows both our names) to the renter. All seemed well and then she sent me this email:

I called there and they said they could not pull up any information until 3 months prior, so I called the direct No. and they told me there was no guarantee. Is there a guarentee through redweek that the room goes to my brother? I trust you, but they told me if you decide to show up that week we would be out of luck. Thanks.

Now as I understand it TRUST certainly plays a major role in these type of transactions. We have communicated via email and over the phone. I have rented myself through VRBO/Cyberrentals and I placed my trust in landlords which all have worked out!

So is there anything else I can give her to make her feel comfortable about this transaction? Again she is in for half already.

Sorry for the long post.

Thanks.

Well, call her and talk to her about her fears. Let her know that you don't have any intention of using it otherwise you wouldn't have gone through the hassle of renting it. Tell her that the signed copy of the contract is her proof of the downpayment for the unit. Have her call the resort 3 months to verify her name is on the reservation and to call you if there is anything wrong. Make sure she knows how to contact you via email and phone.

Other than that, she is just going to have to have some trust. She should have asked the questions prior to sending payment.

 

[Jennie]

If you are able to put the reservation solely in their name (without yours appearing on it), would they be able to verify it with a phone call?

I almost always notify the resort of the name, address, and phone number of the people who are renting our unit as soon as I receive the signed lease agreement and a 50% non-refundable deposit. I have already spoken by phone with them and trusted the info they provided (plus my "vibes") or I would not have proceeded to the lease and deposit stage. A few days after I deposit the check or money order, I ask the resort to place the res in the renter's name and to send the confirmation to me. I then send a copy of the confirmation to the renter-to-be and tell them that I will send the original, plus a letter to present upon check-in, when I receive the balance due.

I don't know exactly how I would handle the situation if the final payment was not made. Fortunately I have never had that happen, nor do I know anyone else to whom it has happened. (I'm aware of hundreds of private rentals made over many years by members of our Greater New York Timeshare Owners Group).

I guess if someone defaulted on the final payment, I would notify the resort and ask them to cancel their reservation. As owner of the unit, I would hope that the resort would honor my wishes and request. Afterall, I would be the one ultimately responsible if something goes wrong. If a person has not paid the full rental amount due, has failed to respond to my attempts to reach them by phone, and has not responded to certified letters notifying them of their default, I can't imagine that they would waste their time and money showing up to check in. They would be worried about being sued or getting arrested for fraud.

For what it's worth, I once rented to an elderly couple who were new to the Internet. (Their Emails were written in all caps). They had never rented a ts before. We spoke for quite awhile on the phone, more than once, and I was sure they trusted me as completely as I trusted them.

About 2 weeks after I had received and cashed their check, the husband called me in the middle of the night in a panic about the money he had sent ($1,000.) and asking how he could be sure it wasn't a scam. I felt terrible that he was losing sleep over it. I patiently reminded him about our stability, and told him the resort had already been notified that they would be using our unit, and the written confirmation should arrive shortly. He calmed down and apologized profusely. I called the resort later that day and asked if the confirmation was enroute. It hadn't been sent out yet but the Members Services rep volunteered to do a 3 way call to the renters and reassure them that everything was in order. He gave the renter his name, title, and call back number in case he wanted to verify who he was.

This couple went on to rent from me again several times, and referred family and friends who rented from other members of our owners group. There was never any "drama" during the future transactions.

So, sometimes the "nervous nellies" are worth a bit of extra hand holding the first time.

When someone has rented from you, it's a good idea to send them an Email after their vacation, asking if everything went well (if they haven't already sent such a message unsolicited). I thank them for taking the time to share the good news and then ask if it would be okay to use them as a future reference. No one has ever said no. I can then forward copies of these Emails to future potential renters.

 

[LauraS93]

When someone has rented from you, it's a good idea to send them an Email after their vacation, asking if everything went well (if they haven't already sent such a message unsolicited). I thank them for taking the time to share the good news and then ask if it would be okay to use them as a future reference. No one has ever said no. I can then forward copies of these Emails to future potential renters.

That's a great idea! Why didn't I think of that???

 

[EvelynK72]

Our timeshare resort does not put the renter's name on the confirmation papers. They do ask that I write a letter indicating that I assigned the unit to the renter. I then give the renter the original confirmation paper with my name and a copy of the letter to the resort transferring my week to the renter. One time, however, the resort claimed that they did not receive my letter (and they can't accept an email letter - they need an original signature). Since then, I always enclose two postcards along with my letter to the resort:
One postcard is addressed to me and states that the resort has received my letter reassigning my unit to the renter. I have a place where the resort reservations agent needs to sign.
The other postcard is addressed to the renter and states that the resort has received a letter from me assigning the unit to them. Again there is a place for the resort reservations dept. to sign.

In this way, both parties know that the letter has been sent and received. And it is less expensive than sending a letter via certified mail!!

Evelyn

 

[tombo]

I always send 2 copies of the letter I send the resort giving my renter permission to use my week. One goes to the resort and the other copy goes to the renter. I tell my tenant that they will need to present the copy I sent them at check-in. This gives them peace of mind and gives the resort another document from me authorizing their stay. It has worked well for me so far.

 

[Phill12]

I always send 2 copies of the letter I send the resort giving my renter permission to use my week. One goes to the resort and the other copy goes to the renter. I tell my tenant that they will need to present the copy I sent them at check-in. This gives them peace of mind and gives the resort another document from me authorizing their stay. It has worked well for me so far.

This seems to be one of the better idea's along with talking to them!

I totally disagree with the idea of telling a renter to put up or shut up though. Coming across as a bully or a owner on a ego trip doesn't work. I for one would tell the owner where they could stick their unit even if I really wanted the resort.

People renting can find another unit because there isn't a shortage of timeshares for rent. :annoyed:

This person probably has read some of these post and become a little nervous and this is normal. Owner can spend five minutes talking to them and maybe have a renter for years to come.


Just because this owner might be honest we all know that renters get ripped off all the time.

 

[DeniseM]

I totally disagree with the idea of telling a renter to put up or shut up though. Coming across as a bully or a owner on a ego trip doesn't work. I for one would tell the owner where they could stick their unit even if I really wanted the resort.

You misunderstood what I posted. I would never tell a renter to "put up or shut up." That's just a figure of speech. This is what I posted that I would tell them:

How about this: email them that you have another renter, and if they want to back out and get their deposit back, you need to know within 24 hours.

Then the renter would have to make a decision to either commit to the rental or back out, (put up or shut up) but they would have to make a choice and stop vacillating. I think most renters would commit, rather than lose a rental.

 

[PerryM]

30 minutes and counting....

The fact of the matter (I just hate that phrase) is very simple: the owner of a timeshare unit can rent and re-rent and re-rent as many times as he/she wants if committing a felony is the goal.

The ONLY way to prevent this is to use RedWeek’s escrow service where the renter pays $100 for the escrowing of money and the landlord gets paid 2 weeks after check-out. I would never agree to this since a snow storm/hurricane/mold outbreak preventing access to the resort can prevent the renter from enjoying his rental unit and I don’t know what RedWeek would do in this situation.

If you want to stay away from escrow then presenting a professional image is crucial. Answer all questions, send the rental agreement and get the renter’s name on the reservation and a confirming 800 phone number to call. I favor getting 100% of the rent up front and ALL SALES ARE FINAL.

The more the landlord deviates from the above the more the renter starts to think of all kinds of horrible things that can go wrong. Moving the rental along the process is critical.

From the time a person contacts me to the rental agreement signed, the renter’s name on the reservation, and cash in my PayPal/checking account is 30 minutes. I’ve never had a renter come back and squeamishly ask if I’m on the level.