Advice on Renting a Timeshare?

[njsicilian]

What is the recommended way to handle the money transaction when renting your own timeshare to another person via TUG or RedWeek, etc. ? I know some service such as Redweek offer a Title company for a fee to protect both renter and rentee for a fee of around $200 ( which could be split between both parties). I believe Redweek now offers for a fee , a credit card option. Any other recommended method to avoid the $200 and yet still secure the transaction for both Renter and Rentee where both parties feel confident/secure on the transaction? I appreciate any advice...

 

[TUGBrian]

great question!

http://rent.tug2.net

here is our how to rent guide with a bunch of suggestions on renting!

 

[DeniseM]

What is the recommended way to handle the money transaction when renting your own timeshare to another person via TUG or RedWeek, etc. ? I know some service such as Redweek offer a Title company for a fee to protect both renter and rentee for a fee of around $200 ( which could be split between both parties). I believe Redweek now offers for a fee , a credit card option. Any other recommended method to avoid the $200 and yet still secure the transaction for both Renter and Rentee where both parties feel confident/secure on the transaction? I appreciate any advice...

Escrow does NOT protect the owner. I never agree to escrow - it's expensive, it only benefits the renter, the owner has to wait until 2 weeks AFTER the rental to get paid, and if the renter disputes the payment, the owner may not get paid at all.

It's safer for the owner to get payment in full, once they transfer the guest confirmation to the renter.

-I have the renter sign a rental agreement.
-Collect a $100 deposit. (PayPal is the fastest way to do this - renter can use their credit card, PayPal balance, or a bank transfer.)
-Have the resort issue a guest confirmation in the renter's name and send it to the renter.
-The balance is due in full 48 hours after the guest receives the guest confirmation.
-No changes, no cancellations, no refunds.

 

[njsicilian]

Denise - Do you have a rental agreement you could provide me? if not, how or where do you suggest I obtain one similar to what you suggest. I use paypal, therefore I am very familiar. Your way sounds great , who wants to wait for their rent, especially if its 2 weeks after the Renter uses it.

If the renter delays the final payment, I assume you just call Marriot or whomever you have timeshare with and they can easily cancel the reservation in the renters name ??( in a circumstance the renter does not fulfill rest of payment within 48 hours).

 

[DeniseM]

njsicilian - On the advice page there are 2 or 3 sample rental agreement available for Tuggers to use.

You have to give the renter a deadline to pay the final payment - clearly stated on the rental agreement. If they don't pay promptly, I start giving them friendly reminders, which become more and more firm as time passes. After a week goes buy, I inform them that the rental agreement and reservation will be cancelled in 24 hours, if I don't receive the final payment, and they will forfeit their non-refundable $100 deposit.

After 24 hours, I send them a copy of the rental agreement with "Cancelled due to nonpayment" written across it in red ink, and signed and dated.

Usually, I don't bother to change the name on the confirmation, until I find a new renter, unless the check-in date is very soon - just for convenience.

However, it is very rare for renters to not may the final payment and forfeit their deposit - at least that has been my experience. I state on my rental agreement that the $100 deposit is non-refundable.

 

[njsicilian]

thanks Denise, appreciate all the advice......do you typically rent via TUG? I will take a look at those sample agreements today.

 

[DeniseM]

I post Ads on TUG, Redweek, and Craigslist.

 

[Theiggy]

Denise- if renters pay via PayPal, can’t they dispute the charge if the are unhappy after they’ve used the week? Also isn’t there a Paypal fee I will get stuck paying if they use PayPal?


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[hurnik]

Denise- if renters pay via PayPal, can’t they dispute the charge if the are unhappy after they’ve used the week? Also isn’t there a Paypal fee I will get stuck paying if they use PayPal?


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Paypal fees depend on:
1) Which option is used (send money to friends/relatives or whatever it's called now)
2) How payment is made (even if you use the "free" option to send a friend money, if you use a credit card, you get zinged the fee)


Typically most renters feel more comfortable paying with a credit card. As such, I usually send a PayPal Invoice (which means *I* pay the fee, not the renter), although I price my rentals accordingly, knowing that the fee will be taken out by PayPal when the money is put into my PayPal account.

However, with an Invoice, I believe the renter can still opt to pay via an e-check which I don't think incurs a fee (but most folks aren't comfortable with this).

I have a few repeat renters that I'll take a mailed check and rental agreement from (like 7+ years and counting).

Yes, if a renter pays with PayPal they can dispute afterwards, AFAIK.
Personally never had it happen to me, but anything is possible.

 

[DeniseM]

You can only avoid a PayPal fee if the renter sends the payment "friends and family," and that violates the PayPal terms of service. (If they turn you into PayPal, it may have consequences.)

This is a business transaction, so the renter should use the "Pay for Goods and Services" function to make their payment, and it will cost you 2.9% Just include it in your total price and consider it a cost of doing business.

Another advantage of using the "Pay for Goods and Services" payment method is that you can send the guest a detailed PayPal invoice - this makes you look professional, and allows you to summarize the rental terms on the invoice.

You may be able to convince some renters to send you a check, but that has it's disadvantages:

-Sending checks drags the rental process out for many days/weeks
-You may get a bad/fraudulent check.
-It makes you looks sketchy, because the scammers ask for checks, because the renter has no recourse with a check.

For most owners, PayPal is the most efficient way to handle payments.

 

[Sicnarf]

I pretty much do the same as Denise but I give my guest if using Paypal the option to elect F&F to save the fee or elect regular sales but they have to pay the fee. Be aware that regardless of the option, PayPal does NOT protect real estate transaction. To avoid fees, I' ve accepted payments via Quickpay or other type of bank transfer where the legitimacy of the sender can be verified. I do not accept checks but I do accept echecks.

 

[DeniseM]

Clarification: Renting a timeshare is not a real estate transaction. PayPal does permit rentals, and it doesn't fall under the real estate rule.

 

[njsicilian]

Denise, so if its not a real estate transaction, therefore either option (friends or goods/service) is fine with Paypal? I saw you had mentioned consequences with Paypal if friends option was chosen. I assume most would chose the Goods/Service option as sense of security, which I get....there is always that uneasiness when renting timeshares with strangers. I would imagine Zelle is gaining some popularity now...

 

[njsicilian]

I pretty much do the same as Denise but I give my guest if using Paypal the option to elect F&F to save the fee or elect regular sales but they have to pay the fee. Be aware that regardless of the option, PayPal does NOT protect real estate transaction. To avoid fees, I' ve accepted payments via Quickpay or other type of bank transfer where the legitimacy of the sender can be verified. I do not accept checks but I do accept echecks.

Can you elaborate on the Echecks...i,m not very familiar with this option?

 

[Theiggy]

Anyone use Venmo?


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[njsicilian]

I have not used Venmo, although I hear its very similar to Paypal ( I think Paypal owns Venmo). Venmo appears to be very popular with millennials.

 

[Theiggy]

I have not used Venmo, although I hear its very similar to Paypal ( I think Paypal owns Venmo). Venmo appears to be very popular with millennials.

Yes I’m prob a bit too old for Venmo


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[njsicilian]

I am having trouble

great question!

http://rent.tug2.net

here is our how to rent guide with a bunch of suggestions on renting!

Brian, I am still having trouble findings the sample rental agreements provided by TUG? can you assist me in finding the exact link so I can download?

 

[hurnik]

Can you elaborate on the Echecks...i,m not very familiar with this option?

When you pay with PayPal, you can elect to pay via:
echeck (assuming you have a PayPal account that's linked to your checking/savings account)
credit card

I don't think the e-check incurs a fee, unless it's invoiced. (sorry, but the only time I've ever *sent* money via PayPal via echeck was using "friends and family").

 

[hurnik]

I am having trouble

Brian, I am still having trouble findings the sample rental agreements provided by TUG? can you assist me in finding the exact link so I can download?

Scroll down to the "Where should you advertise"
Then the third bullet point has a blue-ish (may be semi-hard to see with the color scheme) link that's titled: "Timeshare rental articles"

Then scroll down some more on that new link until you find the:
Timeshare Renting Articles Advice
and it'll be the 5th bullet point there.

 

[TUGBrian]

from the rental section of the TUG advice page http://advice.tug2.net

 

[Free2Roam]

Yes I’m prob a bit too old for Venmo


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Yes, bcuz you said 'prob'... the young'uns say 'prolly'

 

[Theiggy]

I am having trouble

Brian, I am still having trouble findings the sample rental agreements provided by TUG? can you assist me in finding the exact link so I can download?

There is also a sample rental agreement on Redweek.


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[DeniseM]

Denise, so if its not a real estate transaction, therefore either option (friends or goods/service) is fine with Paypal?

My comment was about "real estate" - was in regard to someone's coment that you can't use PayPal for real estate transactions, but "real estate" refers to buying and selling real estate - not timeshare rentals. You can use PayPal for timeshare rentals.

Paypal requiries you to use the "Pay for Goods and Services" payment method for all business transactions (renting.) Friends and Family payments are only for gifting money to friends and family.

*Lots of people use the Friends and Family method for payments, for occasional timeshare rentals, and don't get caught. But the renter may know that it's not permitted and balk at using it. Also, if you use that method, you can't send the renter a PayPal Invoice, and the renter has no PayPal protection.

I don't think the e-check incurs a fee, unless it's invoiced. (sorry, but the only time I've ever *sent* money via PayPal via echeck was using "friends and family").

ALL "Pay for Goods and Services" payments have a transaction fee, regardless of the source of the money.

An echeck is just a bank transfer - the payment is pulled from the renter's bank account, and transferred to your PayPal Acct.. The renter decides what the source of their payment will be. They can also pay with a credit card, or funds in their PayPal Acct.

 

[Sicnarf]

My comment was about "real estate" - was in regard to someone's coment that you can't use PayPal for real estate transactions, but "real estate" refers to buying and selling real estate - not timeshare rentals. You can use PayPal for timeshare rentals.

Paypal requiries you to use the "Pay for Goods and Services" payment method for all business transactions (renting.) Friends and Family payments are only for gifting money to friends and family.

*Lots of people use the Friends and Family method for payments, for occasional timeshare rentals, and don't get caught. But the renter may know that it's not permitted and balk at using it. Also, if you use that method, you can't send the renter a PayPal Invoice, and the renter has no PayPal protection.



ALL "Pay for Goods and Services" payments have a transaction fee, regardless of the source of the money.

An echeck is just a bank transfer - the payment is pulled from the renter's bank account, and transferred to your PayPal Acct.. The renter decides what the source of their payment will be. They can also pay with a credit card, or funds in their PayPal Acct.[/QUOTE

PayPal also does not allow:
Timeshare transactions -- offers to buy, sell, or rent rights to the periodic use of a property. A timeshare is real estate that is jointly owned by people who share the right to use the property and take turns using it.