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Funds exchange with rentals

P

pwgusa

TUG Member
Joined
Sep 23, 2015
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Location
Charlotte, NC
How do most private persons exchange rental fees when one pvt person hires a week from another pvt person...say the rentor requires full upfront payment of the week's rent...in some cases the rentee might be concerned about how safe that upfront payment is, concerned that the rentor might be false or an imposter or scammer? Is there an escrow system for pvt-to-pvt renting deals?
Peter
 
I use Paypal to collect from renters - that eliminates most scammers, because they don't want to register with Paypal and get caught.

I will not use escrow because I am not willing to wait until after the rental to get my money, and I'm not willing to take the chance that the renter will dispute the payment, and I'm not willing to pay for escrow.

Are you the owner or the renter?
 
When I've rented to someone in the past I accepted a check. No problems. Probably now I'd use Paypal instead since it's quicker.
 
Yes, there are companies which provide an escrow service. Owners mostly will NOT agree to use and definitely Owners will NOT agree to pay for the service. Why?

Owners MFs were paid way before the checkin date. The rental rate is established at the time of "meeting of the minds" and both sides agree. The owner is NOT corporation like Marriott or Wyndham or Sheraton with vast marketing and market presence. It is ME or YOU or your neighbor with an extra week or two. Most owners live several states away from their timeshares as they use them to getaway and to vacation in different weather, etc.

There is a professional onsite group to act as caretaker and service providers ... but not as a collection agent. Faucets drip, refrigerator is warm, key is lost ... yes, those are issues for the onsite management company. If the owner provides the permission for YOU to use their ownership ... they should welcome and treat you (the guest) in a similar ways for those benefits a "Guest" is authorized by the HOA board... at some resorts, the actual owners do get some minor perks (free internet or parking, unit requests) ... guests of owners, renters by the resort management company, exchange guests MIGHT be treated a little different .. no free breakfast, no late checkout, etc. But at my resorts YOU will not be given the WORST room in the house ... unless it was MY TURN to get stuck there. And even I mostly would NOT know til checkin day.

If you are worried that you are paying for an unit which does NOT EXIST ... TUG has a sticky suggestion on ways to confirm the owner DOES own or has a reservation they can rent.

Yes, I rent some weeks out. I print off reservation confirmations from the computer system. I have copies of my deed and/or MF invoices for individual weeks. But what many people learn is "I know my resorts" and if they have been there before, they realize that I have been there a LOT.

But I could also say why should I trust a NEW guest? Paypal charge back, bad checks, rude guests (and yes, I get requests from the resort to NOT rent to THEM again!), and calls at 3AM ... I KNOW that happens at least 3-5+ times a year. And I get calls for airport closed by home & stuck in FL, too. Dang ... I got on the last plane out of FLL one Thanksgiving weekend - hurricane inbound. Resort shutdown; guests told to find other shelter (and not a resort person around ... big name starting with M). Been there ... not fun.

So, if either the owner or renter gets "funny vibes" ... why rent from them? You think "funny" is going to improve if there is an ISSUE? And no season is flawless or perfect ... it is in how you handle the issues as they rain down on you.... hundreds of miles away with strangers trying to work together.
 
DeniseM said:
I use Paypal to collect from renters - that eliminates most scammers, because they don't want to register with Paypal and get caught.

I will not use escrow because I am not willing to wait until after the rental to get my money, and I'm not willing to take the chance that the renter will dispute the payment, and I'm not willing to pay for escrow.

Are you the owner or the renter?
Click to expand...

I am the owner and I have a (flexible during ski season) week for rent at Westgate Park City Utah but I was just wondering...would a prospective renter be totally comfortable to pay me (a stranger to him/her) upfrint for rent?..I guess the PayPal route does help but I was not sure if that give total peace of mind to the proposed guest.
 
pwgusa said:
I am the owner and I have a (flexible during ski season) week for rent at Westgate Park City Utah but I was just wondering...would a prospective renter be totally comfortable to pay me (a stranger to him/her) upfrint for rent?..I guess the PayPal route does help but I was not sure if that give total peace of mind to the proposed guest.
Click to expand...

1. Collect a $100 deposit to put the confirmation in the guest's name.

2. Have resort reservations issue a new official confirmation in their name and send it to the renter

3. Provide the info to the renter so that they can call and confirm the reservations directly with the resort/reservations, and remind them that they can call as often as they like, for their own peace of mind. (For nervous renters, I suggest once a month, then the week before check-in, and then the day before check-in.)

4. After they have confirmed, then collect the balance.

*This is important - you need to sit down and put together your rental terms, before you start communicating with potential renters. Not know what your terms are are, makes you look disorganized, or even like a scammer to potential renter.

*If the renter pays with Paypal, they have 6 mos. to dispute the charges, if you turn out to be a scammer. Using their credit card on Paypal gives them double protection.
 
DeniseM said:
1. Collect a $100 deposit to put the confirmation in the guest's name.

2. Have resort reservations issue a new official confirmation in their name and send it to the renter

3. Provide the info to the renter so that they can call and confirm the reservations directly with the resort/reservations, and remind them that they can call as often as they like, for their own peace of mind. (For nervous renters, I suggest once a month, then the week before check-in, and then the day before check-in.)

4. After they have confirmed, then collect the balance.

*This is important - you need to sit down and put together your rental terms, before you start communicating with potential renters. Not know what your terms are are, makes you look disorganized, or even like a scammer to potential renter.

*If the renter pays with Paypal, they have 6 mos. to dispute the charges, if you turn out to be a scammer. Using their credit card on Paypal gives them double protection.
Click to expand...

I have successfully followed Denise's advice in renting out our canyon Villa week. Interestingly enough, we have been both lessor and lessee at Royal haciendas in Playa del Carmen and most people there still rely on payment via check. So far, no problems but I still prefer convenience of Paypal.
 
pwgusa said:
I am the owner and I have a (flexible during ski season) week for rent at Westgate Park City Utah but I was just wondering...would a prospective renter be totally comfortable to pay me (a stranger to him/her) upfrint for rent?..I guess the PayPal route does help but I was not sure if that give total peace of mind to the proposed guest.
Click to expand...

The most difficult thing I do or at least the most time consuming is establishing credibility with my potential customers. Im renting timeshares and this industry is known for scams, Its almost impossible to type the word timeshare, without auto correct adding the word scam after it. Ans I advertise on Craigs list "the place for scammers" Craigs list itself warns people to not ever send money, they suggest paying in person

So whats a guy to do? Denise's procedure usually works.

In addition I put my real name, phone number, email address and website url in my ads. Its clear Im not trying to hide anything. I also use my name as my id on sites like tug and social media, so when folks google me, they can find me.Scammers dont do this. I cant say how many times folks have told me "I have already googled you and have seen you post on TUG" (and it doesnt hurt that they also see, I am also a licensed real estate agent)

To a large degree I specialize. A lot of my rentals are at one resort and the people that work there know who I am. Oftentimes, early in the process I invite folks to call the resort and check me out. (they know me there). Ive also sent people copies of deeds, and maintenance fee bills to establish the fact that I really do own this stuff.

Bottom line is that there has to be some level of trust established. You have to trust the guy you are renting to, and he has to trust you. We usually cant meet in person, but we can talk on the phone. Do that and trust your gut. If you arent comfortable with them or they arent comfortable with you. drop it, and move on. There will be others. As my daddy used to say " dont worry about a missed opportunity; like streetcars, there will be another coming along pretty soon" Same thing with renters.
 
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