If a Renter Wants To Cancel or if a Timeshare Closure

[AlmostRetired]

I own two summer units (July, August) in HHI and have both rented for 2020. I have a 50% deposit on both with the remaining 65 days out. My wife asked me this question "what would you do if the renter is worried about the corona virus and wanted out? It could be the timeshare is closed, the virus is still prevalent and travel restrictions are in place or they are just afraid. I never thought about this for a hurricane which could be closed for damage.

I have in my agreement that the deposit is non refundable as is final payment. I also have if the renter needs to cancel I will try and re-rent the unit giving back what I get minus costs to re-rent. I know timing has a lot to do with it but a big part of me thinks give the money back since this is a (hopefully) a once in a lifetime situation. A smaller part I thinks if it is fear, just stick to the agreement. In any case, the agreement doesn't cover closure for any reason (hurricane, virus or some other reason). While it was asked by my wife, it could have been asked by a renter. Thoughts on what you would do or did for a hurricane.

 

[Fasttr]

I'm not a renter (on either end) of timeshares, but, assuming the resort does not close, I look at it this way.... If they wanted near ZERO risk and the ability to cancel up to a couple of days before check-in without penalty, they could have booked via Marriott.com directly and paid the rack rate. Instead, they chose to book via an owner at a lower rate, which comes with higher risk. That higher risk is a non cancellable deposit. To me, because they chose that route of booking, that risk transferred from you to them as soon as they made that down payment. Why would you give them back their deposit and eat all that risk yourself. You are very likely already going to eat the other half of the dollars if you never see the final payment and cannot find another renter.

The fact that you are asking tells us a lot about you, that you are likely a good person. That said, you need to look at this more from a business perspective than a personal perspective and just follow the terms of your agreement.

 

[AJCts411]

Hurricane...if the resort is open for business, and the airports accepting commercial flights, airlines flying no refund. If the resort is closed, then the obvious refund or move to another date. A few years ago we were on one of the first commercial fights allowed in after a hurricane. Resort was open. The businesses, bars, restaurants were begging for more tourists, welcomed us, while the "officals" were discouraging tourism.
I think if the airport is open, the plane flying, resort open...then it is the renter decision, but no refund unless you can get the same sort of consideration from Marriott.

 

[Xan]

I own two summer units (July, August) in HHI and have both rented for 2020. I have a 50% deposit on both with the remaining 65 days out. My wife asked me this question "what would you do if the renter is worried about the corona virus and wanted out? It could be the timeshare is closed, the virus is still prevalent and travel restrictions are in place or they are just afraid. I never thought about this for a hurricane which could be closed for damage.

I have in my agreement that the deposit is non refundable as is final payment. I also have if the renter needs to cancel I will try and re-rent the unit giving back what I get minus costs to re-rent. I know timing has a lot to do with it but a big part of me thinks give the money back since this is a (hopefully) a once in a lifetime situation. A smaller part I thinks if it is fear, just stick to the agreement. In any case, the agreement doesn't cover closure for any reason (hurricane, virus or some other reason). While it was asked by my wife, it could have been asked by a renter. Thoughts on what you would do or did for a hurricane.

I always tell the renter to purchase renters insurance for anything that may come up.

I wouldn’t do any refunds...no exceptions. (I know that it’s harsh, but that’s what the insurance is for!)


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[Bunk]

If you are renting your unit, you are in the business of being a landlord. As such, you are obligated to provide the tenant the space that is bargained for. So if the resort is closed and as a result you are unable to provide a rentable Unit to the tenant for any reason, then you have breached your side of the bargain and should refund the tenant his/her money. I don't see why it matters whether you are breaching the contract in good faith (e.g., there is a hurricane) or in bad faith (you got a better offer and decided to rent to someone else). The relationship between you and Marriott is irrelevant. Your obligation to your tenant should not depend on how Marriott is treating you.

In my opinion, the issue with coronavirus depends on whether the timeshare is open for business at the time of the rental. If the timeshare is open, the tenant has assumed that risk and the deposit should be nonrefundable.

 

[AlmostRetired]

If you are renting your unit, you are in the business of being a landlord. As such, you are obligated to provide the tenant the space that is bargained for. So if the resort is closed and as a result you are unable to provide a rentable Unit to the tenant for any reason, then you have breached your side of the bargain and should refund the tenant his/her money. I don't see why it matters whether you are breaching the contract in good faith (e.g., there is a hurricane) or in bad faith (you got a better offer and decided to rent to someone else). The relationship between you and Marriott is irrelevant. Your obligation to your tenant should not depend on how Marriott is treating you.

In my opinion, the issue with coronavirus depends on whether the timeshare is open for business at the time of the rental. If the timeshare is open, the tenant has assumed that risk and the deposit should be nonrefundable.

Thank you. I agree with you.