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Problem with Timeshare Rentals

T

TravelTime

TUG Member
Joined
Mar 20, 2018
Messages
8,115
Reaction score
6,472
Location
California
Resorts Owned
All Resale: MVC DPs, Marriott Ko Olina, Marriott Marbella, WKOVR-N, Four Seasons Aviara
I rented out a week for Dec 11. The person emails me today and says he hurt his shoulder and can‘t go. He says he wants a refund or a different week. I do not have any other weeks. It’s an EOY so I would not even have anything available until 2023 but I would not want to give that away for nothing. I rented it for well below market since I made it non-refundable. I am not a company with weeks on end available. Plus it was the 1 bedroom portion of a 2 bedroom so even if it is was available, I doubt I would lock off another week. I offered him some options plus the option to split the difference and refund half. What would you do?

This is my first time renting and it has soured my taste. I doubt I would rent again given people cancel at the last minute and expect compensation. If he had given me a couple months notice, I would have re-rented it and provided a refund. I know this is a medical reason but still…Should I be out of the fee in this case?
 
TravelTime said:
I rented out a week for Dec 11. The person emails me today and says he hurt his shoulder and can‘t go. He says he wants a refund or a different week. I do not have any other weeks. It’s an EOY so I would not even have anything available until 2023 but I would not want to give that away for nothing. I rented it for well below market since I made it non-refundable. I am not a company with weeks on end available. Plus it was the 1 bedroom portion of a 2 bedroom so even if it is was available, I doubt I would lock off another week. I offered him some options plus the option to split the difference and refund half. What would you do?

This is my first time renting and it has soured my taste. I doubt I would rent again given people cancel at the last minute and expect compensation. If he had given me a couple months notice, I would have re-rented it and provided a refund. I know this is a medical reason but still…Should I be out of the fee in this case?
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If you have (...as I hope you do) a signed rental contract that very clearly states, with the renter's overt agreement under signature, that payment for this discounted rental at issue is "non-refundable", I would simply remind the late-cancelling renter of that fact.

I would also politely point out to the would-be renter that there is nothing that you can do at this point with a timeshare week whose occupancy commences just a week from now.

If you wanted to be truly generous, you could ( I admittedly would not do so) refund any amount paid to you which is in excess (if any) of your maintenance fee bill (and any advertising costs incurred) amount for that week. However, that is a personal choice and certainly not an obligation. You need not take a financial hit for someone's last minute cancellation --- for whatever reason, IF you have a signed rental agreement in which the lessee acknowledged and accepted the “no refunds” terms of the contract.
 
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theo said:
If you have (...I hope) a signed rental contract that clearly states, with the renter's agreement under signature, that the payment for the discounted rental at issue is "non-refundable", I would remind the late-cancelling renter of that fact. I would also politely point out that there is nothing you can do for them with the occupancy date literally a week away.
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I have reminded him of all of this. I think it is quite nervy of someone to make a commitment and ask for a refund or free week a week before. I have more integrity than that and I would have eaten the loss since I agreed to it. I offered to refund half even though I should have not done so. Just don’t want bad karma in the world.

This happens a lot where people make a commitment, are reminded repeatedly of the cancellation policy and still ask for a refund. It happens all the time in my business. Usually when this happens, I make the refund and stop working with the person. I am not working with people of low integrity. I have enough business and a waiting list of new clients that I do not need to this in my work.
 
I would tell them that is what insurance is for. Not my problem but your problem.

Everyone wants to be made whole, but someone has to be left holding the short end of the stick.
 
TravelTime said:
I have reminded of all of this. I think it is quite nervy of someone to make a commitment and ask for a refund or free week a week before. I have more integrity than that and I would have eaten the loss since I agreed to it. I offered to refund half even though I should have not done so. Just don’t want bad karma in the world.
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He asked; you said "no".
Nothing wrong in asking; nothing wrong in sticking to the contract you both signed.
Everyone acted appropriately.
 
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If it's nonrefundable, then it's nonrefundable.

However, when you launched your rental business -- even if it is the first time -- there is always the chance of a customer service issue.

Your customer may not know your troubles. They just know they have a bad shoulder and are hopeful that something can be worked out.

Perhaps you can help out your customer in some way to ease the bitterness of losing their vacation.

In the end, you have to decide how accommodating you can be -- if at all.
 
Most tenants don't give a rats rear end what you as the Lessor have to go thru if they back out. It's all about them, and this is why they rent and you own.

Don't loose a lot of sleep over it and do whatever you feel is best.




.
 
My suggestion is to repeat that the contract said, "no refund for cancellation." If the person is upset - it is because they made a mistake. You did not do anything wrong.
 
No one seems to have a problem when airlines sell changeable vs. non-changeable airplane tickets for different prices.

The renter here bought the non-changeable ticket (rental), but now wants the benefit of something he opted not to pay for. The renter could have rented from Marriott or whoever for 2x - 3x the price with cancellation privileges, but did not.

The renter could have also bought travel insurance, but did not. And how do we know for certain that he really "hurt his shoulder" or that the injury is so severe he cannot travel at all?
 
OP says, "I rented it for well below market since I made it non-refundable." It isn't clear from OP's posts don't really reference a rental agreement. How was it "made non-refundable?"

Next thing. How did the renter make paymemt? As we all know, owner-renters are evil, money-grubbing, and immoral creatures (in the eyes of bank credit cards companies, etc). If the renter used a credit card, directly or through PayPal (or the like), appeals to the credit card company put the entire rental amount at risk. All the more reason to hope there was a written agreement or at least a string of emails that make clear the non-refundable nature of the agreement
 
Put it up on last minute rentals here on TUG. Throw it up on CraigsList with a huge mark down. I have rented timeshares 24 hours before check in!
 
id personally probably offer a refund had the request come in a reasonable time before the check in date.

IMO the week (or even 2 weeks) before is not at all a reasonable amount of time to request a full refund, on top of that "I hurt my shoulder and dont want to go on vacation now" is really outside the scope of a reasonable cancellation request/
 
All good advice above.

One other note is that every rental I make I take a call with any potential renter to discuss the resort, the unit, the cancellation terms and exactly what he is renting. I also confirm that renter has airfare already booked during this call as a lot of my rentals would require airfare. Only after this call will I accept a contract and get a guest certificate issued.

I have been in your shoes but never with as late a cancellation as you got.
Stay the course and don't feel sorry for your renter.
 
If you feel you need to do something for the person, you could make this offer.

"I will try to rerent at this late date. If I am able to rerent I will refund your payment minus XX dollars for the time it takes to rerent. If I can not rerent, then there is no refund."
 
Our daughter rents our Wyndham and our SBP weeks, lots of rentals every year. This is ongoing for the last 14 years. She is very clear in her contracts that refunds are not allowed within 60 days. The contract we use is on TUG, and it's a very good contract. She has altered it a bit to fit the times.

She has had people try to get refunds through their credit cards. She emails the contract to the credit card company, a contract signed by the renter, and the credit card company sides with our daughter and not with the renter. A contract is a contract. And what a pain it is for the credit card companies to have to deal with people who dispute valid charges on their cards, when so much fraud is already a big deal with credit cards.

Our daughter does tell everyone that travel insurance is a good idea. She doesn't sell it, but she has thought about selling it.
 
I would not have offered any refund, unless the resort itself is closed. I thought you had done several rentals per your prior posts over the years/months, including at MKO?
 
I’m so sorry you have to deal with this. When I’ve rented out my units the contract is very specific about cancellation/refunds. I also advise renter to obtain travel insurance and/or use a credit card that offers comprehensive travel protection.

I saved the paragraph below to use just in case of a situation like this, unfortunately I don’t know who it came from (I believe it was someone from TUG):

I would be happy to draft a letter to your travel insurance provider to verify the monetary value and reservation specifics of the vacation week you rented. I can provide a copy of your signed rental contract to them as well. Please let me know where you would like me to send the documentation.
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IMHO...offering half for a last minute cancellation is generous given you cannot re-rent the unit or offer deferred inventory. You are the one out the money because he claims he hurt his shoulder. How is that fair to you?

I would have asked the renter about why they didn't have travel insurance given this was non-refundable. With travel insurance the onus is on him to prove why he cannot travel. If none, have the renter provide medical proof from a doctor as to why he cannot travel before refunding any money.
 
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Please be aware that some people will lie to you to get out of a rental. I always ask for a letter on their doctor's letterhead documenting the health issue, before I consider providing a refund or other compensation.

Renting is a business transaction - not charity. You need to have clear rental terms, and a signed rental agreement for your own protection.
 
rickandcindy23 said:
Our daughter rents our Wyndham and our SBP weeks, lots of rentals every year. This is ongoing for the last 14 years. She is very clear in her contracts that refunds are not allowed within 60 days. The contract we use is on TUG, and it's a very good contract. She has altered it a bit to fit the times.

She has had people try to get refunds through their credit cards. She emails the contract to the credit card company, a contract signed by the renter, and the credit card company sides with our daughter and not with the renter. A contract is a contract. And what a pain it is for the credit card companies to have to deal with people who dispute valid charges on their cards, when so much fraud is already a big deal with credit cards.

Our daughter does tell everyone that travel insurance is a good idea. She doesn't sell it, but she has thought about selling it.
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Is this done digitally in some manner or do they sign a paper contract and mail it to your daughter? At some point in the next few years I will rent a week I own, and I am trying to figure how best to do it.
 
If you are just doing occasional rentals, email the rental agreement to the renter and ask them to print it, sign it, scan it, and email it back to you. Some people may not have the capability to do this, in which case you can ask them to print and sign it and then take a cell phone picture of it and send it to you. There are products like Adobe Sign, but for occasional rentals, it's too much trouble to set up.
 
montygz said:
They just know they have a bad shoulder and are hopeful that something can be worked out.
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Maybe they have abad shoulder; there is no evidence of this.
 
It is still unclear if you have a signed contract with the renter. And if that signed contract specified the non-refundability.

If you have that contract that specified non-refundability, then a contract is a contract; you owe the renter nothing.

If you do not have a rental contract; then anything goes, and the renter has the advantage in any dispute.

So, do you have a contract for the rental that specifies non-refundability, or not?
 
And how did they pay you?
 
VacationForever said:
I would not have offered any refund, unless the resort itself is closed. I thought you had done several rentals per your prior posts over the years/months, including at MKO?
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This is my first rental. I have always avoided renting to avoid this type of stuff. I should not have offered to refund half but I did. My mistake.
 
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