Redweek Verified and Protected for Rentals - And so Many Owners Using it

[AlmostRetired]

Renting my two units at the MGO this summer using Redweek which I always use when I rent. The first thing I noticed is a fair amount of owners are asking at least 20% above what was asked last year (about 3000). Many owners are using something called Verified and Protected. Based on what I can tell, it costs about 550 to use this feature. It seems to offer protection to the renter and holds all money to the owner until after checkin. Everyone using this services is adding the fee to the rental price so 3500 becomes 4,050.

When I rent, I always speak with the renter to both give me a sense and comfort of the renter and the renter with me. if I was renting and I do rent, I would never rent from someone requiring that fee unless it was paid for by the owner. One person who wanted to rent a unit actually told me he would pay the fee for protection and it was a deal breaker since he was not giving money to Ann unknown, I told him that I am not waiting until after checkin to get paid. Deal off. The funny thing is I started a Hilton Head foodie Facebook group with 4800 members that he could join to know about me, my wife and family who all belong and post. Still not good enough. I could be wrong but at some point owners are going to have to reduce the price to cover costs.

The good news is I have both my units rented within three weeks of posting because I am keeping my price the same (80%) above MF) and I am sure my price is being compared to price plus fees.. Been renting a long time and never had a problem after speaking with someone about trust being am issue. Until now,

 

[tschwa2]

Verified and protected only costs about $15 more to the owner. Then redweek charges about 6% for their credit card processing and to hold the money until rental time. I see that they are taking taxes out of the rentals a la VRBO and airBnB. In the case of a $3200 rental with payment through redweek in HHI, they were collected 8.4% tax or 8% of the rental fee plus the redweek processing fee.

 

[tschwa2]

I checked Hawaii, and various florida resorts and only HHI seems to have the taxes added onto the redweek verified and protected.

 

[BreakingAway]

This chart provides an explanation:

https://dor.sc.gov/resources-site/publications/Publications/AccommodationsTax_Handout.pdf

 

[tahoe]

Redweek also charges a fee to the renter.

 

[NYFLTRAVELER]

I would not rent and wait until check in for my payment. If I rent it’s prepaid and not refundable or changeable.

 

[AlmostRetired]

I was scratching my head why any owner would use Redweek for the rental transaction when they can’t collect until checkin but with this new wrinkle, it is beyond comprehension why an owner would do this.

 

[vol_90]

I was scratching my head why any owner would use Redweek for the rental transaction when they can’t collect until checkin but with this new wrinkle, it is beyond comprehension why an owner would do this.

Here are the Redweek fees from the website Forums section and not $550 as referenced above:

As an owner who rents many weeks per year I prefer their service and don't need the funds immediately. I don't like dealing with renters or contracts and most of my rentals are posted using borrowed points so I end up receiving the funds before I pay the maintenance fees. My success rate using Verified and Protected is now over 94%. Most renters prefer renting weeks with the Verified and Protected tag sometimes even paying more than one not Verified. Love their service and the results.

 

[theo]

I was scratching my head why any owner would use Redweek for the rental transaction when they can’t collect until checkin but with this new wrinkle, it is beyond comprehension why an owner would do this.

Not sure that it is beyond comprehension at all. Some owners (among whom I do not include myself) simply want nothing to do with handling rental details themselves. If that is their mindset, then a few percent less in their “net” is likely of little consequence to them and merely a cost of doing business, while providing hands-off “convenience”.

 

[MOXJO7282]

Here are the Redweek fees from the website Forums section and not $550 as referenced above:
View attachment 44959
As an owner who rents many weeks per year I prefer their service and don't need the funds immediately. I don't like dealing with renters or contracts and most of my rentals are posted using borrowed points so I end up receiving the funds before I pay the maintenance fees. My success rate using Verified and Protected is now over 94%. Most renters prefer renting weeks with the Verified and Protected tag sometimes even paying more than one not Verified. Love their service and the results.

This is the $64k question. I'm not sure this is true and it may in fact drive customers away at the higher fees. I likely rent more than anyone using RW, renting upwards of 25 weeks a year and I have a 100% success rate using RW without the Verified and Protected so that is my experience. For me I'm all about maximizing profit and don't mind the occasional difficult renter to achieve that.

 

[Quadmaniac]

I won't rent my units without prepayment. I've rented out all of my units on my own, never had an issue.

 

[The Colorado Kid]

Here are the Redweek fees from the website Forums section and not $550 as referenced above:
View attachment 44959
As an owner who rents many weeks per year I prefer their service and don't need the funds immediately. I don't like dealing with renters or contracts and most of my rentals are posted using borrowed points so I end up receiving the funds before I pay the maintenance fees. My success rate using Verified and Protected is now over 94%. Most renters prefer renting weeks with the Verified and Protected tag sometimes even paying more than one not Verified. Love their service and the results.

@vol_90 BINGO! Well-said - Redweek and Koala both do a fantastic job of keeping me out of the fray. When I have been on the renting side I have always gone with the rental website's maximum protection even if it costs me a bit more.

 

[Paumavista]

I rent a lot from owners......actually TUG is my favorite place to rent from (and I like to rent from people who have been members here for awhile).....most times I find my best price here at TUG....you cover your costs and I get a good deal. I have been very lucky.....most people don't use a contract, but we do talk on the phone and correspond via text and email, so it is very "hands-on" for both buyer and seller but I like doing it this way.....I hope many continue to use TUG.

 

[AlmostRetired]

For those of you who quote the posted fee, please go onto Redweek, look under HHI and go to any Marriott property that used verified and protected. You are correct on the fees but Redweek is required to collect a tax that is either specific to HHI or SC. I know it is a HHI issue but it inflates cost of using Redweek.

 

[Powderday]

For what it's worth, I only rent from Verified and Protected ads. I have found the process to be much easier then renting directly from an owner.

 

[suzannesimon]

I use Redweek a lot. According to them, I’ve had 84 transactions. I pay to have my listings Verified but handle the rental agreement and money myself. I like having Redweek Verify because it stops the renter from calling the resort to verify or me having to send them a confirmation before they have paid anything. I want to control the cancellation policy also. I really have never had a renter want me to verify anything for them.

 

[SteelerGal]

I personally like for RW and Koala to handle the transition for convenience so I always sign up for verification.

 

[billymach4]

Put yourself in the shoes of the renter... I used to get a paper check from the renter.
When was the last time you sent a check to a stranger from an Advert on the internet?
This is the age of Venmo, PayPal, Credit Cards.
When putting up a rental I would have to wait for paper check. Deposit, wait for it to clear etc, etc.
Who pays bills now using USPS.
Times are a changing. Not a big time landlord either. My policy is no refunds. If I have to wait for check in to get paid.
Then so be it!

 

[billymach4]

I was scratching my head why any owner would use Redweek for the rental transaction when they can’t collect until checkin but with this new wrinkle, it is beyond comprehension why an owner would do this.

@l0410z How do you collect payment? Paypal? Check?

 

[DavidnRobin]

I was scratching my head why any owner would use Redweek for the rental transaction when they can’t collect until checkin but with this new wrinkle, it is beyond comprehension why an owner would do this.

I’ve used RW service about 4 times now. I don’t need the money right away and want to make it easier for the person renting. Seems to have worked quite well. I’ve put up rentals and they have sat, then used their service and rented right away. I used PayPal previously (for years) with T&Cs in the invoice, but with RedWeek service saves me from dealing with people (a huge plus).

But I could be a sap…


Sent from my iPhone using Tapatalk

 

[dioxide45]

Certainly you can make a few extra bucks and protect yourself better if you DIY, but I suspect over time these types of rentals are going to fall out of favor. Modern renters don't want to deal with it. They want to search, click and buy. They want protection and perhaps are willing to pay a little more for it. I suspect over time the size of the market of available renters willing to work with a DIY owner is going to shrink, which means those DIY owners may need to rent for less given less demand for what they are renting. Of course, I could be completely wrong.

 

[billymach4]

This is the $64k question. I'm not sure this is true and it may in fact drive customers away at the higher fees. I likely rent more than anyone using RW, renting upwards of 25 weeks a year and I have a 100% success rate using RW without the Verified and Protected so that is my experience. For me I'm all about maximizing profit and don't mind the occasional difficult renter to achieve that.

Joe,

How do you collect the rental fee? Paypal, Venmo, Check?

 

[suzannesimon]

Put yourself in the shoes of the renter... I used to get a paper check from the renter.
When was the last time you sent a check to a stranger from an Advert on the internet?
This is the age of Venmo, PayPal, Credit Cards.
When putting up a rental I would have to wait for paper check. Deposit, wait for it to clear etc, etc.
Who pays bills now using USPS.
Times are a changing. Not a big time landlord either. My policy is no refunds. If I have to wait for check in to get paid.
Then so be it!

I will take anything but I’d say I still get personal checks half the time. With the change in IRS rules, checks might get more popular as the on-line payment services will be required to report everything over $600 I think.

 

[AJCts411]

I only use Red Week to advertise. My deposit/payment/cancellation terms. If the person renting the week wants to use a credit card, (via paypal etc) no problem, add the credit card fee (3.5%) to the amount. Otherwise transfer the amount into my account. Most choose the discounted cash amount. Besides location, I think that Red Week is used mostly by those looking for a deal/bargin and they do not want more fees. Just opinion no polls lol.

 

[jwalk03]

I do the Redweek verified, but I handle the payment and transaction. I always have a conversation with the person renting and we discuss. I prefer Venmo, but am open to Cash App, PayPal or even a check if they want.