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

[MOXJO7282]

Joe,

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

My typical payment plan is a $200 Paypal deposit to put their name on the reservation and to weed out the people that aren't serious and then personal checks.

 

[Ken555]

Does the RedWeek program offer specific cancellation terms that we must agree to?


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[grupp]

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.

Hey Joe, hope you are doing well.

I have found that renters will in many cases pay more when renting a "Verified and Protected Week". A few times I have listed the exact same weeks with one Verified and Protected and the other not, the only other difference was I listed the verified week approximately 10% higher price than the other listing. I list at a higher price since I am not receiving payment in advance. Every time I have done this the higher priced verified and protected week has rented first. I will usually add verified and protected to the other week(s) and raise the price after the first week has rented. So, in my experience the verified and protected has more than paid for itself. I would prefer to get paid upfront, but feel the higher price I am getting makes it worth the wait. Others my have a different experience than I have with this.

Also, if you list as verified and protected week you are not obligated to use the Redweek payment option. The renter can still contact you directly and reach an agreement without using the Redweek payment option if they want to avoid the fees.

Finally just a note on cancellation options with Redweek, I have used the moderate cancellation, with 50% refund if canceled more than 60 days out. I have had a few rentals where the canceled more than 60 days and did receive the 50% payment as required by the terms of their agreement. This may have been different if the person had successfully disputed this with the CC company.

I was reluctant to use "Verified and Protected" at first, but now list almost everything that way. Also, I think I may have you beat if you are only doing 25 weeks per year

 

[rickandcindy23]

My Dolphin's Cove weeks haven't rented on Redweek. Maybe I should add the verified to them. I am disappointed in Redweek lately because I used to rent many weeks through them.

Maybe if you are renting Marriott or Westin on the islands, it's easier, but Anaheim should rent pretty easily. 2 bedrooms that I reduced to under $1,000 and they aren't renting? I am changing my ads to reflect new dates today.

 

[grupp]

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.

I am not sure I necessarily agree with that, but maybe it depends on what you consider a bargain. They can rent from someone like me for $3,750 plus redweek fees or directly from the resort for $10,416 including tax. So, I guess that could be considered a bargain.

 

[grupp]

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,

If I understand the SC law correctly, you would be required to pay the 7% Accommodations tax yourself and obtain a retail license since you are renting more than 7 days. If you go through Redweek Verified and Protected, no license is required and they collect the tax from the renter. Something you may want to consider. Feel free to correct me on the tax/license issue if I am incorrect.

 

[theo]

Does the RedWeek program offer specific cancellation terms that we must agree to?

Like most everything else on Planet Timeshare, I believe the answer is "it depends".

For example, an owner can post an ad on RedWeek and have it "RedWeek Verified" (for an additional $14.99) and yet still identify their own refund / cancellation policy. This is exactly what we do on those rare occasions when we cannot use weeks and rent them out instead. We have had 100% success with renting via RedWeek over the years.

With increasing levels of RedWeek "involvement" in a rental (...no thank you), such as in their "full service" option, I believe that an owner necessarily then inherits and accepts RedWeek's policies regarding cancellations and refunds --- as well as the timing of rental payment.

To each their own, of course, but while we use RedWeek almost exclusively as a platform to advertise our infrequent rentals, I personally want absolutely no other RedWeek involvement of any sort at any step of the rental process beyond the actual posting of the ad on the RedWeek site. YMMV.

 

[Ken555]

With increasing levels of RedWeek "involvement" in a rental (...no thank you), such as in their "full service" option, I believe that an owner necessarily then inherits / accepts RedWeek's policies regarding cancellations and refunds --- as well as the timing of rental payment.

Actually, this is what I'm most interested in learning. If I use their full process (to make it as easy as possible for myself), what is their cancel policy?

 

[theo]

Actually, this is what I'm most interested in learning. If I use their full process (to make it as easy as possible for myself), what is their cancel policy?

Best answered by someone who actually uses the RW "full service" option and is very familiar with those details; I do not number among them. My fuzzy recollection just off the top of my head is that it involves refund percentages, based upon the cancellation time "out" from the actual occupancy date.

I clearly recall that there were numerous owners very unhappy last year (and openly reporting that displeasure in TUG forums), as a result of RedWeek apparently stepping outside of its' own stated cancellation / refund policies during last year's iteration of Covid. Essentially, iirc, RedWeek provided 100% refunds to cancelling renters, regardless of cancellation date in relation to occupancy date, even if / when the resort itself was fully open. Those owners directly impacted and left in the lurch by the ad hoc RW actions can better speak to the details ---and whether RedWeek has since established (and now practices) new Covid-related policies to which RedWeek will now consistently adhere.

 

[tschwa2]

Actually, this is what I'm most interested in learning. If I use their full process (to make it as easy as possible for myself), what is their cancel policy?

You can chose
strict- no refund for cancellation
moderate- 50% refund if cancelled up to 60 days
flexible- 100% refund if cancelled up to 60 days

 

[AlmostRetired]

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

I ask for a check and check only. It has name and address of the person sending the check. No one has had an issue with this at least not for the last 6 years.

 

[rcv82]

You can chose
strict- no refund for cancellation
moderate- 50% refund if cancelled up to 60 days
flexible- 100% refund if cancelled up to 60 days

In addition to the above standard cancellation policies, you can tailor your own. I did this in the summer/fall of 2020 for some Hawaii rentals when there was uncertainty of whether it would be open due to Covid, giving greater flexibility under 60 days depending on the conditions. (I always use verified & protected.) Normally I go with moderate, which is the default.


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[Hobee]

I currently have some weeks and points reservations on Redweek. I am using the Verified option and allowing Redweek to handle the contract and payment for the first time. I will report my experience to this thread.

Here are some things so far. Redweek gave me the option to add the services from “basic” at no charge. There was a click box and a note that said MountainSide qualified for the upgrade. Not sure why. MountainSide rented within a week and the steps between parties went smoothly. I received multiple email inquiries just asking “is this still available?”. All the inquiries were brokers and not private parties.

Is anyone familiar with no charge Redweek service upgrades on select resorts? Do you also notice a lot of brokers looking to rent from you on behalf of others?

 

[youknowthenight]

I just rented out my unit via Redweek for the first time over the weekend (listed a few months ago). I was surprised that I simply needed to click accept on the rental request. I was confused though, because when I look at my listing it only said verified and not verified and protected. So I'm guessing (but not certain) that I gave the option to go through the Redweek booking system but did not require it? When using the Redweek booking system, if the renter ends up having an issue do they deal with Redweek or with me as the owner (not expecting any issues, just want understand the process). How does Redweek eventually pay me out? Send a check?

As far as renters preferring verified and protected, not exactly the same but here's one analogy I can offer. For a long time I have held season tickets for an MLB team and sold many games per year. I've used stubhub quite extensively, but they take such a high cut that I started to look for other ways to sell that would net me more money and would be cheaper for the buyer. Almost every time, people would rather pay the higher price and buy on stubhub - I think there is just anxiety in buying a product from a stranger that requires a certain amount of trusts, and they're willing to pay more to have the purchase "backed up" buy a larger entitity.

 

[stslc]

I just rented out my unit via Redweek for the first time over the weekend (listed a few months ago). I was surprised that I simply needed to click accept on the rental request. I was confused though, because when I look at my listing it only said verified and not verified and protected. So I'm guessing (but not certain) that I gave the option to go through the Redweek booking system but did not require it? When using the Redweek booking system, if the renter ends up having an issue do they deal with Redweek or with me as the owner (not expecting any issues, just want understand the process). How does Redweek eventually pay me out? Send a check?

As far as renters preferring verified and protected, not exactly the same but here's one analogy I can offer. For a long time I have held season tickets for an MLB team and sold many games per year. I've used stubhub quite extensively, but they take such a high cut that I started to look for other ways to sell that would net me more money and would be cheaper for the buyer. Almost every time, people would rather pay the higher price and buy on stubhub - I think there is just anxiety in buying a product from a stranger that requires a certain amount of trusts, and they're willing to pay more to have the purchase "backed up" buy a larger entitity.

If you used the full service option, the renter would work through Redweek with any issues. Redweek may ask you to connect with the renter is there are any negotiation questions. If all goes smoothly, the renter check in and 3-4 days later redweek will send an electronic check to deposit directly to your bank. It works great.

 

[youknowthenight]

If you used the full service option, the renter would work through Redweek with any issues. Redweek may ask you to connect with the renter is there are any negotiation questions. If all goes smoothly, the renter check in and 3-4 days later redweek will send an electronic check to deposit directly to your bank. It works great.

I think this is where I'm confused, I did not use the full service option, I just paid the extra $15 to be verified.

 

[tschwa2]

I think this is where I'm confused, I did not use the full service option, I just paid the extra $15 to be verified.

Sometimes it says something like this resort lets you use the redweek pay system for free. Would you like to use that option? If you say yes then it becomes verified and protected. The owner can still click the contact the owner and then go directly through you but if they go through the book and you say ok it goes through their system.
So now if there is a dispute it goes through you and redweek and since redweek has your money they ultimately decide whether to give it back to the renter or to you.

 

[rickandcindy23]

I added verified to my Redweek ad because I couldn't get it cancelled in time with WorldMark, and I wish I hadn't added it because I rented it on Koala within 3 days and it rented the same day they verified my reservation. But honestly, it was a small amount of money. I was just "in the hole" with the rental and that just set me back a little more than I was hoping. I still lost $120 on the rental. My fault entirely for not cancelling in time. I was too busy in Orlando, enjoying the grandkids.

I can reuse the ad for a new rental, but the verified is something that doesn't transfer. I would have to add it again. I think. I need to look at that option.

 

[suzannesimon]

I use Redweek. According to them, 84 times. I pay to Verify my listing but I handle the money myself and the rental agreement. I have never been asked for any proof that it is a valid week . It’s been years since anyone has even tried to negotiate price. One time I had a potential renter contact me about my listing prior to when Redweek did verifications. A couple weeks later Concierge Realty rented it to the same guy for $500 more. Some people will definitely pay more to have a brokerage between you and them but not very often. That’s why I list on Redweek and Vacation Candy, but 90% of the time they will take the Redweek at the lower price.

 

[AlmostRetired]

Specific to Hilton Head, it appears that there is a tax collected for verified and protected. It takes a 3500 rental and turns it into 4000. This is the first year redweek is collecting the tax. Again, verified and protected not just verified. I hope everyone starts using it. I rented my HHI weeks in record time without using it, It may be piece of mind and an easier process for the owner and maybe piece of mind for the renter but time will tell if that piece of mind for the renter is worth the added cost forcing the owner to absorb it, . I saw a post on the MGO FB group where someone has a summer unit ' references the redweek post and mentions they would prefer going outside of redweek. Not sure why but if I has to guess it was the tax collection.

 

[dioxide45]

Specific to Hilton Head, it appears that there is a tax collected for verified and protected. It takes a 3500 rental and turns it into 4000. This is the first year redweek is collecting the tax. Again, verified and protected not just verified. I hope everyone starts using it. I rented my HHI weeks in record time without using it, It may be piece of mind and an easier process for the owner and maybe piece of mind for the renter but time will tell if that piece of mind for the renter is worth the added cost forcing the owner to absorb it, . I saw a post on the MGO FB group where someone has a summer unit ' references the redweek post and mentions they would prefer going outside of redweek. Not sure why but if I has to guess it was the tax collection.

Just because Redweek doesn't collect if for non protected or full service doesn't release the owner's legal obligation to collect the and remit the tax.

https://dor.sc.gov/resources-site/lawandpolicy/Documents/SandU_11.pdf

Companies like Redweek, Vrbo and AirBnB are now collecting it because the states are putting pressure on them because they know owners are not remitting it. It is easier to go after a few entities than thousands of individual owners.

 

[AlmostRetired]

Just because Redweek doesn't collect if for non protected or full service doesn't release the owner's legal obligation to collect the and remit the tax.

https://dor.sc.gov/resources-site/lawandpolicy/Documents/SandU_11.pdf

Companies like Redweek, Vrbo and AirBnB are now collecting it because the states are putting pressure on them because they know owners are not remitting it. It is easier to go after a few entities than thousands of individual owners.

Interesting, if you look at Redweek now for the MGO in HHI, they are no longer list the fee as a sperate line item and based on the rental prices, it is not built into the price so they might have stopped collecting it.

I am wondering if timeshares qualify given the 6% is for " Residential real estate that is owned for use as a second home, rental property or other type of investment property is generally taxed at 6% " As far as legal obligation, I guess the same can be said on declaring timeshare rental above MF on your taxes. Raise your hand if you do this.

 

[erm]

With Redweek Verified and Protected is there a way to negotiate the rental price with the owner?

 

[vol_90]

With Redweek Verified and Protected is there a way to negotiate the rental price with the owner?

Yes. All you have to do is submit a bid on a posted week to Redweek. The renter will either accept, counter offer or decline. Redweek will facilitate the communication between the parties.