Security deposit

[AnnaO]

When you rent out your units, do you always ask for security deposit? Has anyone even been in a situation when you had to use those funds? The resort asks the renter for a credit card for incidentals, right? Wouldn't that be used to cover any damages?

 

[gorevs9]

When you rent out your units, do you always ask for security deposit? Has anyone even been in a situation when you had to use those funds? The resort asks the renter for a credit card for incidentals, right? Wouldn't that be used to cover any damages?

It would, but if for some reason the resort cannot collect from the renter (i.e renter disputes the charge), the resort can and will go after the owner for damages.

 

[vkhome]

I recently increased my required security deposit from $100 to $250 (some folks charge as much as $400). And yes, unfortunately, I have had to use those funds (which is why I increased). Most guests are fine, but every now and then you can get
the renter from h_ _ _ .
I have had no opposition from renters to paying security. The credit card security is actually tough to collect because a card holder can deny the chargers and the company typically backs the card holder.
.

 

[Kola]

I have had no opposition from renters to paying security. The credit card security is actually tough to collect because a card holder can deny the chargers and the company typically backs the card holder.
.

That's the point I am wondering about. If credit card "security" provides no real security why don't you require some other form of payment ? My second question is what steps do you (and others) take to verify if its OK to refund a security deposit ?

K.

 

[vkhome]

I have a property manager who inspects before and after a renter's stay. I obviously pay for that service, but it is well worth it. If there are problems, they are itemized and I either keep all the deposit or what is needed to cover the damage. I also have a clause in my contract requiring the renter to pay for any damage above and beyond what security deposit would cover. But to recover this, you would have to go to small claims court which may or may not be worth the hassle depending upon the damage. Only once did I encounter that bad a problem and I actually posted about it on TUG last summer. I never did recover all the funds needed to rectify the situation, but it was from that incident that I learned to increase my security from $100 to $250. Hopefully, that will be sufficient.

If you a renting out a timeshare week, it would be a very different situation. When I rent out my TS, I do not collect security - the TS management takes care of all that at the time of their check-in and I have nothing to do with that.
Hope this helps to answer some of your questions.

 

[Robert D]

All of the TS's I rent are set up like a hotel where the renter has to check in at a front desk and have their credit card swiped at check in time to cover any incidental charges or damages. So, I've never gotten a security deposit and never had any problem. I do collect half of the rent upfront when they confirm they want the unit and the balance within 10 days after I transfer the reservation into the renter's name which occurs very quickly.

 

[DeniseM]

I think it is very rare for a renter to damage a timeshare. I've never seen it posted on TUG, so I just rely on their credit card to cover damages. In this economy, renting is getting harder, and I think adding an extra fee just makes it more likely that your TS won't rent.