Timeshare rental fraud

[wisbadgerm]

I have a 2018 week up for rental on one of the timeshare rental sites. I recently was contacted via the website from someone saying they were interested in renting my week. Within a few hours I received an email from someone I believe is associated with the website stating the rental request was a fraud. I googled the name of the person from the rental website and it looks like he is legit so I did not reply to the rental request.

Does anyone know how this fraud would work? I feel my rental process, which I have used quite a few times over the past years, protects me from fraud. I use paypal to receive the rental amount and do not update the reservation with the renters information until I have transferred the money to my bank account and made sure it has cleared which usually takes a week or so. I have not used a rental agreement. I am clear in my communications with the renter that the rental fee is nonrefundable once paid but this has never been an issue.

Should I change my rental process? Or is the fraud based on the renter requesting nonstandard processing that I had not encountered since I did not proceed with the rental request? Any other possibilities for fraud.

One concern I have had with renting, was the possibility of the renter making room charges or damaging the unit and then refusing to pay even though they supplied a credit card at checkin.

 

[2disneydads]

I use a fairly simple and straightforward rental agreement that covers (among other items) the issues of room charges and damage. You should consider doing so. There are some forms out in the market. Having a rental agreement is not bullet-proof, as I learned in one bad experience, but it certainly is better than not having one.

Sent from my SM-N920P using Tapatalk

 

[curbysplace]

This happened to me a couple years ago. The webmaster from the rental site (the site that deals solely with Marriott Vacation Club rentals) contacted me shortly after I received the email from that prospective renter. I was told that the emailer was a scammer. Though I had responded to my potential renter a short time before the warning email but that was my last to the scammer. When a second email came from the scammer I just ignored and deleted it. I heard nothing more from the scammer and as far as I know my email address was not compromised or spammed from the incident.

This is just another reality check when you get a prospective renter's response to proceed slowly unless you have a history with them. We are often times so eager and excited to get a potential offer that common sense can fly out the window.

 

[jme]

is it against TUG policy for you to identify the scam renter, for the future good of the TUG community?
Name would be good, but if that's not appropriate, maybe the email name (but not full email address).

 

[vacationtime1]

. . . .
Should I change my rental process? Or is the fraud based on the renter requesting nonstandard processing that I had not encountered since I did not proceed with the rental request? Any other possibilities for fraud.

One concern I have had with renting, was the possibility of the renter making room charges or damaging the unit and then refusing to pay even though they supplied a credit card at checkin.

I use a fairly simple and straightforward rental agreement that covers (among other items) the issues of room charges and damage. You should consider doing so. There are some forms out in the market. Having a rental agreement is not bullet-proof, as I learned in one bad experience, but it certainly is better than not having one.

I always have a written rental agreement which includes those provisions and others (rental amounts and payment schedule, occupancy limits, pets, room charges, etc.).

But I think the most important provision -- especially for renters not experienced with timeshare -- is the "no cancellation / no refund" provision. The world of timeshare, one of fairly fixed, difficult-to-change weeks, is unfamiliar to many. It has never happened to me, but I don't ever want to be in a discussion with a renter who "needss" to cancel at the last moment, demands a refund (just like a hotel), and wants to leave me with something unrentable. Perhaps the reason I have never had this issue is because my very short rental agreement (1-1/2 pages) is explicit so any questions are raised at the outset.

Of course, no rental agreement deals with out and out fraud. That's why the renter always pays early enough in the process that I can protect myself.

 

[jme]

Best to always have a contract, and best payment method is a bank check in full.
No way for a scammer to get around that. If they say "no", you move on....

 

[2disneydads]

I always have a written rental agreement which includes those provisions and others (rental amounts and payment schedule, occupancy limits, pets, room charges, etc.).

But I think the most important provision -- especially for renters not experienced with timeshare -- is the "no cancellation / no refund" provision. The world of timeshare, one of fairly fixed, difficult-to-change weeks, is unfamiliar to many. It has never happened to me, but I don't ever want to be in a discussion with a renter who "needss" to cancel at the last moment, demands a refund (just like a hotel), and wants to leave me with something unrentable. Perhaps the reason I have never had this issue is because my very short rental agreement (1-1/2 pages) is explicit so any questions are raised at the outset.

Of course, no rental agreement deals with out and out fraud. That's why the renter always pays early enough in the process that I can protect myself.

I agree with all of that! The contract we use is very clear and specific about each transaction bring final and each rental fee being non-refundable. I generally require payment by PayPal so that payment can be completed soon after the reservation is made. Using a bank check is an option we allow repeat renters to get around PayPal fees. I might think more about requiring bank checks for future rentals. I just worry about the delay and inconvenience for the renters. PayPal payments are easier and quicker.

Sent from my SM-N920P using Tapatalk

 

[AlmostRetired]

Email is the first point of contact but I will not rent to someone who I have not spoken with. Usually before I speak with them I search their email address or phone number. You can find out a lot before you talk. I will only accept payment by check with 50 percent at agreement signing and 50% within 90 days of checkin. No matter what is in the rental agreement, I am responsible for any damages. A swiped credit card can be cancelled upon check out by the holder.

 

[ilene13]

Last year I was contracted 3 times by different renters I feel were fraudulent. Two of them were from TUG and the 3rd from Redweek. I spoke to 2 of them but then it got sketchy. I actually sent a contact to the first one but then I never heard from him again. I prefer to use PayPal but will accept a check for the deposit if it's more than 90 days from check-in.

 

[wisbadgerm]

The website removed the suspected scammer from their site. I prefer not to identify them.

Thanks to everyones input. I may start to use a rental agreement form since it now so easy to send a blank form and then photograph or create a pdf of the signed agreement to be returned via email.

Any comments on how to mitigate damage charges caused by the renter or as owners are we ultimately liable if renter defaults on payment?

 

[infamazz]

I have a 2018 week up for rental on one of the timeshare rental sites. I recently was contacted via the website from someone saying they were interested in renting my week. Within a few hours I received an email from someone I believe is associated with the website stating the rental request was a fraud. I googled the name of the person from the rental website and it looks like he is legit so I did not reply to the rental request.

Does anyone know how this fraud would work? I feel my rental process, which I have used quite a few times over the past years, protects me from fraud. I use paypal to receive the rental amount and do not update the reservation with the renters information until I have transferred the money to my bank account and made sure it has cleared which usually takes a week or so. I have not used a rental agreement. I am clear in my communications with the renter that the rental fee is nonrefundable once paid but this has never been an issue.

Should I change my rental process? Or is the fraud based on the renter requesting nonstandard processing that I had not encountered since I did not proceed with the rental request? Any other possibilities for fraud.

One concern I have had with renting, was the possibility of the renter making room charges or damaging the unit and then refusing to pay even though they supplied a credit card at checkin.

The typical scam isn't that the scammer is looking to actually get added to your reservation without paying. The scam is that he'll tell you he's sending $4,000 for a $2,000 rental for some ridiculous reason, and then ask you to "refund the extra amount he erroneously sent over," preferably before his initial transfer bounces due to insufficient funds. Only your "returned" funds are real - his aren't.

 

[TUGBrian]

also scammers have been known to "phish" for legitimate renters of high dollar intervals and obtain their legitimate information (ie the valid reservation information) and then relist that information or offer it to other potential renters as their own in an attempt to get them to send money (or even a partial deposit).

its why its so important to at least do basic fact checking before any money changes hands. In nearly all of the scenarios we hear about at least one (but in most cases far more) of the red flags popped up before any money was sent and the victim proceeded anyway.

there is just no way to stop scammers from attempting to scam people...one has to always look out for themselves!

 

[sparty]

I currently have a rental listing out there and I've got 3 suspicious requests over the last 3 weeks. When I dig into a little bit - the interested party disappears quickly. Based on my recent experiences the amount of fraudulent rental activity has increased dramatically. BTW - there is one other "new" attribute I am sure which is a magnet for this fraudulent activity and unfortunately I have this magnetic attribute on my listing. It aligns perfectly with the scam TUGBrian is referring too.. I don't want to describe and promote it here.

 

[NboroGirl]

Can someone post their short rental agreement here? Or is it already in a Sticky? I've only rented my unit(s) a couple of times, but I haven't used a rental agreement before.

 

[TUGBrian]

are a number of sample rental agreements available for anyone to use here:

http://tug2.net/timeshare_advice/free-timeshare-owner-advice-articles.html#rent

 

[Tingting]

The typical scam isn't that the scammer is looking to actually get added to your reservation without paying. The scam is that he'll tell you he's sending $4,000 for a $2,000 rental for some ridiculous reason, and then ask you to "refund the extra amount he erroneously sent over," preferably before his initial transfer bounces due to insufficient funds. Only your "returned" funds are real - his aren't.

I just posted my week for sales last week and someone sent e-mail to me and expressed his interest of purchasing that week from me. However, the process is too wired for me to believe it is real purchase. As you mentioned, the guy told me he will ask his secretary to send me a check so he needs my personal information, including mailing address. After I sent him the mailing address that was Sunday night, today morning, he told me the check was already mail out today morning but the amount is incorrect. He sent more than what I asked for so he wants me to make some arrangement after I receive the check.

I'd so glad I read your message to avoid of being trap by this scam. According to his e-mail, I should get the check this week. I will see what happens.

 

[rthib]

I just posted my week for sales last week and someone sent e-mail to me and expressed his interest of purchasing that week from me. However, the process is too wired for me to believe it is real purchase. As you mentioned, the guy told me he will ask his secretary to send me a check so he needs my personal information, including mailing address. After I sent him the mailing address that was Sunday night, today morning, he told me the check was already mail out today morning but the amount is incorrect. He sent more than what I asked for so he wants me to make some arrangement after I receive the check.

I'd so glad I read your message to avoid of being trap by this scam. According to his e-mail, I should get the check this week. I will see what happens.

Talk to you local police department, they are may not be interested in helping.

 

[tschwa2]

I just posted my week for sales last week and someone sent e-mail to me and expressed his interest of purchasing that week from me. However, the process is too wired for me to believe it is real purchase. As you mentioned, the guy told me he will ask his secretary to send me a check so he needs my personal information, including mailing address. After I sent him the mailing address that was Sunday night, today morning, he told me the check was already mail out today morning but the amount is incorrect. He sent more than what I asked for so he wants me to make some arrangement after I receive the check.

I'd so glad I read your message to avoid of being trap by this scam. According to his e-mail, I should get the check this week. I will see what happens.

Don't deposit it. Keep it, rip it up or send it back. Or better yet send it to your local AG office. It's a scam and you need go no further.

 

[infamazz]

I just posted my week for sales last week and someone sent e-mail to me and expressed his interest of purchasing that week from me. However, the process is too wired for me to believe it is real purchase. As you mentioned, the guy told me he will ask his secretary to send me a check so he needs my personal information, including mailing address. After I sent him the mailing address that was Sunday night, today morning, he told me the check was already mail out today morning but the amount is incorrect. He sent more than what I asked for so he wants me to make some arrangement after I receive the check.

I'd so glad I read your message to avoid of being trap by this scam. According to his e-mail, I should get the check this week. I will see what happens.

I'm glad I could help. Depending on whether your bank charges you for depositing a bounced check, you might not even want to try to deposit it to find out.