Uncertain about money transfers in renting.

[raywest]

I want to rent my timeshare, but I'm unclear about how to get the money from the renter in a way that makes HIM feel safe. If he tries to rip me off (eg: with a bounced check), I can simply contact the resort and cancel his reservation. But how does he know I'm not going to rip him off? Let's say he sends me half the rental price, either by personal check or PayPal (the other half will be due 30 days before the rental week). Then I reserve the week that he wants and send him a letter which he will take to the resort verifying that he is the guest renter. What guarantee does he have that I didn't cancel his reservation and/or rent that same week to one or more other people?

 

[BocaBum99]

I want to rent my timeshare, but I'm unclear about how to get the money from the renter in a way that makes HIM feel safe. If he tries to rip me off (eg: with a bounced check), I can simply contact the resort and cancel his reservation. But how does he know I'm not going to rip him off? Let's say he sends me half the rental price, either by personal check or PayPal (the other half will be due 30 days before the rental week). Then I reserve the week that he wants and send him a letter which he will take to the resort verifying that he is the guest renter. What guarantee does he have that I didn't cancel his reservation and/or rent that same week to one or more other people?

I wouldn't worry about it. If you price your timeshare right, renters will send you checks in the mail. Or, sign up for a paypal account and make it premier. This way, you can accept credit cards via paypal.

Just act professionally, have a nice rental agreement and have fair policies that inspire confidence to your renters. Make sure that your resort provides some type of confirmation for your guest. I can be in writing or verbally over the phone with the resort.

 

[Robert D]

What I've done when I've rented a week, is to give the renter a copy of the reservation in my name (less the reservation number), a copy of my deed if they want it, and offer to do a conference call with them on the line to the resort management company to verify that I own the week and have that week reserved. Then I allow them to pay via Paypal if they want so they have some protection from their credit card company. However, I will not wait until 30 days before check in for the last half - if they don't pay, you will probably have to fire sale the week. Generally I require half upfront and the balance after I transfer the reservation into their name and furnish them a copy of the reservation in their name. This process has worked for me on quite a few rentals. If it's not good enough for the renter, then they just have to move on to the next guy - I won't mess with an escrow company.

 

[raywest]

Thank you for your response. One final question: Is there a standard time-share rental contract, and if so, where can I get a copy?

 

[DeniseM]

There is a contract in the How to Rent Your TS sticky at the top of the board.

I use Paypal - $100 downpayment to make the reservation, and the balance due in full after they recieve a confirmation directly from the resort in their name.

I will not accept a final payment at only 1 or 2 mos. out, if they don't pay up you may be stuck with a last minute rental that you can't rent - especially in this economy.

There is no way to 100% guarantee that an owner will not cancel a renter's reservation - just like there is now way to 100% guarantee that a resort or exchange company won't cancel your reservation. If you bring that up with your renter, you are likely to make them nervous - so don't!

I always recommend Travel Insurance and state clearly in my terms that the reservation is noncancelable and non refundable for any reason.

 

[djs]

I may be mistaken, but haven't others here mentioned the use of an escrow service for this kind of thing? I realize that it isn't free, but if split between owner and renter the piece of mind for both parties might be worth it.

 

[Kola]

There is a contract in the How to Rent Your TS sticky at the top of the board.

........
There is no way to 100% guarantee that an owner will not cancel a renter's reservation - just like there is now way to 100% guarantee that a resort or exchange company won't cancel your reservation. If you bring that up with your renter, you are likely to nmake them nervous - so don't!

I always recommend Travel Insurance and state clearly in my terms that the reservation is noncancelable and non refundable for any reason.

Fortunately, I have never had an exchange company cancel my reservation. That said, I am sure that in such a case they would refund my exchange fee and reinstate my week. My only loss would be some inconvenience which in turn would depend if I could find a suitable alternative. Should an owner cancel a renter's reservation the refund issue (in full or partial) becomes at least debatable depending on the owner's motivation. If the rental agreement says that the reservation is "non refundable for any reason" the obvious question is does that include a situation where the owner decided to occupy the unit himself or had a better "last minute" rental offer ? The bottom line is that all rental agreements, no matter how carefully worded, must rely on mutual trust.

K.

 

[DeniseM]

FThe bottom line is that all rental agreements, no matter how carefully worded, must rely on mutual trust.

K.

Exactly my point!

 

[DeniseM]

I may be mistaken, but haven't others here mentioned the use of an escrow service for this kind of thing? I realize that it isn't free, but if split between owner and renter the piece of mind for both parties might be worth it.

I can't speak for other owners, but I would never agree to escrow, much less pay for it, because that means I would have to pay my MF long before I received the rent - which you don't get until after the rental, and it would cut into my profit with an expense that has no benefit to me. Escrow protects the renter, but doesn't do anything for the owner. So if you are the owner of a popular property that rents easily, escrow makes no sense.

 

[Robert D]

I agree with Denise totally - I wouldn't consider using an escrow company either. Once you've rented for a while, you can also furnish the new renter some references of people who have rented from you in the past. I think being open with people, furnishing them all the relevant info they need to confirm you're the owner and have the reservation, and the other stuff I described will get virtually all renters comfortable. I've never lost a deal because they had a problem with this.

 

[lady0608]

Rental Agreement

Thank you for your response. One final question: Is there a standard time-share rental contract, and if so, where can I get a copy?

I am looking for a copy of a rental contract also. I am new to TUG. Is there somewhere on this site that has a copy. Thanks.

 

[DeniseM]

I am looking for a copy of a rental contract also. I am new to TUG. Is there somewhere on this site that has a copy. Thanks.

There is a link to a rental contract in the "How to rent your timeshare" sticky, at the top of the board.

Welcome to TUG!

 

[Blondie]

When I rent from someone and when someone rents from me there is ALWAYS communication from the resort, (usually in the form of an email or something) confirming ownership/maint fees are legit and paid up and listing the name of the tenant renting the week. That does protect everyone. As a renter I always bring a copy to the resort and once I actually needed to present it.