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Original Message:
First Time Renting My Timeshare (by Mike N.):
bobo47 wrote:============== Read the agreement for the escrow company carefully. First American Title charges a minimum of $100 (non-refundable) for this service; to be split 50/50 between owner and renter.Thanks for the info, Marty. Sounds like the way to go.marty8084 wrote:bobo47 wrote:I am trying to rent my timeshare for the first time. I have posted it in Redweek but don't know what procedures to follow when I start receiving inquiries. My biggest concern is the exchange of monies and how to protect both myself and the prospective renter. Are there also liability forms I should have my renter sign? Someone, please help!!!Thanks
The safest method is to use a Vacation Rental Escrow Company to handle the funds, etc. http://www.redweek.com/help/rental_process/escrow/. For other types of payment pros and cons please visit http://www.redweek.com/help/payment-method-comparison.
Thank you, Marty
Escrow does protect the renter since if the owner defaults, the renter gets his $$ back, though he will not recover any monies spent on airfare, last minute lodging etc.
However, if the renter defaults, the owner gets whatever funds the renter paid into escrow. The owner might only get the renter's initial deposit which is 50% of the agreed upon price. Furthermore, a renter is not in default until at least 55 days prior to check-in. By this time, the owner may not have enough time to rent or exchange his unit. With First American Title, the payment isn't issued to the owner until 11 days after the rental period. So if someone rented your unit 1 year in advance, be prepared to wait for your money.