escrow vs contract

I am considering renting a time share however rather than do the escrow which if I understand correctly will prevent me from losing money if this is not legit the owner said i just need to sign a contract and its the same thing what is your opinion.

Barbara -

If you use the escrow services of First American Title, they will hold your money until the rental period is over before they send the check to the owner. If you don't use the escrow service, we encourage you to take steps to ensure a safe transaction. You'll find our recommendations here: Stay Safe

If you need further assistance, please Contact Us .

Phyllis

I rent out my extra timeshares, I feel escrow is not needed to be used. Other ways in the "stay safe" section work well. If someone tries to rip somebody off, report it ASAP, others have and you will find that info in the forums here or TUG2.

We are all registered with our private information, ripping someone off is a crime. This trust issue goes both ways, I have to trust you to pay me and take care of my timeshare and follow the rules.

I am just trying to rent out my extra vacation, you are just trying to enjoy a great vacation. Keep it simple.

I was unsure if this extra level of security is necessary it does cost a little money but to me it's like travel insurance . It was just a owner I was communicating with felt a signed contract was enough and they did not want to do the escrow even if I paid the whole amount. That made me nervous and their unit was a lot cheaper than similar ones listed. Yes ripping off someone is a crime but redweek does not guarantee that cannot happen and if it does occur chasing someone for 2000 is not going to be cost effective. As we know many people can forge private information and on your side I would think you would want some recourse if your renter is not what they seem thanks for the advice

Use Google and other means to check out the other parties. Do your homework and hopefully you will have a successful rental. I would guess that the vast majority of rentals go smoothly and your caution is understandable . Even ask others in the forum if they have ever heard of the parties you are dealing with. One thing you have to avoid is the free lance broker. That's someone who surfs the internet for available units and contacts the owner with a low offer and tries to re rent it for a profit. They have been known to rip off both sides of the transactions.

Just be very cautious and do your homework and everything should go well. Redweek has posted some guidelines on how to rent successfully. Good luck.

Replying to the freelance broker comment, it's OK to work with a rental company but I wouldn't recommend working with an individual with no license, insurance, or financial backing. Just perform an internet search to ensure the company is legitimate and reputable. There's nothing's wrong with having a brokerage company renting out a timeshare as long as the offer is close to your asking price. Just make sure they don't ask for any money upfront, that would be a scam.

My advice to renters... Never ever send a wire transfer, cash, a check made to cash, money order, certified check, cashier's check, or any other payment method that is impossible to recover if there is a problem. There are some scams out there but not too many. Be weary if it's too good to be true. Most owners accept paypal which means that you can pay with a credit card too (but only if the owner sends you an invoice or payment request). Renting directly from owners on RedWeek is a great way for renters to save money. One thing that I always do is check the owner's deed online. Most of the time, you can search the "official records" within the county that the resort is located. Make sure you get the correct county. Go to google and type {the name of the county} and "deed seach" or "Official records". Then you can search for a deed by the person's name. If this person owns a timeshare at this resort, their deed should be online. If not, then you'll need to ask the owner if they are the actual owner and ask them for a copy of the confirmation or ask if you can have their permission to call the resort to verify their reservation. Not all counties in the US provide a way for search for deeds online but most counties do. All of the counties in Florida have an online deed search.

My advice to owners... Always have a rental agreement and never accept a cashier's check, certified check, or international check. This is a common way that scammers make money. These checks take too long to clear and the renter may over pay you (with a fake check) and ask for you to send them the difference. By the time your bank tells you it's a fake check (4 - 8 weeks later), you would have already sent the scammer money that you'll never recover. Accepting paypal or credit card (through paypal) or Zelle is a great way to get paid. Just make sure you have a clear cancellation and refund policy written within a rental agreement and verify the person's identity by either asking for their ID, or using a research tool such as 411.com or "zaba search" or "free people search". You can usually verify their name, address, phone number, and sometimes even their email address for free or for less than $5. Call them at the phone number that you find online (if it's different than the one they provided). Some renters are not honest and will try to cancel at the last minute and demand a refund and some file a chargeback after staying at your timeshare claiming that they don't recognize the charge on their account. It's happened to me a few times. You need to protect yourself from bad people. You'll always lose a chargeback unless you have a signed rental agreement and a verified identity.

Thank you so much for providing very insightful information

chrisf226 has provided some valuable perspective and astute observations above, particularly in regard to the need for a mutually understood and mutually agreed rental contract which spells out everything in clear and specific detail. Thank you chris, for sharing those insights.

I will note and add that many legitimate and honest owners will have nothing to do with "escrow services" in their rentals. Timeshare owners have to pay their very costly maintenance fees long in advance of the actual usage period. Understandably, many owners are very reluctant (many simply refuse) to have to wait until after a rental has already been completed before receiving payment for the rental. Doing so exposes them to the risk of bogus claims, baseless charge disputes and phony stories by dishonest people attempting to get themselves a "free" vacation at the direct, personal expense of a honest timeshare owner.