Security Deposit Required?

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Re: Security Deposit Required? (by Mike N.):

chuckg43 wrote:
Thanks for the input. I am just trying to figure out the best way to protect myself as well as give the potential renter assurance that I am trustworthy. I noticed that First American offers an Escrow service. Does anyone know if this service is used by many people?

While I do not know anyone who used the service, here is a collection of thoughts about the First American service (others may differ).

1. It mainly protects the renter and not the owner. If there is a problem with the unit, First American will withhold payment of funds to the owner until the problem is resolved. The escrow service does NOT protect the owner from damage a renter may do to the unit.

2. The owner is not paid until AFTER the rental period. This is not acceptable to many owners since they use the rental money to pay the MFs. Some rentals are made several months in advance; owners cannot wait for the money.

3. Renter submits a 50% deposit with the application (if the rental period is within the next 60 days, the renter pays 100%). If the renter does not pay the balance 60 days before checkin, the renter loses the deposit. The owner now has less than 60 days to scramble to either re-rent the unit OR deposit the unit in an exchange company (less or no rental; decrease in trade value, etc).