Chronological procedures in renting a TS?

I am interested in renting a timeshare at Pueblo Bonito at Sunset Beach in the week of 4/11/09 - 4/18/09 but never have a gut to rent it from the TS owners due to so much scams that I've read. I've read many messages in the forum but still very confused of what appropriate steps needed to complete a legitimate transaction. This is what I understand, please correct me if I am wrong or missing any steps. After searching and finding a TS I want, I will contact the owner (in order to contact the owner; If in Redweek, I have to become a member (which costs $9.95/every 6 months). If agreeing in the price and time, the owner will send me a rental agreement (does it has to come with his/her signature?) I need to sign and return. I wonder when would be the appropriate time to send the money to the owner, and what do I need to do to make sure this rental is legitimate and this transaction is not an exchange from RCI? Anything else that I should look for before sending money to the owner.

You've pretty much got it down pat and yes the owner should sign the rental agreement also. The rental agreement entails the proper procedure as far as deposits and balances owed. If you want to be sure the rental is not an exchange from RCI, II or the independents, you can ask the owner to send some kind of proof of ownership. If he/she balks (hiding something), move on to another listing. Search forums for a sample rental agreement that you can use as a reference.

kimyn2 wrote:

I am interested in renting a timeshare at Pueblo Bonito at Sunset Beach in the week of 4/11/09 - 4/18/09 but never have a gut to rent it from the TS owners due to so much scams that I've read. I've read many messages in the forum but still very confused of what appropriate steps needed to complete a legitimate transaction. This is what I understand, please correct me if I am wrong or missing any steps. After searching and finding a TS I want, I will contact the owner (in order to contact the owner; If in Redweek, I have to become a member (which costs $9.95/every 6 months). If agreeing in the price and time, the owner will send me a rental agreement (does it has to come with his/her signature?) I need to sign and return. I wonder when would be the appropriate time to send the money to the owner, and what do I need to do to make sure this rental is legitimate and this transaction is not an exchange from RCI? Anything else that I should look for before sending money to the owner.

If you are worried about scams, use an escrow company to protect your funds. Decide the total rental cost plus escrow fee you want to pay for the place you want to go, and make the offer. Worst that can happen is you get turned down. I have never been to the resort that you have chosen, but go to www.tripadvisor.com to see what people who have visited the resort have to say about the resort. Stan.

Thanks to Jayjay and Stanley for your quick response. However, I still don't know when would be an appropriate time to pay. Stanley, you mentioned "Decide the total rental cost plus escrow fee you want to pay for the place you want to go, and make the offer." Do you mean that for example if I want to pay $750 for a week of vacation + $100 for escrow company, should I offer $750 or $850?. Thanks again.

kimyn2 wrote:

Thanks to Jayjay and Stanley for your quick response. However, I still don't know when would be an appropriate time to pay. Stanley, you mentioned "Decide the total rental cost plus escrow fee you want to pay for the place you want to go, and make the offer." Do you mean that for example if I want to pay $750 for a week of vacation + $100 for escrow company, should I offer $750 or $850?. Thanks again.

Hi. If you want to spend a total of $850, and an escrow company will charge $100, then offer $750 for the rental fee. I suggest wording in the contract that says that if one of the parties does not fulfill their obligation and a suit or arbitration proceeding results, that the losing party pays all costs of the suit or arbitration. A question I would pose to the escrow company, is if for some reason the other party fails in their obligation, will the escrow company refund your money withing some specific time period. The only problem is that as the agreement becomes more complicated, one of the parties usually get "cold feet" relative to the transaction. Stan.

stanleyf5 wrote:

Hi. If you want to spend a total of $850, and an escrow company will charge $100, then offer $750 for the rental fee. I suggest wording in the contract that says that if one of the parties does not fulfill their obligation and a suit or arbitration proceeding results, that the losing party pays all costs of the suit or arbitration. A question I would pose to the escrow company, is if for some reason the other party fails in their obligation, will the escrow company refund your money withing some specific time period. The only problem is that as the agreement becomes more complicated, one of the parties usually get "cold feet" relative to the transaction. Stan.

If you use an escrow service all monies are kept in that escrow account until after the renter's reservation date has completed. If a renter backs out then they lose whatever monies are held in the escrow account.

That's why some people prefer to use an escrow service, however many people succeed with rentals not using an escrow service. I think it takes a fair amount of trust with both parties, but most of the time you can get a feel of trustworthiness or not via communication .... called a 'gut feeling'.

kimyn2 wrote:

Thanks to Jayjay and Stanley for your quick response. However, I still don't know when would be an appropriate time to pay. Stanley, you mentioned "Decide the total rental cost plus escrow fee you want to pay for the place you want to go, and make the offer." Do you mean that for example if I want to pay $750 for a week of vacation + $100 for escrow company, should I offer $750 or $850?. Thanks again.

If there's a contract between the owner and the renter, it will state when it is the appropriate time to pay (see sample rental agreement below). What you offer for a rental, if you choose escrow at $100, is up to you as everything is negotiable especially in this downward economy.

SAMPLE RENTAL AGREEMENT:

RESERVATIONS - Upon mutual agreement of unit rental, a ____% deposit must be made to confirm your reservation. Balance is due upon written confirmation or no later than _________, 2007. Payment is to be made with a bankcheck/draft (or a personal check if you accept that mode).

CANCELLATIONS - No cancellation allowed once a reservation has been made.

CHECK-IN/OUT - Check-in time is _____ P.M. on arrival date of __________, 2007. Check-out time is _____A.M. on date of departure of_________, 2007. Any exceptions must have prior approval from the owner and/or resort. The agreed upon rental price for the above stated timeframe or week of ______, 2007 is ________$ for unit number ____ at _________ (resort).

RULES AND REGULATIONS - Upon check-in, you must present a credit card to the front desk personnel, just like when you rent a hotel room. YOU are responsible for any damage, loss or theft incurred while renting this property. Any damage, which is not considered normal wear and tear, loss or theft caused by you, the renter, may be charged to your credit card. In order to reserve the integrity of the unit, we ask that it be occupied in a quiet and dignified manner. As guests of ______________(resort), you are expected to respect the premises and its contents and guard against damage, loss or theft. You are expected to adhere to all of _______________(resort) rules and regulations. The _____________ (resort), its employees and property owners will not be held libel for any claims, suits, damages, costs, losses and/or expenses arising from injury to any person or property occurring on the premises resulting from/relating to rental of this property. The renter must be at least 21 years of age and agrees not to sub-rent this unit. The rental rights acquired from this rental agreement are non-transferable.

TELEPHONE - All telephone calls, toll calls etc. will be billed to your credit card. NO PETS ALLOWED AT______________ (RESORT) AND NO SMOKING ALLOWED IN THE UNITS. A copy of this rental agreement is hereby acknowledged by both parties.

Thanks again Stanley and Jayjay.

kimyn2 wrote:

Thanks again Stanley and Jayjay.

You're welcome. Stan.