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Renter backed out
melissaw98 wrote:What is my obligation to refund the money of a renter,who paid me a deposit fee for the week,then backed out,because he found a room cheaper. Am I obligated to refund his money?
Mellissa this is the reason for the deposit! You took your unit off the market and maybe lost other offers.
I would say no you do not return the deposit but if you can find another renter then you should return the money because you lost nothing.
This is reason for having some kind of contract or using a service to handle this.
Did this person tell you they are canceling because they found better deal or is this just your thinking!
When people give a deposit they need to understand this is to lock up your unit and they will lose the deposit if they cancel. If someone understands this they may back off and look around for better deal.
When a renter finds what resort and week they want and make deposit that should end their search.
As they say in Timeshare World, this is my opinion only!
Phil L.
melissaw98 wrote:Thank you. Yes she came right out and told me that she found a cheaper deal. Lesson learned. I will refund her money if I rent it out. Thanks
Returning the deposit would be right thing to do if you get another renter, of coarse if this guy is being a jerk then you might just keep the deposit. Sad part of this is the renter isn't doing the right thing because when he agreed to rent your unit he should stick to his word!
He might have thought you would just come down on your price too.
Wonder after renting another unit and losing his deposit wonder how much he saved?
Maybe justice will work out and this guy loses your unit and deposit and doesn't get what he really wanted for his vacation!
Saving few bucks doesn't mean a great vacation!
PHIL
Phil L.
Last edited by phill12 on Sep 13, 2007 03:39 PM
melissaw98 wrote:What is my obligation to refund the money of a renter,who paid me a deposit fee for the week,then backed out,because he found a room cheaper. Am I obligated to refund his money?
Your post does not indicate or identify in any way whether or not you had a signed rental contract in place, or if so, exactly what the stated written agreement was in regard to deposit money. This missing information makes all the difference in the world.
If you have no contract and no deposit agreement in writing, my personal recommendation would be to refund the deposit money, ALL of it, whether or not you find an alternative renter. If you fail to do so, with no written contract in place, the (now-former) prospective renter could simply go after you alleging "theft" --- you took his money, he got nothing in return ---and he has asked you for his money back. Without a written agreement, you don't have much of a legal leg to stand upon (although I know that's not what you want to hear --- don't shoot the messenger). If you have a contract regarding cancellation and retention of deposit money (and from your post I'm just guessing that you don't have any such thing), then you might save yourself a whole lot of grief by just refunding the money and learning a lesson --- to execute a signed contract with a specifically identified refund policy. Keeping 50% of the rental amount, received as deposit in a rental agreement, is not unusual (IF so specified in a written contract), but refunding 100% is, in my opinion, the prudent thing to do if you have NO contract at all. Just my personal opinion.
KC
Last edited by ken1193 on Sep 13, 2007 01:43 PM
I agree that if there was no written and signed contract by you (the owner) and the renter stating the terms and conditions of the deposit then it's really up to you as you whether to return the deposit. A deposit basically means a down payment or honor agreement to rent your week. Next time you MUST use a rental contract stating all the facts including deposits and cancellations. There is a sample rental contract in this forum.
In this case the renter found a cheaper rental. I think I would at least keep a part of the deposit for your time and trouble or return the entire deposit and chalk this situation to a lesson learned./b]
R P.
jayjay wrote:I agree that if there was no written and signed contract by you (the owner) and the renter stating the terms and conditions of the deposit then it's really up to you as you whether to return the deposit. A deposit basically means a down payment or honor agreement to rent your week. Next time you MUST use a rental contract stating all the facts including deposits and cancellations. There is a sample rental contract in this forum.In this case the renter found a cheaper rental. I think I would at least keep a part of the deposit for your time and trouble or return the entire deposit and chalk this situation to a lesson learned./b]
You mentioned there is a sample rental contract but I was not able to find it. I would appreciated any help you could give me. Thanks!
Nina K.
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.
_________________ _________________ Signature of renter Signature of owner
Name, address, phone Name, address, phone __________________ __________________
R P.