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. I recommend performing an internet search to ensure the company is legitimate and reputable. Look for reviews on Google or BBB (but be aware that BBB is not a government agency, but it's a pay to play private business where business owners need to pay to be accredited). There's nothing's wrong with renting your unit through a rental platform or rental agency as long as the offer is at your asking price or an acceptable amount AND they don't request you to pay any fees upfront.

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. Any legit business will accept a credit card, which comes with it's own protections. Most owners will accept paypal which means that you can pay with a credit card too.

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.