Renting out your unit

tmoscola · Jun 22, 2016

I have a person interested in renting my unit. They are asking if they can pay the rent in two installments. I don't see this as an issue, do you? In the past we have received one payment, typically through Paypal. What is your process?

I do have them sign a simple agreement so I would ensure the first installment would be due by ___ and the second to be due by ___.

NTP66 · Jun 22, 2016

tmoscola said:
I have a person interested in renting my unit. They are asking if they can pay the rent in two installments. I don't see this as an issue, do you? In the past we have received one payment, typically through Paypal. What is your process?

I do have them sign a simple agreement so I would ensure the first installment would be due by ___ and the second to be due by ___.

I've done it both ways - full payment up front, and a deposit due immediately (non-refundable), with the balance due by a certain date (usually 90 days from check-in). Prefer checks [that clear] to PayPal, if only because of their consistently-increasing fees.

vacationhopeful · Jun 22, 2016

NTP66 said:
.... Prefer checks [that clear] to PayPal, if only because of their consistently-increasing fees.

Or charge backs with usage of credit cards to make the Paypal payment.

DeniseM · Jun 22, 2016

Here is the key point - if they default on the last payment, what is your back up plan?

theo · Jun 22, 2016

DeniseM said:
Here is the key point - if they default on the last payment, what is your back up plan?

Good point. Cancellation and refund policy (including identification of specific time frame / dates) should be an integral part of any rental contract, IMnsHO.

DeniseM · Jun 22, 2016

In my experience, they more time you give a renter to make the final payment, the more likely they are to cancel. Even if you keep the first payment, that puts you in a bad position.

I get a $100 non-refundable deposit up front.

Then, have reservations issue a confirmation in their name.

Then the final payment is due in 48 hours - no changes, no cancellations, no refunds.

I make this policy very clear in the rental terms, and recommend travel insurance.

*In my opinion, YOU should have your rental terms set before you even advertise - they renter should not be dictating the terms to you.

tmoscola · Jun 22, 2016

Yes, I have always had a pay by date in the agreement. I just have never had anyone ask about multiple payments. I was curious to know what other people have done.

tmoscola · Jun 22, 2016

DeniseM said:
Here is the key point - if they default on the last payment, what is your back up plan?

If they default on the last payment and I am unable to find another renter, I would travel for a partial week. Half up front would cover my MFs.

DeniseM · Jun 22, 2016

tmoscola said:
If they default on the last payment and I am unable to find another renter, I would travel for a partial week. Half up front would cover my MFs.

If that is acceptable to you, that's a good plan.

In many cases, the owner can't find another renter at the last minute, and can't travel themselves.

Personally, I prefer to not have to deal with that possibility at all.

tmoscola · Jun 22, 2016

I didn't even realize there was a Renting board here. I typically just go right to the Marriott board. I was just going through the sticky notes on top. Are there any sample rental agreements available?

DeniseM · Jun 22, 2016

tmoscola said:
I didn't even realize there was a Renting board here. I typically just go right to the Marriott board. I was just going through the sticky notes on top. Are there any sample rental agreements available?

Yes, on the TUG Advice page, which is linked in the red bar at the top of the page.

The link to the classifieds is also there: Marketplace.

NTP66 · Jun 22, 2016

Replace "90 days" (in my previous post) with whatever you feel comfortable with. My deposit is always $500, so it's a bit more incentive for them to not bail at the last second as opposed to $100.

MOXJO7282 · Jun 22, 2016

If I accept a split payment it's with 2/3 down and final payment due 90 days from check-in with no cancellation or refund unless I recoup my total. This way if they default I have my MF covered and I have 90 days, which should be enough for a high demand Marriott to rent again, to rent at low price to reach my rental goal. If I exceed that goal, then I'll refund as much as I can to the defaulting party.

Tia · Jun 22, 2016

The deposit I always asked for was 1/2, other 1/2 two months before check in. Always worked but was only renting our 2 weeks, small scale. No refunds unless able to re rent

tmoscola · Jun 22, 2016

Thank you for the advice! We are essentially 60 days out now as the check in date is August 21. I wrote to the interested renter and told her at this late in the game full payment will be required. Hopefully I do not scare her away as I would love to have this squared away in the next few days

Renting out your unit

tmoscola

NTP66

vacationhopeful

TUG Review Crew: Rookie

DeniseM

theo

TUG Review Crew: Veteran

DeniseM

tmoscola

tmoscola

DeniseM

tmoscola

DeniseM

NTP66

MOXJO7282

Tug Review Crew

Tia

tmoscola