Rental Escrow Service

theo · Dec 17, 2014

tschwa2 said:
Well looking at the site (but not doing any additional research to recommend or not), the advantages over First American would be a lower fee 1.99-2.99% vs $100-$200 or more flat fee and the money is released the day after check in vs 11 days after check out.

A better timetable for owner payment certainly, but as an owner I'd want to know considerably more about any "dispute" issues and avenues of resolution.

For example, "we don't want our payment released because the toaster burned my English muffin" or "the hot tub was being repaired when we arrived here" are petty complaints (excuses?) that I for one would neither welcome nor regard as having any worthwhile substance or legitimacy in the first place. :shrug:

tschwa2 · Dec 17, 2014

I agree but I would certainly rather have that dispute opened the day of or after check in than 11 days after check out.

And how much do we really know about Paypals dispute process. In September of 2014, Paypal increased their dispute period from 45 days to 180 days after payment is made.

Alan L. · Dec 18, 2014

More about DepositGuard

I work for DepositGuard and would like to address some of the questions in the thread.

It's understandable that everyone's concern is a dispute. It does happen but not very often. We have done over 10,000 rental transactions and have had only half a dozen disputes where the renter contacted us upon arrival and asked us to hold the release of payment. When this happens, we immediately contact the owner and then work with both parties to resolve the situation. Basically mediate (one of our team members is a licensed mediator). Once in agreement, both parties need to sign the disbursement instructions before we send money out. We have never had a dispute that was not resolved in 48 hours.

We don't add any language about TVs working, views, etc. That stuff should be addressed in your rental contract. In disputes we will ask for a copy of your rental contact so we can see what it says to help us mediate a resolution. It is not our place decide how the dispute is resolved we just help the renter and owner come to an agreement. Sometimes having a neutral third party facilitator makes these situations easier for both sides.

One big advantage for owners that use our service is that because we take the payment, we are the merchant on record and shield the owner from the chargeback liability. Once the payment is made and the renter is unhappy about something their only recourse is to call their credit card company and issue a chargeback. If this happens, the chargeback is against DepositGuard not you. We assume this risk. The only safer way for you to accept payment for your rental is if the renter wires (expensive) the money directly to you or mails you a check (slow and antiquated).

Regarding cancellations, we abide by whatever your cancellation policy is in your rental contract. The renter can't simply contact us and say he wants to cancel and get his money back. It is very common for us to receive payments for a rental that starts 6 months + after the payment is made. Owners are ok using our service because again we use their cancellation policy.

Our service is free for owners. We charge our service fee of 1.99% for echeck and 2.99% for credit cards to the renter at the time the submit the payment. We disburse funds to you electronically directly into your bank account so you get them in one day.

As one of the posts read, our service goes a long way to calming the renter's nerves. We have done studies and talked to many, many renters that say they only booked a certain property because they were comfortable with the way the money changes hands. Owners that properly explain how our service works to their renters should see their conversion rates increase. This is especially true in the timeshare world.

Owner references are available.

theo · Dec 18, 2014

Yeah, I don't think so...

Alan L. said:
<snip> We don't add any language about TVs working, views, etc. That stuff should be addressed in your rental contract. In disputes we will ask for a copy of your rental contact so we can see what it says to help us mediate a resolution. It is not our place decide how the dispute is resolved we just help the renter and owner come to an agreement. Sometimes having a neutral third party facilitator makes these situations easier for both sides.

Thank you for weighing in with some details regarding the rental escrow services of your particular company (DepositGuard). Your input is welcome and appreciated, but certainly doesn't in any way change my position of summarily rejecting any and all would-be tenants who insist upon using escrow services (my maintenance fee bills, just for the record, get issued --- and must be paid --- many months in advance of actual usage, certainly not during or after dates of occupancy).

I respectfully take strong exception to the statement highlighted above in blue. Are you even serious in suggesting that individual items like phones, televisions or ("view", not even knowable in advance at all in a "float" reservation) must be individually addressed in advance within a rental contract for an owner to prevail in later dispute? With all due respect, that's utterly absurd. Yes, the presumption is that phone, TV, fridge, faucets, lights, toilet, door locks are all functional. That much is very obvious but can't even begin to anticipate less clear (but more likely) potential issues --- a suddenly broken hot tub pump under repair, a pothole fix in the parking lot, proximity of a parking space to the unit, cute (...but not yet potty trained) joyful little Jared producing a "Baby Ruth" log into the pool water, etc., ad infinitum. All such events are completely unpredictable and entirely beyond the influence or control of any owner, so how could they be addressed in advance within a rental contract?
By clairvoyance, perhaps? Moreover, such completely unpredictable events do not even begin to constitute a remotely valid reason to attempt to evade rental payment.
Life ain't perfect and tenants have to accept and deal with that fact, just as every owner sometimes has to do when on the property. That's just part of adulthood.

I appreciate your input, but my policy in (admittedly infrequent) rentals will remain payment in full, at least 60-90 days in advance of occupancy, no refunds, with a air tight rental contract, mutually signed. Potential tenants uncomfortable with that are free to rent from someone else instead, or directly from the resort itself --- at rack rates, likely paying 50% more money (plus taxes) than a private rental but also providing ample opportunity to moan, groan and complain about every petty little thing directly to the property management (...but not to me, thanks). I for one can do without that whining --- and without any time consuming disputes or "mediators".
Time is money too, at least in in my book.

grupp · Dec 18, 2014

Just for full disclosure, I am the one who let Alan know about this discussion as I thought he could explain DepositGuard's process much better than I could.

To address the issue with the timing of the payments, DepositGuard will automatically send the payments at the start of the rental period. However, the payments can be released earlier if both parties agree to have them released prior to the start of the rental.

What I have done several times is include in my rental agreement that 50% of the rental proceeds will be released within 7 days of the money being deposited into the escrow. The remaining 50% is released at the start of the rental period. I have to manually request the release and the renter has to confirm, but it only takes a few minutes.

I don't see anything that would prevent someone from setting up an agreement that the entire amount is released 60 or 90 days prior to the start of the rental period. You would need to remember to sign in an initiate the release of the funds.

I think everyone agrees that cash up front is the best option and the majority of my rentals (approximately 15-20 per year) are done that way. However, DepositGuard is certainly an option to use in certain circumstances. I would never use First American Title escrow service.

alwysonvac · Dec 19, 2014

Thank you for the Recommendation

grupp said:
If you want to us an escrow service I would recommend www.depositguard.com

I have used them a couple times a they a very efficient.
Gary

grupp said:
Just for full disclosure, I am the one who let Alan know about this discussion as I thought he could explain DepositGuard's process much better than I could.

To address the issue with the timing of the payments, DepositGuard will automatically send the payments at the start of the rental period. However, the payments can be released earlier if both parties agree to have them released prior to the start of the rental.

What I have done several times is include in my rental agreement that 50% of the rental proceeds will be released within 7 days of the money being deposited into the escrow. The remaining 50% is released at the start of the rental period. I have to manually request the release and the renter has to confirm, but it only takes a few minutes.

I don't see anything that would prevent someone from setting up an agreement that the entire amount is released 60 or 90 days prior to the start of the rental period. You would need to remember to sign in an initiate the release of the funds.

I think everyone agrees that cash up front is the best option and the majority of my rentals (approximately 15-20 per year) are done that way. However, DepositGuard is certainly an option to use in certain circumstances. I would never use First American Title escrow service.

I actually never heard of DepositGuard.

Thank you for sharing your experience with DepositGuard and asking them to provide some additional information about their process/service.

Phyllis

alwysonvac · Dec 19, 2014

Alan L. said:
I work for DepositGuard and would like to address some of the questions in the thread.

It's understandable that everyone's concern is a dispute. It does happen but not very often. We have done over 10,000 rental transactions and have had only half a dozen disputes where the renter contacted us upon arrival and asked us to hold the release of payment. When this happens, we immediately contact the owner and then work with both parties to resolve the situation. Basically mediate (one of our team members is a licensed mediator). Once in agreement, both parties need to sign the disbursement instructions before we send money out. We have never had a dispute that was not resolved in 48 hours.

We don't add any language about TVs working, views, etc. That stuff should be addressed in your rental contract. In disputes we will ask for a copy of your rental contact so we can see what it says to help us mediate a resolution. It is not our place decide how the dispute is resolved we just help the renter and owner come to an agreement. Sometimes having a neutral third party facilitator makes these situations easier for both sides.

One big advantage for owners that use our service is that because we take the payment, we are the merchant on record and shield the owner from the chargeback liability. Once the payment is made and the renter is unhappy about something their only recourse is to call their credit card company and issue a chargeback. If this happens, the chargeback is against DepositGuard not you. We assume this risk. The only safer way for you to accept payment for your rental is if the renter wires (expensive) the money directly to you or mails you a check (slow and antiquated).

Regarding cancellations, we abide by whatever your cancellation policy is in your rental contract. The renter can't simply contact us and say he wants to cancel and get his money back. It is very common for us to receive payments for a rental that starts 6 months + after the payment is made. Owners are ok using our service because again we use their cancellation policy.

Our service is free for owners. We charge our service fee of 1.99% for echeck and 2.99% for credit cards to the renter at the time the submit the payment. We disburse funds to you electronically directly into your bank account so you get them in one day.

As one of the posts read, our service goes a long way to calming the renter's nerves. We have done studies and talked to many, many renters that say they only booked a certain property because they were comfortable with the way the money changes hands. Owners that properly explain how our service works to their renters should see their conversion rates increase. This is especially true in the timeshare world.

Owner references are available.

Welcome to TUG :hi:

Thank you for taking the time to join us and share some information about your service. It was very helpful.

Phyllis

Alan L. · Dec 19, 2014

Response to Theo

Theo it's Alan from DepositGuard. I didn't mean to suggest that you should have that exact language (TV, view, etc.) in your rental contract. I was trying to point out that this is one difference between us and First American Escrow as their contract has that language in it according to earlier posts. Your rental contract can say whatever your want it to.

I should have written: That stuff should be addressed in your rental contract, if at all.

theo · Dec 19, 2014

Yessa!

Alan L. said:
Theo it's Alan from DepositGuard. I didn't mean to suggest that you should have that exact language (TV, view, etc.) in your rental contract. I was trying to point out that this is one difference between us and First American Escrow as their contract has that language in it according to earlier posts. Your rental contract can say whatever your want it to.

Yes it can --- and my occasional rental contract does indeed say exactly what I want it to say in very precise detail, as briefly mentioned previously.

Your model seems to be head and shoulders above that of First American Title from a owner perspective. I wish you success with those who may utilize such services. However, as an owner who rarely rents, "escrow" is (to me, anyhow) just an unnecessary and unwelcome complication (and a payment delay) that I will not entertain.
Over the course of several decades of timeshare ownership, I have never needed to consider accepting the involvement (or the rental payment delay) of any escrow service in the (iron clad contract backed) rental of a timeshare week. The skittish always have a choice and (...maybe) an option to rent from someone else instead.

Just the same, I wish you luck and success. Thank you for offering your perspective and for describing the actual procedures in the DepositGuard escrow process.

Rental Escrow Service

theo

TUG Review Crew: Veteran

tschwa2

TUG Review Crew: Veteran

Alan L.

theo

TUG Review Crew: Veteran

grupp

alwysonvac

alwysonvac

Alan L.

theo

TUG Review Crew: Veteran