Should Renter Bear Risk of Closure Due to Hurricane

[Tank]

No refunds , and all problems need to be taken to the front desk. I am providing my reservation only and would have to deal with problems that might arise the same way. I am not on sight.
Recommend travel insurance sold by others to protect your stay.

I could only help if the resort was closed do to some kind of act of God.
On this note I had a reservation at Galveston Tx during a hurricane they said we are open if you can make it down.

What surprises me is the owners in our system can protect their points for $35 and cancel within 48 hours of the trip getting 100% points back.
Yet so many don't spend the $35 and bellyache when something happens and HICV is the SOB for not understanding the situation and won't do anything for them.
Best $35 spent in my opinion.

Dave

 

[SueDonJ]

If I were renting out my timeshare to someone who's unable to use it because the resort closes due to something beyond their control, like a mandatory evacuation during a storm or damage from a storm, I'd voluntarily offer to the renter whatever compensation the resort gives me. But when renting from an owner it needs to be understood that all resorts do not offer the same compensation to owners and some don't offer any, so if I get a statement from a resort as an owner that my accommodations are cancelled with no compensation, that's what my renter would get from me.

 

[tschwa2]

I don't typically rent during hurricane season in areas that are likely affected. If some kind of weather or natural disaster hits so hard that the resort closes down or is at the point where they can't give my renter a unit (say half closed down and I drew the short straw), I do agree to refund the money for the number of days the resort actually closes or no unit is available. I figure it is the cost to do business and I will fight with the resort for some kind of compensation which I may or may not get. If weather is likely but not imminent say supposed to hit on Wednesday and the rental is from Sunday to Sunday and its Saturday and the renter wants to cancel, I will not offer a refund for any portion until the resort actually closes down. I do recommend vacation renters insurance on my rentals.

 

[MULTIZ321]

This is a very nice way for an owner to treat their renter. However, looking at it further, I would say time is money.

The owner has invested a significant amount of time and money to secure a high demand week. The OP is talking about a March week and the week may possibly be high demand if they already wanted to get their vacation reserved. The owner has bought the timeshare week, paid the m/f's and gotten on the phone/computer in time to reserve the week. That's an investment. The rental should recoup to the owner the investment of time and $. Competition on Redweek can be stiff with owner's undercutting each other, therefore, the margin of profit is not always what it may seem, especially if the renter takes up lots of time with multiple emails and phone calls. I rent weeks at prices competitive with other Redweek ads. It's a hobby business that recovers m/f's and helps fund our personal vacation time. It's rate of return is not a high $/hr. when all investment of time and $ is considered. There's a high level of responsibility when you hold the reservations for others who are expecting a great travel experience, even at budget prices.

I had a clause in my rental contract that if there was a problem with the week like weather or family emergency the renter would assume the same risks I, as the owner, assumes. There's lots of ways this could go so I took out the clause to eliminate the the possibility of trouble. It hasn't come up yet with my rentals but if it does I'll have to work with my renter on an individual basis like GrayFal did.

In the above scenario, since the owner is accommodating the renter best they can, I would not think it unfair for the owner to charge a change fee because of the extra time involved. The renter did not get travel insurance and took a gamble that their discounted trip would take place with no issues. (Who needs a hurricane? I'm thinking of my friend who fell off the ladder and broke his arm right before a vacation). I don't know how much the insurance would have been on GrayFal's week. If the renter had purchased the travel insurance they wouldn't have had to go back to GrayFal for reconsideration. Time and trouble would have been between renter and the insurance company. However, they didn't buy the insurance and time and trouble fell on GrayFal. I suspect dealing with GrayFal was much easier than dealing with a trip insurance company.

GrayFal, can you tell me what "SO" stands for?

Can someone tell me a good trip insurance to recommend to my renters?

Hi Quilter,

www.squaremouth.com is a great travel insurance comparison site.


Richard

 

[GrayFal]

This is a very nice way for an owner to treat their renter. However, looking at it further, I would say time is money.


GrayFal, can you tell me what "SO" stands for?

Can someone tell me a good trip insurance to recommend to my renters?

SO are Star Options. SO in Vistana are DC points to Marriott.
They gave me all my points back I used to book the resie.
I receommned www.insuremytrip.com and https://www.allianztravelinsurance.com

 

[Quilter]

Hi Quilter,

www.squaremouth.com is a great travel insurance comparison site.


Richard

Thank you. That's convenient to know.

To get a sample I plugged in the info for an upcoming rental I have. It's south Florida during hurricane season. To include airfare I used the amount I paid through Delta. It's a popular week so the resort doesn't have any inventory for me to price. I looked at comparable properties. They are about $500/night. My rental is $200/night. Policies that included $1,000,000 in medical evacuation cost around $250. Policies with $200K medical evacuation run about $125.

Considering a 5 night stay is a savings of $1,500+ for the room the cost of insurance is minimal. I won't need the insurance as I already have a yearly policy but I wanted to see the cost my renter would incur if they choose to insure.

 

[GrayFal]

Thank you. That's convenient to know.

To get a sample I plugged in the info for an upcoming rental I have. It's south Florida during hurricane season. To include airfare I used the amount I paid through Delta. It's a popular week so the resort doesn't have any inventory for me to price. I looked at comparable properties. They are about $500/night. My rental is $200/night. Policies that included $1,000,000 in medical evacuation cost around $250. Policies with $200K medical evacuation run about $125.

Considering a 5 night stay is a savings of $1,500+ for the room the cost of insurance is minimal. I won't need the insurance as I already have a yearly policy but I wanted to see the cost my renter would incur if they choose to insure.

What would it be for your TS rental only, not airfare. And use age 55. I do say that they can add in their airfare as well.

 

[Quilter]

SO are Star Options. SO in Vistana are DC points to Marriott.
They gave me all my points back I used to book the resie.
I receommned www.insuremytrip.com and https://www.allianztravelinsurance.com

Thank you.

Did the Star Options have any restrictions on them like last minute cancellations in MVC which go into holding account?

My little rental example is much smaller than the one you had at St. John. I looked and there's several Westin properties on St. John. Do you know how much the renter is saving per night by going directly through an owner instead of booking the rack rate?

 

[Quilter]

What would it be for your TS rental only, not airfare. And use age 55. I do say that they can add in their airfare as well.

I used the insuremytrip link you gave me. The airfare was only $226 round trip per person. Without it the insurance would be $104.

 

[Quilter]

I looked again at the OP. Can you imagine asking an airline to discount the price of their ticket to accommodate your purchase of their insurance? Also, you're asking the owner to cut their price because you are "leary" (leery) of travel insurance. I've just looked at a couple links to travel insurance sites referred above. They are rated by customers. I would suggest looking at ones with high ratings.

You are obsessing on recovering the cost of your room due to possible hurricane damage. Most likely because of the recent hurricane. How many are traveling in your party? Have you considered what other events could affect your travel?

The nominal reduction does not reflect the actual premium for the travel insurance (it is a good bit more) and I am very leary of travel insurance policies because of the difficulty collecting on those policies.

 

[GrayFal]

Thank you.

Did the Star Options have any restrictions on them like last minute cancellations in MVC which go into holding account?

My little rental example is much smaller than the one you had at St. John. I looked and there's several Westin properties on St. John. Do you know how much the renter is saving per night by going directly through an owner instead of booking the rack rate?

Actually they extended those StarOptions past the usual two years to three years use. Presidents week is sold out so can’t compare but assume a one bedroom two bath loft would rent for $5500-6000 for that week. My rental was $3650

There is actually one resort but 4 different HOAs.

 

[chapjim]

The answer to OP's question is, "Yes, of course." Why would it be anyone else? The owner cannot identify the risk to the renter, nor can the owner mitigate the risk.

Travel insurance is the way to go if one insists on traveling to hurricane-prone areas during hurricane season.

 

[heathpack]

The answer to OP's question is, "Yes, of course." Why would it be anyone else? The owner cannot identify the risk to the renter, nor can the owner mitigate the risk.

Travel insurance is the way to go if one insists on traveling to hurricane-prone areas during hurricane season.

When the OP says “renter,” he means the person renting out the unit- ie the owner.

 

[bnoble]

You can ask. I would reject the clause and tell you to rent from someone else.

This is probably worth clarifying. I don't do a lot of renting out of my timeshares. Maybe once every several years. That may change, and if it does I am going to follow some good advice I've seen from a number of TUGgers who rent often: at the first sign a renter is going to be a difficult customer, cut bait and find someone else.

Will I lose some potential income, and maybe miss out on some great repeat customers? Yes. But life is short, and money isn't the only thing that matters.

 

[needvaca]

-no refunds for any reason.
-I would pass along any renumeration given to me by the resort (but I've never seen this happen)
-I own a floating week that converts to points, so I would reschedule the vacation for the guest on a best efforts basis (but red season is usually booked up months in advance)

 

[chapjim]

When the OP says “renter,” he means the person renting out the unit- ie the owner.

Okay. In the OP's post, there are two parties. One is the owner, whom he calls the renter. The other is him, no title. Trying to avoid the crabbed lessor/lessee, most would call the two parties owner and renter.

Regardless, my answer is that OP is in the best position to measure the risk to him of the resort being shut down (What would be his financial loss? How disappointed would the family be not going on vacation? The owner has no idea.). OP is also in the best position to decide what measures, if any, are appropriate to reduce the risk.

The risk of loss should be placed with the party that can most easily reduce the loss. Here, the OP, whatever he is called.

Edit: Let me add something suggested by some others on this string. I will do what I can to minimize damages, which I am in a good position to determine. As an owner, I am not going to withhold a refund to my renter if the resort allows me to book another week and I am able to rent it at full price or if Wyndham refunds my points. At the most, I would hold back letigimate selling costs (listing fees, ebay final value fees, PayPal commissions, etc.).

 

[chapjim]

This is probably worth clarifying. I don't do a lot of renting out of my timeshares. Maybe once every several years. That may change, and if it does I am going to follow some good advice I've seen from a number of TUGgers who rent often: at the first sign a renter is going to be a difficult customer, cut bait and find someone else.

Will I lose some potential income, and maybe miss out on some great repeat customers? Yes. But life is short, and money isn't the only thing that matters.

If you stop negotiating with this kind of customer, you will not miss out on a great repeat customer. You will avoid dealing over and over with a PITA customer.

 

[GrayFal]

Okay. In the OP's post, there are two parties. One is the owner, whom he calls the renter. The other is him, no title. Trying to avoid the crabbed lessor/lessee, most would call the two parties owner and renter.

Regardless, my answer is that OP is in the best position to measure the risk to him of the resort being shut down (What would be his financial loss? How disappointed would the family be not going on vacation? The owner has no idea.). OP is also in the best position to decide what measures, if any, are appropriate to reduce the risk.

The risk of loss should be placed with the party that can most easily reduce the loss. Here, the OP, whatever he is called.

Exactly!

I just purchased business class tickets NYC to Rome for $1800. As I was checking out, they asked if I wanted insurance that would cover the usual illness of self and family member for $12 pp. I chose to pay that. I paid with Chase Sapphire Reserve that has travel insurance but what the heck, for $24 I am really covered.
I then booked two premium Economy tickets Long Beach CA to Las Vegas for $218. It asked if I want to insure these tickets for $24.97 each. Well, nope, I will just take my chances (
also have CSR insurance) and not spend $50 to insure $218.

It’s what is is worth to you.

 

[echino]

It's open to negotiation between the parties. When I rent out my weeks, I offer a full refund for 24 hours (mainly to allow to verify the reservation and check for any errors), then it's no refund after 24 hours for any reason.

 

[chapjim]

It's open to negotiation between the parties. When I rent out my weeks, I offer a full refund for 24 hours (mainly to allow to verify the reservation and check for any errors), then it's no refund after 24 hours for any reason.

Sure, but this is nothing to do with OP's question.

 

[echino]

Sure, but this is nothing to do with OP's question.

To answer the OP, it's open to negotiation between the parties. There is no right answer.

 

[bobpark56]

I don't think you are off base. Whether you have that provision in your rental agreement or not, I believe those renting out owe a refund to those renting in.
When hurricane Irma wiped out St John, an individual who had rented our unit for a week the following month requested a refund. After checking this out, I became convinced she was both legally and ethically entitled to one...so I gave her a full refund. It later turned out that Vistana believed we were owed a refund by them for the temporary loss of our unit. So they credited us with 2 full years' worth of StarOptions and let us bank them for free for 3 years, to use wherever we want.
My understanding is that Marriott did no such thing for owners at Frenchman's Cove on St Thomas...so go figure. In my view, we and Vistana had it right.

 

[VacationForever]

As an owner, my terms are strictly no cancellation and refund. Renters are advised to purchase travel insurance.

 

[chapjim]

To answer the OP, it's open to negotiation between the parties. There is no right answer.

Yes, of course. Everything is negotiable but I guess that's the whole point. OP has been trying to negotiate terms with no success so he appeals to the forum asking, who should bear the risk of closure due to a hurricane.

My answer is basically it should be the one who has most to lose, that being the non-owner OP. He can identify and quantify the risk and he has the choice of accepting the risk, avoiding the risk (by not going), or transferring the risk by purchasing insurance.

Would I accept the risk? I guess I would but my terms would be pretty much the same as yours -- check me out for the next 24 hours and then it's no returns. Regardless, I would still mitigate damages if there were a way to do that because that's what I've been taught to do.

 

[dioxide45]

The question doesn't seem to be if the resort is closed because of a hurricane during hurricane season but rather what happens if damage is so severe that the resort is closed for months after a hurricane and your renter is scheduled to checkin when it is closed. In this case, I don't think you really have any choice but to provide a refund. If you can't fulfil the terms of your contract, even if no fault of your own, can you really charge your renter anything for that. If you withhold reimbursement, would that hold up in court?