Escrow for renting

[pharmgirl]

I have rented in the past using rental agreement and getting deposit via paypal, then added renter to reservation, get remainder of rent - no problems
However, I just posted a rental [Westin Kaanapali] on redweek for march and already have someone who wants to rent full price asked, BUT she wants to use escrow. On redweek there is an escrow service but it is $250, also says paid by both owner and renter? each $250??
Has Anyone else used escrow and have suggestions. thanks!

 

[vacationtime1]

Don't go there. It gives the renter too much control. You don't get paid until the end of the rental period -- and then, only if the renter doesn't concoct some excuse to give the escrow agent sufficient reason to hold back your rent.

 

[DeniseM]

I always politely tell people that I don't use escrow, and if they insist, I just politely tell them no thank you. I also provide a clear explanation of the my rental terms, so they can understand the process.

Two Issues;
-You don't get the money until approximately 2 weeks after the rental.
-You may never get the money if the renter disputes it.

 

[chapjim]

As an owner, I feel my duty is to provide to the renter what I advertised -- basically get the renter checked into a unit of the right description in the right resort. I can't help if the a/c dies, someone poops in the pool, or if the renter gets dissed by a front desk clerk.

My question is whether anyone has actually experienced something like this -- where the owner fulfilled his responsibility but lost the rental fee anyway.

I agree with others -- I don't use RW's escrow and if they ask, I explain why to my prospective renters. But, maybe the whole thing is a negative fantasy. If no one has unjustly lost a rental fee, I might soften my position and allow escrow if the renter wants to pay for it.

Basically, I'm inviting stories.

 

[Saintsfanfl]

I would never ever use escrow. As owners we pay maintenance fees in advance with no possibility of a refund. When we rent we are passing our owner privileges on to the renter, hopefully with a markup, but unfortunately many times with a mark down. There is a reason there is a rental market for timeshares. For moderate to high demand rentals it is generally far cheaper than the guaranteed alternative. If someone wants guarantees they can simply book hotel style without a prepayment and with the ability to cancel.

Redweek thinks they are helping the rental market with their full service charges and escrow. In my opinion they are hindering it. Rental listings are scarce when the margin is negative. By increasing the expenses to the owner it swings small margins negative.

To date I have never had a complaint. I am sure one will come eventually but since I mostly do Marriott on Redweek and the renters are familiar with renting Marriott from an owner they know what to expect and who to blame. For someone that rents out independents on craigslist it probably increases the chances of an unhappy renter.

 

[ronparise]

As an owner, I feel my duty is to provide to the renter what I advertised -- basically get the renter checked into a unit of the right description in the right resort. I can't help if the a/c dies, someone poops in the pool, or if the renter gets dissed by a front desk clerk.

My question is whether anyone has actually experienced something like this -- where the owner fulfilled his responsibility but lost the rental fee anyway.

I agree with others -- I don't use RW's escrow and if they ask, I explain why to my prospective renters. But, maybe the whole thing is a negative fantasy. If no one has unjustly lost a rental fee, I might soften my position and allow escrow if the renter wants to pay for it.

Basically, I'm inviting stories.

I dont have any stories ..

Ive had folks want to back out close to check in, but never after check in. The reason renters want an escrow account isnt so they can scam the owner, Rather its so that they can protect themselves against the owner scamming them.


If we can establish mutual trust there is no need for an escrow account. The reason I dont do escrow accounts is that I dont do business with anyone until that mutual trust is established.

 

[chapjim]

I understand why renters like the security that escrow provides. I have a lot of ways to reduce my renters' risk and put them at ease -- show them that they don't need to be concerned.