PayPal and escrow are two different types of services. Paypal is simply a payment method. Escrow means your money is tied up until after the rental.
I would never agree to escrow - that means that you have to wait until AFTER the rental to get paid, and if the guest disputes the charges, you may never get paid.
I have used PayPal a lot, with very few problems. I like PayPal because you can send the guest a detailed invoice, listing the rental terms. However, a guest can dispute a PayPal payment, but generally not after the rental, unless it is a last minute rental. If they dispute the payment before the rental, you simply cancel their reservation.