Damage Deposit for timeshare rental

[pungpong Junior Member Find all posts View Profile Close pungpong]

Hello all experts,

I'm a newbie in timeshare rental. Appreciate if you can give me some advices if it's common to ask for a damage deposit from a renter? If so, in which form of payment would be the best fit? Thank you so much.

[Spence Super Moderator Find all posts View Profile Close Spence]

Hello all experts

I'm not an expert but I can give you my experience. I've rented my Sunterra timeshares numerous times and have never taken a damage deposit. It's too much trouble in my opinion. The resort will go after their credit card first. Sure, if they're unsuccessful they come to you next. If you're worried, and want to make sure they know that they're on the hook, use a contract and put in something like Steve Nelson has in his agreement:

Obligations of Renter
You agree to abide by all rules and regulations of the resort during your stay. You agree to maintain the unit in the same condition as it is at the time of check-in, except for normal wear and tear.
You agree to pay for all incidental charges imposed by the resort, including:
- transient occupancy tax
- telephone charges
- food, beverage or any other room charges
- charges for using the in-room safe
- additional maid or housekeeping service beyond the mid-week light housekeeping
- other charges of the resort for services or the use of facilities.
- charges for damages, repairs, or replacement of furnishings missing from the room inventory after your occupancy of the unit.
You agree to sign a credit card slip at check-in to guarantee payment for these charges.
You agree not to sublease or rent the unit to a third party.

I've used a contract only once in numerous rentals at the renters insistance.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

I never rent a timeshare out without a contract. Things in black and white are better than what two people remember.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Security deposits are a waste of time. It makes the rental more difficult for the renter making them less likely to rent from you. And, getting them their money back is a pain, especially if they live overseas.

Believe it or not, the risk that an owner has in getting caught for violating real estate laws regarding the proper handling of security deposits is greater than the actual risk that they will ultimately be charged for damages by their renter.

Your first defense is the credit card the renter will use to check in. The second defense is your rental agreement. That agreement may be worthless. So, the credit card at check in is much more effective.

[pungpong Junior Member Find all posts View Profile Close pungpong]

Damage Deposit (cont'd)

Bear with me a little longer, will you?

What's the best way to rent out a week where the time share company owns only few units in the property? They have a local agent to do all maintenance works and hand you the key when you check in, no check in counter, no credit card guarantee.

I can't thank you enough.