How does timeshare vacation rental escrow help owners?
Oct 22, 2014
Using an escrow service as means for protection against fraudulent timeshare rental transactions is not only applicable to renters. In fact, many owners overlook this issue, and, some of them become victims of a timeshare rental fraud. Rather than paying for escrow service and waiting for their money until the check-in date an owner wants to get paid right away, let’s say, by accepting a credit card via paypal or a similar service. However, what they don’t realize is that Paypal and alike services are great for sales of physical goods where you can produce a shipment tracking when fighting chargebacks, but not that great for intangibles. In case of chargebacks, these services will side with the renter. The scary part is that a fraudulent renter may call and file a chargeback within 6 months after the payment which may be after the travel is complete. So, the owner will, essentially, end up giving this unit to the renter for free.
Additionally, Paypal, for example, started placing a hold on the money you receive from timeshare rental transactions for some period of time. In this case, it does not seem much different than the escrow anymore.
Many owners would argue that this is nonsense, until they actually experience this and then they will torture themselves with the “should’ves” and “would’ves”, but it will be too late.
Moreover, owners that are willing to use escrow services indirectly increase the pool of potential renters. How is that possible? Well, owners that do not accept or use escrow services will lose out on customers who will rent only if funds are held in escrow.
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