Renter in Default

[MFMont]

In 13 years and something like 50 rentals, I am encountering my first renter in default of their 90 day payment. I should have known as there was feet dragging and bs involved with the payment of their deposit. It took two weeks. Communication was great until it was time to pay. I was ghosted and strung along and was quite shocked when they actually paid the deposit.

Two weeks ago, I sent a payment reminder that the payment was due 12/30. I promptly received a response in thanks for the reminder. Of course, now that it is time to pay, I am being ghosted again. I see that my texts have been delivered. I am frustrated as I wanted to complete this rental in this tax year, and I am sure that is not going to happen. While I would like to give these people the benefit of the doubt, I have zero belief at this point that there is some reason that they are ignoring me other than they just don't have the money. Their M.O. is to not address and just string you out vs. having an honest up front conversation. Have any of you experienced this in the past with rentals? How did you handle?

At this point, I think I am going to send a formal contact stating that the final payment must be received by next Friday at 12pm or their deposit will be forfeited. Per our contract, they have already forfeited to be fair. This is more than they actually deserve at this point but I guess that again, I will give them the benefit of the doubt. This is a very big ressie so this whole situation is very frustrating. Thoughts?

 

[JackosinDIS]

I agree with the approach you have outlined, give them a hard deadline of 1 week to make payment otherwise the deposit is forfeit and reservation cancelled. I would probably keep the res and just switch it back to your name - just in case they come up with the payment and suddenly want it again…

 

[Robbie Cottam]

Sorry to hear about this.

I have been renting for almost 10 years

This is why I don’t do payment plans when renting.

I tried once to “be nice”, and it was way more work that I needed.

I usually move on when I get ghosted in the book process.

If the would be renter comes back multiple time I send them a contract and tell them I need that signed before moving forward…

It usually separates the tire kickers from the actual renters that are just trying to get their ducks in a row…

I would make sure you stick to your contract,

follow it to the letter.

What does your contract say for cancellation for non payment?

That said, I know a lot of people have put ther
It devices down for the holiday… not saying it is right or wrong just saying I know it is a thing … but you said you sent them a reminder two weeks ago.

Hopefully, you will hear something Tuesday.

 

[MFMont]

I didn't do a payment plan. I did standard 50 percent deposit. 50 Percent due at 90 days.

The contract states that all deposits and any partial payments are non-refundable. They are in default now, so I would be in my rights to cancel and re-rent now. We are talking about a $5200 total rental. I think giving them until Friday would be more than fair, but after that, they are unfortunately out. I will stick to that without exception at this point regardless of the story of bs that i will likely be fed. I am sure they didn't just forget. They know what they are doing here. Problem for them though is I hold all the cards I guess.

The drag is that if they don't come up with a solution, it is going to turn into a social media fight. So be it I guess. I have every stitch of communication between us including the acknowledgement of my payment reminder two weeks ago along with a signed contact.

 

[MICKIMINI]

Giving a couple days or a week to come up with final payment is definitely generous...and that is IT. Switching the reservation to your name temporarily is a good idea by OP as it is still possible to get paid though I would stop communication after your final deadline. I guess deadbeats are out there - and I say deadbeats as they have ghosted you. Just tell the truth, right?

At this point, I only rent to people who have rented from me in the past OR friends/family in their circle needing another villa on the same trip. Once they pass that bar, they are then part of my accepted renters. I only accept personal checks in full regardless of how far out the reservation is and typically my renters have them in the mail within a day or two. It has made my life easier that is for sure.

In the past I got tired of "tire kickers" as Robbie mentioned and having several people inquiring but not moving forward. It was just awkward and time consuming. My regulars have vacation patterns much like DVC people and though I don't hold any points it has always worked out.

I'm sorry you are dealing with this.

 

[CraigInPA]

This is why I don't accept anything less than full payment at the time of booking. I find your decision to give them another week admirable. But, with people who ghosted you for the deposit, I expect it'll turn into "I'll pay you next week." excuses to avoid you cancelling the reservation. Depending upon how they paid the deposit (paypal or credit card), they may also try to claw back the funds for the deposit if you cancel, or claw back the final payment after they use the reservation.

 

[Robbie Cottam]

This is why I don't accept anything less than full payment at the time of booking. I find your decision to give them another week admirable. But, with people who ghosted you for the deposit, I expect it'll turn into "I'll pay you next week." excuses to avoid you cancelling the reservation. Depending upon how they paid the deposit (paypal or credit card), they may also try to claw back the funds for the deposit if you cancel, or claw back the final payment after they use the reservation.

Ditto

 

[Sandisw]

I think you are being more than fair. I give renters 48 hours feom receiving the confirmation to send payment in full. Thats it…if it was not received, I’d cancel.

If I have to borrow points, I required 50% before booking and then the rest in 48 hours. And, I don’t think there is really a standard way to do it. Good luck!

 

[Chuck S]

Parking Fee ay DVC Resorts - Zero Dollars

Theme park parking for onsite guests - Zero Dollars

Disney memories - Priceless

Sorry, couldn't resist paraphrasing those iold credit card ads.

 

[DonMacGregor]

I agree with the approach you have outlined, give them a hard deadline of 1 week to make payment otherwise the deposit is forfeit and reservation cancelled. I would probably keep the res and just switch it back to your name - just in case they come up with the payment and suddenly want it again…

I'd switch it to my name now, and tell them it will get switched back when the balance arrives.

 

[Robbie Cottam]

I didn't do a payment plan. I did standard 50 percent deposit. 50 Percent due at 90 days.

The contract states that all deposits and any partial payments are non-refundable. They are in default now, so I would be in my rights to cancel and re-rent now. We are talking about a $5200 total rental. I think giving them until Friday would be more than fair, but after that, they are unfortunately out. I will stick to that without exception at this point regardless of the story of bs that i will likely be fed. I am sure they didn't just forget. They know what they are doing here. Problem for them though is I hold all the cards I guess.

The drag is that if they don't come up with a solution, it is going to turn into a social media fight. So be it I guess. I have every stitch of communication between us including the acknowledgement of my payment reminder two weeks ago along with a signed contact.

I'm not sure if there is such a thing as a Standard or if what you described would be that Standard term.

That said, any time you take payment over time, you open yourself up to issues.

That said, I hope this works out for you.

 

[MFMont]

I'm not sure if there is such a thing as a Standard or if what you described would be that Standard term.

That said, any time you take payment over time, you open yourself up to issues.

That said, I hope this works out for you.

I have a $2600 deposit, acknowledgement from this renter that I have given her xtra time and a firm drop dead date. I have a signed contract and 290 AKV point that are good until the end of November if this renter does not pay. While I would certainly prefer that the renter pays, if they do not, it will still work out for me.

 

[MFMont]

This is why I don't accept anything less than full payment at the time of booking. I find your decision to give them another week admirable. But, with people who ghosted you for the deposit, I expect it'll turn into "I'll pay you next week." excuses to avoid you cancelling the reservation. Depending upon how they paid the deposit (paypal or credit card), they may also try to claw back the funds for the deposit if you cancel, or claw back the final payment after they use the reservation.

They have no way to claw back the funds that were paid back in September when ressie was made as I do not accept forms of payment that can be recalled. I hold all the cards here.

 

[BeachClub2014]

They have no way to claw back the funds that were paid back in September when ressie was made as I do not accept forms of payment that can be recalled. I hold all the cards here.

Interesting. What form of payment do you accept?

 

[Robbie Cottam]

I have a $2600 deposit, acknowledgement from this renter that I have given her xtra time and a firm drop dead date. I have a signed contract and 290 AKV point that are good until the end of November if this renter does not pay. While I would certainly prefer that the renter pays, if they do not, it will still work out for me.

As long as your happy with the outcome, that’s all that matters

 

[paults]

I would also like to know What form of payment do you accept?

 

[MFMont]

Paypal FF, Venmo, Zelle, Check.

 

[KAT4DISNEY]

I didn't do a payment plan. I did standard 50 percent deposit. 50 Percent due at 90 days.

The contract states that all deposits and any partial payments are non-refundable. They are in default now, so I would be in my rights to cancel and re-rent now. We are talking about a $5200 total rental. I think giving them until Friday would be more than fair, but after that, they are unfortunately out. I will stick to that without exception at this point regardless of the story of bs that i will likely be fed. I am sure they didn't just forget. They know what they are doing here. Problem for them though is I hold all the cards I guess.

The drag is that if they don't come up with a solution, it is going to turn into a social media fight. So be it I guess. I have every stitch of communication between us including the acknowledgement of my payment reminder two weeks ago along with a signed contact.

FYI - that is a payment plan. When I do rent it is 100% after providing confirmation. Maybe once I've done a rental where they did a couple of payments with someone who had rented from me before. Even then, well, I wouldn't again.

 

[Robbie Cottam]

My father used to have a saying
I’m god we trust, all other pay cash…..
he was a used car dealer so …. he might have had trust issues

 

[DonMacGregor]

he was a used car dealer so …. he might have had trust issues

Guess that door swings both ways...