Renter in Default

[pirate33]

If you haven’t heard from them, I think the idea of changing the name on the reservation might spur them into action. The reservation will disappear for them on the Disney app. Thankfully I’ve never had this problem but I also require full payment on booking, with rare exceptions for people I know.

I did have an odd experience recently where I put a reservation on hold for someone who kept saying payment would come, but it never did and he stopped responding. I began fretting that he had figured out some way to scam me but I cancelled the reservation without incident.

 

[New Mouse]

I'm of a different opinion on this. If they decided to back out and give up the deposit, it's within their rights to do so, so keep the money and move on. Part of the reason why if someone asks to not pay in full, I take a hefty deposit that I would be ok walking away with.

 

[pirate33]

I'm of a different opinion on this. If they decided to back out and give up the deposit, it's within their rights to do so, so keep the money and move on. Part of the reason why if someone asks to not pay in full, I take a hefty deposit that I would be ok walking away with.

This is certainly a valid position. Personally I would rather give the renter at least one chance to cure before declaring a default, cancelling the reservation and keeping the reservation. But it is not required, that is for sure.

 

[CraigInPA]

Paypal FF, Venmo, Zelle, Check.

Paypal FF can still be reversed if they used a credit card to put the money into Paypal by disputing the charge with their credit card company.

 

[AnnaKristoff2013]

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?

Not that I'm going to be super helpful here, but I think this is a big reason why this type of agreement is a bad idea for owners, as you're going to get burned eventually. Rental agreement should be something along the lines of, you make the reservation, let them add it to their MDE to verify, and then payment in full is due within X days or the reservation is cancelled. Otherwise you are setting yourself up for situations where you have lots of expiring points you can't use.

 

[AnnaKristoff2013]

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.

Ooh boy, I didn't realize the deposit was 50 percent. Keeping $2,600 in this spot may be more trouble than it's worth. At the very least if you're able to re-rent the points and mitigate your damages I would be giving them a prorated refund (perhaps keeping some of it for your time), but still, I think keeping all $2,600 if you end up with no actual damages here is a bad move.

 

[crisi]

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.

Block them and unfriend them everywhere you can - and then don't engage. You've been more than fair in letting them know and extending their terms - and your points are losing value every day. At least with the half they paid you dues are covered.

 

[Robbie Cottam]

Paypal FF can still be reversed if they used a credit card to put the money into Paypal by disputing the charge with their credit card company.

Another reason why I get payment in full and well in advance of the travel date…

 

[MFMont]

I get what you all are saying, but I rent 1,000 points per year at this point. Anytime I do the 50% deposit, 50% at 90 days, It is always for reservations that are in advance by several months. Per some points above, I will have to rethink even using paypal in the future. If they don't pay I ultimately make more anyway so I am covered. I cant believe someone would let this get to this point with their $2600 on the line.

Ana, I don't know if I totally agree with you as there is a signed contract that clearly states all deposits are non refundable. Personal responsibility is part of life I am afraid. If this renter had reached out in the way honest people do, I am sure we could have worked something out. They opted to be shady. My points now are certainly of lower value than when they were booked months ago.

I am hopeful that the renter will meet my final timeline so all this is moot and we can both move on with our lives.

 

[Allison]

Ooh boy, I didn't realize the deposit was 50 percent. Keeping $2,600 in this spot may be more trouble than it's worth. At the very least if you're able to re-rent the points and mitigate your damages I would be giving them a prorated refund (perhaps keeping some of it for your time), but still, I think keeping all $2,600 if you end up with no actual damages here is a bad move.

Why? It is in the written agreement.

 

[robinb]

That's a bummer. I've had renters drag their feet when paying in installments. Even though they all eventually paid, it was a PITB so I stopped renting that far in advance. I recall one rental where I extended the renter some grace. I contacted them, reminded them they were late and gave them an extended deadline to pay. The renter ghosted me for a couple of days and then before the deadline reached out to me and asked for a little more time. I gave him a couple more weeks since I was in no danger of my points expiring or going into holding. He eventually paid by the new (3rd) deadline.

Before I cancelled someone's reservation, I would make absolutely sure that they receive my communication that it will be cancelled. I would also reach out to your renter by phone and text, to cover your bases. I would have also sent a snail mail letter too with delivery confirmation, but you didn't give yourself enough time for a letter to get there.

Good luck! I hope they pay you.

 

[Sammie]

Paypal FF can still be reversed if they used a credit card to put the money into Paypal by disputing the charge with their credit card company.

Exactly and this happened to our dog sitter when another client used her service for two weeks then disputed the credit card and she lost her payment. PayPal was no help.

 

[MFMont]

Exactly and this happened to our dog sitter when another client used her service for two weeks then disputed the credit card and she lost her payment. PayPal was no help.

While that would certainly suck, my points are good until the end of November so I will ultimately be ok.

 

[Robbie Cottam]

I get what you all are saying, but I rent 1,000 points per year at this point. Anytime I do the 50% deposit, 50% at 90 days, It is always for reservations that are in advance by several months. Per some points above, I will have to rethink even using paypal in the future. If they don't pay I ultimately make more anyway so I am covered. I cant believe someone would let this get to this point with their $2600 on the line.

Ana, I don't know if I totally agree with you as there is a signed contract that clearly states all deposits are non refundable. Personal responsibility is part of life I am afraid. If this renter had reached out in the way honest people do, I am sure we could have worked something out. They opted to be shady. My points now are certainly of lower value than when they were booked months ago.

I am hopeful that the renter will meet my final timeline so all this is moot and we can both move on with our lives.

They are over due and in default.

Without knowing your contract I would just double check with an attorney in your state.

Personally, if I were if you situation I would send one certified cure or quit, type letter and be done, but again not knowing the laws in your state I would just make sure someone looks at it first.

I can only assume your contract contains a clause that your home state governs the contract?

Again good luck

 

[robinb]

Personally, if I were if you situation I would send one certified cure or quit, type letter and be done, but again not knowing the laws in your state I would just make sure someone looks at it first.

@MFMont, this is exactly what I would do. You have wisely given yourself enough time to cancel the reservation and make a new one(s) to use those points. I would basically ignore your Friday deadline and set one for 1/19/24 (2 weeks from Friday) and send them a certified letter with signature required to them explaining the new and final deadline and the consequences of not paying. I would insist that payment be through a method that they can't back out of like Zelle or Venmo.

I do admit that I'm a softy and allow people to cancel, but only if I can find a renter for their reservations/points. Nothing is guaranteed and I have a fee in my contract to cover my time and energy finding someone new. I've modified a reservation for honeymooners whose plans changed, but I've never had to cancel a reservation in the 15+ years I have been renting. People mess up and have brain farts, so I would personally feel bad keeping all of a payment if I found renters for the points since I would still be whole.

 

[we"reofftoneverland]

So I would tell them I am canceling reservation if I do not hear back in __ days. If I cancel, I will also refund money. I know. This is why I don’t rent, because people freak me out. I would rather give back the deposit than have an unstable person come after me.

 

[AnnaKristoff2013]

Why? It is in the written agreement.

I can’t give legal advice in a forum thread, and have no idea what state this contract was executed in, however way too many nonlawyers think that “it’s written in the contract” is some kind of iron law completely disregarding (state by state) variations on contract law and what is and is not enforceable, or even legal. I said that completely forfeiting the $2,600 here by the buyer may be more trouble than it’s worth if the Op is able to mitigate his damages by re-renting those points. (Both legally and reputationally), and I stand by that comment. I absolutely think Op has no duty to do a full refund here, but if Op, for example, rerents those points at a rate that means that he effectively got $4,600 for them instead of $5,200 (just an example), then issuing a prorated refund (again keeping on top something for time and effort), is definitely the more defensible play.

 

[AnnaKristoff2013]

Without knowing your contract I would just double check with an attorney in your state.

This is a good advice if Op is planning on forfeiting the entirety of the deposit.

 

[Sandisw]

This is a good advice if Op is planning on forfeiting the entirety of the deposit.

When I rented, they paid 100% within 2 days of booking and it was non refundable and non changeable.

The renter knew that the reservation would not be canceled even if they wanted out. If they didn’t show, then the points would end up used anyway.

This way, I didn’t have to deal with someone saying I got double amount.

 

[AnnaKristoff2013]

When I rented, they paid 100% within 2 days of booking and it was non refundable and non changeable.

The renter knew that the reservation would not be canceled even if they wanted out. If they didn’t show, then the points would end up used anyway.

This way, I didn’t have to deal with someone saying I got double amount.

Depending on your jurisdiction and it's rules regarding any duties to mitigate damages in a contract breach, and what specific language you put into your contract regarding choice of law and those rules, and what your specific state allows as far as that language, this may not save you either. I recognize that it's "easier" to just say your contract is non-refundable and that's that. However, it's definitely "safer" to try to work with the renter and refund them a reasonable amount after an attempt to mitigate your damages by re-renting.

Or, to put it another way, why wouldn't you attempt to re-rent the points and then refund a reasonable amount, prorated based on what your new rental went for, and after taking some kind of "fee" to account for your time?