Renting to international renter

[iluvthsgam]

Any DVC owners out there willing to share experience or good practice tips in renting to an international person? (i.e. someone from Europe, Asia, Russia, etc.). I have been contacted a few times from people outside the U.S. to rent my points. Curious to know what other owners have done in such a situation.

The issues that I am thinking of are currency exchange rates/payment, contract (is it really necessary if likely not able to be enforced), a security deposit? (for any possible damage or charges to room), any others?

I think my biggest concern would be any damage or charges to the room because since I control the reservation if payment does not go through I can always just cancel reservation. But any other thoughts would be appreciated.

 

[maburke]

I've rented to someone (who is an owner now, I think!) in the U.K. with no problems. (I'm in the US.) All the issues you mention are exactly the same, whether international or domestic, except for currency. We used PayPal, with her paying the conversion fees. We did it in 2 payments, so we could see exactly what the fees were the first time, and she made up for it in the second payment. No worries at all.

 

[Maddysdaddy]

As a corporate attorney, I pretty much spend every day worst-case scenario-ing situations for people, so the first thing that came to mind when reading your question is the difficulties involved if you end up having to sue the renter (and I appreciate that the odds of that are reasonably small).

It's my understanding the US is much like Canada, where you can obtain judgment in one province and it's fairly easy to enforce it in another province. It's a much more complicated and expensive process if you have to try to register and enforce your judgment in a foreign jurisdiction (if your renter is even from a jurisdiction which may potentially recognize your judgment, eg the UK/Australia).

You need to appreciate that if you are stuck with a bill for anything less than five figures, you'll very likely spend more than that trying to collect upon it than the claim is worth.

For me, I wouldn't take the risk.

 

[maburke]

As a corporate attorney, I pretty much spend every day worst-case scenario-ing situations for people, so the first thing that came to mind when reading your question is the difficulties involved if you end up having to sue the renter (and I appreciate that the odds of that are reasonably small).

It's my understanding the US is much like Canada, where you can obtain judgment in one province and it's fairly easy to enforce it in another province. It's a much more complicated and expensive process if you have to try to register and enforce your judgment in a foreign jurisdiction (if your renter is even from a jurisdiction which may potentially recognize your judgment, eg the UK/Australia).

You need to appreciate that if you are stuck with a bill for anything less than five figures, you'll very likely spend more than that trying to collect upon it than the claim is worth.

For me, I wouldn't take the risk.

I appreciate your point, but I think the risks are very similar with a domestic rental.

 

[Maddysdaddy]

The risks of renting are the same no matter who you rent it to - the point I was trying to make (and maybe I was unclear in what I said) is that if you are a US resident renting to another US resident, the ability to sue and actually collect on your judgment is exponentially higher and much less expensive, than if you are renting to someone located in a foreign jurisdiction.

I appreciate your point, but I think the risks are very similar with a domestic rental.

 

[maburke]

The risks of renting are the same no matter who you rent it to - the point I was trying to make (and maybe I was unclear in what I said) is that if you are a US resident renting to another US resident, the ability to sue and actually collect on your judgment is exponentially higher and much less expensive, than if you are renting to someone located in a foreign jurisdiction.

I don't know about exponentially, I think the chances of collecting on someone if it gets so far as suing are nil, even domestically. But then again, you've caught me at a cynical time -- my car was totaled by an uninsured driver last week.

 

[iluvthsgam]

Thanks for thoughts both of you. I agree the risks are similar and I do agree trying to sue and enforce a judgment on a non-US resident is virtually impossible/not worth it. Trying to sue and enforce a judgment on a US-citizen is easier/but also likely just as much not worth it - unless the renter sticks you with some huge bill somehow. Even as a litigation attorney who could do it myself, it isn't likely worth time/effort to sue and try to collect. Appreciate the dialogue!!