How to Avoid Problems With Vacation Rentals By Owner

You have planned your family holiday for months, and searched several websites to find a perfect vacation rental - a luxurious private home for rent. The owner has placed a number of beautiful pictures online, and there is a good testimonial about the property.

You book the property, pay a sizeable deposit, fly your family to your destination, pile into the rental car and drive to the address, only to find that the property doesn't exist or is in bad condition....

What Are Vacation Rentals By Owner (VRBO)

The concept of VRBO is more or less self-explanatory: A person who owns a home in a vacation hot spot is willing to rent that home to vacation travelers.

  • Under a typical arrangement the renter doesn't get the services of a hotel, such as maid service, but gets the benefit of a full kitchen, a lot of room, perhaps even a swimming pool or hot tub, and a lot of privacy.
  • Sometimes the properties are run by professional management companies, which provide services to make sure that the vacation rental is clean and ready for your arrival, and maintain a local office that you can call if a problem arises.

Many people who rent vacation properties directly from the owner have the best vacations of their lives. Others are left with horror stories.

What Are The Dangers of Renting From The Owner

Common problems encountered by renters include:

Damage Deposit Fraud

The biggest danger of a vacation rental from an owner is damage deposit fraud. Often an owner will charge a hefty deposit of $500 or more, in addition to a rent deposit. There are vacationers who report that everything in the rental was perfect, up to the point that they went home and try to get their damage deposit returned.

  • Sometimes an owner will simply ignore the request for return of the deposit.
  • Other times the owner pretends that something was damaged and refuses to return part or all of the deposit.

Unscrupulous owners know that a vacationer is unlikely to bring legal action to obtain the return of a deposit and that the police will typically decline to get involved even if the vacationer files a police report.

Misrepresentation of the Condition of the Property

Another area in which problems often arise is the quality and condition of the rental property. Pictures presented on a website may have been taken years before the property is rented, or may have been edited to hide problems with the rental.

Vacationers often have little recourse once they arrive to a dirty or deteriorated rental, save to put up with the problems and to try to get a full or partial refund. Needless to say, an owner who misrepresents the condition of a vacation property is unlikely to cooperate with requests for refunds.

Misrepresentation of Ownership

An uncommon, but nonetheless real, concern is the possibility that the person offering a property for rent on the Internet doesn't in fact own the property, or the vacation rental doesn't even exist.

Many websites that list "vacation rentals by owner" post disclaimers stating that they provide no guarantee that the properties they list exist or are as pictured or described by the purported owner.

Protecting Yourself

When you rent a privately owned vacation property, you can help avoid problems by:

Renting through an established property management company.

A professional property management company will typically provide cleaning and maintenance services for a property between rentals, and thus will be familiar with its quality.

A property management company with local employees can respond to problems at the unit, such as maintenance issues or insect infestation. Also, a reputable management company is unlikely to try to wrongfully withhold a damage deposit.

Checking for feedback on the property.

Many "vacation rental by owner" websites include feedback features, through which customers can describe the joys and pains they encountered with any given rental property. Although feedback isn't always genuine, when available it can give you a feel for the holiday experience you are likely to enjoy.

Some sites may allow you to contact recent renters to verify the accuracy of their reviews and to request additional information.

Renting through an established travel agency or association of property owners.

An established travel agency or association which offers vacation rentals by owner will often have inspected the properties, either directly or through an agent, and may even have assigned a rating to the property. While the property may well have deteriorated since that time, it is a measure of assurance that the property you rent will be as described.

Established agencies and organizations tend to be responsive to complaints, dropping problem properties and owners from their rosters. Also, if things go wrong you may have legal recourse against the owner or agency, as opposed to just the unscrupulous owner.

What If Things Go Wrong?

If the property does in fact exist but isn't as described, or if you have trouble getting the return of your deposit, most police agencies will tell you that the problem is a "civil matter" - that is, that if you want a remedy, you should file a lawsuit against the owner. However, if enough complaints about fraudulent activity accumulate, whether with the police or with the state or provincial consumer affairs office (in the United States, usually a division of the State Attorney General's office), the state may decide to initiate civil or criminal action to stop the fraudulent conduct.

Reports of the owner's misconduct to the site or agency that made the rental may result in the owner being removed from their rosters, or may assist in obtaining a full or partial refund of monies wrongfully withheld.

Unfortunately, most renters aren't in a good position to file a civil suit, as such suits typically must occur where the vacation rental is located. Once the renter returns home, the cost and inconvenience of traveling back to the vacation destination to prosecute the suit typically significantly exceeds the damages which might be recovered.

It is thus important to exercise your due diligence and to learn as much as you can about the property and its owner before you enter into a contract and pay a deposit.

Copyright © 2004 Aaron Larson, All rights reserved. No portion of this article may be reproduced without the express written permission of the copyright holder. If you use a quotation, excerpt or paraphrase of this article, except as otherwise authorized in writing by the author of the article you must cite this article as a source for your work and include a link back to the original article from any online materials that incorporate or are derived from the content of this article.

This article was last reviewed or amended on May 7, 2018.