How to be protected from foreclosure or shady owners on VRBO?

Not sure if rental insurance covers foreclosure, but one of the advantages of renting through an agency is the possibility of them putting you in a different place. On the second question you can never be too sure, maybe paying with a credit card will offer some protection. Don't pay all money in advance, but rather a deposit.

I think this will be a common question/problem this year, but unfortunately don't have a 100% solution for you.

This is a very good question. We've rented several times in the area and on St. George Island as well. Even though the homes may be on VRBO, the ones we've rented used local agencies that were involved to varying degrees in the reservation process. We've directed questions (a lot of questions) directly to the owners and to the agencies, both by phone and e-mail. We've found the agencies to be very forthcoming with any information, particularly if a home is currently for sale.
Another place to check is Zillow.com. A couple of years ago, we were gathering information on a home we liked and Zillow showed the home for sale. We addressed that issue with the owner and did end up renting it with provisions in the contract that gave us protections should the home be sold before we arrived or if agents wanted to show the home during our rental period.

I recall seeing a vacation rental insurance product (Travel Guard, perhaps) that addresses problems such as foreclosure or extreme misrepresentation of the property. We've never purchased that kind of insurance but we do purchase travel insurance. I agree with Kurt that a deposit by credit card is a good idea.

Very good question teamroberson, I haven't even thought of that and I am in the rental business.

I am not an insurance provider or get paid by CSA, but below is FYI.

CSA Travel Insurance is a travel protection insurance specifically for vacation rentals. It may be to anyones benefit to look into insurance because of the possiblity of your vacation home not being available by the time you are ready to use it The number is 866-999-4018 or google CSA Travel Protection.

Depending on the total price of your reservation determines the amount the insurance is, and IMO I think it is very reasonably priced. I've purchased insurance once and thankfully didn't have to use it.

There are never any guarantees, other than doing your own dd. Fortunately, the vast majority of owners who are being foreclosed and who have short sales, aren't thieves, and they are not out to hose the public.

There are never any guarantees, other than doing your own dd. Fortunately, the vast majority of owners who are being foreclosed and who have short sales, aren't thieves, and they are not out to hose the public.

I agree - very well said.

Two very good resources to verify this:

Welcome to the Walton County Florida Property Appraiser's Website
Home Page (Use the Official Records Search)

Obviously this won't completely clear your doubts if your rental is in 6 months. Ultimately I hope people don't think this is acceptable. It would be considered fraud which based on the amount involved in the average weekly rental would most likely make it a felony.

Also, follow your gut and watch out for the "crack head" syndrome. This would be the owner desperate to get all of your money up front (I mean months ahead of time) and is willing to really wheel and deal to get your check. This is a good sign that they are already behind and barely afloat.

Finally, be a private detective. Get the units phone number and call a week or two before you arrive. Explain to whomever answers that you are renting the unit in a week or two and just wanted to make sure the phone was in working order. Odds are if the phone is still on the owner is legit and not about to run out on the deal. In my experience with rentals the phone was the first thing to go.

On the Clerk's office website ("Home Page" in SWGB's post above), go to "Public Records" and "Official Records." Search by the owner's name. Make sure they own the property they are advertising (some owners also rent for other owners). Then, look for the document type "LIS PEN." A Lis Pendens is the first document filed in a foreclosure case. Note the date, and you should also be able to see the case number.

Note that some owners will stop renting and pull their furniture out when they go into foreclosure, but I've seen owners rent right up to and actually after the date of Final Judgment. 😱

And, lastly, travel insurance is always a good idea in the remote chance the owner is less than honest, something happens to the house, or there is a tropical weather event affecting our area during your travel dates.

This thread somewhat ties into what I just posted on the thread about WaterColor's amenities for renters. If you are renting through a good property management company, your worries will be forgotten. VRBO may work well most of the time, but I would hate to have the headache if I was on vacation, when it didn't. I want someone local who can fix the a/c when it goes out on July 4, or clean the house immediately if that was an oversite. When using a good management company, you don't show up to a house that has no furniture because it was foreclosed.

If price is all you care about, VRBO away. If having a great experience and vacation is most important, don't cheap out. Most people have a very limited time to get away on vacation, and you don't want to spend the entire time upset about not being able to check in to a rental whose owner has your credit card and or deposit.

This thread somewhat ties into what I just posted on the thread about WaterColor's amenities for renters. If you are renting through a good property management company, your worries will be forgotten. VRBO may work well most of the time, but I would hate to have the headache if I was on vacation, when it didn't. I want someone local who can fix the a/c when it goes out on July 4, or clean the house immediately if that was an oversite. When using a good management company, you don't show up to a house that has no furniture because it was foreclosed.

If price is all you care about, VRBO away. If having a great experience and vacation is most important, don't cheap out. Most people have a very limited time to get away on vacation, and you don't want to spend the entire time upset about not being able to check in to a rental whose owner has your credit card and or deposit.

There's no guarantee that they'll remove the furniture. When I worked in rentals we went to a unit to do a walk through for arrival, no electricity and no call back from the owner. Moved the guest and then looked, sure enough Lis Pen.

Of course this does back up your point of renting through a rental company, they can move you and have incentive to do so. VRBO owners don't.

suggestions

not sure if this would be 100%....but will share my thoughts.

First, we rent our home via VRBO and then turn it over to a reputable local agency....so we feel that gives the renter more confidence in the entire process (as it would us)...the renter deals with the agency for the contract, deposit, etc....

Second, years ago, remember when EASTERN Airlines went belly up!?! We had booked a family trip, including several thousand dollars on credit card with Eastern airlines....THANK GOODNESS we were able to get a full refund due to Eastern Airlines being unable to perform.....we jumped on the phone immediately when the Eastern Airlines news broke and Visa gave us a credit very quickly.....it was absolutely so gut wrenching to think we might lose all that money!! Anyway, it has probably changed now....but who knows....perhaps the cc gives more protection.

dd is important always....but more so in these times.

pk305 is correct in that a credit card (not to be confused with a debit card) does give you some protection, but it offers no house in which you can stay if the home is foreclosed. Your only security if that happens is if you rented through a rental company and they can quickly put you in another rental home.

pk305 is correct in that a credit card (not to be confused with a debit card) does give you some protection, but it offers no house in which you can stay if the home is foreclosed. Your only security if that happens is if you rented through a rental company and they can quickly put you in another rental home.

Unless it's Memorial Day, July 4th, or Labor Day and then your really pushing your luck. I've sweated through a couple of those praying that an air conditioner didn't break or something flooded. :cry:

This thread somewhat ties into what I just posted on the thread about WaterColor's amenities for renters. If you are renting through a good property management company, your worries will be forgotten. VRBO may work well most of the time, but I would hate to have the headache if I was on vacation, when it didn't. I want someone local who can fix the a/c when it goes out on July 4, or clean the house immediately if that was an oversite. When using a good management company, you don't show up to a house that has no furniture because it was foreclosed.

If price is all you care about, VRBO away. If having a great experience and vacation is most important, don't cheap out. Most people have a very limited time to get away on vacation, and you don't want to spend the entire time upset about not being able to check in to a rental whose owner has your credit card and or deposit.

I agree with pk's post. Many people (like me) advertise their site on VRBO and then have people who are interested book through the rental company that manages their property. I think this can be the best of both worlds because you get to talk to the owner directly to ask questions, you usually get more information and photos of the property through VRBO, and you have the local rental agency to take care of the booking, maintenance, and they can move you to a different place if there are any problems of any kind (e.g., if an airconditioner breaks down or something like that) because they have other properties available. I always assume that the owner who uses VRBO and the local rental agency work together to give the guests a successful vacation experience. We've had rentals for 7 years now, and I think the agency had to move the guests just once, and I'm glad the agency was able to take care of that locally. I'm sure the guests were glad, too.

As for foreclosures/places for sale, ideally, the agency would know if a property is up for sale and that's a reasonable question to ask the owners on VRBO or to ask the management company or rental agency. In many cases of places for sale, I imagine the new owners would continue the rentals.