Recession concerns

[Teena Beena]

Hiya

I really hope I do not embarrass myself or upset any villa owners out there.

I am booking my first ever Florida Holiday and am in the process of shortlisting villas.

I am about to book the villa end of May beginning June for May 2010 and pay for it in advance, which is something I would rather do in order to have piece of mind. What happens if the owner loses it to the recession and I am left without accommodation and ruined first trip to Florida.

Can anyone advise me on this, what is the best way to go about it pay upfront or wait until nearer the time and is my money protected?

Teena Beena

[mfairhurst]

Hi Teena
Why do you want to pay all the money As owners ask for a deposit and balance to be paid 8 or 10 weeks before vacation so you can save .
Villa owners on here are all verifed every 6 months and you know that the villa you get will have photos taken by themselves and will keep their villa up todate .
Hope you enjoyed your vacation
MAUREEN
www.onlinefloridavillas.com/villas/1683.aspx

[Teena Beena]

<blockquote id="quote" class="ffs">quote:Originally posted by mfairhurst
Hi Teena
Why do you want to pay all the money As owners ask for a deposit and balance to be paid 8 or 10 weeks before vacation so you can save .
Villa owners on here are all verifed every 6 months and you know that the villa you get will have photos taken by themselves and will keep their villa up todate .
Hope you enjoyed your vacation
MAUREEN
www.onlinefloridavillas.com/villas/1683.aspx[/quote] Thanks so much for your help I will take your advice. I wanted to book and pay for it all so that it was a complete load off my mind

Teena Beena

[blott]

Why not just pay the deposit (that's all that's required on booking more than 8 - 12 weeks in advance), open yourself a building society account and pay your balance payment money into that? At least you'll get some interest (not much currently I admit!) between now and when you need to pay the balance.

[andrewmckay5]

On your shortlist be wary of any villas that seem too cheap. Now I know some will argue with me but its not rocket science to realise that a very cheap villa cannot be covering all their costs and it is more likely that the owner will not be around in a year. This is a generalisation before some posters "say I got it really cheap", etc.

There are other posts about it on the forum but with a 75% mortgage or so and to run a villa to a decent standard costs a considerable amount per month. As they say "just do the maths." Don't risk a cheap villa unless you know the owners or have very good recommendations.

Pay the deposit then put the rest in a account you cannot touch for 9 months.

Good luck,
Andrew

[Robert5988]

<blockquote id="quote" class="ffs">quote: On your shortlist be wary of any villas that seem too cheap. Now I know some will argue with me but its not rocket science to realise that a very cheap villa cannot be covering all their costs and it is more likely that the owner will not be around in a year. This is a generalisation before some posters "say I got it really cheap", etc.

There are other posts about it on the forum but with a 75% mortgage or so and to run a villa to a decent standard costs a considerable amount per month. As they say "just do the maths." Don't risk a cheap villa unless you know the owners or have very good recommendations.[/quote]You are quite correct Andrew, some will argue with you!

If you want to talk about ‘rocket science’ figures and 'maths', some owners bought some years ago for less than $150k, some paid 3 times that amount.

Some have a huge mortgage, others own outright.

Many owners simply do not run their properties in Florida as a strictly business venture, and are happy to subsidise their property and take the view that a low rent is better than nothing.

I own outright and don’t rent out my property; it is my ‘place in the sun’. Should I choose to rent, any modest rent would be a bonus.

IMO on the risk of an owner ‘cutting and running’ there are simply no grounds to assume there is any correlation between high rental and low rental. Indeed there is an argument that an owner that ‘needs’ to charge a high rent is more vulnerable.

[SteveandJan]

Hi Teena, I agree with Andrew, pay your deposit and put it in an interest account one where you have to give notice, so it isn't easily accessible and although there won't be much interest it would be a little something.

[blott]

With respect Robert, if you don't rent out your home (condo?) then there are not inconsiderable additional expenses involved in doing so of which you may not be aware. So your 'bonus' (and more) would be a necessary requirement. If you were to rent out your home, then you would not be able to run it on the same sum as you do currently.

Unless you subsidise your guests' stays, then charging a realistic rent is the only way to keep it in tip top condition for your rental guests. Your saying that a higher rental owner is more vulnerable is therefore misguided. A lower rental owner will not have funds to keep the home up to date nor pay the increased bills that multiple occupancy brings - unless they use their own money as a subsidy - a far more vulnerable position IMO.

[steph_goodrum]

If possible pay your deposit by credit card if it makes you feel more secure, and take out adequate travel insurance. I'm sure you'll be just fine but peace of mind is a pirce worth paying for, even if it incurs credit card charges.

I can understand your concerns and vulnerability and would just like to say you are not alone. As owners we take bookings sometimes a couple of years in advance based on a holding deposit, should guests circumstances change and by the time the balance is due they have to cancel, through unforseen circumstances, unlike guests, we can get no insurance to cover that and often may be left with 2/3 weeks spaces with only a few weeks notice. Unlike an hotel we don't benefit from walkins and don't have income from other rooms to cover the costs for those weeks.

Although in theory we could reduce the rate for those who are booking at the last minute, many owners, like myself feel theat those guests who may have booked up to 2 years in advance, and entrusted us with their deposit, deserve to get a fair deal and not to find that if they had left it later they may have got it cheaper. I know I've been in that position with UK holidays and it has left me feeling a little aggrieved that early booking hasn't been rewarded. Of course those booking late also have to take the chance on what is available when they come to book and may have to accept their first choice isnt going to be available, which is why we would rather pay a little more to secure what we want.

[mary and colin]

I would just pay the deposit like the others have said and put into a seperate account.
As for worrying about the villa, chose the one you would like to stay in and have a chat with the owner, i am sure they could provide ref. from previous guests to help ease your concerns. Also as others have said homes are verifyed on this site on a regular bases.

Have lots of fun planning your first trip you will find lots of good information and help on here.

Mary