5 tips to safely book a vacation rental

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Online clues help weed out bogus listings

The Internet has made finding vacation properties faster, easier and cheaper. But not everyone is looking to relax at a charming seaside cottage or a rustic mountain cabin.
Some scam artists have been copying and pasting photos and details of popular destination properties on rental sites, charging unknowing customers large down payments (sometimes half of the entire rental period) and then running off with the cash.
Several recent cases of international rental properties not being available -- or booked to more than one customer for the same period -- have owners and longtime operators warning consumers to be wary of deals that look too good to be true.
"There are many wonderful rental properties out there that are completely legitimate and only a few scammers," said Christine Karpinski, author of "How to Rent Vacation Properties by Owner."
"To reject the whole concept of renting a great home instead of a hotel room because someone else had a bad experience is like deciding not to have children because you saw the movie 'The Bad Seed,' " Karpinski said.
One owner, "Barbara," who specializes in international properties, said four clients were scammed earlier this year when they booked waterfront Caribbean properties. Barbara found out later that crooks based in Nigeria hacked into her email system and diverted the reservation to another location.
"Most of the time, people can spot when something is wrong if they pay attention to the communication they are receiving," Barbara said. "The bad guys mostly have been tracked to foreign countries and their use of the English language has not been good. Also, call the phone number provided. It's not uncommon that it's disconnected or goes unanswered."
Scammers often use the fastest available method to post a bogus listing, which means they usually never build websites that appear legitimate.
"Craigslist is terrific, especially for long-term rentals," Barbara said. "But unfortunately it's one of the first places scammers go because they can get in and get out. Of course, the Craigslist people are doing all they can to prevent this, but stuff gets through. It's just another reminder to do all you can to speak with the owner."
Karpinski said the benefits of staying in a vacation rental home far outweigh the minimal risks. These properties are more spacious and often less expensive than hotel rooms. They're appointed with all the comforts of your home. They're private. They tend to be kid-friendly. Often, they're pet-friendly as well.
Her top tips to safely book your vacation home:
1. Beware of super-cheap rates. If it seems too good to be true, it probably is. The most common way scammers work is by enticing a large number of travelers in a short period of time. They do this by lowballing the rental rates.
"If one listing is, say, half the price of all other comparable ones for the same amount of time, beware," Karpinski said. "Put yourself in the owner's shoes: Why would he or she voluntarily forgo that much income? Five, 10, or maybe even 15 percent off, perhaps, but 50 percent? No way."
2. Cyberstalk the owner. Do some cross-referencing across various websites: Facebook, Twitter, LinkedIn, and so forth. Make sure the place of residence (where the owner lives -- not where the vacation home is located) is the same as the information the owner provided. Google the phone number listed on the advertisement. Many property owners and managers list their homes on many different websites. Check to see if they are the same.
3. Look for clues in the reviews. When you are reading the reviews of the property (either on the vacation rental website or on other sites such as TripAdvisor.com), there are sometimes references to the owners' names. A review might say something like: "Thanks, Tom and Christine, for allowing us to rent your lovely home. ..." If the names in the reviews do not match the name of the person renting the home to you, it could be a sign that something is not right.
4. Speak with the owner via phone. Sure, it's possible to be scammed over the phone. However, it's usually easier to fool someone when you're communicating online. Ask specific questions and listen carefully to the answers.
5. Pay only by credit card. Never, ever pay by wire transfer.
Most importantly, listen to your gut because it's usually right.
"There was a couple on a national TV show that said they went ahead with the rental even though it didn't feel right," Karpinski said. "What's up with that? Scammers usually count on people not paying attention," or heeding their intuition.
"Renting a vacation home is like anything else. It's not risk-free, but when you take steps to mitigate the risk, you can feel 99.9 percent confident that you're not getting scammed."

Should You Purchase or Rent?

There are many factors to be considered when deciding to move to a new location with the first critical decision being whether to purchase some property or rent. Depending upon your circumstances, it may either be a clear-cut decision or one that requires a more thorough analysis to make that determination.

Factors to Consider

Career - For some individuals, it may not be practical to purchase property if their career will require them to relocate frequently. Although some people have the resources and inclination to accumulate property each time they move, for most of us that is either not an option or would be an undesirable outcome to find ourselves in the role of landlord. For the majority of us, that means we need to sell property each time we move, so careful analysis is required to determine whether it is better to buy or rent property for the duration of the assignment. One item to consider is that it generally takes 3 - 5 years under average real estate market conditions to reach the breakeven point for recouping the closing costs incurred at the time of purchase. Individual situations will vary, but in a stagnant real estate market it will take longer to realize enough in property appreciation to cover the transaction costs related to acquiring and selling property.

Property Resale - Not all properties or real estate markets are equal when it comes time to sell property. Factors to weigh include the typical length of time it takes to sell property in your area or the area you are interested in which you are interested, and if there is something unique about the property (price range, location, size) that you are interested in that would make it either easier or harder to sell. Whether or not you have relocation benefits available to you through an employer if you are unable to sell your property may also be a factor.

Finances - The purchase of property typically involves significant upfront cash outlays: pre-purchase inspections, a down payment and closing costs. Equally important is whether or not sufficient income is available to cover the mortgage/escrow payments while still having enough income to adequately take care of other living expenses, car payments as well as saving for retirement. The lack of sufficient funds may quickly eliminate any thought of purchasing property and dictate that in the interim renting, living with family members or some other living arrangement will be required until enough funds can be saved.

Relationship Status - Personal relationships can play an important part in deciding to purchase property. Engaged or newly married couples often are looking to establish a single common property on which to build their future together. Single or newly divorced adults may not be ready or interested in making a long-term obligation to a specific location and prefer to leave their options open as they pursue relationships, careers, other interests and hobbies.

Personal Preference - While some people feel a strong need to own property, others don't want the responsibility of maintaining property and prefer to simply pick up the phone at the first sign of any possible trouble and have someone else be responsible for remedying the issue at hand.

Benefits of Purchasing a Home

Ownership - For most people, owning their home is a key element of attaining the American Dream. And there is nothing quite like buying your first home and realizing it is all yours (provided of course that you continue to make your mortgage payments on time). Homeowners also tend to view their purchase an investment and have incentive to keep their property in good repair.

Building Equity - Obviously the largest benefit is that you are now building equity in your own property instead of contributing to the equity in someone else's property via rent payments. Historically, home ownership has been a long-standing means of building long-term wealth.

Decorating Without Limitations - As an owner, you have the freedom to personalize your property to your heart's content, subject only to local code and any applicable Homeowners' Association rules, unlike when you rent and experience many restrictions as to what you can and cannot do to the rental property. No need to get approval to paint interior walls, change flooring, install custom closet organizers, or complete minor home improvement projects. Although larger remodel projects may require getting permits, other than meeting code requirements, you are limited only by your budget and creativity when making changes to reflect your personal tastes and style.

Financial Stability - Fixed rate mortgages result in both greater financial stability and predictability. Assuming a fixed-rate mortgage, over time your housing costs should become a smaller percentage of your monthly budget as your income continues to grow while the mortgage remains constant. Additionally, fixed mortgages offer a great deal of predictability when preparing long-term budgets. Although repairs and maintenance will need to be factored in, there will be no surprises with unexpected hikes in rent.

Personal Benefits - Owning property frequently allows you a greater opportunity to meet neighbors and develop friendships with others that hold values similar to your own. And unlike apartment dwellers that tend to be more nomadic and view their unit as just a place to sleep at night, homeowner's tend to move less often and view their homes as investments. It is also not uncommon to find neighbors that were drawn to the area for many of the same reasons that caught your attention - good reputation of schools, easy access to public transportation, close proximity to outdoor activities, the architecture of the homes, or the availability of shopping, dining and entertainment within walking distance - giving you something in common right from the beginning to build upon.

Limited Commitment - Perhaps one of the greatest benefits of renting is the limited commitment that is required of tenants allowing, them more flexibility to relocate as circumstances change. Leases often only require an initial six-month or one-year term, allowing a lot of flexibility for tenants. At worse case, if something unexpected comes up and you need to move before the initial lease is up you are frequently out a deposit for breaking the contract, but you don't need to sell a house before you can move or to free up your cash.

Repairs and Maintenance - In many circumstances, a tenant needs only to contact the property owner or manager to have repairs taken care of. And for those who don't have the time or inclination to keep up a yard, renting a property where the upkeep is taken care of can be a real plus.

Roommates - Many people choose to have roommates to help defray housing costs by splitting the cost of rent as well as utilities. Although this tends to appeal more to young adults, it is not limited exclusively to the younger crowd. As the economy has created new challenges, some homeowners have begun seeking roommates to ease financial burdens by filling empty rooms in their homes.

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What to Watch for with a Rent-To-Own

Most of us are very familiar with the term"Rent to Own".  Places such as Prime Time and Rent A Center have built an empire with rent to own merchandise, although the buyer normally ends up paying double what the merchandise is actually worth.  While this may be great for those who have bad credit, most of us prefer to avoid going this route.  Homes are no exception, especially if you are considering buying South Jersey Real Estate on a rent to own basis.

Even though rent to own may be good for a short period of time, it proves to be an expensive way for someone to buy something they intend to keep.  Rent to own merchandise for example, may sound quite compelling at a few dollars a week.  The agreement is normally for around 15 - 20 months, which is where the company makes their money.  Although you may be paying just a few dollars a week, the total amount quickly adds up to nearly twice the cost of the item.  This service has its place and certainly serves a purpose.  If it did not, it simply would not exist.  There are times when obtaining a mortgage or even a few hundred dollars for a couch, are simply too much of an uphill battle if possible at all!  RTO can be a viable option.

So, if you decide to head down this road for a home, along with paying rent, you'll often have to pay applicable sales tax as well.  Like merchandise, rent to own real estate has it's disadvantages.  Even though it can be great for those with not so great credit, you'll normally end up paying back a lot more than you would with a mortgage.  You'll still have to pay back your lender with a mortgage, although that amount won't be nearly as high as it would if you decided to get a house on a rent to own basis.
In most cases, rent to own houses are put up on the market by the owner.  This way, you'll deal directly with the owner.  It will start out as a traditional lease, then proceed to a rent to own basis if you decide you want to keep the home.  You and the owner will then work out an arrangement, which will normally be quite a few years.  Some owners are very flexible and will work with you just to get the price they want for their home, while others will charge you quite a bit more, in order to make a hefty profit.  Often times the owner will even apply some of the money you have paid in rent over the years, to the principal of the loan.  This is a nice gesture and should be appreciated.

If you have bad credit and can't get approved for a mortgage, then rent to own would be your next best option.  Although some don't like to do it due to the price, for many it's a better alternative than an apartment.  With rent to own houses you are paying money towards the home, instead of just paying rent.  In some cases this is fine, although you should make sure to double check with the owner of the South Jersey Real Estate before you agree or commit to anything.  This way, you'll know how much you'll be paying for the home - and for how long.

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The Truth About Rent To Own

Most people are really familiar using the term “rent to own”. Areas such as Prime Time and Rent A Center have constructed an empire with lease to own merchandise, though the buyer usually ends up paying double what the merchandise is in fact worth. While this may possibly be wonderful for those who've bad credit rating, most people prefer to avoid going this route. Houses are no exception, specifically if you are purchasing a house over a rent to own schedule.

Even although lease to own may possibly be good for any brief period of time, it proves to be an pricey way for someone to purchase something they intend to keep. Rent to own merchandise for instance, may sound quite compelling at a number of dollars a week. The agreement is commonly for around 15 - 20 months, which can be wherever the firm makes their money. While you may be paying just one or two dollars a week, the total amount swiftly adds up to almost twice the price of the item.

Together with paying rent, you’ll also have to pay applicable sales tax as well. Like merchandise, rent to own real estate has it’s disadvantages. Even although it can be good for individuals with not so fantastic credit score, you will generally end up paying again a lot more than you'll with a home loan. You’ll still have to pay again your lender with a mortgage, despite the fact that that amount won’t be nearly as high because it would in case you made a decision to get a house using a lease to own schedule.

In most cases, rent to own houses are set up about the market by the owner. This way, you will offer directly with the owner. It is going to start out as a traditional lease, then proceed to a rent to own basis in the event you decide you need to maintain the home. You and also the owner will then work out an arrangement, which will normally be rather a few many years. Some owners are quite flexible and will work with you just to get the cost they want for their residence, while other people will cost you really a bit more, in order to make a hefty profit.

If you've poor credit score and can’t get approved for a home loan, then rent to own could be your next very best alternative. Despite the fact that some don’t like to do it due to the price, for several it is a far better choice than an apartment. With rent to own houses you are paying money towards the house, instead of just paying lease. In some cases this is fine, while you have to have to make sure to double verify using the owner before you agree or commit to anything. This way, you’ll know how significantly you will be paying for the home - and for how long.

When you just bought or are thinking purchasing a residence, you will quickly receive several offers inside the mail for various products and services for your new residence. That is due to the fact marketing companies collect your info and market it to numerous companies as a new homeowner list. Simply because new homeowners require so numerous diverse things for their new home, quite a few corporations create and mail postcards or catalogs to such individuals. Exactly the same is true when you recently began construction or even a remodel of the new household. That information is sold as a new building permit list. Similarly, new mothers and fathers may also find themselves swimming in various offers on a new parent list. It is critical that you pay attention to these kind of offers, which can save you quite a lot of time and money.

Buying Vs Renting

Real estate prices are at an all time low and mortgage rates are even lower. For these reasons many folks are considering leaving their rental places to pursue home ownership. Unfortunately, many of these renters are uncertain about the future. These people do not know if they should purchase a house since they feel that it may end up losing some of its value shortly after.

If your buying a home for yourself and you plan on living there for many years, this should not be a factor. You can purchase the home now and even if it goes down in value for another year, it will most certainly go up again. You'll just need to make certain that you really do want to stay in the same place. If your going to be living in Pennsylvania in another year or two, you want to stay away from looking at Minnesota real estate.

Choose an area that has enough employment for you to work multiple jobs. You wouldn't want to move into a home and find yourself suddenly out of employment with no other options. Disregard this warning if you have a job that you can do from the comfort of your own home.

After you have located a place with a multitude of employment options, you will just need to ensure that the houses in the neighborhood are within your price range. Never choose a home that you cannot currently pay the mortgage on. There is no shame in assuming you will earn a higher income in years to come, but you wouldn't want to risk your financial future on this assumption.

Most folks assume that if you make enough that the mortgage only accounts for 30% of your income, then you have the green light to buy the home. This can be dangerous because they don't take into account any other variables. For example, if you spend 90% of your income on other obligations and monthly expenses, you wouldn't have 30% of your income left to pay on your mortgage.

If your still not sure whether or not to buy or rent, you may want to consult the professionals. Speak with a realtor and a mortgage broker. A good real estate company to speak with is http://www.sjhousehunter.com/. You'll find that this company has a wealth of experience to bring to your aid. Just make sure you have your budget drawn up before you contact them. They'll be able to give you advice on an individual basis this way.

Thanks so much for reading this post on buying real estate. If you enjoyed this article, please add it to your book marks.

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