Art D.

We have 6 vacation rentals in the San Diego area, and three of them are in a luxury building in San Diego. We have them listed on VRBO and Homeaway, and most of the bookings are done through these websites. We also accept virtually 100% of the payments via credit card through the websites credit card processing company; YapStone.

Even though the acceptance of credit cards through the website adds a significant cost, we thought that the convenience for our guests and protection (that we thought we had), was worth the additional expense. We have found out that we have virtually no protection, and we will no longer be accepting credit cards through the website.

We had a guest who booked one of our units, agreed to the rental agreement, accepted the 60 day cancellation policy, and made the payment through VRBO and Yapit. Additionally, we did have other inquiries to rent this property for that timeframe.

The first day the guest send us a text message letting us know how much they liked the property, and how it was better than the photos and description. The following day they started complaining about things like the shower system, which is a standard diverter that is in all of our properties and most homes, the garbage disposal not working, and how to use a remote control that has led photos that are programmed to push one button. It is not abnormal for guests to have questions, it was the strong language and threats that were used. We sent a maintenance person, who could find nothing wrong, and offered to stop personally.

A week later, I received a text from the guest that said that his wife was feeling a vibration in the building, and they had to return home to Delaware, therefore they expected a return of the money for the time that they would not be using the condo. I texted them back, that if they wanted to leave that was their choice, however we would not be returning the money for two reasons; 1. We would be breaking a city ordinance as well as an HOA Regulation of 30 day minimum rental periods if we rented the property for only a week, 2. We had a date and time stamped acceptance of the agreement and they were well aware of the cancellation policy.

I spoke with the guest in person the following day, and he told me that his wife had a breakdown, which was evident by her behavior earlier in the week, and he had to spend the night in the emergency room because she was convinced that the building was shaking from a vibration.

We have personally stayed in this unit, we have many 5 star reviews of all 3 units in the same building, current guests that were staying in the other two units who had extended their stay, a recent sale in the building as high as $1.6 Million, and no one has ever complained about a "vibration" of any kind.

A week after the guest returned to Delaware he filed a dispute with Visa for " property not as described" and they put a hold on our funds. We followed the process and submitted substantial documentation; the rental agreement, the acceptance of the rental agreement and cancellation policy, correspondence through VRBO, description of the property, all the reviews of the property as well as reviews of the other two properties in the same building (which are all 5 stars and very detailed reviews), text messages from the guest stating how the property was " better than described", VRBOs Policies, and proof of the fact that VRBO had offered trip interruption insurance which they declined.

We were told it would be 45 days before a decision would be made, and most likely it would be made in our favor.

Today, I received an email from YapStone stating that the case was going to pre-arbitration and potentially full arbitration. They also requested additional information (after we have provided everything possible) and for us to sign a Docusign Agreement which makes us liable for $500 and any costs or fees to arbitrate if the case is not decided in our favor.

I immediately called YapStone Customer Service, and I was told that they see these cases everyday and rarely are they decided in the Owner's Favor, so most likely we would be out the chargeback, the $500 fee, and additional costs.

I also spoke with a VRBO Rep, who was very nice, however he said they see these things happen all the time and there is nothing they can do to assist.

So case in point, as an owner accepting credit cards through the VRBO and Homeaway processing company, you have virtually no protection. Someone can stay in your property assert any nonsense reason for not liking the property, and you will have to jump through a lot of hoops and not only be out the lost revenue ( we did leave the property vacant for 30 days), but also additional fees that they decide to charge you.

Since this happened, I have not been accepting credit cards, and I will not accept credit cards in the future. There is very little protection against fradulant activity!