VRBO late on payouts ... again!!

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VRBO late on payouts ... again!!

Kevin Lefeuvre
Los Angeles, CA · Member since 2016 · 565 posts · 391 votes

Those on VRBO know there was a mess with the payouts for months. It got fixed in January and they sent an email out apologies etc... I was receiving my payouts on time in February.

The past 2 payouts are not coming though. Now on customer support waiting since an hour for a rep to pick up the phone. Is everyone else seeing the delayed/frozen payouts issue back again?

Side note: Premier Customer Support has never been this slow, but I guess that's the covid-19 effect. But Payouts? They should not be that busy these days, right? 

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Mitch Harold
Member since 2019 · 35 posts · 87 votes
6y

Its a short term rental forum, i would say this is an appropriate place to post this.  Not that my opinon matters...

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  • Tim Schroeder
    Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes
    6y

    This is Real Estate community forum, not a VRBO support forum. VRBO *has* a support forum. I think it would be more appropriate to post about technical glitches there. Peace.

    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    VRBO’s payments situation is a colossal train wreck.  Whether that’s intentional on their part or not, is anyone’s guess.  We “integrated” with VRBO and in the process, dumped their payment system.

    VRBO was charging us 3% for the credit card, and of course 3% for the “advance pay” b.s.

    Now we are paying 1.7% for the credit card fee and getting paid within 24 hours.. 

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  • Mitch Harold
    Member since 2019 · 35 posts · 87 votes
    6y

    Its a short term rental forum, i would say this is an appropriate place to post this.  Not that my opinon matters...

    8Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Mitch Harold:

    Its a short term rental forum, i would say this is an appropriate place to post this.  Not that my opinon matters...

     My opinion doesn’t matter either, but as I tell my kids, if I want your opinion I’ll give it to you!”

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  • Mark Miles
    Rental Property Investor · Philadelphia, PA · Member since 2016 · 540 posts · 714 votes
    6y
    Originally posted by @Tim Schroeder:

    This is Real Estate community forum, not a VRBO support forum. VRBO *has* a support forum. I think it would be more appropriate to post about technical glitches there. Peace.

    I completely disagree. People post on here all the time about products or brands or service providers or vendors or companies or websites that they're having issues with that are related to the STR business. It is extremely valuable for the rest of us on here to see what issues other people are facing so that we can either help them out or we can be aware of these issues ourselves.

    It is equally just as valuable when people post about products or brands or service providers or vendors or companies or websites that they have found valuable and helpful

    If we can’t all learn from each other’s experiences,  both positive and negative, then this forum becomes worthless

    6Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    6y

    @Collin Hays I think you need to have at least 5 properties to cut off from their payment system. I converted 2 of my STRs luckily just before the crisis to LTR (no I didn't have any insider info, lol. May share later why after 4 years successful STR business I decided to gradually convert to LTR).

    I still have one unit left and VRBO is acting; the payout date which is supposedly hard printed in the reservation page under "payment" tab, gets re-edited every few days....

    I posted this to see if I am the only one in this situation, maybe because I have not renewed my subscription or something specific to my account or everyone else is seeing the same.

    If you are receiving payouts from VRBO smoothly or not, please share. Thanks.

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    I personally think VRBO's payout system is a scam, on several levels.  I am considering a way to start allowing home owners to come in under my merchant contract so that they can get immediate payment. I don't know that I can, but I am looking into it.

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  • Anand S.
    Plantation, FL · Member since 2009 · 329 posts · 119 votes
    6y

    My payouts have been delayed weeks. Each day I check and it says it's being disbursed today and should be deposited in my account in 5-7 business days. I'll check tomorrow and it will say the same thing, I'm sure. 

    0Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    6y
    Originally posted by @Anand S.:

    My payouts have been delayed weeks. Each day I check and it says it's being disbursed today and should be deposited in my account in 5-7 business days. I'll check tomorrow and it will say the same thing, I'm sure. 

     Anand, That's exactly what I am seeing since a few weeks. At first I thought it's me. But checking daily now I notice that the payout date is being reset every single day to "today". Official scam. You would think working with large companies like Expedia or Airbnb you would be protected from illegal scammy cheating behaviors but man they are showing their true nature in large scale. They either need to file for bankruptcy (if they can't pay) or the class action is next thing to do.

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    I suspect that VRBO/Homeaway is holding onto every penny they can right now, for as long as they can.  Not a good sign that this is going on.

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    2Reply
  • Maria D.
    Member since 2020 · 11 posts · 2 votes
    6y

    Im getting upset also. Never had this issue before but now for 2 weeks after a cancellation that Im entitled to about $1200 that was already paid does the same. I call everyday they tell me to send screen shots and a case has been opened. I was promised yesterday the agent showed my payment was in processing. Surprise it now shows Tomorrow. Definitely want to get away from getting my money held up. My property brings in over a Hundred thousand a year. Vrbo is a large portion. Very fed up

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    These monies are supposed to be held in escrow.  I wonder if VRBO would pass an audit right now?  I have my doubts.

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  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    6y

    A couple of weeks ago VRBO sent me a refund for a property in Destin we were 'destined' to not stay in due to C19. Apparently it was an automatic refund. I don't know if that helps your quest for knowledge.

    0Reply
  • Maria D.
    Member since 2020 · 11 posts · 2 votes
    6y

    Hello thanks but no this is for a refund cancelled after the last payment wasnt made and under 60 days. The system shows what was refunded and due to host. They just keep Moving the date to the next day. Support plays dumb like they have no idea why. I am about to let them know I will be unable to allow the next guest stay unless paid for previous reservation.

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    6y

    @Kevin Lefeuvre. They are in a cash crunch situation and are delaying payment to get interest off the deposits (your money). Lots of companies do this.

    Many companies have a 90-120 net payment option and will always get those terms. Your payment likely won’t be that delayed but this won’t get better anytime soon.

    Unfortunately travel is decimated and will not he recovering to pre-pandemic levels for several years

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Caleb Heimsoth:

    @Kevin Lefeuvre. They are in a cash crunch situation and are delaying payment to get interest off the deposits (your money). Lots of companies do this.

    Many companies have a 90-120 net payment option and will always get those terms. Your payment likely won’t be that delayed but this won’t get better anytime soon.

    Unfortunately travel is decimated and will not he recovering to pre-pandemic levels for several years

    I highly doubt they have any cash laying around that they are drawing interest on.  VRBO is likely waiting on inflows of new cash so that they can then pay out.  If they were dipping into escrow to pay operations, this is a very real possibility. I am afraid things have denigrated into a Ponzi scheme situation.  They may be insolvent and it just hasn't been uncovered yet.  I hope that I am wrong.

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    6y
    Originally posted by @Collin Hays:
    Originally posted by @Caleb Heimsoth:

    @Kevin Lefeuvre. They are in a cash crunch situation and are delaying payment to get interest off the deposits (your money). Lots of companies do this.

    Many companies have a 90-120 net payment option and will always get those terms. Your payment likely won’t be that delayed but this won’t get better anytime soon.

    Unfortunately travel is decimated and will not he recovering to pre-pandemic levels for several years

    I highly doubt they have any cash laying around that they are drawing interest on.  VRBO is likely waiting on inflows of new cash so that they can then pay out.  If they were dipping into escrow to pay operations, this is a very real possibility. I am afraid things have denigrated into a Ponzi scheme situation.  They may be insolvent and it just hasn't been uncovered yet.  I hope that I am wrong.

    It could also be a similar situation with the bank or banks that they use to hold deposit.  I think that’s less likely but I am guessing it’s something like that. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Caleb Heimsoth:

    @Kevin Lefeuvre. They are in a cash crunch situation and are delaying payment to get interest off the deposits (your money). Lots of companies do this.

    Many companies have a 90-120 net payment option and will always get those terms. Your payment likely won’t be that delayed but this won’t get better anytime soon.

    Unfortunately travel is decimated and will not he recovering to pre-pandemic levels for several years

    I dont know if this is the case but for real estate and real estate trust accounts they are not allowed to make and keep interest.

    in some states for renters deposits it does go into an interest bearing account that i think goes to the tenant but thats only a few places I have heard of.

    for these booking companies to not have the money to pay.. I suspect a bank snafu or like someone posted  robbing peter to pay paul and money is not there.  now that would be something.

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  • Maria D.
    Member since 2020 · 11 posts · 2 votes
    6y

    Hello so my guest was charged months ago and cancelled agreeing to the policy 2 weeks ago. I was scheduled to be paid (proccessed) then its 1-5 days to show up. Normally you get a payout email the next day. Instead they keep updating the date. Now it says today. Anything over weekends will get delayed again. I wish I had 5 units so I could opt out and use my own payment processor. The only thing good so far is that VRBO has allowed me to work with customers to rebook.Airbnb just refunded 2 months of reservations without a word just Refunded even people who had not been disrupted by Corona many local. Now offering back 25%. 

    1Reply
  • Anand S.
    Plantation, FL · Member since 2009 · 329 posts · 119 votes
    6y

    I had this issue with two bookings that were to be paid out the first week in April. Every day I checked, the payout date was moved to the current date. Finally this week they paid out both. Now I have 3 more payouts for this month that I'll probably have the same experience with. 

    As for AirBnB, I have not seen anything in regards to the 25% payouts, and I've had over $100K in cancelled bookings. 

    1Reply
  • Maria D.
    Member since 2020 · 11 posts · 2 votes
    6y

    Wow I see you are also in Florida. Yes a quick search of Airbnb and 25% will get you the info. My saving grace was I use a third party company formAirbnb so I lose 15%
    but they pay in full when the booking is made. They have since changed that policy. They simply have my account now at a negative so new reservations will offset the balance. They will get the 25% and credit my account. Lucky I am a Honest person as They are not US based. I know they took a big Hit with cancellations. They send a wire each week with any money owed. Works great except for the 15% but that includes VRBO also so No Subscription fees. I kept my VRBO In house because of all my existing 5’star ratings.

    0Reply
  • Anand S.
    Plantation, FL · Member since 2009 · 329 posts · 119 votes
    6y

    That's amazing that you received your payouts, essentially in full. I imagine they're going to wait a long time to get back in the black after this. I wouldn't be surprised if they go belly up. What is the name of the service?

    Where are your homes located?

    0Reply
  • Maria D.
    Member since 2020 · 11 posts · 2 votes
    6y

    Im in the Tampa Bay area. The company is Travelnest. As far as I can see they are the only company that allows you to let them book for you and allow you to have your own Website and still do bookings. I can turn off the channels I want to deal with myself. 

    0Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    6y
    Originally posted by @Anand S.:

    I had this issue with two bookings that were to be paid out the first week in April. Every day I checked, the payout date was moved to the current date. Finally this week they paid out both. Now I have 3 more payouts for this month that I'll probably have the same experience with. 

    As for AirBnB, I have not seen anything in regards to the 25% payouts, and I've had over $100K in cancelled bookings. 

     Lucky you. No payout for me. 2 of my unpaid payouts are from March!!!

    0Reply
  • Maria D.
    Member since 2020 · 11 posts · 2 votes
    6y

    Wow yes Im starting to see that! My last few payments all done within days till April 10. What are they telling you? I am Hesitant to continue allowing guests to check in if they are going to be so far behind. I dont believe they have a right to hold up payments when they recieved money months ago

    0Reply
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