Is a standard lease agreement before making payment on a vacation property? We believe that we have found the ideal holiday home in Michigan. However, the company asked us to send a payment of 50%. They have offered no agreement or lease. Is this normal? Also, nobody knows what the tax rate on this type of housing in Saugatuck, Michigan? We were told 12%, but that sounds kind of high. Thank you.
A lease must be part of the procedure. We have a rental and still have an agreement with the guests. It is not always made before the filing, but is usually transmitted in one day. If you're uncomfortable, ask for a copy of the agreement before sending the deposit. It should not be a problem with that.
Regarding the tax rate of 12%, I do not know, but it probably includes sales taxes and hotel taxes. RV are required to collect both in most states. Our RV is in Hawaii, which has a tax rate for rentals of 11.962% if 12% is not unrealistic.
Hello there. I did a bit of holiday rentals here in Massachusetts, and we charge a deposit of 50% initially, but we send a first lease. Generally, the lease is sent, signed (by yourself) and then returned to the agent or agency and the first check. It's pretty standard here.
I would not hesitate to contact the person / organization that you rent from and ask for a lease / rental agreement before sending money. I advise you, however, that if they do not send or use a lease to be extremely careful. If there is no binding contract, then you have no legal recourse - it's your word against theirs. I am incredibly surprised if it is trustworthy agent or agency they are not using a lease or rental agreement.
According to your question about sales tax, I google the name of city or county and find the chamber of commerce.
Hope this helps!
Posted on June 14, 2010.
