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VRBO stops taking Houzlet rental listings after consumers complain about cancellations

A call for action led one of the nation’s largest vacation rental companies to stop doing business with a national rental property manager over a pattern of cancellations and missing refunds
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Posted at 5:53 AM, Mar 22, 2024
and last updated 2024-03-22 18:19:16-04

SARASOTA, Fla. — Retired school principal Frank Muehlheausler and his wife Karen save up every year so they can afford to escape St. Louis' freezing temperatures and spend a couple of months in Florida.

The Muehlheauslers used VRBO, as they had in years past, to reserve a condo on a Sarasota golf course for January and February. The couple paid a $5,700 deposit for the first month’s rent plus the VRBO fee of $795.

Frank and Karen’s excitement over their winter break turned to worry in December after the host, Houzlet, an online property management platform that posted the listing on VRBO, canceled their reservation. The email said the property would not be available due to a family emergency.

“They gave us a list of places that we could choose from, and I said no," Frank told us. "I said I don't want that. I want my money back.”

VRBO quickly returned their $795 fee, and Houzlet agreed to process the $5,700 deposit but never did. Frank did some digging and found the listing was a fake.

The realtor who represents the property owner confirmed to ABC Action News that the condo is for sale, and the seller did not list it as a vacation rental with Houzlet.

Houzlet manages the listing and booking for property owners. In December 2022, VRBO and Houzlet announced a partnership that allowed Houzlet to list rental properties on VRBO.
 
The Better Business Bureau has issued an alert for Houzlet after receiving dozens of complaints like Frank and Karen’s, and ABC Action News found 41 complaints filed with the Florida Attorney General's office under active review.

ABC Action News asked VRBO about Frank’s refund and the patterns of complaints connected to Houzlet listings on their site. The company said in an email.

We are no longer working with Houzlet and are not offering their properties on our sites. If a traveler's stay has been canceled by Houzlet and they have not received a refund, we recommend they file a chargeback request with their bank in order to recoup any outstanding funds. In the event a chargeback request is not successful, the traveler may reach back out to Vrbo customer support so that we can assist with next steps.

Days after we asked both VRBO and Houzlet about Frank and Karen’s refund, their credit card company reversed the charge.

ABC Action News repeatedly emailed Houzlet for a comment regarding the pattern of complaints. The company said its legal department would respond. We have yet to hear back.