Vacation Rental Security Deposits
Security Deposits can be a real challenge when running a Vacation Rental.
Bookerville supports charging and collecting security deposits, and provides flexibile options for configuring and administering them.
- Flat Fee or Percent: Security deposits can be a flat fee or a percent of the total rental amount.
- Waivers: Bookerville also supports waivers, sometimes also called damage insurance, in lieu of a traditional, refundable security deposit. You can also let your guests choose which one they prefer.
- Collect Separately or Together: Security Deposits can be collected as separate transactions, or bundled with the rest of the rental payments. You can also collect the deposit closer to the check-in date automatically.
- Check Local Laws: Local laws will often dictate specifics of what you can do with security deposits - how long you can hold them, etc. Be sure to check these.
Most of the time, vacation rental security deposits are simply refunded because there is no damage, theft, or other violations of the terms & conditions or contract. Collecting the security deposit closer to the check-in date is best practice for at least three reasons:
- It's courteous: remember, you are collecting someone's money and holding it ransom until they prove they are innocent. The least you can do is hold it as briefly as possible.
- Some localities have laws that limit how long and under what circumstances you can collect a security deposit.
- Many payment processors will let you refund a transaction free of charge if it is within 30 to 60 days.
Vacation Rental Security Deposits Have Pros and Cons
Security deposits are mostly used to make guests think before mistreating your property or your trust, and to that end they are usually successful. But it comes at a price: security deposits are a nuisance for both you and the guest, and can also be a deterrant for prospects considering your rental. So weigh this decision carefully, and consider all aspects.
Vacation Rental Security Deposit Alternatives
Because of the hassles and stigma associated with security deposits, many property managers are now switching to mandatory damage protection insurance. You many want to consider this because not only does it remove the nuissance, disdain, and risks, but damage protection insurance is also quite lucrative for the property manager. Learn more: Vacation Rental Damage Protection Insurance