Damage Desposits

[annafern]

After my awful experience of 'guests from hell' i have spent the last two weeks tightening up my T & C and also re thinking my policy on damage deposits.

I have always been against them and personally been put off booking a cottage because they have asked for a refundable deposit. Mainly because i object to these agency's holiday my money for several months in their account.

However i am now leaning towards changing that policy for bookings over a certain size as more people you have in a house seems to make a different to the amount of damage they can do and also it encourages 'partying guests'.

Question is to you all.

What amount of deposit would you request for on a larger house which sleeps 8 and has a jacuzzi and sauna?

When do you ask for the deposit?

When do you give it back?

How do you take payment?

How is written into your T & C?

Interesting question to start the week of.

Anna

[wallypott]

For the big house, sleeps 12 (+2) in 6 bedrooms. I take €500 for normal bookings and 1000 for New Year or stag (not had one yet).

Ideally, I take it the week before they arrive (so it isn't sitting in my account for months), by Paypal email payment request, so when I return it all the charges are also refunded.

I return it when I have done the clean, so by that time I should have found the majority of problems.

In my T&Cs I say I will give it back within 14 days. When its not a Paypal one, it can take that long occasionally. The Paypal route is much the quickest and easiest.

[Mouse]

I think you're right; dynamics do change the larger the group and 8 adults may be more of a risk than multi-generational family.

To answer your questions:

We sleep 8 and ask £400 (so £50 each guest) but that's small compared to some here. Quite a few owners ask for up to £150 per guest. You could charge more for certain types of guests

We take the DD with final balance, 8 wks before guests arrive. Though would take it upto 10 days before if guests preferred.

1st working day following departure. We do it very quick.

Payment is taken by bank transfer (we don't do checques)

In my T&Cs I say:
A damage deposit of £400 is required. We reserve the right to deduct any losses, breakage or damage caused to the property during your stay. Any extra cleaning costs will be charged to this deposit if the villa isn’t left in a reasonable condition. The sum reserved by this clause shall not limit the client's liability to the owners. Minor damages such as a broken glass etc won’t be charged for. The owners will account to the client for the damage deposit and activate the refund of the balance due, by Internet banking (when possible), within 48hrs of the end of the rental period.

Mousie
x
p.s. if I only catered for couples/4 people, I wouldn't bother.

[e-richard]

The answer to "How much?" was answered for me when checking my Insurance policy, which covers damage by guests but with a £250 excess.

[pepsipuss]

We sleep 8/10 and we take €500
The deposit is referred to in the terms/contract and is taken on arrival in cash
It is returned on checkout 'after inspection of house and contents'

Your post prompted me to re-visit what I actually say and I discovered that we have no actual clause covering the circumstances in which we would withhold any money except to say that if any of the conditions are broken we reserve the right to end the contract immediately and not return any money
I think I need to revise....

Like Mousie, we never charge for the odd broken plate or glass or minor loss/damage, regarding these as cost of doing business.

We see our damage deposit as something which concentrates the mind of renters on the way they treat the property.

[Alex Chapman]

How is written into your T & C?

Here's the language we use in our (US based) rental agreement as it relates to damage deposit.

DAMAGE DEPOSIT- A damage deposit of $250.00 is required. This must be received within two (2) weeks of check-in date. The deposit is held as a damage deposit, and is NOT applied toward rent. It is fully refundable within fourteen (14) days of departure, provided the following provisions are met.

• No damage is done to cabin or its contents, beyond normal wear and tear.
  No charges are incurred due to contraband, pets or collection of rents or services rendered during the stay.
  All debris, rubbish & discards are placed in refuse containers outside
  Soiled dishes are placed in the dishwasher & cleaned prior to departure.
  The key is left in the lock box (2nd Key on hook inside) and all windows are closed and latched and all exterior doors are left locked.
  All charges accrued during the stay are paid prior to departure.
  No linens are lost or damaged.
  NO Early check-in or late check out without special arrangements made prior to the check-in day.

We've looked at whether to use a personal damage protection insurance program, but for now are sticking with just a damage deposit.

[joddle]

Does no one use the deposit as an insurance against late cancellation? - we have just had such a case - a lengthy let was suddenly cancelled only a week or so before it was due to start. We have little chance in getting it re-let now and had tuened down a few enquries for the same dates as it was already booked.

[pepsipuss]

Does no one use the deposit as an insurance against late cancellation? - we have just had such a case - a lengthy let was suddenly cancelled only a week or so before it was due to start. We have little chance in getting it re-let now and had tuened down a few enquries for the same dates as it was already booked.

We use our RESERVATION deposit (25%) as insurance against late cancellation. I can't see that it would be legitimate to use the security deposit for this purpose - not that it would be relevant for us as we do not take it till arrival.

[Harborfields]

One could ask for different deposits for different purposes. We do not collect any kind of security or damage deposit, but we do ask for a deposit of 25% of the total rental on booking to confirm the reservation, and that deposit is non-refundable in case of cancellation (right up to the end), unless we are able to re-rent the cottage.

edit: pepsipuss and I posted the same thing at the same time...

[welshgirl]

I take a damage deposit of £200 and have done since I started nearly 2 years ago. I request that this is paid 6 weeks before arrival along with the balance.

I've only had a couple of guests object to this and I was happy to allow them to pay one week before arrival. As long as funds are cleared before they arrive I don't really mind, the only reason I ask for it so early is that it is one thing less for the guest remember to do (or forget!!) and I don't have to make another trip to the bank with a cheque - although as more and more guests are paying by bank transfer so this may change. I'm not on site so can't take cash on arrival

Mostly I take a damage deposit because, as others have pointed out, it perhaps makes people a bit more careful and whilst I don't want my guests to feel like they are treading on egg shells whilst they are on holiday I do think a certain amount of respect for the house is a good thing.

As I have found out though, its a fine line between wilful destruction and wear and tear. I expect marks on my lovely white walls and spend a couple of weekends every year emulsioning walls, I know plates, glasses etc are going to be broken and always buy extra - these things I would never dream of charging for.
However, smashed shower screens, broken legs on free standing mirrors, broken tennis rackets- which I would want to charge for, have been very hard to prove! It doesn't help that I am not on site and rely on my cleaners to let me know these things and often they are missed.

Worst case scenario - my insurance excess is £250 so if all hell broke loose I'd (hopefully) only be £50 out of pocket. Its a big house, sleeping ten & I think the chances of something happening is far greater than a cottage that sleeps two!!

On the whole though I have to say I have very few problems and returning the cheque is a chance to send a glossy postcard and note to the guest.