Is it possible to ease the pain of Damages Deposits?
Self Catering is a very ‘hands on business’. As noted, you have to organise to meet the guest (in some form or fashion) at the apartment – which can be done in a variety of ways. The damages deposit is probably a similarly tricky task. Although it is very common practise to ask for a damages deposit before a guest arrives; there appear to be a minority of guests that are quite hesitant about this process. How do we make this part of the process less painless?
The most popular method of taking the damages deposit is to ask it to be paid in cash on arrival. Of course the first question from the guest is: ‘How do I get it back?’ Many of the guests expect the refund to happen just as they are leaving the flat. Is this practical? Not only does it involve the landlord returning on each guests’ departure, but it also means that if a guest were to ‘hide’ a problem, it is unlikely that it would be spotted on a quick inspection of the property. Making this procedure time consuming and not even cost effective. I had one guest move a picture on the wall. When I noticed that it had been moved, I returned it to its original spot, only to find a large hole in the wall. I would have never spotted this on an inspection with the guests on the day of their departure. So guests that book through me, are told (in advance) that a damages deposit is refunded within 14 days of departure. Although most guests are fine with this condition; there are a small minority that complain, and a handful that will not book. I feel it is worth it, as it has limited my exposure to a financial loss. I was wondering what does everyone else do?
Are there landlords that accept some form of credit card waifer, as is commonly done when you book a hotel room? Are there any other suggestions with regards to damages deposit. Although it seems like a very small part of the whole self catering experience; to me it appears to be one of the more time consuming and controversial issues I have with my guests.
Look forward to hear how everyone else handles this matter.
Bookings for Craigwell Cottage are completed by means of on-line payment. A damage deposit is taken 6 weeks before the let starts, or on booking for last minute deals. Deposits are returned by means of a refund to the card on which payment has been made, within 7 days of departure. Definitely no cash deposits, and rarely deposits by cheque these days either.
In 10 years of letting in Edinburgh, we’ve had two people who have decided not to book because of the deposit requirement, but our view is that if they don’t meet our conditions for let, then it’s best not to do business with them.
Returning the deposit is mainly a reason to be in touch with the guests after their stay and to ask for a
review, and encourage them to return again.