Agencies and other headaches, keys and cleaners, running costs and contracts...in short, all the things we spend so much of our time doing behind the scenes.<br>
I really enjoyed reading updates from Paolo in the past and this new forum is another piece of genius from Paolo. Thanks a mil.
2 queries from me regarding rental agreements.
First issue
I wanted to ask owners like myself what kind of insurance they provide and request in their property especially for long term tenants (3 to 6 months). I have house insurance obviously but I keep reading that some kind of insurance must be taken by the tenant also especially for floods and fire and third party, especially if damage occurs following their responsability (like leave tap open, or forget to turn off fire...). This is for property in France but it might apply to other countries.
second issue (linked to the first one above)
I have currently a provisional tenant who is now refusing to take out any insurance (or check if their insurance provide something for their holidays abroad). I think they want to pull out as they have found another property. The thing is they insisted of paying money in advance (the full amount) before I had a chance to draw up the contracts. If they really want to pull out, I have a close in the contract saying they can by loosing some money considered as booking deposit. Even if they don't sign the contract, should I insist on keeping that sum if they want to pull out?
I'm not sure whether the booking you refer to is for a long-term or a holiday let. If the latter, how close are you to their arrival date, how easy will it be to re-let?
We always ask for 25% non-refundable deposit before confirming a booking but, just because you hadn't had a chance to send them your booking conditions, I don't see why you shouldn't charge a deposit or admin. fee. Since we bought our apartment for letting I've been quite surprised at how time-consuming the admin. can be.
If you are feeling uneasy about the booking now, it might be better to go with your gut feeling and let them cancel, then just retain a deposit/admin.fee. The last thing you would want is aggrieved visitors trashing your place!
Maggie
thanks for your advice. It is for a long term let starting early December and as you know, long term lets are already hard to come by. We may be better off if it attracts these kinds of guests though.
I, like you, am of the idea that we are better off without them. They already asked their money in full withing 5 days so I will insist on keeping 30% of the booking. (which is our base for weekly let in the summer). They also kindly let their bank charge me for the cost of their transfer from England to France deducted from the total amount due. So I will definetely charge that back as well as conversion costs and transfer costs.
We have not been very lucky with long term let i.e. in type of guests profile we have. Last year, we had somebody who sent the deposit by cheque. We send it to our bank account in England. Looked fine on the internet banking. Two weeks later, we received letter from bank saying the cheque had bounced twice. The person was already in the house at this stage so we insist on bank transfers from now on!
Thanks for your feedback Maggie, it is appreciated (your website / appt. looks great.).
Kind regards
I would be a little more forgiving. I would only keep a deposit if I had turned away another booking enquiry for that period. I would pass on all bank charges when I return the money. But I would return as much money as possible.
Why? Because you have to put yourself in their shoes. From their perspective, they haven't done anything wrong. They sent full payment in good faith and want to withdraw from the agreement because new conditions are being imposed. That sounds like the situation regardless of whether they want to pull out and are just using the insurance thing as an excuse.
One of the reasons people prefer hotels to rentals direct from owners is because with a rental you have to pay much further in advance and it is harder to change your itinerary.
I think we should try to overcome that perception by being as accommodating as we can (without affecting our bottom line).
Also - if I have the slightest note of discord with a potential renter, I pull out. That's my home they are going to take their frustration out on!
On your insurance question: I informed my French insurer that I was using the house as a holiday rental property and I assumed that was enough. I am probably wrong though, as this sounds too easy.
Our guests should have holiday insurance that covers them if they have to cancel at the last minute. Their insurance would pay them the cost of the rental, and we don't lose out either.
'I would only keep a deposit if I had turned away another booking enquiry for that period'.
Many of us have calendars linked to our websites, so people wouldn't bother contacting us as they could see that their preferred dates are already booked!
we're very lucky as our Mayor is our next door but one neighbour who is also the local AXA insurance man...he insists that we are covered for most of the things that you have mentioned to include a fire or flood, in that instance then the insurance company would supply a like for like house for us to accomodate any bookings.
But in our terms of business that our guests sign and accept, it stipulates that they must have their own insurance that we cannot be held responsible for any accidents, theft or break in's and that they must have adequate insurance to get them home in event of accident, car breakdown etc.
To go on what you've said for long term booking - I would be inclined to re-imburse if I had the bad feelings you have....but it is so hard to see into those crystal balls! Incidentally re my earlier post re Christmas I turned him away and just hope someone feels like a break over Christmas with saeviews! But I feel better as I had bad vibes!!
Hi everybody,
