How much deposit do you charge?
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- Posts: 136
- Joined: Tue Jan 31, 2012 10:18 am
How much deposit do you charge?
When we started holiday letting, we tried to keep things simple and chose a fixed deposit (£150 per week) regardless of the season. Advantages were that it simplified things for us when handling the admin. It also avoided the fact that many people are lousy at calculating percentages!!
As we have slowly increased prices over the past couple of years, the deposit has remained fixed and I am having a rethink. A deposit of £150 to book a summer week of £625 seems too low.
So the question is, what level of deposit do you charge? And is it a percentage of the rental or fixed?
Would really appreciate the benefit of LMH experience here!
As we have slowly increased prices over the past couple of years, the deposit has remained fixed and I am having a rethink. A deposit of £150 to book a summer week of £625 seems too low.
So the question is, what level of deposit do you charge? And is it a percentage of the rental or fixed?
Would really appreciate the benefit of LMH experience here!
- Harborfields
- Posts: 358
- Joined: Tue Jul 05, 2011 11:29 pm
- Location: West Boothbay Harbor, Maine
- Contact:
We charge 25% of the rental as the confirmation deposit, with the balance due upon arrival. We always do the calculation for them and include that in our quote.
We're thinking about offering a discount to those who might pay in full when booking their August vacation in January, as it would certainly help out our cash flow! (We're only open 5 or 6 months out of the year.)
We're thinking about offering a discount to those who might pay in full when booking their August vacation in January, as it would certainly help out our cash flow! (We're only open 5 or 6 months out of the year.)
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- Posts: 136
- Joined: Tue Jan 31, 2012 10:18 am
I charge 20% rather that 25%
Now the geeky bit:
All my list prices end in either 0 or 5 (e.g. £795, $1200)
THUS: The deposit is always an integral value, i.e. no pence, no cents
Now the geeky bit:
All my list prices end in either 0 or 5 (e.g. £795, $1200)
THUS: The deposit is always an integral value, i.e. no pence, no cents
** Richard
PIMS: Holiday Rental Management system
They say we learn from our mistakes. That makes me a genius !
PIMS: Holiday Rental Management system
They say we learn from our mistakes. That makes me a genius !
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- Posts: 324
- Joined: Wed May 11, 2011 4:28 pm
- Location: England
We ask for 25% deposit and calculate this for them. Balance is payable 8 weeks before the start of their holiday
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- kendalcottages
- Posts: 2474
- Joined: Fri Nov 27, 2009 11:08 am
- Location: Kendal, between the Lake District and the Dales
- Contact:
Re: How much deposit do you charge?
Your guests don't need to do the calculations. You can do it for them and tell them what is owed. Better still, you can use a management system (eg. e-richard's PIMS) and all the maths is done for you.Speyside Steve wrote:When we started holiday letting, we tried to keep things simple and chose a fixed deposit (£150 per week) regardless of the season. Advantages were that it simplified things for us when handling the admin. It also avoided the fact that many people are lousy at calculating percentages!!
I wouldn't say that is low. It works out as exactly 24%.Speyside Steve wrote:A deposit of £150 to book a summer week of £625 seems too low.
We charge 25% deposit at the time of booking, with a minimum deposit charge of £100. ie. if it's a short break at say, £300, we'll charge £100 deposit rather than £75.
The balance is due 2 months before the stay commences.
Kendal Holiday Cottages Ltd., Kendal, Cumbria - between the Lake District & the Yorkshire Dales.
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- Posts: 271
- Joined: Mon Jul 12, 2010 7:09 pm
- Location: Conwy, North Wales
- Contact:
25% by end of January or on booking if after end of January. Balance 8 weeks prior to arrival. Never ever allow people to pay balance on arrival. Can relate story about how that can work.
2CV, best car ever designed. (°\=/°)
http://www.holidaylettings.co.uk/rental ... dre/202892
http://www.holidaygites.co.uk/france/ch ... rankie/492
http://www.ownersdirect.co.uk/france/FR6233.htm
http://www.holidaylettings.co.uk/rental ... dre/202892
http://www.holidaygites.co.uk/france/ch ... rankie/492
http://www.ownersdirect.co.uk/france/FR6233.htm
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- Posts: 201
- Joined: Mon Sep 06, 2010 2:08 pm
- Location: North Yorkshire
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I charge a flat £150 deposit which is non-refundable with the balance due 8 weeks before arrival. My feeling is that it's sufficiently large enough to deter anyone from cancelling without a good reason. Presumably some owners taking larger deposits may have to refund partially in the event of a cancellation a long time in advance (or am I missing something).
We're all in the gutter, but some of us are looking at the stars
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www.sandsendpavilion.co.uk
50% deposit here. Seems fair to share the risk
However for people booking before xmas for the next summer I accept 10% with the remaining 40% due in January.
Seems to work well as we tend to be the first villa to book up until the post xmas rush.
Mousie
x
However for people booking before xmas for the next summer I accept 10% with the remaining 40% due in January.
Seems to work well as we tend to be the first villa to book up until the post xmas rush.
Mousie
x
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- charles cawley
- Posts: 1205
- Joined: Tue Sep 21, 2010 1:53 pm
- Location: Herefordshire, Shropshire, Borders
We request 25% and then the rental balance 8 weeks before the stay. This follows what the market seems to stand reflected in the practice of (love them or hate them) Hoseasons.
On the tricky subject of damage deposits, the general advice is that they rarely cover the cost of significant damage and claiming on small items is, often, not worth the upset. Our members usually have their own policies but generally share most of this approach.
A major point of a damage deposit is to show that you care. Nowdays, this appears to be more and more necessary. We usually advise around £100 and a higher sum, sometimes, if the weekly let is more than an average of about £800.
On rental deposits... we have never yet felt they have put people off from booking and if you can insist on them in many cases this policy can save endless grief.
On the tricky subject of damage deposits, the general advice is that they rarely cover the cost of significant damage and claiming on small items is, often, not worth the upset. Our members usually have their own policies but generally share most of this approach.
A major point of a damage deposit is to show that you care. Nowdays, this appears to be more and more necessary. We usually advise around £100 and a higher sum, sometimes, if the weekly let is more than an average of about £800.
On rental deposits... we have never yet felt they have put people off from booking and if you can insist on them in many cases this policy can save endless grief.
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Advice about holiday letting
Advice about holiday letting