How much do you take upfront to book?

[Musetta]

I am considering adding a "book it" now button on my HA listings but I will need to change T&C's in order to do so as I have always taken a deposit (that converts to the damage deposit upon arrival) to hold the reservation and then 1/2 payment 2 months before arrival and 1/2 2 weeks (not really long enough to re-book so I am changing that to 30days.)

HA/VRBO only allows for two payments though and they add the damage deposit to the final one. For the house in Italy, it's not really an issue as the price is fairly low - I am just going to ask for 1/2 upon booking and 1/2 30 days out. The house in American though is priced significantly more so I'm worried about scaring off bookings by asking for 1/2 upfront...but maybe I shouldn't be? or maybe ask for 25% to book and 75% for final balance but then that's a large chunk of money to come up with at the end (high season rate is $2600 plus a $400 damage deposit)

What is your payment schedule for those of you who only take two?

Thank you!

[Mouse]

hi Musetta; we, and most other owners here, take 50% on booking and then 50% plus damage deposit 8 weeks before arrival.
Has always worked fine.

Mouse
x

[Marks]

30% deposit, 70% + damage deposit 8 weeks before arrival.

[peyre blanque]

Exactly the same as Marks

[Beachcondo]

20% upon booking, non-refundable.
80% 60 days before arrival, refundable in case of re-rent.
Security deposit 3 weeks before arrival.

Hopefully the 20% is low enugh to not scare away people, but enough money to want to hold on to it.

[Musetta]

Thanks! silly system only has options of 25%, 50%, 75% or a dollar amount....so I think I'm leaning towards 50% upfront at this point as I can always change it if it seems to scare away bookings, right?

[manzanilla]

30% on booking (non-refundable)
70% two calendar months before arrival (cancellation terms apply)
Cash damages deposit paid to our on-site caretakers/keyholders on arrival, refunded on departure if no substantive damage has occurred.

Actually... we no longer insist on the cash damages deposit: it is in our contract, but because we have usually built up a rapport with our renters before they arrive we tend to tell them not to bother. In six years of renting we have never had any damages worth worrying about. I'm not recommending this... just saying! And, of course, it helps to have an on-site caretaker.

[greenbarn]

25% on booking, remainder 8 weeks beforehand. None of it is "non-refundable under any circumstances" within UK contract law.

[manzanilla]

25% on booking, remainder 8 weeks beforehand. None of it is "non-refundable under any circumstances" within UK contract law.

Oh dear - I did not know this - only our booking deposit is non-refundable. The remaining 70% has various time-based cancellation terms. Air lines and car hire companies and UK rental sites (eg English Country Cottages) require similar (or more draconian) rules so why is it different for our holiday rentals? And we always take out holiday insurance to cover cancellation costs... so am not sure I understand what you mean.

[ccazes]

We ask for 25% to confirm the booking then the rest 8 weeks before. I think that asking for more than 25% to confirm can be off putting too but at the end of the day they have to pay up at one point!

I have processed one payment through HA's new payment system and I saw there was an option for the security deposit to be taken. I was disappointed though to find out they actually take the security deposit and transfer it to my account, then I have to retransfer money back after the guest's stay. I thought it would be a system where they can hold back the money (like with Paypal) or do what car rental companies do and ask for a pending charge.

At least the balance is transferred directly to my account and I don't wait until the guests have arrived as is the case with HL.

[Musetta]

hm. That's interesting. I, too, have only taken one payment with their system (when paypal was acting up and reversed a charge for no-known reason on my guest trying to pay) but I had already taken the security deposit via paypal so I hadn't thought of that Do you mean they actually transferred it to your bank account and then you had to pay for a bank transfer to refund it to your guest? Or were you able to "refund" through the HA system, if you don't mind me asking.

[ccazes]

I phoned up HA.co.uk to enquire how it worked and was told that the full security deposit amount would be transferred to my bank account with the balance payment. I would not have to pay it back by bank wire but through their system and was told that the fees associated with the security deposit amount would be refunded too.
To be honest the guy on the phone did not seem entirely up to speed on how the new system works in general so I might call back and see if I get the same response:)

[linda que linda]

Hi Musetta,
We do almost the same as Mousie: 50% to reserve and the remaining 50% plus deposit 60 days before arrival. That sometimes gets scrunched down to less since, aside from major holidays, a lot of people seem to be booking less far in advance.

[Essar]

Longer than six-weeks before arrival
25% deposit on booking (Minimum £100).
75% + £100 Security Deposit (per week or part), 6-weeks before arrival.
Six-weeks or less before arrival
Full rental + Security Deposit.

We don't charge Security Deposit to repeat guests and also limit their initial deposit to £100.

We accept payments through Bank Transfer, PayPal (Debit/Credit Cards), International Bank Transfer, Personal Cheques drawn on a UK bank account (only if 14-day or more to arrival) and PingIt. We don't accept cash.

All charges associated with International Bank Transfer are payable by holiday maker.
We take all processing charges associated with on-line payments through PayPal.

Security Deposit is refunded 7-days after departure and is re-paid by the same method of payment; i.e. Guest paid using PayPal, we refund via PayPal.

Our Cancellation Terms are fair and we apply them regardless of who the guest is.

[greenbarn]

25% on booking, remainder 8 weeks beforehand. None of it is "non-refundable under any circumstances" within UK contract law.

Oh dear - I did not know this - only our booking deposit is non-refundable. The remaining 70% has various time-based cancellation terms. Air lines and car hire companies and UK rental sites (eg English Country Cottages) require similar (or more draconian) rules so why is it different for our holiday rentals? And we always take out holiday insurance to cover cancellation costs... so am not sure I understand what you mean.

You can say what you like in your T&Cs, but it's pretty much irrelevant.

IANAL, but in simple terms UK Contract Law says that in cancellation of a contract neither party should gain or lose by the actions of the other. So if a guest cancels but you relet at the same rate, you haven't lost anything bar some admin time, advertising costs or whatever; hence the guest is entitled to a full refund less whatever realistic charges you impose.

Conversely, if the guest cancels and you fail to relet despite your best endeavours, you've made a loss and the guest is liable for the full amount less any costs you haven't incurred such as cleaning - not just the deposit.

Whether anyone would consider it worth the effort of taking the matter to a court, or indeed even know that was an option, is another matter altogether!