When to get tough on final payment?

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>
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Mountain Goat
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When to get tough on final payment?

Post by Mountain Goat »

With £600 deposit paid, £3k balance due 8 weeks before arrival, and no sign of it with just over 4 weeks to go, when does one get tough?

I am reluctant to spoil the previous 'good' relationship, but I am also loathe to scrabble around for an unlikely last-minute peak summer punter.

Excuses include 'busy', 'soon as possible', 'will attend to it' etc. etc.

Goat
Last edited by Mountain Goat on Sun Jul 02, 2006 12:41 pm, edited 1 time in total.
Sarah
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Post by Sarah »

We just had a similar situation, our 29th July guests hadn't paid their balance. I had sent 3 e-mail reminders with no response so I sent a letter by post in case there was a problem with the e-mail. I got a phone call on Friday night to say that the cheque had been posted and that if it hadn't arrived in Saturday's post to e-mail and they would send another cheque. Thankfully, the cheque arrived on Saturday, but I was getting to the 'what do we do now stage', it's a peak week and I have turned away lots of people. I'd be interested to know what other people have done in this situation.

The excuse for not sending the cheque earlier was that the post office in their village only opens for 2 hours per day so they were unable to get stamps!! :shock:
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Normandy Cow
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Post by Normandy Cow »

Luckily I've not yet been in this situation, but I think I would update my availability on my website to say that the week was "available" and then email the people and let them know that if I receive another booking I would be cancelling their booking and returning their deposit less an admin charge. This should give them a jolt.

And if I did receive a genuine enquiry in the meantime, then I would be upfront and tell the new people that I had another person interested and that the first payment I received would secure the booking.

I would give both parties the option to pay by bank transfer, as it is so near the date of booking.

Remember, you have the upper hand. You have the house, they want their holiday! And in 4 weeks time it is the summer holidays, peak season, you should have no problems reletting - I am still getting people looking for accommodation in July/August - there are always last-minute people who are desperate to find something.

I am definitely getting tougher in my old age!!! :D
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debk
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Post by debk »

This has happened twice to me and I sent an email with the subject: RESERVATION CANCELLED (dates)

Along with am "I'm very sorry" note explaining that I have, per the Rental Agreement, freed up their dates in hopes of re-renting the property and assuring them that, if the property re-rents, we will immediately refund their deposit minus the €200 cancellation fee.

I let them know that I hope all is well and explain that if the cancellation is in error then they can still attempt to re-reserve the property by sending their payment asap. Upon receipt of payment in full, the property would be again marked as unavailable.

Again, I've only had to do this twice but both times the guests were very apologetic, not at all angry and all was resolved asap.

A nail biting situation though. Hope it works out well.
debk
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Ju
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Post by Ju »

I think Catherine has the best solution. We have had this situation in the past, where the customer was just too embaressed to tell us that they weren't coming, instead they kept stalling.

Re-advertise the weeks straight away. You've already given them four weeks leyway, which is two weeks more than I would have given. If you do get another interested party, then get the money off them ASAP, bank transfer is probably the best unless you have your own card machine. Once you have the money then cancel the first set of guests. I wouldn't cancel them until the money is in your bank though, there is always the possiblity they will pay.

Best of luck.

Ju
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roxytoo
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non payers

Post by roxytoo »

I am in the same sort of position for the first time ever! I took a booking 4th June and a deposit cheque was sent. I never recieved it and spoke to the person 10 days after that who said he had posted it so it 'must have got lost in the post'. I pointed out that the full amount was now due and I was turning people down for the dates he wanted but he was adamant that he would to a bank transfer that weekend. Never came so I phoned again(having turned down 3 familys ) and he said that he didn't realise that his bank would want 3 days to set it up. (All very plausible really!) So I said (last wednesday) I needed it the bank either over the counter that day or by first class post that day. He said he definetly was going to do that. I still haven't recieved anything. I have contacted all parties that were interested in those dates but they have either booked somewhere else or haven't answered my emails. I am hopping mad that I might be left with a 2 week slot in August vacant after 4 years of being fully booked! Never mind being out of pocket! All the excuses seemed so plausible!
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vrooje
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Post by vrooje »

This is also a good argument for requiring final payment eight weeks in advance, so that there's time to secure another booking even after a person too cowardly to outright cancel has given you the runaround.

Thanks for the useful posts -- I have definitely learned something today.
Brooke
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roxytoo
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Post by roxytoo »

This was 8 weeks before the rental started so I guess I've got 4 weeks left to try and fill it :lol:
Highams Park Harry
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Post by Highams Park Harry »

I give people five days to have their deposit in after they say they've sent it, after that, if someone else expressed the desire to book, I thin I'd let the first party know that I'm taking the first deposit in, they've had their chance after all

as regards final payment, I'm on six weeks at the moment, if someone is late I'd tell them that I'm readvertisingthe weeks as available and will let them is possible, their deposit is forfeit

says that on my t&cs, no-one seems to have had any problem with that so far, as long as you spell it out up front and it's reasonaable what could the problem be
Dordogne Holiday Cottage, sleeps eight
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A-two
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Re: When to get tough on final payment?

Post by A-two »

Mountain Goat wrote:With £600 deposit paid, £3k balance due 8 weeks before arrival
Goat,
I agree with other comments here to free up your availability calendar to attract another booking, but I'm not sure I agree with cancelling their booking when you say they are going to be difficult to replace and have paid a relatively small amount so far. I wouldn't want to do anything that might make your legal agreement with them null and void and cancelling it on your side may give them an out they do not currently have. Rather I would ask them as a direct question what is the REAL problem, because you have enough IQ points to know that you're being given the runaround and it's not good enough.

Also, you might want to review your terms for the future. We ask for 50% to secure the house with the balance paid 45 days before arrival, or I split it into 3 installments if booked more than a year ahead.

I suggest that £600 deposit against a £3600 payment puts too much of the risk on your side regardless of whether the balance is due 4,6 or 8 weeks in advance. £600 is an amount that someone who has agree to pay £3600 might be willing to walk away from without too much of a problem, whereas in your shoes, I would have asked for £1800 to secure the house, or £900 if split into 3 installments. That's enough to make them think twice about walking away and would minimize your losses if in fact they do.

I have to say this has never happened to us thank goodness. The one or two that forgot to pay sent it immediately on a reminder with an apology.
Hells Bells
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Post by Hells Bells »

Goat, a lesson for all of us I think, not to undercharge on the deposit. I altered mine in the first couple of weeks from a fixed amount to a percentage of the rental costs (20%), but is it enough to recoup the inconvenience of having to readvertise, or maybe leave the place empty. If they have a genuine reason for cancelling they should get it back from their insurers.
Guest3
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Post by Guest3 »

Goat, a lesson for all of us I think, not to undercharge on the deposit.
We ask for a 30% deposit and the balance payable 8 weeks before departure. We send out reminders for the balance 9 weeks before departure and so far (touch wood) have had no problems with final payments being over-due.
Nessie
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Post by Nessie »

I was told by Clevacances that by French law I could not ask for more than 25% deposit.

Ok for us it’s a different ball game but this year I do seem to have had my fair share of time wasters, we hold the rooms for 7 days pending the deposit, if its not received by then I contact them to check and depending on the outcome we then try to re let the rooms. On 3 occasions this year and I am afraid to say all Americans which have been the main problem. The last 2 enquiries where for more rooms than I had available so I get a call to say that they would like to book the rooms that I have and could I recommended someone else for their friends to stay. They ask if I could check availability as they not speak French and on both occasions I have found them the extra rooms required which they book. Then no deposit arrives and on contacting them I am told that they have now found somewhere for the whole group and will no longer require the rooms. In each case I have lost bookings over it. I did say after last year problems with them I had the feeling that I would just say I was full to any enquiries received as they always seem to be a pain in the backside. No offence to any Americans on the forum
Nessie
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Alan Knighting
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Post by Alan Knighting »

Nessie,

For me it's terribly simple. Until a booking form and deposit have been received the week remains available and continues to be advertised as such.

My response to people who say “my word is my bond� is - “spherical objects�. We’re not running charities, we’re running businesses.

“First come, first served� is the right approach?

Alan
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Mountain Goat
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Post by Mountain Goat »

Many thanks to everyone for some very sound advice, which I've been going through carefully. I will stop pussy-footing around and make a firm decision tonight on our next step.

In the meantime I'm up to my neck in party of fading Euro-aristos which is keeping me hopping around (our favourite local Dôle wine has been pronounced as 'amusing for the kids to try in their Sangria' so I'm spending the rest of the day hunting for an acceptable substitute.

During an initial tour of the village last night, around 9pm, the one burning question from them was Where is everyone? The answer, in a small Swiss mountain village, is 'in bed'. I'm going to have to drum up some action, fast.

(By the way - how do you address a Baroness at breakfast? Anyone got one of those social manuals? I think we've bitten off more than we can handle here).

Goat
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