Security deposit

[Yorkshire Lass]

I take a security deposit (payable on payment of the final balance) and set it quite low (£100) in order not to deter potential guests. Though it is a minor hassle returning it I do feel it's a reminder to guests to leave the house in good condition and it also gives me an opportunity on the guest's departure to engage with them to find out if they enjoyed their stay and give me feedback which perhaps otherwise would not be as readily forthcoming. Though I've only deducted money on a handful of occasions it can also be useful when guests have left items behind and would like me to post them on as though I usually do this without charge they always tell me to take the cost off their deposit so I do have that option.

[amandajane]

.... the choice of a cheque (which I don't bank) or a bank transfer which is refunded after they leave.

Common advice is against doing that. Deposit it immediately:

Thanks e-Richard. I'm sure that's right. And good advice about the bank details.

I suspect fewer and fewer folk will use cheques anyway this year.

[Martha]

We sleep ten and the deposit is €300. Following a suggestion on here from Helen Beaumont, I always do it via Paypal, it's loads easier than bank accounts.

I have an invoice template set. The guests get an invoice the week before and can pay by card - they don't need a PayPal account to do this. Then, when they leave, I select Refund, and it's refunded without anyone being hit with any Paypal charges.

Very quick and easy, and I think having their card details helps a bit, psychologically.

[kevsboredagain]

they don't need a PayPal account to do this.

Depending on which country they are paying from

[newtimber]

Then, when they leave, I select Refund, and it's refunded without anyone being hit with any Paypal charges.

If it is a commercial transaction (which it is), then Paypal does retain the fixed fee (charged to you) - not a lot, but it's not zero.

[Martha]

they don't need a PayPal account to do this.

Depending on which country they are paying from

- true! It has never yet been an issue but I should add a line to say it can be done by bank transfer if this isn't an option. Good idea, thanks

Then, when they leave, I select Refund, and it's refunded without anyone being hit with any Paypal charges.

If it is a commercial transaction (which it is), then Paypal does retain the fixed fee (charged to you) - not a lot, but it's not zero.

I have always been refunded the full amount, no charges at all. Paypal note the the charge refund and the actual refund.

4 Jan 2016 Fee reversal from PayPal
Completed
€10.55 EUR

4 Jan 2016 Refund to GUEST X
Completed
-€300.00 EUR

EDIT - actually, I just checked, and you are right, it says:
"When you issue a full refund, your original transaction fee is credited back to you minus a thirty cent processing fee."

https://www.paypal.com/uk/webapps/mpp/send-refund

Strange though because in that case there should be a negative balance on the Paypal account, which there isn't. It goes back to zero.
And why are you charged in cents, when that is from the UK site?

Strange. Thanks for pointing it out, I will look into it. Though honestly, not having to faff around with doing bank transfers is well worth 30p or so, especially for guests who aren't British.

[kevsboredagain]

No, I have always been refunded the full amount, no charges at all. Paypal note the the charge refund and the actual refund.

Same here

[Martha]

I just double checked and the full charge is definitely returned. I was charged €10.55 EUR to receive the deposit and got €10.55 EUR refunded when I returned it.

[Unibond3]

Hi

I'm a little late to the party on this thread having only just come across it - but as I'm sure Security Deposits are still a topical issue, I hope my thoughts and experiences on this matter will be worth reading!

We directly manage about 80 properties in the UK using an Owner's own terms and conditions. Some request security deposits, and others don't. Looking at things like reports of breakages we find that there are about 30% fewer for owners with a Refundable deposit policy in place than those that don't. Deposits very in size from as little as £100 up to £1000. Nobody ever seems to baulk at paying them as long as they don't have to do it when paying their deposit.

On the occasions that we do have to claim, sometimes guests put their hands up and accept the deduction (provided we swiftly produce the relevant receipt for the replacement cost and refund the uncontested element swiftly). Others however will vigourously dispute your claim and suggest that you are simply swindlers of the first degree. We don't apply claims to small things like cups and plates - and usually only to things over £25 - with everything else as put down to 'wear and tear;. Forgiving people in such circumstances an be a good way to earn a repeat booking - as long as you decide you want them back!

However, when claiming fro a deposit due to damage, it is essential that you establish the situation and report it the very same day. If there are new guests arriving on the day the previous guests departed, then you must inform the outgoing guests before the new guests arrive, even if this means leaving a 'welcome home and I'm sorry but...: message on their answer machine before they have completed their journey. If not, this gives the outgoing guest an opportunity to claim that it must have been the new guests. To back up claims we or our cleaners know to take photos using their mobiles so that we have images with dates and times to prove things. Even then, you need to report it straight away.

The risk you run is usually some vitriolic correspondance and something nasty on TripAdvisor or Homeaway etc. as a result, hence the need to do it properly so that your claim is entirely defencible. We once - and only once -persuaded a particullarly canterkerous guest to back down after we threatened to post timed and dated photos that were taken within 15-minutes of this departure of damage that was clearly a day or two old (I'll say no more) as a comment on his review. This was something of an extreme situation which I hope never to repeat, but it did the job at the time. Essentially, you must be confident that you can make the claim stick.

The other thing that we have found to be effective when havin to withold money from a deposit, is to be polite but firm and do the 'broken record' approach. This is where you avoid getting embroiled in a debate but simply repeating in response to every protest, "I understand but "that 'suit of armour' was broken while you were staying and therfore responsible for it - but our village balcksmith offers very good rates and I'll be able to send you a copy of his quote withi the next couple of days and the balance of your deposit back straight away thereafter" - or words to that effect.

For the majority of claims it never comes to that, but it's always best to be ready for those rare occasions when you do need to withhold a deposit.

I hope this helps and would welcome any observation from those who in holding back security deposits have found other useful techniiques to minimse the stree involved in managing the process.

[kevsboredagain]

Interesting stats Unibond3 and a useful post, thanks.

[Unibond3]

Thank you Kev

Always a pleasure!

I've been 'offline' for too long these past few months, but am now returning to the company of good Hatters.

[Essar]

Hello Rick and welcome back. Good post.

We charge security deposits - £100 for the apt & £200 for the house - we never ever get travellers questioning its application. We like you only charge for things over £25, sometimes I will mention something that is less valuable just because it irks. Only today we have has guests leave and they have taken the child's bedroom nightlight, I sent a message "it looks as though you have taken the nightlight by mistake; do you want to return it or should I take £9.50 from your security deposit?"

[Unibond3]

Thanks Steve

Well that was well spotted - and in good time too! That's one of the problems with damage; often things don't come to light until well afterwards when it is too late to make any claim for compensation stick.

We try to create a shortlist of 'essentials' for cleaners to tick off as they work their way through a house, but it's not foolproof. I'd be interested to hear what other ingenious systems Hatters use to effectively 'check' their cottages for damage afterwards.

[tavi]

Hi uni,

thanks for your useful comments.

I've always charged a damage deposit and can well believe your stats reflecting 30% less wear and tear on those properties with the deposit.

I see the deposit as a mind focus for the guests - it's only £100 so it's hardly going to pay for much. I don't charge it to repeat guests and I've occasionally noticed the place left not quite so pristine without the deposit!

I've never used it, though I did hold it back for a few days last summer while I waited to see if the laundry would manage to remove what looked like engine oil from a set of sheets! Miraculously it all came out so I returned the whole deposit.

[russellt]

9 years in, and I have never withheld or made a claim against a security deposit(touch wood).

I have only ever threatened once(oil on carpet), but it just wasn't worth the effort. Some wd40(!), followed by soapy water and elbow grease, removed the problem.

Funny thing is that, since day 1, we have furnished the property like you would your home. I'm convinced that, if you do so, guests take more care. - no statistics to prove my theory.

(That said, no doubt we'll have a disaster one day.)

And for me, checking party profile is very important. The 'oil on carpet' issue was 3 blokes on a model aircraft flying weekend. Lesson learned.