Damage deposit - how much?

[Guest3]

Fibi said

...but hubby pointed out that we have never caused any damage and why would other people be any different to us so I didn't and I've had no problems. If I did I would rely on the courts to sort it out and not a deposit.

1. It's all very well saying that just because you don't cause damage then why would other people be different to you. The thing is there are people out there that do think and act differently. I am an open and trusting person...but my trusting nature regarding the use of our villa has not neccessarily followed through with a minority of our guests.

If I had caused damage to the pool cover like my guests had done, I wouldn't have walked away without a word! This lack of honesty made me more angry than the damage caused!

We have had honest guests leave a note to say.. xx was damaged, sorry please deduct the cost from the damage deposit...the majority are minor..e.g table lamps, ornaments and the like...and we return their deposit in full. Other thoughtful guests have replaced items that they've damaged..e.g. toasters, kettles and even a coffee machine (we can only assume dropped on the marble floor which takes no prisoners!). But we have also had dishonest guests who cause damage..e.g. the family whose children jumped on the single bed and caused it to collapse...the same children broke the arm of the leather settee (which was irrepairable)..and they counter attacked that the furniture was of poor quality! Needless to say the damage deposit I collected in those days was £100 and not enough to cover the damage. I have a fully comprehensive holiday rental insurance with Intasure but a claim for this would have pushed my premiums up the following year...not worth the hassle! So we went out and bought another leather suite.

2. For the owners that actually live on site, the situation may be different. Perhaps this is a deterrent and makes your guests more aware that if any damage was caused you'd be 'on their case' straight away. I don't live on site, but live a 5 minute drive away...so I am not on the doorstep to 'keep an eye' on our guests.


3. It's not a question of 'attracting' the right/wrong type of guests...it's basically pot luck whether you get a family that respects your property or one that does not.

4. My damage deposit also covers excess use of electricity. This in itself has made people more aware to be prudent in the use of electricity! We give a weekly allowance and any excess used is charged per Kw. I had to include this in our T&C's after guests misused electricity and ran up 900kws in just 14 days!

5. As I am resident in Spain, I would find it very hard to pursue any damage claim through court (in Spain or the UK) for UK guests..or that matter any EU or worldwide guests! It would cost me a fortune! So that route is not as simple for me as it is for an owner who lives in the UK and renting to UK guests who can take a damage claim further through the small claims court at a relatively low cost.

6. I always include the damage deposit in the final payment which is 8 weeks before departure. To date no-one has ever queried the damage deposit as (I assume) they accept that this is part and parcel of private holiday rentals.

[Alan Knighting]

Brooke,

What an interesting perspective.

In order that they may avoid disappointment perhaps more owners should have a different perspective. It may be an interesting or even an innovative perspective but after many years of being on both sides of the fence it is the one that Joan and I have adopted.

You instance toilets. In our toilets, all 9 of them, one presses the button and miraculously the toilet flushes- what could possibly be simpler than that?

Alan

[la vache!]

Jane,

OK. You disagree with me. Your visitors make it necessary for you to charge a damages deposit; my visitors make a damages deposit totally irrelevant. That’s all there is to it and there’s nothing more to say.

Alan

Alan, it has been said before, if you live on site, things are slightly different. If I was an absent owner, like Jane and Brooke, I would definitely charge a damage deposit. Likewise if I'd had the recent experience of Crystal. Once bitten, twice shy.

[kteee]

I take security deposits from all clients, whether repeats or not, and with almost 60% of my bookings this year from either repeat clients or recommendations it appears to have no detrimental effect.

Once or twice a year I need to make a deduction (I look after the rentals for a large number of properties so the percentage is very small) and rarely have any problems with the clients.

As far as the competition is concerned, a large tour operator which offers more than 200 villas here, plus others in other European countries also takes security deposits, and, as has previously been pointed out, hotels will always have an imprint of your credit card when you check in, which amounts to the same thing.

As a very regular 'lurker' who rarely posts, I am disappointed to see a 'bullying' atmosphere creeping in across these normally friendly, helpful boards - totally unnecessary imho.

[Bellywobble]

We live on site and don't really have anything of great value in our apartment.

I've always thought that security deposits are more trouble than they are worth and only take one because my OH insists. However if I were in Crystal's shoes at the moment, I think I would want full access to their bank accounts and references from everyone that has ever met them!

As with anything in life, from tragic accidents to troublesome guests it's easy to think that problems won't apply to us, until it happens and we lose our "safety net" of feeling secure! As someone said, horses for courses. It probably makes little difference as to whether people book, but it's how we feel about it that matters.

Crystal will probably be very lucky if she recovers her costs but at least the deposit means she'll get something back. Thank goodness.

[Fil]

Kteee,
Could you please tell what is the normal procedure in Algarve with yourself and operators concerning the charging and reimbursing of damage deposits. When are they requested ? What ammounts ? When are they reimbursed ? In what way ? I would much appreciate your answer.

[kteee]

I take £150 deposit per apartment, per booking. This is due with the final balance of the rental 8 weeks before arrival. For villas I think the normal deposit is £300-£500 but I don't really look after any villas.

After the clients have left, I have to wait up to a week for confirmation that everything is ok from the relevant management company (as I don't get involved in that side of things) then I e-mail the clients to ask if they prefer a cheque or bank transfer. It is a nuisance to do it for every booking, but the times when it is needed makes it worthwhile.

[enid]

Oooer - now I'm umming and ahing again about the security deposit. Thanks for the many inputs - in my heart I know that it is good business sense to insist on a deposit - I just find it a hassle to remember to send it back!!!! I bet someone breaks something now and then I'll have egg on my face.

When we were punters the other week we didn't pay a security deposit - Kevin set off the smoke alarm (he's a good cook honest so I don't know what happened) and unlike ours it didn't have a switch off button so he started waving at the smoke with a newspaper and managed to catch the smoke alarm and break the housing that holds the cover on. We left a note and asked her to tell us how much we owe her but we've heard nothing yet. He's rented the cottage fro 6 months from September so he'll offer to pay again when he sees her.

So we're the guests we warned ourselves about!!!!!

[guest 4]

No problem for me remembering to send deposits back Enid, when I get the keys back, I send the cheque. You could put it in your diary.

Breaking a smoke alarm housing would not cause me to hold back any deposit, they only cost a few quid, hardly major damage. I'm sure the landlady has put it down to normal wear and tear and knows your hubby has been a good tennant otherwise.

I don't think any of us take damage deposits simply to rake in a few pounds here and there. It just saves us having to write very awkward letters or emails asking for payment towards significant damage costs, as well as not having to resort to court proceedings.

Ruth

[enid]

You're right Ruth I could put it in my diary - no excuse as I use Google calendar and that sends me an e mail the day before an entry so I have plenty of warning

[la vache!]

I don't think any of us take damage deposits simply to rake in a few pounds here and there. It just saves us having to write very awkward letters or emails asking for payment towards significant damage costs, as well as not having to resort to court proceedings.

Ruth

But what if the damage deposit doesn't cover the damage done? £200 isn't a lot if a carpet needs replacing, for example.

[Normandy Cow]

Funnily enough, and totally coincidentally, yesterday I was talking to my insurance company (Intasure) about this problem.

Up until recently we were using Aviva insurance, but it didn't cover us for accidental damage done by guests (this is normal for France, the reason being that standard French home insurance covers people for personal liability even outside their own home).

We switched to Intasure because it reimburses you for loss of earnings should the house become unrentable as a result of any of the risks covered.

I realised that we were on their standard cover which doesn't include accidental damage, so I called them and now we are covered for all accidental damage done by ourselves and/or our guests, with a £250 excess. The operator told me "most of our customers ask for a £250 security deposit from their renters, and this then covers them for the difference".

So there's your answer. My cover was approx £22 per month w/o accidental damage, and has now gone up to £26 with the extra cover. This covers buildings, contents, public liability etc etc.

[Sarah]

This is one of the main reasons that we charge a security deposit of £200, our accidental damage excess is 250 euros.

[la vache!]

I realised that we were on their standard cover which doesn't include accidental damage, so I called them and now we are covered for all accidental damage done by ourselves and/or our guests, with a £250 excess.

Well, that is interesting, the operator I spoke to about Intasure policies definitely told me the excess was only £50 (and I was very specific about including guest damage in the cover).
Do you know what sort of proof they want NC?
Sarah, have you ever claimed from your company and if so, was it quite straightforward and easy to get the pay out?

[enid]

Good advive NC thanks - I need to do an insurance comparison so I'll try them