Is it ok to change damage deposit mid-season?
Is it ok to change damage deposit mid-season?
My damage deposit is a bit high I think (250 euro) - was very nervous when I started this (!) and I'm thinking of lowering it...is that weird to do mid-season? should I wait until I change my rates? what about people who booked already for summer? do I credit them the damage deposit difference? should I just let it go since they've already paid and signed the T&C, etc. Just leave the amount out on my listing sites? I would hate for them to see I'd lowered it and have them upset (where as, if I wait until I up rates a bit, those who pre-booked won't be upset since they are getting the lower weekly rate!).
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Hells Bells
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nope. no complaints at all actually. thing is...my us credit card processing company has a $350 per transaction limit...which was fine...until lately when the dollar is SO bad (!!) now my 240=$372 (!) usually not an issue because many guests are non-US...and the recent US ones are just sending me a check 
but...like to have an alternative method of payment in case there is every a problem with paypal (!) which is what I usually use. may look into another cc co. anyway though...will keep things as is for now maybe until I change rates next year...and cross that bridge when I come to it with the credit card processing.thanks!
but...like to have an alternative method of payment in case there is every a problem with paypal (!) which is what I usually use. may look into another cc co. anyway though...will keep things as is for now maybe until I change rates next year...and cross that bridge when I come to it with the credit card processing.thanks!
Musetta
That seems really high to me. We're only now putting ours up to €150, and no I don't think it makes a blind bit of difference when, especially as you want to bring it down.
We base ours on what we think is reasonable, what sum might make people think before they do something they shouldn't and what might cover small amounts of damage and additional cleaning. It is not meant to cover all damages, just to put people off from causing any.
Chianti
That seems really high to me. We're only now putting ours up to €150, and no I don't think it makes a blind bit of difference when, especially as you want to bring it down.
We base ours on what we think is reasonable, what sum might make people think before they do something they shouldn't and what might cover small amounts of damage and additional cleaning. It is not meant to cover all damages, just to put people off from causing any.
Chianti
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Mountain Goat
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the deposit is a bit on a high side - well actually a lot on the high side. It would put me off booking not because of the $250 which I have paid and more in the past without giving it a second thought but because in ratio with your weekly charges its high and I would suspect that you may keep the deposit to bump up your rental income (well I wouldn't cos' I know you through this forum and know you would never do that but if your place was completely new this is what I would think).
Its not uncommon practice to actively make money through deposits (I mentioned my friend in a previous post who has never got her deposit back). I know several people to base their costs on retaining 50% or more of deposits.
This year for the first time deposit taking is one of the areas that I use to decide on a holiday property for us - we have always got ours back however sometimes its been a hassle with several reminder emails- and now the level of deposits seem to be getting higher and higher. Nothing was the norm 10 years or so ago, then £50 then £100 and now its £300 to £500.
I would lower your deposit to $150 or even $100 for new guests only - who needs all that refunding and adjusting!!
Its not uncommon practice to actively make money through deposits (I mentioned my friend in a previous post who has never got her deposit back). I know several people to base their costs on retaining 50% or more of deposits.
This year for the first time deposit taking is one of the areas that I use to decide on a holiday property for us - we have always got ours back however sometimes its been a hassle with several reminder emails- and now the level of deposits seem to be getting higher and higher. Nothing was the norm 10 years or so ago, then £50 then £100 and now its £300 to £500.
I would lower your deposit to $150 or even $100 for new guests only - who needs all that refunding and adjusting!!
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Hells Bells
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I don't take a security deposit except when all properties are let together, I suppose that must mean that the interiors of my gites are cheap and tatty.Chianti wrote:Fibi
You put it so well and I'm in total agreement. I think is should also be in proportion to the type of interior furniture and fittings and that of course is reflected in the rental price. If they are very expensive then I think a higher deposit may be taken, but within reason.
Chianti
yup. I think it's a bit high too...like I said, no one has complained - I don't put any of the money into my own bank anyway...just hold onto the check if it's a US guest or keep in the credit card account/pay pal account if overseas...
the reason for the 250 amount is becasue that is fairly standard in the US (well...$250, which USED to be simmilar)...my origional booking terms and conditions, etc. were really based on US guests and aUS contract...but now I am getting many people from all over oh...and becasue I was copying the management company in town and just figured I'd charge what they charge since I didn't really know what to compare my rates to back then
didn't really think about it when I started letting last year...it's only now...even though no one has complained and I'm totally upfront about it - definately feel better charging a deposit..so we won't get into that one again I do know some perfer not too.
Many US owners seem to be sending out a credit car authorization form for them to fill out instead now....kind of like a hotel...i.e. "Dear guest, sign here that you realize any damages will be billed to your credit card on file"
don't know how I feel about that one though....seems like there could be problems...rather have the cash there if needed...at least enough to cover my houosekeeper's time should they get locked out and need a new key made, etc. - minor stuff...obviously, that wouldn't cover anything major anyway.
the reason for the 250 amount is becasue that is fairly standard in the US (well...$250, which USED to be simmilar)...my origional booking terms and conditions, etc. were really based on US guests and aUS contract...but now I am getting many people from all over
oh...and becasue I was copying the management company in town and just figured I'd charge what they charge since I didn't really know what to compare my rates to back then didn't really think about it when I started letting last year...it's only now...even though no one has complained and I'm totally upfront about it - definately feel better charging a deposit..so we won't get into that one again
I do know some perfer not too. Many US owners seem to be sending out a credit car authorization form for them to fill out instead now....kind of like a hotel...i.e. "Dear guest, sign here that you realize any damages will be billed to your credit card on file"
don't know how I feel about that one though....seems like there could be problems...rather have the cash there if needed...at least enough to cover my houosekeeper's time should they get locked out and need a new key made, etc. - minor stuff...obviously, that wouldn't cover anything major anyway.Musetta
I agree. You are naughty following what the agent does, she sounds as if she would do anything for a bit of extra money. Do what you think is right and what is right for the market place, ie compared to other owners in Italy. I think damage deposits are now the norm, but they must be reasonable.
Good luck, you sound well on your way now.
Chianti
I agree. You are naughty following what the agent does, she sounds as if she would do anything for a bit of extra money. Do what you think is right and what is right for the market place, ie compared to other owners in Italy. I think damage deposits are now the norm, but they must be reasonable.
Good luck, you sound well on your way now.
Chianti
Chianti,
hahahah nope. actually was not the agent I was copying...she came into the picture much later in the game...this was a "company" set up by the company we bought our home from...they are now no longer in existance and no longer provide property management in the town...
so...ya see...naughty for copying and not using my own good sense but not nearly as naughty as you thought! (have no idea what the estate agent charges...she doesn't list any prices on her website for owners nor for guests...I suspect their are diiferent rates depending on your nationality, if you know what I mean)
hahahah
nope. actually was not the agent I was copying...she came into the picture much later in the game...this was a "company" set up by the company we bought our home from...they are now no longer in existance and no longer provide property management in the town...so...ya see...naughty for copying and not using my own good sense
but not nearly as naughty as you thought! (have no idea what the estate agent charges...she doesn't list any prices on her website for owners nor for guests...I suspect their are diiferent rates depending on your nationality, if you know what I mean)