Is it ok to change damage deposit mid-season?

[fibi]

Helen, Yessss- but the people who have booked with you have seen the deposit terms, accepted them and booked but you don't know how many have turned to the next accomodation because of your deposit arrangements! If you have no occupancy issues then it is of no importance, its just when and if you do you may have to think again.

la Vache, I don't take deposits and after my last guests from Hell my furniture is tacky but not cheap !

Surely the deposit is just a token no-one would really expect to replace furniture with it? Thats what insurance is for- I do think its important if you do take deposits to be very clear with guests and yourself what you take them for- a bit of extra mess and cleaning Ok replacing an accidently damaged table not OK, IMHO as always

This is what my TCs say re deposits (this is for my house)

Bond – you may be concerned about getting your full bond returned to you – don’t be! We aim to return your bond in full 3 working days after your departure.

Reasons you may not get some or all of your entire bond returned could be
• House left in an excessively unclean or messy state
• Much more oil or electricity used compared to normal (+ 30%)
• Covers on pool or hot tub damaged through misuse- for example sitting or standing on them
• Glass in the pool or hot tub
• Significant breakages(for example 6 crystal glasses)
• Extra guests not mentioned on the booking form staying in the house.
• Lost keys or gate controls
• Smoking in the house

[Hells Bells]

I have no occupancy problems, so not an issue, but I see your point, except that as it is going to be refunded it shouldn't be an issue. I see far higher deposits around on various rental sites.

[Musetta]

yes - I do outline mine too and am very specific...was thiking more and more thouogh about the credit card authorization though now ...might think about that actually....then no one is putting up any money really, but still in their mind that they DID give some sort of assurance they won't trash the place...what do you think...this was from an owner's T&C on another forum:
>> > The following individuals will occupy the apartment. An additional fee of 50
>> > euro per extra guest per night will be deducted for additional guests
>> not
>> > listed below. Names and ages of the parties to reside in the
>> apartment:
>> > Name of Guest
>> > Age
>> > Name of Guest
>> > Age
>> > 1
>> > 5
>> > 2
>> > 6
>> > 3
>> > 7
>> > 4
>> > 8
>> > Credit card information: Telephone number ____________ Credit c
>> > Visa MC Amex Discover No.(circle one) ____________ Visa MC Visa MC
>> Vis Exp date ________ Security Code 3 or 4 digits) ______
>> > Signature ____________ Sign Sign Sign Sign Sig
>> > Name on credit card
>> > ____________ ____ ____ ____ ____ ___
>> > Billing address
>> > ____________ ____ ____ ____ ____ ____
>> > ____________ ____ ____ ____ ____ ____
>> > Please charge the deposit to my credit card, with the balance 60 days prior to my arrival YES NO
Please charge the full amount due to my credit card
>> > YES NO
>> > Hold my cc number as guarantee for all charges, I will send a check in US dollars or a wire transfer. YES NO

[fibi]

Helen, you know its going to be refunded, I know you will refund it but unless they have stayed with you before its a leap of faith for your guests.

[A-two]

I don't mean to offend, but there's a lot of misinformation on this thread.

First, $250 is absolutely NOT a standard deposit in the US, there is no such thing, neither is it excessive. The whole basis of rentals in the US is that EVERYTHING IS NEGOTIABLE. Personally, I ask for $100 per person with a $500 minimum and people pay it without blinking. Sometimes I adjust it downwards according to my assessment of the risk, but I never raise it above what I have already quoted on the website.

You are perfectly entitled to negotiate the best deal you can on a case by case basis. If you want to change your deposit/ rates/ check in days/ towels/ anything mid-season, that's fine, in fact, it's to be highly recommended. Just make sure you update your website to reflect the most up to date information.

Don't worry about already confirmed guests who paid a higher rate. They are not going to ask for a refund. That's like buying a couture suit at the beginning of the season, then taking it back at the end during the sales to ask for a refund, but you still want to keep the suit by the way, just that you feel you overpaid. It's not going to happen, right?

However, in case anyone does ask, I would respond with a yes, we changed our policy in January for new bookings. Well spotted. Can I help you with anything else? Then shut up and say nothing.

Lots of people change their terms and conditions in response to changes in market conditions and buyer behavior. That's where your skills as an owner/property manager/business person come in. You need to be adjusting prices up and down in response to demand, and if you aren't doing it, then you're not getting the highest and best use out of your property. Heck, that's why we're paying $100 a barrel for oil isn't it? (Don't answer that)

I completely disagree with anyone who advocates for a "standard" anything, there is no such thing. More important, advocating inflexibility could be the death of something truly unique and creative that works in that person's unique situation.

If you feel you are losing bookings because your deposit is too high, fine, try offering a lower rate and see if it makes a difference. If it does, great, if it doesn't, raise it again. When you make the changes, make sure the website is kept current, or don't publish the exact amount at all and wait until you get an inquiry.

[fibi]

Anon2
Your posts make sense but I cannot click to your website to see what your T&Cs are...maybe I should know who you are but I haven't the foggiest!

[Musetta]

"First, $250 is absolutely NOT a standard deposit in the US, there is no such thing, neither is it excessive."

my choice of bad wording I think! sorry..what I MENT to say was that $250 here in the US is not out of the ordinary or off the mark...didn't seem out of whack at the time I have seen so many more websites now from owners other than US and have noticed that their deposits are sometimes much less than that amount I'd originally put...that was all

[A-two]

Surely the deposit is just a token no-one would really expect to replace furniture with it? Thats what insurance is for-

Not so. Homeowners policies in some parts of the world do not cover accidental damage. E.g. If you rent a place in the USA and put a large scratch in the dining table, or throw a glass of red wine on a white rug, expect to pay for it out of your security deposit. The owner will not be covered by insurance, it's your risk, not theirs.

I do think its important if you do take deposits to be very clear with guests and yourself what you take them for- a bit of extra mess and cleaning Ok replacing an accidently damaged table not OK, IMHO as always

Wrong again for the US properties. When you rent US property, you are agreeing to insure the table for the owner under your own policy. These are not rules made by the owners, these are rules made by the insurance companies, the owner has no choice in the matter. If you, as the tenant, don't have insurance for the table, then you would be asked to pay in cash, hence the level of security deposits can be quite high. (I have one client who requires $7,500 deposit for a one month rental because her furniture is valuable, and she gets it, year after year.)

This may also explain for some people here why Americans have no problems paying deposits when they travel abroad. This may explain for others why Europeans are more resistant to higher damage deposits unless it is explained to them. It's all about meeting expectations.

So when it comes to security deposits/ bond/ damage deposit/ whatever you want to call it, it's definitely a territorial issue. One size does not fit all. There are laws about how security deposits can be handled in the US, and typical US insurance policies do not offer the same coverage as typical EU policies.

My point is, and again I don't want to offend, that some people reading the advice above could go badly wrong and make a very expensive mistake unless someone points out to them that they need to look for local advice, not from someone across the world, however well meaning they may be.

For this reason, my terms and conditions are really not relevant to you Fibi, but as I have already said, I have no problem getting $500 and at $100 per person, that can be as much as $800.

[Musetta]

This is pretty much what I was saying
true about US insurance policies (I have a rental here in the US too)

also...I would NEVER, EVER make a claim to an insurance company here in the US for ANYTHING under 2k or so!! My insurance rates would go sky high!! (and, too many claims and you'd NEVER be able to get any type of homeowners insurance!)

so...that is the background I wasa comming from when I bought in Italy and set my deposit and rates...I'm an American...I'd really just assummed my market would be other Americans but has not worked out that way over the past year and i find myself renting to other nationalities - so will now adapt to wahat is more standard for my target market, of course

Americans (I do have 2 American bookings this year), feel very comforatable with credit cards and credit card deposits...so the amount doesn't seem to bother anyone...they figure (rightly so) that if there were to ever be a dispute about the damages I took out of the deposit (not that I ever have needed to yet *knock on wood*!), the credit card company would back them up and investigate and require me to provide adaquate proof. I also think there is some sort of feeling of security when Americans rent from other americans (and, I would assume UK to UK would be the same)...I guess they feel like they know where to find me should their ever be a problem with the deposit

Fibi- I must be SO naive!!!! I, honesltly, would NEVER had though people would actually make up rent by taking deposits! wow. I'm very lucky I have not rented from anyone like that...I would have been totally taken in for being so trusting!!