Security deposit

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>
Fraise
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Post by Fraise »

Yes, I think this could all be a storm in a teacup, begun by her not sending the deposit on time, then being defensive about it. She clearly wants to put it behind her too and is worried that this could spoil her holiday. She was in the wrong, but now it's time to move on. You are big enough to help her do this.No more e-mails, she'll be arriving soon, you want her to enjoy her stay in your lovely home. :wink:
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Mouse
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Post by Mouse »

I would agree with Fraise and Jane - the written word doesn't always come across as intended and you sometimes find yourselves going overboard to try and get your explanation across.

She is sounding defensive - and rightly so, she should have raised this issue a long while ago and explained correctly what was behind it.

I've just had a similar situation - guests due in a week. 2 couples plus kids - both wanted to pay their deposit seperately. Should have been sent a month before arriving - but only got the 1st couples deposit last week. Chased up the 2nd and got a sharp reply that it would be better for him to pay us when he arrives and then wait on departure for me to do a check and then get his money back!!!! Like - hello!? at 7 in the morning!?

I replied explaining (briefly!) that it wasn't possible as I only check AFTER it has been cleaned and pointing him to the terms on the booking form and website.
He replied saying he'd had a bad experience were his whole deposit had been kept back by landlord on the pretence damage had been done. He felt ripped off as the house was left as was. He didn't want to fall fowl of that again.

Naturally I assured him - but also told him he should have raised this when booking last september - I could then have given him references from other guests to alieviate his concerns.

Some guests really are their own worst enemy Joanna! But then they leave us with a bad feeling about them. I am now thinking this man may be trouble in a guest shape!!!!!

Mouse
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Vally
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Post by Vally »

Because we don't have security deposits ...I am not really au fait with the technicalities of them , but if thems your rules and they choose to come they have to stick by them.
I am really laid back about money, I never take deposits for the hotel , though I do for the cottages and so far ( everything is crossed when typing this ...with difficulty..) in nearly 20 years I have never been let down at all, no walk outs with out paying and no " no shows". I do get full details and I do only take reservations , never off the street visitors so I suppose that limits my likelihood of having problems.
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vrooje
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Post by vrooje »

Joanna, I agree with Fraise, Jane, and Mouse: I think the best thing you can do is not to send any more e-mails. Well, perhaps once to confirm receipt of the funds from the check.

I think it's also important to greet her warmly and without any hint of tension once she arrives. If you do that for a few minutes and she relaxes and reciprocates, then it was just a case of crossed wires. If not, you'll know to just grin and bear it and watch for damage, etc.

What's a bit more upsetting to me is that Vally doesn't take a security deposit! :shock: It's good -- better than good -- that you've never had any problems, but it does seem like a risk to me.
Brooke
Vally
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Post by Vally »

How would it work and what would it cover ...I think there are more on here who let in GB ..could I ask if they take security deposits??...I'm a hotel girl when I go away ...someone else can do the work!! so I don't know about it from that angle either!!
Hells Bells
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Post by Hells Bells »

Vally, it covers damage to your property/belongings, and extra cleaning. You can ask for it in advance, or on arrival if you are on site. Most of us on here would advise in advance, and the cheque to be cashed, (it might bounce if you cash it afterwards, and your guest can stop it). You return it to your guests when (or after) they leave, and deduct any damage. Hopefully you won't need to deduct anything.
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vrooje
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Post by vrooje »

Vally, here's the part of our rental agreement relevant to security deposits:
The client agrees to leave the property in the same state as when the client entered the property. The damage deposit given by the client guarantees the company payment for any damage made by the client to any appliances, furniture, upholstery, kitchen utensils, linens, towels, etc. The deposit will be returned in full to the client within two weeks of his/her departure, once the company verifies the inventory of the house and verifies that no damage has occurred to the house. In case the observed damage exceeds the amount left as a deposit by the client, the client agrees to pay in full for the excess cost.
We have only ever had to use it once (touch wood!), but I am so glad we take it.
Brooke
A-two
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Post by A-two »

vrooje wrote:The client agrees to leave the property in the same state as when the client entered the property. The damage deposit given by the client guarantees the company payment for any damage made by the client to any appliances, furniture, upholstery, kitchen utensils, linens, towels, etc. The deposit will be returned in full to the client within two weeks of his/her departure, once the company verifies the inventory of the house and verifies that no damage has occurred to the house. In case the observed damage exceeds the amount left as a deposit by the client, the client agrees to pay in full for the excess cost.
We go a bit further than this actually by clarifying exactly what is included in the rent in the way of the end of stay cleaning. If it exceeds the agreed allowance, (and we always do more than we tell them is included) then we reserve the right to charge extra hours at the prevailing rate, which is stated as $X per hour. Also, we have a separate clause for negligence and damage caused by tenants and their guests.

Our experience is that it is very rarely needed, and we give a lot of leeway unless it's really bad, but when we get to the point that we're going to take anything, it usually warrants us taking the lot, meaning we are significantly out of pocket and they are not being invited back ever again anyway. In fact, if you take a single $1 from the deposit, you're crossing that threshold from which there is no return. They are not coming back even if invited, hence for us it has been some form of permanent damage or significant carelessness or negligence on their part to warrant a deduction, otherwise it's not worth losing the customer.

Taking anything from the security also frequently results in nasty letters and threats of legal action, so I know that if I didn't have the deposit already in my bank account, they wouldn't pay up. Then I would have no alternative but to raise rates across the board to cover costs, which would mean the perfect tenants would be subsidizing the bad ones. I don't think that's fair, so I am very tough about making those responsible pay for damage caused once they cross the blatant negligence barrier. However, we only ask for a deposit from first time renters, repeat renters having already proved trustworthy.

Two more beach chairs went out with the tide this week, but unlike the last family to do the same thing, which loss was a mere drop in the ocean compared to other damage they did that they walked away from with a couldn't care less attitude, this family went shopping the next day and replaced them with better quality chairs, and without being asked. First time renters as well, so they didn't have to do it as we already had a good security deposit. That's what good people do, so they have received a 100% refund of the deposit today with a note to say we hope they will be back, but unfortunately not everyone is good people. If you haven't come across one yet, you're very lucky, but it's a sure bet that eventually you will and that's why you need a security deposit.

Hope this helps.
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Giddy Goat
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Post by Giddy Goat »

Joanna wrote: However, we only ask for a deposit from first time renters, repeat renters having already proved trustworthy.
We have had repeat guests for a total of 7 weeks this year now, and each time, I have requested a security deposit which has been forthcoming without query or objection. You never can tell in a rental situation, and even the most careful clients may be capable of an oversight in a moment of complete chilledness, such as leaving something out in the rain/wind, or not supervising a child briefly who does something silly; or they go out for the day and one person thought the other had locked up and vice versa but the property is left unsecured and ....

and there's also the risk from their guests, who may change from year to year.

Then the telephone bill - guests know we write off tiny amounts, but anything over a certain amount is deducted from the damage deposit. Have only done this once so far, but it's good to have the provision in place.
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Vally
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Post by Vally »

That is interesting ...thank-you , I am going to pass that on to my pal .....from my point of view (purely my opinion) I would have thought all that should be covered by what you charge...even any extra cleaning needed... I do not expect my guests to " spring -clean" just to keep it in reasonable order I (or rather Steven) will do the thorough clean which would take the same amount of time whether it was clean or dirty... anything else is wear and tear .... :wink: I am ready to be shot down over this ..I wonder if I am looking at it from a hotelier viewpoint
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Giddy Goat
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Post by Giddy Goat »

Vally, I have no idea about the cottages you have, their size or contents, but if someone broke a bed or other large piece of furniture/equipment, or we were burgled as a result of guest carelessness, I wouldn't want to be claiming on our household insurance every time it happened - nor would I be happy simply to replace a large item out of my relatively small net profits. Normal wear and tear is one thing, but negligence and serious loss or damage to the house or its contents is a different matter. As I said, use of the telephone is another area of potential abuse. You only need one teenager busting up with his girlfriend in NZ to crank up your phone bill by astronomical proportions! You mentioned that you do take damage deposits for the cottages (I think) - but I hope you'll cash them from now on!

On the point about cleaning, most of us ask our guests to try to leave the property as they found it - not to clean it, though many do, but at least to leave it tidy and in a reasonable state. I have to employ caretakers to clean, and we had one family who left the house in such a mess that the caretakers had to return the following day to finish off - and of course they were paid extra for doing so, which again, one can subtract from someone's deposit in extreme cases such as that.

These scenarios may never happen, but a good scout has to be prepared! :D
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Vally
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Post by Vally »

No I don't take any damage deposits...just a booking deposit... I think??? I do say on my cottage blurb that we reserve the right to charge for anything damaged...I think!!!!!!!
I did say I was very laid back about money!!
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Giddy Goat
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Post by Giddy Goat »

That might also mean that you're laid back period - in which case I envy you Vally, you'll live a long and healthy life in all probability! :D
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Guest3
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Post by Guest3 »

Vally, I started off this rental 'lark' with the 'laid back' approach..but after 3 years of renting that soon changed!!! :lol:
Hells Bells
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Post by Hells Bells »

At least if you have a damage deposit, you have a chance of some compensation for the damage caused. THings may be different if they have to cough up afterwards. Didn't someone on here have to take some young people to court over just such a thing last summer?
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