Deposit Place

How Much Damage Deposit should you charge?

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Running a holiday let can be risky, every time the property is rented out damage can occur from unruly guests who don’t show level of respect you would expect. This then leads to the expense of fixing the damage and also the potential of loss of earnings if future bookings have to be cancelled. 

 

Pros of taking a damage deposit

  • How much deposit should you take? Its very common for holiday let owners to take a damage deposit of £150 or 10% of the total rental price.

 

  • Inform guests about to damage deposit policy at the time of booking. Ensure your damage policy is agreed to before the booking it taken. Your policy should include any specific rules on anything from but not limited to, parties, use of drugs, state of the property upon checkout. 

 

  • Have a plan to identify damage. Put in place a system to identify when the damage occurred and prove who is responsible. If damage only comes to light when it’s too late to identify who was responsible, then the whole point of taking a damage deposit is futile. The simplest way is to inspect your holiday home and take photos/video after every changeover. This way you have evidence of what condition the property was in when the guest arrived and its condition when they left.

 

  • Stand by your decision. There will be incidents when damage is due to negligence and deliberate e.g. no effort to clean up vomit or an attempt to hide a stain by turning the sofa cushion over. Don’t be afraid to deduct from the security deposit for negligence, that’s the whole point of taking one.

 

  • Encourage guests to contact you if anything gets broken or damaged. This will enable you to ensure that any visitor damage or accidental breakage dealt with in a timely manner.

The best time to take a damage deposit?

Take the damage deposit on or the day before check-in, that way it is fresh in the mind of your guests that they should be well behaved and respect your holiday let.

What is a damage deposit?

A damage deposit is a sum of money that is charged on or the day before check-in to cover the cost of potential damage from the guest, it also serves as a great incentive for the guests to be well behaved in your holiday let and leave it in the same condition they found it, i.e. clean and tided with nothing damaged. 

How to protect your holiday let from financial losses when it comes to damage from guests?

There are pros and cons to charging a damage deposit. below is a list of everything you need to know.

Dos and don’ts when taking a damage deposit

Read our list of our top dos and don’ts…

Do's

  • How much deposit should you take? It is standard practice for most property owners to either use a set amount e.g. £150 per week or 10% of the rental price total.

 

  • Inform guests of your damage deposit policy. Your holiday rental agreement should include all your specific rules and any breaches which would result in full or partial loss of the damage deposit. Ensure guests agree to your rental contract before accepting any bookings.

 

  • Have a plan to identify damage. Put in place a system to identify when the damage occurred and prove who is responsible. If damage only comes to light when it’s too late to identify who was responsible, then the whole point of taking a damage deposit is futile. The simplest way is to inspect your holiday home and take photos/video after every changeover. This way you have evidence of what condition the property was in when the guest arrived and its condition when they left.

 

  • Stand by your decision. There will be incidents when damage is due to negligence and deliberate e.g. no effort to clean up vomit or an attempt to hide a stain by turning the sofa cushion over. Don’t be afraid to deduct from the security deposit for negligence, that’s the whole point of taking one.

 

  • Encourage guests to contact you if anything gets broken or damaged. This will enable you to ensure that any visitor damage or accidental breakage dealt with in a timely manner.

Don'ts

  • Preventing disputes. Unless you are 100% certain who is the culprit of damage, don’t deduct from the damage deposit. Disputes are difficult to resolve without proof and will only consume your time. If you suspect the guest is guilty, simply put them on your never-rent-to-again list.

 

  • Don’t Be excessive. Only deduct from the security deposit a reasonable amount. Take into account the age of the item e.g. you can’t expect a guest to replace a broken chair ‘new for old’ if it’s 10 years old. Allow for depreciation.

 

  • Don’t be picky. If the damage is minor, clearly accidental (a dropped plate, scuff marks on the walls, or make-up left on towels), the guest makes a valiant effort to clean the spillage or offers to pay – it might be worth letting the damage go. Accidents and mishaps are part of life. Deducting from the security deposit for small damage can leave everyone feeling negative after having a great holiday.

Save Money & Time with Deposit Place

EASILY SECURE DEPOSITS

If Damage occurs, you can easily claim the damage deposit from the depositor, and provide evidence as to why you have claimed the damage deposit.

Track & Manage

Track and organise Multiple Asset’s Damage Deposits

Save Money

Only pay bank transaction fees when you need the deposit.

CONTROL

Taking back control of the security for your business.

SAVE TIME

Quickly request deposits and set reminders, deposits are automatically paid back if no damage is reported.

HAPPIER CUSTOMERS

No longer forget to pay back customers' damage deposits. 48h after the deposit term the payment is automatically returned from your account unless claimed.

How Much Can You Save?

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