Short-term rental owners all share the same dream: never having to operate a Seasonal rental deposit. Renting with complete peace of mind means dealing with a respectful traveller who will leave the places as they found them. Attention, rental platforms do not manage the deposit in short term rental in the same way. It is therefore necessary to read the rules of each one carefully. In addition, a deposit is in no way a guarantee of compensation for the damage suffered by the owner. It is not supervised either, as in a long-term rental. The owner must therefore decide whether the Seasonal rental deposit is essential, how to set it up and what is its amount.
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A quick tour on social networks and we inexorably come across the posts of owners devastated by their damaged, dirty... ransacked apartment! What to do about the”Bad traveller“? Report it to warn other owners in the community? File a complaint? And last but not least: how do you get compensation? Because any harm deserves reparation. Through words, advice provided, here we are approaching the subject of Seasonal rental deposit. How to activate it? How to get reimbursed from the rental platform? Is it Airbnb or Booking.com? An excellent An article in the journal Challenges discusses this obstacle course.
Rather called a “security deposit” in the context of long-term rentals, this is a sum taken and collected by the lessor. And this is in order to protect yourself at the end of the lease against possible damage to the rented property. In short-term rentals, we talk more about a deposit. And which is none other than a sum possibly deducted by the rental platform in the event of deterioration observed by the owner or his representative. It is clear that platforms do not work in unison when it comes to the delicate subject of surety. Take the cases of Booking.com and Airbnb, for example. Not to mention the owners who decide to ask the traveller for a deposit directly. Often, in the form of a check or in cash (to be indicated then when writing your online ad).
The Booking.com platform does not offer to manage the collection of the security deposit. The argument raised is that it cannot be done on behalf of the customer, who alone is in control of the amount and the charge. It will be up to him to look for online debit services such as Swikly or Stripe. And this, in order to manage this issue independently. But who says service says associated cost. And the last action that the owner will have to put in place will be to indicate this clearly in his announcement.
Unlike Booking.com, Airbnb offers two alternatives: either the deposit request will come from the platform. And in this case, we will talk about a debit authorization on a bank card (the funds will be blocked on the credit card during the reservation). Or the deposit request will be requested by the owner when he writes his ad. In the latter case, no sampling authorization is carried out. The amount is chosen by the host (between 100 and 5000 dollars). And in order for any property damage to be billed to the guest, the host will need to claim a deposit withholding from Airbnb. Indeed, the platform provides a problem resolution center at its disposal but it will be up to the host to demonstrate the damage. And to claim compensation. With a more than uncertain outcome, it seems.
Would the good reflex then be to ask travelers for a high deposit in order to deter any misconduct on the part of a”Bad traveller“? By this name, let's understand a traveller who undermines the cleanliness, healthiness and peacefulness of the place by damaging it in a notorious manner. In fact, the process seems simple and easy: the host asks for a high deposit, activates it in case of damage and repairs the damage suffered. But unfortunately, the reality is quite different. You only need to follow the hosts' wanderings in various dedicated groups to understand that claiming a deposit from Airbnb is a real obstacle course.
Claiming a large amount does not in any way protect the host from being reimbursed for the material damage suffered. How can I prove that only the traveller had access to the apartment? And who is the only one who can be held responsible for the damage? It will be necessary to demonstrate the damage, the cause and the direct link between the cause and the damage. Finally, asking for a large amount of deposit mainly plays a deterrent role. As long as the traveller does not know how to use the platform's rules to their advantage. In particular by refusing to withhold the bond when Airbnb asks for his agreement.
We are then entitled to ask ourselves: what amount is neither too low nor too high? The answer is obviously dependent on many factors: the value of the goods in the apartment, the overall state of dilapidation etc. It is a question of fixing a random sum, according to criteria that are far too personal. Setting a deposit considered too high also sends a very different message to the traveller: that of a high risk if they too are confronted with a picky host or in the event of a problem. Without knowing or understanding whether taking a deposit will reduce, or not, their purchasing power on their bank card, travelers can get discouraged and turn away from home. This ultimately results in a risk of fewer bookings for accommodations whose owners are too greedy. This bond strategy is ultimately counterproductive. We think we are protecting ourselves against damage (belief) but we rent much less (reality): is this the objective pursued by the owner?
Thus, the owner is faced with a real dilemma: how to set a “fair” and dissuasive amount while maintaining his high reservation rate? We come back to the very concept of psychological price: what is “high”? At what amount does a tariff create a rejection effect? Because the collection of the sum leads the buyer to consider it inappropriate in relation to the idea he has of it. Certainly, a luxurious home will have indisputable arguments for claiming a high deposit. Because the amount will be in line with the purchasing power of the purchasers of the property. But apart from this particular case, the best strategy is to study the environment (i.e. the other hosts and the amount of the deposit requested) and to draw conclusions.
To understand the effects of the psychological price, there is only one solution: the test. It is necessary to test an amount that seems, after reflection, “fair” to you. If bookings decrease, it will then be prudent to question the relevance of the amount chosen. And readjust it.
You have understood it: obtaining compensation and reimbursement for the damage suffered in your short-term rental home is not a long easy river! The confrontation with the “bad traveller” and the rental platform is a source of stress. And despite all the precautions you can take, nothing guarantees you compensation: a bad traveller will remain a bad traveller and this is part of the game (risk) of short term rental. But you can count on OIQIA to guide you, support you in your activity as owner of short term rental.
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