The Vacation Rental Deposit Process by:Terry Gronenthal
Before you stay in a vacation rental there are a few nuances that need to be understood
. Most have to do with money. Specifically, the deposit and then paying for the entire stay before you get to the property. It's my understanding that a few countries around the world operate on a pay-when-you-get-there system, but in the United States, for the most part, it's different.You pay for the entire stay before you cross the threshold, that's your threshold; as in, you pay for everything before you leave your own home. This article talks about what you should expect concerning your deposit money when going into the vacation rental transaction.
Depending upon the time frame, there are typically two sets of monies sent: First is the deposit, including reservation, cleaning, pet, and damage. The second is the "remaining balance." When it comes to vacation rentals, renters will be obligated to send in the above mentioned deposits at one time and then send in the remaining balance at another. If you are booking the vacation home within 60 days of travel you will, more than likely, be paying all of it in one fail swoop. In other words, you will be sending money to cover the deposit(s) and the accommodation amounts all at once.
What is a Reservation Deposit?
According to HomeAway, "Reservation Deposit: A certain amount of money collected upon booking that validates the rental contract. The reservation deposit can convert automatically into a security deposit." Also: "Regardless of how far in advance the renter decides to book, you should require a deposit and signed rental agreement in order to confirm the booking." So, if you have your heart set on a specific property, the vacation rental owner/agent will ask you for your deposit, the remaining balance and a signed rental contract. If you want to move ahead with the rental agreement then get down to the specifics as to how they can receive money from you.
What this means to you, as the renter, is that when you decide to stay at a certain property, you have to send some money to the owner/agent to take the property off the market and reserve it for your stay. Depending upon how far out you are booking, it may be a deposit only then the remaining balance or it may be both simultaneously.
When you send money, in any format (credit card, check, paypal) you should consider itemizing what the money is to be used for and when they will be returned. If you are sending via credit card, send an email simultaneously with a return receipt request, along with the money. In that email itemize the dollar amounts. For example, if you are sending money for a week long rental with a total of $1900.00 which includes a $500.00 "deposit" itemize the amount: $1400 for the vacation rental for one week and $500.00 for the security/damage deposit. Security deposit to be returned per the rental contract, assuming no damages, no later than "fill in the date." Keep the return receipt notice.
The deposit allows for comfort on both sides of the transaction. From the renter's point of view, if you have done your research, the deposit provides you with peace of mind in that you know that the property will be available for you when you arrive. From the owner/agent point of view, the deposit provides them the same peace of mind in knowing that the property is booked for that time period and they can focus on getting it booked at other times. Here at Vacation Rental Info we focus our time on helping renters avoid scams, but it's a well know fact that the owners are as vigilant, if not more, than we are when it comes to smoking out scammers. Your deposit and final payment can help them immensely.
The final balance is typically due between 14 to 30 days in advance of your stay. Again, from both sides of the transaction there are benefits in sending your money within this time frame. The owner/agent will have a plenty of time for the money to clear and to get you any further instructions (i.e. keys, lockbox codes, directions) needed. For the renter, you'll see the money clearing your account and can follow up with an email or call to the property principals to verify reception of funds and get any further questions you may have answered.
Even if you have done all of your research you may feel that there is still a small chance for getting scammed. If you feel that there is a possibility of you showing up and the vacation rental is not real, one of the defense mechanisms you have is to use a credit card for all transactions. But, before you do, you need to understand the time period your credit card will give you to dispute a charge. Some card companies have very short periods, 30 days, some longer.
Before you send any money, call your credit card company and get a full understanding of their policy when it comes to disputing charges. We've only had one problem with a deposit in the last 11 years but it was only a timing issue. The property owner was super busy and "hadn't gotten around to it" one phone call with her solved that problem quickly.
Submitting and getting your deposit back is not a big deal. Just follow the instructions the vacation rental owner or agent provides you, don't break anything at the vacation house or do any damage and all should be good.
About the author
Get a firm understanding of when you have to send in your vacation rental deposit money, what it is going to be used for and when the money will be sent back to you. All of this should be spelled out in the rental contract. As I've mentioned many times before, renting a vacation home for your next holiday is not brain surgery, but there are a few nuances you should be more than just familiar with. Visit http://www.vacation-rental-info.com to read dozens of posts about the entire process and get a copy of chapter 4 of "The Vacationers Guide To Vacation Rentals, What to do Before, During and After Your Vacation" for free. Five Tips on How To Communicate with the Vacation Rental Owner by:Terry Gronenthal Top 5 Water Activities in the Smoky Mountains by:Bob Foster Two days tour to Cairo from Marsa Alam by flight Free Breakfast? by:Jose Gonzalez Honeymoon Destinations in Dubai and Beautiful Honeymoon Beaches in Dubai by:Dr. Lee Mikal Intending River Rafting While on an Adventure Travel by:Vibhav Gaur Cheap Flights: Tips To Book Cheap Flights by:David Shang Hotels in China - Delivering a Superior Guest Experience with Chinese Hospitality by:James Brad Lee Book Cheap Flights to Hong Kong for the Summer Spectacular 2010 by:Disha Christopher Details Concerning New Runway Delay Rule by:Steve Robinson The Best Limousines in Limo Services Pittsburgh by:Mark Stjean The Sanctuary Lodge at Machu Picchu - Worth the Expense? by:Sue Painter Two days tour to Cairo from Marsa Alam by plane