How Much Deposit for Vacation Rental?

Question

I have four properties that allow 30 day rentals. Only one of them has been rented out as a vacation rental and only to family and friends and friends of friends. It seems like some people collect a very small security deposit. I also just noticed a VRBO person collecting a $59 property damage charge which I assume is going to some insurance company,

How do you decide what amount to charge and have you had problems when damage went over that amount?

Account Closed · Answer

I charge a $39 damage protection fee. It is not refundable. I tell them it will cover up to $300 in damage. After that, their credit card will be charged.

I then just let the $39 from all the rentals accumulate. Once in a while I have to pay to repair something, but I've already made several hundred dollars, plenty to pay for the repairs.

It's kind of like insurance, but I don't pay an insurance company.

Patrick V. · Answer

We don't charge security/damage deposits. Too much hassle and have not had a need for it.

Arlan Potter · Answer

I have never charged a damage deposit. I have never had damage that was not reasonable. I did have one renter that lost part of the coffee pot. I didn't ask, but she sent me a whole new coffee pot. I have had a couple of chairs broken, but they were garage sale chairs anyway that were bound to go at some point.

For my vacation rental, I find that most people are very good about taking care of our place. And most come back again.