Insurance vs Deposit on STRs? how to collect replacement fees

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Insurance vs Deposit on STRs? how to collect replacement fees

Bo A Vanecko
broomfield, CO · Member since 2017 · 98 posts · 31 votes

So i was speaking to some people who are doing STR in our complex and they were stating that they offer up insurance or deposit (they actually ask for 1500 deposit which seems high). this got me thinking a bit about items like "if you lose the door key card its a 75 dollar replacement fee". if they choose insurance and not the deposit, would i go through VRBO insurance to get a refund? am i able to charge the card on file? i can see if i have the deposit i would simply release the deposit minus the replacement fee.

i guess the question to a newb is how do i enforce replacement costs etc?

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
6y

We have been in business for since 2011 and manage approximately 30 properties.  I can count on one hand times that we have needed to charge a guest extra for things missing.  That's tens of thousands of guests.  Deposits and insurance do nothing but chase prospective guests off.  Yes, you might get $50 from VRBO (although unlikely) if they break a lamp, but how many reservations did you discourage in the process?   Guest don't like these fees.  They add significantly to the cost of the vacation and there is an underlying suspicion that they will lose their deposit.

The whole concept of deposits and insurance with STRs is penny wise, pound foolish. Quit focusing on the little things like dunning someone for a replacement key and spend your energy trying to rent your STR. Your bank account will appreciate it.

[email protected]806-672-7102
SMOKY MOUNTAIN FALLS INC.51 Review
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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    6y

    Bigger question is..... is STR even allowed in this building? More often than not the answer is no.

    To answer your question... Airbnb and VRBO (the two you’ll get the most from) each have their own deposit/insurance systems. When you sign up and put your property on them.... choose what you think will work, then tweak it when it begins to stop working. Simple as that. If you need help call their customer service. The more you call them the more bookings you’ll get! 

    I do the following depending on the size of the property...

    Airbnb: $100-250 

    VRBO $100-250

    Hint: Airbnb’s deposit is fake. 

    Sorry if I misunderstood the question I’m sick and on an iPhone 




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  • Bo A Vanecko
    OP
    broomfield, CO · Member since 2017 · 98 posts · 31 votes
    6y

    @Luke Carl 
    Absolutely allowed.. there is likely 60% of the units as STRs ;) LOL...

    thanks for the response and get better man..  sick is no fun!!  

    my question is really centered on the best way to handle being able to collect the small fees like replacement cards for keyless entry or smaller items ...  does insurance handle that or does the security deposit handle that?  the people i spoke with seem to have put you must have one or the other but did their deposit at 1500 sorta pushing people to take the insurance.

    so if i got insurance would i still be able to get back my replacement fee?  would i file a claim against the person and then have the insurance cover the charge?

    just throwing this out there as i begin to fill out my listings this week.  i have the whole thing ready to go just need to post it :)

    Bo

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    We have been in business for since 2011 and manage approximately 30 properties.  I can count on one hand times that we have needed to charge a guest extra for things missing.  That's tens of thousands of guests.  Deposits and insurance do nothing but chase prospective guests off.  Yes, you might get $50 from VRBO (although unlikely) if they break a lamp, but how many reservations did you discourage in the process?   Guest don't like these fees.  They add significantly to the cost of the vacation and there is an underlying suspicion that they will lose their deposit.

    The whole concept of deposits and insurance with STRs is penny wise, pound foolish. Quit focusing on the little things like dunning someone for a replacement key and spend your energy trying to rent your STR. Your bank account will appreciate it.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    6y

    You were trying to get good reviews when you're new. You were not trying to scratch out a few dollars when something's are cost of doing business to make them happy.

    1Reply
  • Mike V.
    Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
    6y

    @Lucas Carl you’re not kidding about Airbnb security deposit being fake. I just filed my second ever BBB complaint against Airbnb for failing to pay out on my claim. Last time it was paid within 72 hours of filing my complaint and I’m hoping this gets their attention. It’s utter nonsense the games the play.

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Mike V.:

    @Lucas Carl you’re not kidding about Airbnb security deposit being fake. I just filed my second ever BBB complaint against Airbnb for failing to pay out on my claim. Last time it was paid within 72 hours of filing my complaint and I’m hoping this gets their attention. It’s utter nonsense the games the play.

     Homeaway and ABNB are "offering" (quasi-forcing) these fees upon guests NOT to protect the owner.  They couldn't care any less about you.  They are doing it because these fees are CASH COWS and there might be one claim filed for very $ million received.  It is a ruse.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
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