Letting Agreements, Contracts And Breakages Deposit

 

Providing your holiday tenants with a Letting Agreement shows that you're a responsible owner and also sets out what is expected on both sides.

Look at the letting agreements provided by larger holiday agents to their guests and produce your own version that suits your circumstances. Have the agreement legally checked to ensure it abides by UK or local law.

Breakage deposits are at your discretion depending on your furniture value and rental fee. Remember - your guests are not usually out to wreck your house and steal your belongings - but that accidents DO happen - usually by mistake, sometimes by negligence. You should therefore cover yourself, but NOT deter potential customers from renting your holiday home.

Refundable deposits are the norm - find out what other property owners in your area charge for a similar property and letting period. If you are unable to take online credit card payments, always cash any cheques for security purposes - and advise your guests that you will be cashing the cheque (This also checks the validity of your bookers). Return the cash in full on the day of departure or by a specified date following the letting. You can be prosecuted for failing to do this without a good reason given in writing to the holiday tenant.

i Taking and Protecting Customer Payments

In the UK, all customer credit card, bank account and contact details are protected by the Data Protection Act - your customer's information should never be made available to a third party without their consent. Keeping clearly designated bank accounts, records for monies owed to and by you, and ensuring your guests' deposit funds are protected are all advisable good practice. Talk to your bank about the provision of Secure Merchant Services if you are considering taking online bookings from your customers.

ii Cancellations

A contract usually includes a booking deposit to cover cancellations. Full payment at least 4-8 weeks before arrival also allows scope for re-booking.

Cancellation refunds tend to follow similar timescales - 29-56 days before arrival date = 50% refund; 15-28 days = 25% refund; 0-14 days = 10% refund - together with any 'goodwill gestures' if you can re-book.

If you have to cancel your guests for whatever reason, consider offering them alternative accommodation, a full refund plus compensation and/or the potential to re-book at a reduced rate.

 
 
 
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