Payment Policy:
It is standard policy within the vacation rental industry to collect a deposit at the time of booking. This ensures that the guest is serious about renting. The amount of the deposit varies in the industry from one night’s rent to 50% of the total cost. In my opinion, one night’s rent is a reasonable deposit amount. Ten business days is an acceptable time frame for your guest to send payment.
The remainder of the payment (called Full Payment) is due, on average, 30 days prior to the guest’s arrival. Some vacation rental mangers will collect full payment 45 to 60 days prior to arrival. For Christmas and New Years, they will collect full payment 90 days prior to arrival. However, in some resort areas such as Orlando, Florida you will find vacation rental managers running their business more like a hotel and collecting final payment at the time of check-in.
Thirty dates out is an acceptable policy for collecting payment. This ensures the guest is serious about renting your property and gives you time to find a new renter if they cancel. I do not recommend collecting payment at time of arrival unless you need to do this to remain competitive.
Sample Payment Terms:
Rates are quoted in US Dollar. A deposit of one night’s rent is due within 10 business days from the day of booking. Full payment is due 30 days prior to arrival. Personal checks, money orders, traveler’s checks and Paypal are accepted forms of payment
Optionally, you can add a Damage deposit to your Payment Terms. See the following section on "Creating a Damage Deposit" for more information.
|