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How to Accept Payments from Your Vacation Rental Guests
Establishing a clear payment policy turns the challenges of financial transactions into major rewards.
Handling the various monetary transactions that go along with owning a rental property can be a challenge. But reaping the financial benefits of your vacation property doesn't have to be complicated, as long as you establish clear and organized policies regarding financial transactions.
Remember that the renter has spent hours, possibly days, looking for the ideal destination and property to rent. By the time you are contacted, the potential renter may be feeling frustrated and maybe apprehensive about remotely transferring money to someone they've never met. Presenting the renter with a set of solid and concise financial policies will help ease their concerns, and should also help reduce potential aggravation and potential problems for you.
In order to protect both you and your renter, put everything in writing. Before the transfer of any funds occurs, send them a copy of your rental rules and financial policies. Always have your renter print and sign these documents and send them back PRIOR to accepting any deposits or payments. (Alternatively, you could ask them to return the signed documents along with the deposit or first payment.) Here's a link to our sample agreement: Sample Vacation Rental Lease, Agreements & Contracts.
Once your policies are in place, it is time to begin accepting payments. Here are some of the most common methods available to you today:
- Personal Checks: While this is often considered the most convenient method by your renter, it presents the most risk to you. If you accept payments by personal check, cash the check immediately. And make sure you give the check ample time to clear before giving the renter access to the property.
- Money Orders and Cashiers' Checks: These are not the most convenient payment method for your renters. The time it takes the vacationers to acquire and mail this type of payment typically causes a delay and creates additional expense for them. However, this is one of the safest ways of getting secured funds in U.S. dollars or whatever currency you accept from international vacationers.
- Credit Cards: These have become the universally accepted mechanism for purchasing travel over the Internet; travelers expect to use a credit card. If you do not accept credit cards, renters may look elsewhere. Accepting credit cards gives you flexibility and the benefit of immediacy, and no more waiting for “the check is in the mail” to verify that a booking is solid. You can take deposits, final payment, security deposits and even process refunds all over the Internet.
- PayPal: This is a fast and convenient online payment service. People like the convenience of this service, since money is transferred automatically over the Internet, directly from their credit card or personal checking. This service does require you to open up your own account, but the process is quite simple.
© Christine Karpinski 2006
Considering accepting credit cards? HomeAway has merchant account plan especially for vacation rental owners. Learn more about credit card processing or sign up for a HomeAway merchant account.
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