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Your Renters , How To Avoid Cancellations from Vacation Rental Guests |
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How To Avoid Cancellations
The best way to avoid a cancellation: Don't book a reservation without having money in hand.
| A cancellation policy needs to be clearly defined in your rental rules. Keep in mind that you are not a big business, and your chances of re-renting a week grow exponentially lower as the date draws nearer. Some people choose to have a cancellation fee or re-rent fee. This fee would be somewhere in the vicinity of $25- $50 dollars. Since you set the rules, you can make that figure anything you wish. If someone cancels without a good reason (a good reason would be a death in family, serious illness, call to military duty, etc.), keep the deposit and/or any payments that you have received as per your rental rules. However, if you re-rent, return the money. |
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Read how one owner (Nadia) solved a cancellation problem:
Nadia rented her snowbird season (January – March) in April of the previous year for $1,000 per month + $200 damage deposit. In November, these guests stayed at her property for a long weekend. Upon returning, the renters called Nadia and explained that although her home was beautiful and it was everything that she described, they decided to go to a totally different city for their 3-month stay.
Nadia's rental rules required her snowbirds to pay in full 60 days prior to their rental date, and her cancellation for snowbird rentals was 180 days. She had every right to keep their full payment (but not the deposit since it was a damage deposit).
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Nadia explained to the renters that it would be very difficult to re-rent those dates since most snowbirds have secured their rentals by now. The renters clearly understood her dilemma as well as the rental policies.
Nadia is very soft hearted and felt bad about keeping their money. After all, she had spoken with the renters numerous times up to this point and felt as though they were friends; however, on the flip side, Nadia could not afford to lose out on $3,000. Together they came up with a great solution: Nadia agreed to do everything possible to try to re-rent those three months. One month passed and not a single renter called. When the renters and Nadia spoke next, the renters suggested that Nadia reduce the rental rate to $700 per month. They figured whatever portion of the rent they could recover would be better than nothing. Nadia changed her one-line ad on all the portal sites she is listed on. She did not rent January, but did rent February and March. Nadia happily refunded the first snowbirds the $1,400 she received from the new renters.
A quick note: NEVER accept any payments without a signed copy of your rental agreement and policies.
© Christine Karpinski 2006
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