Requiring a damage deposit can give you an extra measure of security that your home will be well taken care of. But do you ever wonder how your guests feel about paying deposits? Many travelers prefer to stay in properties that require a small non-refundable fee to those that require a large damage deposit.
The average owner charges around $500 for a damage deposit, and most of the time they return it in full to their guests. Our research suggests that damage is infrequent, and when it does occur the costs are nominal, normally less than $100.
Buying property damage insurance, such as HomeAway’s Property Damage Protection, can make transactions easier for your guests and yourself. You can choose your level of coverage each time, and pay between $39 and $59 for up to $5000 of protection (far more beneficial than the average $500 deposit if damage were to occur).
Choosing property damage insurance not only protects your home and furnishings but saves you the hassle of collecting, tracking and refunding deposits. We recommend building the cost of the insurance into your rental rate, making it no cost to owners or managers.