I'm a fairly new property owner (7 months). We haven't had problems charging a $500 security deposit and accepting the payment via credit card through Reservation Manager. However, last week on a HA webinar "Tricks of the Trade," the speaker said that the major credit cards "technically" do not cover damage. That if a charge was made to a card to pay for damages after a guest leaves and the guest disputes the charge, it would be charged back (money taken back from owner) and the owner may be fined $500 if they fight the dispute.
We have not had an instance yet of damage. If it occured, we would be refunding less than that total $500 deposit paid by the guest through HomeAway. Would this be a possible issue for the credit card company if disputed? Or does HomeAway have a special agreement?
If this is an issue then we would consider using the CSA damage protection insurance option, but need to know the likelihood of having claims denied. I have called them and asked for their rules, but first hand experiences would be more helpful. i.e. if a guest left the tub running and cause water damage to the floors is that covered?
I think that a guest could do a charge-back at any time. Our whole business is something that, unfortunately has to be based on "trust". I have only had one guest that I had a serious issue with, the rest are pretty wonderful
I would be very grateful for that information as well. We've just been robbed by a guest this winter. Yapstone, HA and all other parties involved did NOTHING to support us. Guest lied, committed fraud, we had a signed agreement and cancellation policy clearly stated. We must prevent that from happening again.
I have been in vacation rentals for about 10 years and have had a difficult time collecting VIA credit card from guests who deny the damages. So with our new company, we are using the CSA damage protection insurance. I'm filing my first claims this week...keeping my fingers crossed!