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1488 Views 2 Replies Latest reply: May 1, 2012 1:01 PM by rsfgirl RSS
New Member 1 posts since
May 1, 2012
Currently Being Moderated

May 1, 2012 11:00 AM

New to renting/cancelation policy

Hi,

 

I just listed my property so still trying to figure out all  the details.  What do people recommend for cancelation policy, including time frame and money?

 

I heard 30 or 60 days for cancelation time, but would like to hear more and also about how much of th deposit to keep?

 

Thanks!!

  • msdebj Senior Contributor 1,353 posts since
    May 25, 2011
    Currently Being Moderated
    May 1, 2012 12:35 PM (in response to bellagirl)
    Re: New to renting/cancelation policy

    Dear Bella, Welcome to the wonderful world of being a VR owner.  There are several links in this community about various types of cancellation policies.  I'm more than happy to share my Cancellation Policy part of my contract with you.

     

    Cancellation Policy

    *$100.00 Cancellation fee will be applied to all cancellations.

    • Two Months prior to date of arrival: Deposit refund = 100% (minus the *$100 cancelation fee)
    • 30 days prior to date  of arrival:  50% of  BASE rental rate and applicable taxes, (minus the *$100 cancellation fee). Damage Deposit and Cleaning Fee will be refunded.
    • Less than 30 days prior to date of arrival:  No refund, other than Cleaning Fee and Damage Deposit.

      NO REFUNDS due to weather UNLESS:  

    1. The National Weather Service and the City of XXX orders a MANDATORY Hurricane Evacuation Order for the XXXX, Texas Gulf Coast area.
    2. The day/date such an order is given we will process the following refund:
    3. Any unused  (prorated by day, minus cleaning fee) portion of rent for a guest currently in residence.
    4. Any unused (prorated by day) portion of rent paid by the Primary renter scheduled to arrive, who wish to shorten their stay and come for the remainder of their confirmed dates  after the Order has been lifted, and our home has been inspected by Owner/Agent and is deemed habitable.

    Owner reserves the right to cancel the reservation if all monies and completed paperwork are not received by the date due, or should property become unavailable due to uninhabitable conditions. All monies will be returned if cancellation is due to uninhabitable issues as determined by Owner.

    I have read the terms of agreement and as the Responsible Party for this rental I agree to abide by them.

  • New Member 19 posts since
    Jul 18, 2011
    Currently Being Moderated
    May 1, 2012 1:01 PM (in response to bellagirl)
    Re: New to renting/cancelation policy

    Hi bellagirl,

    We charge a "reservation deposit" usually equal to about 10% of the rental price. This is payable within 4 days of when the reservation is made. This reservation deposit then converts to a security deposit on arrival. If guests cancel at any time they lose their reservation deposit.

     

    We usually ask for rental payment 30 days in advance of arrival or split into two payements of 30 and 60 days if it is a bigger payment (20k+). If the guests cancels after any payments have been made whatever money they have paid is forfeited, the same goes for an early departure.

     

    In earlier contracts I tried complex forumlas for providing partial refunds for cancellations, and when I simplified to no refunds if any payment has been made I did not get one complaint so I have kept the contract like this.

     

    CANCELLATIONS – Cancellations or changes that result in a shortened stay forfeit the any advance rental payment and reservation deposit. Cancellation or early departure does not warrant any refund of rent for the unused period.

     

    I would consider refunding or partially refunding a cancelled or early departure guest is if the property were to be re-rented at the same rate for the same period. However there are a lot of restrictions in our area and a minimum rental period of 30 days, so the odds of replacing renters at the same value and timeframe are pretty low.

     

    If your rental periods are shorter and you can easily re-rent it may be easier for you to offer a more flexible policy on refunds for cancellations. Ours is written this way since I know the odds of finding an equivalent tenant are lower and I can't fill in or make up with weekly renters if somebody cancels at the last minute.

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