May 1, 2012 11:00 AM
New to renting/cancelation policy
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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!!
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.
NO REFUNDS due to weather UNLESS:
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.
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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