Knowing how to handle security deposits protects Orlando area homeowners when renting their vacation homes near Disney World.
There are plenty of issues that can arise, including property damage and theft. So you need to have a system in place that makes it easy for guests to provide security deposits that protect your home and personal property.
Legal Considerations for Security Deposits
Renters have specific rights that you need to be aware of, and local laws may dictate how you can use and hold security deposits. Mandatory rental fees, such as booking and cleaning fees, can be taxed. But security deposits and other payments may not be subject to the same lodging taxes.
Knowing the rules in your local area is the first step to handling security deposits from your long-term and short-term rental guests. You’ll need to document any damages for future reference. Take photos and create a document detailing the items that were damaged. Keep receipts for items purchased for your rental home to verify their value if they’re damaged by guests.
Be Clear About Your Policy for Security Deposits
Let guests know how to submit their security deposits and be clear about how you handle them. Put a deadline in place for guests to submit their deposits when booking your Disney acation rental home. Process payments you receive as soon as possible to avoid problems with returned checks or online payment processing.
Your home should be inspected after guests have checked out to ensure that nothing has been damaged. Absentee homeowners who are unable to inspect their properties should have their cleaning staff report any damages.
Once you’ve verified the condition of your holiday home, return the security deposit to your guests. The faster you complete this process, the more satisfied your guests will be, leading to positive reviews and repeat bookings.
Establishing a Policy for Security Deposits
Homeowners should establish an appropriate security deposit to charge guests. Security deposits are meant to compel guests to take care of your home during your stay.
If the amount is too low, guests may be less concerned with losing their deposit if something is damaged. But the amount should be large enough to cover any damages that could potentially occur during their stay. A general rule of thumb is to charge anywhere between $250-$500, or 10 percent of the rental price. You can research similar properties online to see what other homeowners may be charging for security deposits when renting their vacation homes near Disney World.
Establish and communicate house rules so guests understand the circumstances that could cause them to lose their security deposits. The more specific you are, the fewer disputes you’ll face from your guests.
Team Donovan can help you find a vacation rental home in the theme park area near Orlando that attracts travel guests and delivers the features and amenities they want. Security deposits protect you and your home so that you maximize the return on your home investment. For more information, contact Team Donovan at (407) 705-2616 and schedule your free consultation today.