What NOT to Do when Handling Security Deposits for Your Vacation Rental

Security deposits are one of the best ways for homeowners to protect their Orlando vacation homes. How you handle security deposits can impact your success as a vacation rental homeowner. There are several things you should avoid doing when handling deposits in order to give your guests a positive experience and a reason to rent your home again. 

What NOT to Do when Charging Guests a Security Deposit 

1. Don’t Forget to Return Your Guest’s Security Deposit 

Your guests expect to have their deposits returned as quickly as possible once they’ve left your vacation home. Don’t take advantage of this payment by considering it as extra income. 

Homeowners who fail to return security deposits can damage their reputation as vacation rental hosts. Let your guests know when they can expect their security deposit to be returned and make sure you follow through on that promise. 

2. Don’t Make Claims of Damage without Proof 

If you discover any damage to your property after a guest’s stay, you’ll need to gather evidence showing the extent of that damage. Photographs and videos can help you get reimbursed for any damage done to your property. They’re especially important in cases where guests try to argue against your claim. 

Absentee homeowners should provide management or cleaning staff with digital cameras and/or video cameras they can use to document any damage they discover after a guest has checked out. Keep receipts for items you’ve purchased or for any repairs. 

3. Don’t Overreact when the Cost of Damages Exceeds the Security Deposit 

The damages caused by a rental guest can end up costing you more than the security deposit you received. But many cases can be resolved by directly contacting the guest. If your guest has accepted responsibility for the damage, they may be more likely to cover the cost of repairs. 

If a guest disputes the cost of damages, you can take legal action to get the compensation you deserve. However, filing a lawsuit can be costly and time-intensive. Consulting with a legal expert can help you determine if taking legal action is the right option for you. 

Protecting Your Orlando Vacation Rental Home 

Knowing what to avoid when handling security deposits from renters can protect your vacation home and help you get the most out of your investment. Understanding your options when making sure that guests cover the cost of damages can give you the peace of mind you need as you accommodate future rental guests. 

Team Donovan helps today’s home investors buy and sell Orlando vacation homes they can use to work toward their investment goals. We can help you take advantage of Orlando’s thriving short-term rental market while protecting your investment in the long run. If you’d like to find out more, contact us at (407) 705-2616 to schedule a free consultation today.

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