When and how to charge
This information is only relevant to people who are not using an agent or a holiday rental website that collects the money on their behalf.
So you have received a booking request, what's next?
If the booking is for more than two weeks in the future it is recommended that you collect a deposit. The amount you charge as the deposit is up to you but it needs to be enough to deter the guest from changing their mind at the last moment which may lead to a loss of their deposit. Amounts of up to 50% of the total tariff are fairly common.
It is at the time of collecting the deposit that you should have your potential tenant agree to your terms and conditions of renting your property. See the "Terms and Conditions" menu for details on what should be included.
Once the deposit has been received an acknowledgment of the receipt of the money needs to be sent to the guest.
It is fairly standard for the balance to be paid within 14 days of the stay. A reminder email should be sent to the guest 14 days prior to the due date.
So how do you get the money?
In this day and age more and more people are using internet banking. Asking guests to pay the tariff and bond via direct deposit is both an efficient and free method of collecting the money. Even if they don't use internet banking, a direct deposit can be made at their local bank branch (fees may be charged).
Other methods that may be used are:
- Cheque - the problem here is the time for the cheque to clear and your time taking it to the bank. It is also not suitable for last minute booking as you have no way of knowing whether the cheque is going to clear or not.
- Cash - if you live near your property you may wish to accept the final payment and bond as cash on arrival.
- PayPal (or similar service) - a lot of people have a PayPal account and it can be an efficient means of collecting money. The drawback is the fee charged by PayPal for the service.