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Should I take a security deposit or charge for insurance?

What do other vacation rental owners do?

Asked By: Mike

Tags: Insurance Payments Rates Security

1 Answers

Mike

Vacation rental owners are split down the middle on this one. There's been a recently growing trend of homeowners opting out of the traditional security deposit--which involves the client putting down a large refundable sum of money upfront--in favor of external insurance, which is much cheaper for the client and less hassle for both parties. 
 
But some converts have noticed problems with the insurance program; namely, more damage and less coverage. The insurance plan details are more restricted, so homeowners who stick with it have begun asking for additional deposits anyway for other common issues, including smoking, pets and specific cleaning problems.