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What is a good cancellation policy for my rental?


I want to be strict, but also flexible so renters aren't turned off from my home.

Asked By: Mike

Tags: Insurance Legal Payments

1 Answers

Mike

Your most malleable policy is your cancellation policy. If your vacation rental home is in high demand and you get a long-term cancellation at the last minute, it can seriously harm your business, but sometimes a cancellation is no big deal. 
 
When considering how much, if any, of a renter's deposit to refund, think about how much notice you received, how likely you are to find another renter, and what it costs you to cancel the booking. 
 
Some property owners will provide a full refund with enough advance notice; with less notice, they might keep the reservation deposit or nothing at all. Others offer a refund only if or when their property is re-booked, which might force your ex-client to find new business for you. In the end, it's your call.