“A damage waiver charge is a non-refundable, pre-paid fee that is included in the overall price of a rental house and covers unintentional damage to your property during the guests’ stay”, explained industry leading experts, Lodgable. This agreement stipulates that visitors are not accountable for inadvertent incidents, enabling them to relax and enjoy their vacations without concern of damaging things.
Damage waiver costs are included in the rental price of vacation rental properties. They safeguard visitors by requiring them to pay for small damages such as broken dinnerware or furniture, spills, scratches on surfaces such as walls or doors, and stains. To be covered, these incidents must be notified to the holiday rental owner or management.
Many visitors would rather pay an additional cost for a damage waiver than pay a big security deposit. While the cost is cheaper for them, the coverage for vacation rental owners varies considerably depending on the damage waiver protection firm used.
What Is Not Included in the Cost of a Damage Waiver?
Fees for damage waivers do not include the following:
- Deliberate injury (such as damage caused by parties)
- Damage caused by a breach of the rental agreement’s terms and conditions (for example, by infringing a ‘no smoking’ provision).
- Personal property damage
- Theft or misplacement of property
- Non-reporting of damage throughout the stay
Any damage not covered by the damage waiver cost is billed to the visitor directly.
How a Damage Waiver Fee Differs from a Security Deposit
The primary distinction between a damage waiver charge and a security deposit is that the damage waiver fee is non-refundable and covers only accidental damage, while the security deposit is refundable and covers both purposeful damage and missing things.
A damage waiver charge is advantageous for visitors since it eliminates the need for them to pay a substantial security deposit before their stay. Rather than that, this price ranges between $50 and $100 for each reservation, depending on the duration of stay and the kind of lodging. Damage waiver fees are popular in bigger vacation rental firms because they save time and avoid disagreement caused by damaged objects. They do not, however, cover everything, and the process of submitting a claim may be lengthy.
“A security deposit requires visitors to pay a certain sum upon arrival (or during the booking process), which is retained until the property is inspected at check-out.”, quoted from leading vacation rental software experts at Lodgable. While the value of the security deposit varies, it is often between $250 and $500, or 10% of the weekly fee.
Security deposits are often chosen for smaller vacation rental enterprises because they provide owners with more control, eliminate the need for waiting periods, and guarantee that visitors treat the property with the highest care. However, there is a difficulty associated with paying a big sum of money in advance. This discomfort may cause people to reserve with rivals who do not need a security deposit.
When picking between a damage waiver charge and a security deposit for your vacation rental, assess the benefits and drawbacks for your company to ensure that your property is protected while still attracting visitors.
What Is the Standard Equipment Damage Waiver Fee?
Consider the possibility that your holiday rental house includes equipment rentals such as automobile usage, recreational vehicles, or sports equipment. In such instances, a damage waiver charge may shield both you and your visitors from the expense of pricey repairs.
On such equipment, the normal damage waiver price is 10% to 15% of the regular rental rate to cover the expense of possible repairs.
Should Your Vacation Rental Agreement Include a Damage Waiver Fee?
When renting out your vacation rental property, it is essential to include a damage agreement. It eliminates the possibility of being faced with a large repair or cleaning charge after your visitors’ stay. Of course, accidents sometimes occur, and having a damage waiver charge protects your client from spending more than they expected for their vacation.
Additionally, it enables you to repair and replace things in your holiday home as necessary. It resolves conflicts with visitors on whether or not they should be held liable for certain damages.
Understanding what a damage waiver fee vacation rental agreement is might assist you in determining the best way to financially protect yourself and your guests. Whether you include a damage waiver fee or a security deposit, you can be certain that your holiday property is secured.