Security Deposit vs Damage Insurance
Renters and Homeowners struggle with this question. Which is better?
Let’s start with a Security Deposit.
Part 1 of the Security Deposit: When a renter books a property the homeowner can ask for a security deposit anywhere from $100 to $1000+. This amount is in addition to the payment of the reservation. So is the reservation stay cost $1000 the homeowner could charge another $1000. Totaling a hefty $2000 and to make matters worse if the renter is booking a stay say 3-4 months out the renter will be out the additional funds until they complete their stay. After the renter departs the homeowner can inspect the property and if no damage was incurred refund the security deposit. There are homeowners that are very diligent and return the deposit within a few weeks then there are homeowners that at not as diligent and take their time returning security deposits and it may take a few months. As a renter, this is not a good thing.
Part 2 of the Security Deposit dilemma: We have heard of this problem also. A homeowner may miss seeing the damage that was done by a renter and then catch it with another renter and blame the innocent party for damages that they did not create. Don’t misunderstand me. the property owner is not malicious it’s just they did not see the damage after the renter that created the damage left and did see the damage with another renter thinking they caused the damage. This creates a lot of problems and can ruin a wonderful vacation because for the renter and creates distrust between the current renter and the homeowner. Now an innocent party is being forced to pay for damages they did not do. It’s maddening for the renter!
Part 3 of the Security Deposit dilemma: A renter actually did damage the property and the damages exceed the security deposit by two or three fold. The homeowner is now forced to try to collect the excessive damage from the renter and if the renter refuses to pay then the homeowner is forced to either pay out of pocket or take the renter to small claims court. It’s maddening for the homeowner!
Part 4 of the Security Deposit dilemma. The renter acknowledges the damages the homeowner repairs the damages but the renter feels that the homeowner has excessively charged for the repairs and is “ripping off” the renter because the homeowner is holding the security deposit and the renter feels they have no recourse. This ugly situation is a lose lose for renter and homeowner as the renter will never return to the property and probably write a bad review and tell their friend about feeling ‘” ripped off” and the homeowner will lose on a repeat business for something they had no control over the repair costs as renters often times do not understand that the cost of doing business in resort locations is much higher than in their home town where services are less and the owner is in fact not “ripping” them off. It’s maddening for both!
Clearly, there are a number of issues and potential problems that could lead to dissatisfied, loss of business and bad reviews for renters and homeowners alike.
Let’s look at Damage insurance.
Part 1 Insurance: The cost of the damage insurance to the renter is $59. This protects the property owners contents up to $10,000. There is no deductible for the renter or homeowner. Nationwide data search on the renter to make sure there are no past major problems.
Part 2 Insurance: Accidental damage done by the renter is reported by the renter or homeowner or housekeeper or property manager. Insurance claim is submitted, the damage is repaired, replaced or purchased and no deductible! Renter and homeowner are not hassled and the damaged property is made whole and everyone is happy, reviews are good and renters return. All no hassle and no worries. Happy renters, happy life 🙂
In summary collecting a security deposit just does not make good business sense and can cause a lot of problems and expense. For a small fee of $59 per reservation both parties are protected, reputations are saved and future stays are ensured. Now, let me ask you which do you think is a better way to go when protecting your property?
Nomadness Rentals properties all have Damage Insurance. So rent with confidence and don’t worry if accidents happen you’re covered!