Many property owners prefer to ask their guests for a deposit to guarantee reimbursement for possible damages in vacation homes without having to resort to costly legal procedures and to replace or complement the typical vacation rental insurance.
From Registro Parte Viajeros we answer the questions of accommodation owners and guests about the security deposit in vacation homes
How do security deposits work in vacation rentals?
A deposit is an amount of money given as a form of guarantee for the proper fulfillment of the contract; in the case of rentals, it also covers any damages or defects that the property may suffer during the accommodation period. It gives us the assurance that the property will be in perfect condition, and it gives the clients the assurance that only an amount stipulated by the contract will be withheld and that it will be refunded if the accommodation is used responsibly.
In Spain, deposits for vacation homes are not regulated in a single place; rather, each Autonomous Community can enact its own legislation regarding vacation homes and their specificities, including deposits and the obligations they generate.
What does the security deposit for vacation home rentals cover?
Deposits act as a monetary guarantee against damage or defects caused during the guests’ stay. Among other things, they cover the following eventualities:
- Damage to the house itself: damage to walls and fences, gardens, electrical and plumbing installations.
- Damage to the furniture or appliances of the home.
- Damage or stains that are difficult to repair on sheets, towels, curtains, or other textiles.
- Extreme lack of cleanliness.
- Non-compliance with accommodation rules.
- Consumption not included in the hosting contract.
- Complaints about noise and other matters related to public order.
The deposits do not cover deterioration or damage caused by the normal, natural, and responsible use of the property, nor any other problem that occurs without being a consequence of guests’ activities.
What amounts can be requested for a deposit?
No standardized amounts are established for vacation rental deposits, as there are in urban leases. However, it is recommended to request a fixed amount depending on the quality of the accommodation and the number of days of stay, which can vary between 100 and 500€ for the accommodations.
According to platforms like Airbnb, this would be the most recommended option, but there is also the option of charging a percentage of the total reservation, which would be around 20%.
When is the deposit returned?
The deposit is usually returned after verifying that there are no incidents or damages to the property; it is most common to return it within 24 to 72 hours after leaving the property, although it may be extended for more days if deemed necessary to verify the condition of the property.
The deposit refund will be made through the same method by which it was collected. If an online platform was used for managing them, this will be the method for its refund. If, on the other hand, the deposit was collected through direct bank transfer or with a card, this will be the appropriate method for its refund.
In what cases can I ask for a deposit in my vacation home?
You can request it for any paid accommodation made in your vacation home, regardless of the length of stay or the amount of accommodation available. The platforms recommend always requiring a security deposit in accommodation contracts, as it provides the security you need for your business and, being a common practice, it is accepted by guests.
What steps should I follow to set the deposit?
Although it is not required since it can be agreed upon verbally, the first step will always be to agree on it in writing in the accommodation contract. We recommend establishing specific conditions and setting the amount of the deposit.
Secondly, always keep an inventory of the property’s belongings, with photos to be able to demonstrate any possible damage that the furniture may have sustained.
Thirdly, always inform your guests of the exact damages or incidents for which the deposit amount will be withheld. To avoid legal issues, it is always necessary to make very clear what the breach or damage has been when charging the deposit.
What happens if the damages exceed the amount of the deposit?
Although a deposit has been set, many accommodations prefer to take out insurance for their establishments, as damages or incidents may be detected whose cost exceeds the amount deposited by the guests. This way, problems between travelers and accommodation owners are usually avoided without the need to deposit excessive amounts.
If you had taken out insurance, you would be able to continue claiming the deposit for any damages that may have occurred to your property as a result of the guests’ activities, but under no circumstances should you send the insurance company an invoice for incidents already covered by the deposit amount, as this could lead to problems with the insurance company.
Also, if you take out insurance and it pays you for the damages, if these are excessive, the insurers may initiate legal proceedings against the guest, saving you the time and money cost of going to court.
Check out our vacation rental guides in the Travelers’ Registration so that your property always complies with the legislation and you avoid any trouble.
