Real estate reality

[disneysteve]

That's all very interesting but you didn't answer my question. Surely stuff gets broken or damaged, accidentally in most cases I'm sure. When do you ding the security deposit and when do you just let it slide?

[TexasHusker]

That's all very interesting but you didn't answer my question. Surely stuff gets broken or damaged, accidentally in most cases I'm sure. When do you ding the security deposit and when do you just let it slide?

Our rental agreement specifically states that guests are financially responsible for any damage to the property. I do not recall a time when we needed to exercise this provision. If a chair spindle gets broken or carpet gets stained, we can fix that readily for a few dollar so it's not a big deal.

We furnish our cabins with good quality leather upholstery (Ralph Lauren or Bernhardt generally), solid dining tables and chairs, sturdy antiques, and hardwood floors. When guests see quality, they go out of their way to keep it nice.

This is the cabin that recently burned down, but look at the photos and you can see how it was furnished:

https://www.CabinOnRoaringFork.com

[disneysteve]

Our rental agreement specifically states that guests are financially responsible for any damage to the property. I do not recall a time when we needed to exercise this provision.

So nobody has ever broken a glass, spilled something that stained the carpet, scratched the furniture, or otherwise caused damage that cost you money to fix?

As for rental homes not getting damaged, it sounds like you've been incredibly lucky. In pretty much every home we've ever rented, we've found evidence of damage when we arrived. I always do a walk through and email the owner to alert him/her of existing damage so that we don't get charged for it. We never have and the owner is always very appreciative of me bringing those things to his/her attention.

[disneysteve]

Was typing while you were editing.

[TexasHusker]

So nobody has ever broken a glass, spilled something that stained the carpet, scratched the furniture, or otherwise caused damage that cost you money to fix?

As for rental homes not getting damaged, it sounds like you've been incredibly lucky. In pretty much every home we've ever rented, we've found evidence of damage when we arrived. I always do a walk through and email the owner to alert him/her of existing damage so that we don't get charged for it. We never have and the owner is always very appreciative of me bringing those things to his/her attention.

We have rented to thousands of guests at this point so there isn't any luck involved.

Certainly minor things happen. We aren't concerned about those things. Repairs come out of our $10K R&M fund. I suppose I could nickel and dime everyone for a broken coffee cup or soiled wash cloth, but that's not my style nor do I have the time or energy for it.

[disneysteve]

We have rented to thousands of guests at this point so there isn't any luck involved.

I suppose I could nickel and dime everyone for a broken coffee cup or soiled wash cloth, but that's not my style nor do I have the time or energy for it.

I think Storm makes a good point. Location and clientele makes a big difference. The house at the Jersey shore is likely to attract a group of college guys who are going out and partying every night and coming back and puking in the flowerbeds, ignoring the "no smoking" policy, spilling beer on the sofa, etc.

We are currently in a 3-bedroom, 3-bath townhouse 5 minutes from Disney World. These homes tend to attract families with small children who jump on the beds, run around slamming cabinet doors or hang on railings or drop things. I'm sure the breakage rate here is a lot higher than in a gorgeous cabin in the woods.

I think the price point matters, too. We are paying $69/night for this house. At that price, I don't expect high end furnishings and cheaper, builder's grade stuff doesn't hold up as well.

I think not charging for every little thing certainly makes sense. I was just wondering what the tipping point is. What type of damage would have to occur for you to invoke the security deposit?

[rennigade]

I suppose I could nickel and dime everyone for a broken coffee cup or soiled wash cloth, but that's not my style nor do I have the time or energy for it.

Im not sure if you're on airbnb or vrbo...but if you would nickel and dime everyone you would get crushed/exposed with bad reviews...which would ultimately hurt you in the long run.

Even not being on airbnb or vrbo...just word of mouth could cause thousands in loss over time I would imagine.

[TexasHusker]

Im not sure if you're on airbnb or vrbo...but if you would nickel and dime everyone you would get crushed/exposed with bad reviews...which would ultimately hurt you in the long run.

Even not being on airbnb or vrbo...just word of mouth could cause thousands in loss over time I would imagine.

I've never thought of it that way, but you might be right.

Rentals are just like any other business - you can get really bogged down by "majoring in minors". I am renting to hundreds of guests per year, with about $115K in gross rents. OK, so I have $300 a year worth of broken wine glasses, chair spindles, and lost forks and knives (I don't know that it is this much - this is just for conversation). I am not interested in spending time dunning people for what amounts to pennies. It is all part of the cost of doing business.

[TexasHusker]

I think Storm makes a good point. Location and clientele makes a big difference. The house at the Jersey shore is likely to attract a group of college guys who are going out and partying every night and coming back and puking in the flowerbeds, ignoring the "no smoking" policy, spilling beer on the sofa, etc.

We are currently in a 3-bedroom, 3-bath townhouse 5 minutes from Disney World. These homes tend to attract families with small children who jump on the beds, run around slamming cabinet doors or hang on railings or drop things. I'm sure the breakage rate here is a lot higher than in a gorgeous cabin in the woods.

I think the price point matters, too. We are paying $69/night for this house. At that price, I don't expect high end furnishings and cheaper, builder's grade stuff doesn't hold up as well.

I think not charging for every little thing certainly makes sense. I was just wondering what the tipping point is. What type of damage would have to occur for you to invoke the security deposit?

I can't imagine renting a home for $69 per night. My best guess is this is the slow season there and they would rather rent the place for something than have it sit empty. We do not subscribe to that philosophy.

I doubt breakage is any different there than a cabin in the woods. We rent to families all the time.

How much time does a family near Disney World spend at their vacation rental? Not much.

I would say if there is something that is over $100 to repair, we would charge the customer's credit card.

[disneysteve]

I am not interested in spending time dunning people for what amounts to pennies. It is all part of the cost of doing business.

That's always been my sense, having rented a couple dozen houses at least.

So have you ever had to withhold part of a security deposit or has there never been anything damaged in one of your homes? I guess serious damage is rare but I could see something accidental happening.

In the last house we rented in July, the kitchen table had a glass top. It wasn't attached in any way. It just sat on the pedestal. A couple of times, one of us pushed down as we got up from the table and nearly flipped the top off. Both times we caught it but I can easily see someone smashing that table top accidentally.

I think TVs are another possibility. Years ago, TVs were big, heavy, sturdy things. Now, the flat screens weigh next to nothing and are pretty easy to tip over. It would only take a second for a kid to knock the TV off the stand.

It's great if that sort of thing is rare, though. That's good to hear.

[TexasHusker]

That's always been my sense, having rented a couple dozen houses at least.

So have you ever had to withhold part of a security deposit or has there never been anything damaged in one of your homes? I guess serious damage is rare but I could see something accidental happening.

In the last house we rented in July, the kitchen table had a glass top. It wasn't attached in any way. It just sat on the pedestal. A couple of times, one of us pushed down as we got up from the table and nearly flipped the top off. Both times we caught it but I can easily see someone smashing that table top accidentally.

I think TVs are another possibility. Years ago, TVs were big, heavy, sturdy things. Now, the flat screens weigh next to nothing and are pretty easy to tip over. It would only take a second for a kid to knock the TV off the stand.

It's great if that sort of thing is rare, though. That's good to hear.

We do not charge a security deposit although we used to. We found that it was just extra hassle with bookkeeping and we never retained it any way. We had a snake get into the dryer and ruin it, likely because a guest let the backdoor open all day. New dryer. One time a very heavy guest cracked the floor of a fiberglass shower. New shower floor. These sorts of things come out of our $10K annual R&M fund.

Our TVs are either mounted to the wall or in an armoire. Our tables are solid wood and aren't easily damaged. The key is wise furniture selection. And cheaper isn't better usually. Guests don't like cheap.

[disneysteve]

I can't imagine renting a home for $69 per night. My best guess is this is the slow season there and they would rather rent the place for something than have it sit empty. We do not subscribe to that philosophy.

In this market, that is not at all uncommon. There are thousands of rental homes here. If you aren't priced competitively, you're house is going to be vacant a lot. We've never paid more than $100/night and that was for a 3-bedroom single home with a screened in pool. For a townhouse, $75/night is typical.

[disneysteve]

Guests don't like cheap.

Yes and no. It depends what the guests are looking for.

Like I said, we are paying $69/night. At that price, our expectations are low but we're going for the rate, not high quality furnishings.

[TexasHusker]

In this market, that is not at all uncommon. There are thousands of rental homes here. If you aren't priced competitively, you're house is going to be vacant a lot. We've never paid more than $100/night and that was for a 3-bedroom single home with a screened in pool. For a townhouse, $75/night is typical.

Doesn't sound like a place I would want to invest in.

[Fishindude77]

Prior to purchasing a lake home we rented quite a few for summer trips with the family, typically paying between $3 - 4,000 per week for a lake front place that would sleep 10-14.

We had a gang of kids and a lot of traffic in and out of those rentals. One time we broke a couple dishes, so I left them a note and telling them to let me know what we owed. They thanked me for making them aware and said don't worry about it. Most places had a list somewhere explaining their expectations when you checked out; all trash in bins, linens in laundry room, dishes washed, etc. and we always tried to leave the place like we found it.

There are always exceptions, but I think the key is to have a nice enough place where you can charge high enough rates to keep the riff raff out.