VRBO damage waiver instead of security deposit?

[disneysteve]

I'm looking at VRBO for our upcoming trip and I'm seeing a lot of properties now charging some sort of damage waiver insurance premium rather than a refundable security deposit. Has that become the new normal thing to do? One listing had a $39 insurance fee or you could skip that and give a $500 security deposit which I thought was pretty ridiculous. Another has a $30 fee and another is charging $65.

Have these places had a rash of damage from guests or are they just trying to draw out more cash and not have to deal with issuing the refunds when there is no damage (which is most of the time I would think).

 

[Mickfarland4]

I think the plus side of the non refundable waiver is that it is cheaper to begin with. I know when I was looking for Myrtle Beach last last year, I was happy to see the waiver vs. the refundable security deposit. But, that's because we don't have much extra money laying around and if I found a vrbo I fell in love with, the chances I had $55 to spare vs. $200 is high. I never even consider ones w/ $500 deposit, refundable or not! That's way too high. Most were $55 for that area if I remember correctly.

 

[disneysteve]

I think the plus side of the non refundable waiver is that it is cheaper to begin with.

Sorry but $55 that's gone for good is not cheaper than $200 that I get back in full. One costs me $55. The other costs me absolutely nothing. I'll take nothing any day.

 

[disneysteve]

I just booked a townhome rental. I was able to find one that was still doing a security deposit rather than a fee. That's certainly a far better deal for the guest but I'm sure the owners are doing well charging non-refundable fees instead. No way I'm paying a damage fee unless I actually cause damage.

 

[youngb1978]

For myself as a canadian I will take the fee...if I have to change it over to American and then change it back I would lose a lot in the exchange

 

[disneysteve]

For myself as a canadian I will take the fee...if I have to change it over to American and then change it back I would lose a lot in the exchange

That's an interesting point. I can see where that might make the fee the better deal. As a U.S. resident the deposit is definitely better.

 

[bankr63]

I think for the owners, the insurance makes a lot of sense. When there is damage (even if a seldom occurrence), it can often be MORE than the damage deposit collected. The owner may end up paying the difference out of pocket to bring the property back up to standard if they can't collect from their renter. If they can buy insurance for this, and pass the cost on to the guests, then they will be made whole when there is a damage incident regardless of cost, and spread the risk across all renters.

It is not a great deal for the renter who is cautious, but it is a great protection for owners who could end up in serious financial trouble after just one bad rental. I expect that it is Geico and Warren Buffet that get rich off this, not the owners.

 

[disneysteve]

I think for the owners, the insurance makes a lot of sense. When there is damage (even if a seldom occurrence), it can often be MORE than the damage deposit collected.

I expect that it is Geico and Warren Buffet that get rich off this, not the owners.

I thought about the situation where the damage exceeds the deposit. It obviously wouldn't be hard for more than $200 worth of damage to happen. That doesn't go too far. Damage the carpet or a mattress or smash a sliding glass door and you're over $200 for sure.

I guess I just don't like essentially being charged upfront for damage whether I cause any or not but I can see the other side of the argument from the owners' point of view.

 

[webworm]

I find that if you are booking with the owner directly and speak with them they often waive the security deposit or offer to give the property management company a check for the deposit and they just return it to you when you leave. I just booked a villa in Bradenton today over the holidays and the owner waived the security depoit for me.

 

[disneysteve]

I find that if you are booking with the owner directly and speak with them they often waive the security deposit or offer to give the property management company a check for the deposit and they just return it to you when you leave. I just booked a villa in Bradenton today over the holidays and the owner waived the security depoit for me.

I am perfectly fine paying a security deposit. I understand owners need to protect themselves. We've never had any difficulty getting our deposit returned after our stay. It was the fee that I didn't care for, though I do understand why a $200 deposit really doesn't amount to much if any significant damage occurs.

 

[bankr63]

So look at it in the insurance probability sense. If they want $30 dollars insurance instead of a $200 deposit, you need to think what are the chances that you will break something in 7 years (weeks) of renting that will cause a deposit forfeit? Now we are TS owners who own at a fairly high end timeshare but there hasn't been a year go by that SOMETHING hasn't broken during our stay.
It has always been minor for us, and as owners we have already paid through our MFs (maintenance fees). And we are not "hard" users. Two kids, but not too rambunctious. Things that break are usually in the kitchen. And perhaps because I AM an owner, I am reporting things that were broken by previous renters. Regardless, the odds are that something will break in any given week, and you may be held responsible. $30 to $60 dollars doesn't sound like that much to insure against that.
My weekly maintenance on my own home for breakage probably runs $30/week (about $1,500/year). Just consider that you are much less likely to break something at home during the week you are away...