Payment Options 50% or 100% at time of booking

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Payment Options 50% or 100% at time of booking

Sokun S.
Member since 2021 · 17 posts · 10 votes

I'm going through my Lodgify payment settings and was wondering if anyone had thoughts on whether or not having a partial payment at time of booking or charging for the full booking made any difference? 

My VRBO does 2 payments and I've never had any issues with it, but did see some folks talking about VRBO sending check-in info when the 2nd payment hadn't been paid. Can obviously mitigate access to the property by disabling the code if using a smart lock, but other than that, are there any advantages/disadvantages that you've seen?

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y

We have it set for 50% on Vrbo.

This may make it more affordable to breakup the payment and it doesn't matter to me.

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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    We allow guests to pay 50% at time of booking on the Airbnb platform. All other sites it's 100% to save us time and hassle. Airbnb is their own eco system and they're the merchant of record and take care of all payments or lack of payment. When a PMS is used the host becomes the merchant of record for all other sites, so it's our responsibility to make sure payment has been made.   

    [email protected]330-557-3021
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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    We have it set for 50% on Vrbo.

    This may make it more affordable to breakup the payment and it doesn't matter to me.

    1Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    I allow 2 payments.  I do think it has helped bookings, because I've gotten summer bookings much farther in advance, some 6-8 months in advance.  I didn't have that when I required 100% payment upfront.  With Vrbo, you do have to remember to check if the guests have paid the second payment.  Vrbo doesn't automatically charge it, they ask them for the payment.  But I get so few Vrbo bookings now, it's not a big deal for me to note on the calendar when a 2nd payment is due, and check to see it's been made.  If not, I'll contact the guest.  One guest didn't pay the 2nd one, and I had to message thru Vrbo, then text, then email.  Still no word from him, until I called his phone and talked to him.  He was surprised to hear Vrbo did not automatically charge the balance, and he paid it immediately. 

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I think it depends on your integrations and the settings available, but 50% pro: more people can afford to book it now so possibly higher occupancy rate; con: you better make sure your systems are in place to check and double check 100% collected before check in.

    [email protected]813-563-0877
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  • Mike Shemp
    Rental Property Investor · Stewartsville, NJ · Member since 2016 · 418 posts · 280 votes
    2y

    You need to make sure that how the money is collected is 100% collected prior to them putting a single door in the door.  

    If you have any concerns that payment won't be 100% collected prior, then go with 100% at time of booking.

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    So far I haven't even looked! I am guessing a 2x payment would bring more folks. I have to go check!

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  • Sokun S.
    OP
    Member since 2021 · 17 posts · 10 votes
    2y
    Quote from @Mike Shemp:

    You need to make sure that how the money is collected is 100% collected prior to them putting a single door in the door.  

    If you have any concerns that payment won't be 100% collected prior, then go with 100% at time of booking.

    The beauty of having a smart lock where you can disable a code remotely! After 3 years of VRBO doing 50/50 splits for payments, I've run into 1 issue of no payment before checking and the guest promptly paid. 
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  • Chai Xiong
    Investor · Orlando, FL · Member since 2012 · 312 posts · 165 votes
    2y

    do the 50% first some folk can't afford the full payment just yet

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  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    2y

    I always require it at the time of booking. They can always put it on a credit card and pay payments that way. 

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  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    2y

    How exactly are you all collecting payments early from VRBO and AirBNB? Do the PMS systems allow you to do this? I've never seen this as an option and only collect the morning after the guest arrives. 

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  • Sokun S.
    OP
    Member since 2021 · 17 posts · 10 votes
    2y
    Quote from @Jon Martin:

    How exactly are you all collecting payments early from VRBO and AirBNB? Do the PMS systems allow you to do this? I've never seen this as an option and only collect the morning after the guest arrives. 

    I wish I knew, but we're talking about prepayments prior to a reservation.

    Previously, I just let the OTAs set their default (Airbnb 100% & VRBO 50/50), but now that I'm paying more attention to it through Lodgify, I'm going to do a 50/50 split and see if that helps increase bookings.

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  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    2y
    Yes- however the funds are not sent to your bank account until shortly after they check in, correct? 
    0Reply
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