I've been doing my research and cannot find a solid answer to this question, and maybe that's because it does not exist. I work with a small short term property management company that is struggling with a process for non-Airbnb bookings (i.e. HomeAway, Booking.com, Expedia, TripAdvisor) where the process for damages is a little more difficult (i.e. no Resolution Center) and we have to handle credit card processing.
We are trying to protect ourselves from 1. guest damages, and 2. credit card charge-backs or disputes.
Collecting + refunding damage deposits and also keeping track of signed rental agreements with a ton of listings is not easily scaleable. We do not have a front desk for check in, guests can check in directly at their unit.
Is anyone in a similar situation? How are you solving this issue?
Follow the K.I.S.S. principal. Keep It Simple Smith.
I don't fool around with a deposit or damages. There are going to be damages but I build the cost of the damages into the rent.
I don't fool around with signed rental agreements either.
Renters call me, I give them the address and leave the door unlocked with keys on the kitchen table. They usually arrive pretty late. I meet them the next day and they pay in advance for a week.
But my tenants are not like your tenants. They are contractors. The guys you see working on the large erections of steel at a petrochemical refinery. My STRs are an alternative to living out of a motel room for a month or two.
I follow a minor variation of what was suggested by above by @Paul Sandhu in that I don't do deposits and I charge a combined cleaning and damage waiver for all guests.
For a $250 fee I cover cleaning and damages for each reservation. The vast majority of times our guests damage nothing and cleaning is routine. For a vanishingly few stays we have to do a deep clean or replace linens, or something like a folding chair or portable dinner stand. Things that a person who has had too much to drink would break, for example. It is a Vacation, after all. :)
Overall, however, we find that guest prefer to pay up-front for all of this rather than have to go through the pay/refund cycle or the hassle of 3rd party insurance offered by Airbnb/VRBOHA. After implementing this change we cut our 2nd line questions in half, meaning that after an inquiry we had at least half of the guests asking if the deposits were non-refundable or not, now we just book, no 2nd line questions about that at all, they get it. I think it's due to the familiarity of people with damage waivers on car rentals, for example, same concept.
Added to that, it's pure revenue to us, we're way ahead on this deal as we rarely have damage. I hope that helps @Jessica Smith
@Katy Hall No, I don't use any of that software. I use the hardware and the programs between my ears to run my 24 STRs with 84 beds. A smart phone and a piece of posterboard helps.
We do not use Security damage from the Likes of HOMEAWAY, TRIPADVISOR, FLIPKEY OR VRBO.
We are self insured meaning we charge a onetime nonrefundable Damage Waiver Fee for us $59 a stay. We do say in our agreement that any damage one $1500 will be charged to their credit card.
We find our guest prefer this rather than giving maybe a $350 deposit to HOMEAWAY, TRIPADVISOR, FLIPKEY OR VRBO and then waiting a couple of weeks after their stay to see if they are going to get their deposit back.
Damage Waiver Fee is a nice revenue stream for us. Usually the only damage we get is a broken dish or Glass which is more a cost of doing business . Our clients are more high end market.
Another nice revenue stream is Pet Fees for us $75 per pet per stay.
House Keeping is also another nice revenue stream for us we charge $150 per stay cleaning fee, cleaner cost us between $85 to $100