Insurance vs Deposit on STRs? how to collect replacement fees

[Bo A Vanecko]

So i was speaking to some people who are doing STR in our complex and they were stating that they offer up insurance or deposit (they actually ask for 1500 deposit which seems high). this got me thinking a bit about items like "if you lose the door key card its a 75 dollar replacement fee". if they choose insurance and not the deposit, would i go through VRBO insurance to get a refund? am i able to charge the card on file? i can see if i have the deposit i would simply release the deposit minus the replacement fee.

i guess the question to a newb is how do i enforce replacement costs etc?

[Collin Hays]

We have been in business for since 2011 and manage approximately 30 properties.  I can count on one hand times that we have needed to charge a guest extra for things missing.  That's tens of thousands of guests.  Deposits and insurance do nothing but chase prospective guests off.  Yes, you might get $50 from VRBO (although unlikely) if they break a lamp, but how many reservations did you discourage in the process?   Guest don't like these fees.  They add significantly to the cost of the vacation and there is an underlying suspicion that they will lose their deposit.

The whole concept of deposits and insurance with STRs is penny wise, pound foolish. Quit focusing on the little things like dunning someone for a replacement key and spend your energy trying to rent your STR. Your bank account will appreciate it.