Posted by Ernie Gorrie from 126.96.36.199 (s216-232-11-214.bc.hsia.telus.net) on Tuesday, January 22, 2002 at 16:56:25 :
In Reply to: Paying 100% Condo Deposit posted by Bordertown Jerry from 188.8.131.52 (?) on Tuesday, January 22, 2002 at 12:55:47 :
Hotels can take reservations, knowing that some of the people will never show up, because they can have varying rates of occupancy. Say a hotel learns that 80% of reservations will actually occupy a room. They can safely accept reservations for 110% occupancy and probably end up with between 85% and 95% occupancy. They are taking a minimum risk.
(I do recall however that several times, large hotels in Ixtapa required 50% to 100% deposit to confirm a Christmas reservation.)
Someone who is renting one condo (or in our case, one house) either has 100% occupancy or 100% vacancy. If they accept reservations without a deposit, they are taking a maximum risk. They want to cover the possibility that guests will not show up, so have higher deposit rates that hotels.
We require 10% to make a reservation, another 40% 90 day prior to rental, and the balance when people pick up the keys.
Over the past two seasons we've lost three weeks of bookings when people didn't show up. One of these weeks was at Thanksgiving, one was at end of millenium New Years Eve and one was at another winter week that we had agreed to rent without a deposit.
We've also had one set of guests reserve for a week, spend one night and leave without paying. They went to another place nearby for one night and left without paying. They then spent three nights at a third place and I heard they left there without paying.
I can understand why a single occupancy locat1on would want a significant deposit.