Managing bookings for your holiday home

Managing bookings for your holiday home

Don’t be daunted by keen holidaymakers who want to book next years summer break within your first month of advertising. Follow our step by step guide for handling bookings and you should be able to manage the whole process from deposit to departure in a professional and capable manner that will impress your guests and give you confidence for handling your holiday home rentals.

1. Send out your booking contract and ask for a booking deposit.
When you get an enquiry, it’s polite to put aside those dates for that group for a short while. Let them know that they need to pay a booking deposit and return your booking contract within three to five days to secure the booking. If you’re holding a week for someone, and another Holidaymaker asks about the same week, then give your first group first refusal but if you can’t reach them or they’re not sure then go ahead with that second group – only a payment in cleared funds should reserve your property.

Send out your booking contract via email or in the post – include a stamped, addressed envelope if you want a speedy return. Ask your guest to sign it and return it to you with their booking deposit as soon as possible. Contact them if there is a delay in getting the contract back.

A booking deposit is an initial percentage of the overall price for the holiday, and you can use this payment to confirm a reservation. Don’t set your deposit too high, as this might put people off - somewhere between 10% and 25% of the total cost is standard. Some owners make this amount entirely non-refundable even if the booking is cancelled. Make this clear if it is the case.

When you receive the payment, send a receipt and then let your guests know when you need the balance of the cost and the security deposit by.

2. Ask for the balance of the payment and a security deposit.
Set a certain point before people arrive by which they need to pay the rest of the cost of the holiday and the security deposit. Between 6 and 10 weeks before your guests arrive is normal. Make a diary note to remind people to pay up!

Charging a refundable security deposit will cover you for any damage that your guests cause. Tell your renters that breakages, repairs and extra cleaning will be deducted from this deposit if necessary.

How much you should charge depends on your property and what’s in it – make sure you’re covered for damages but you’re not putting people off by asking for a huge sum. Security deposits generally range between £100 and £500.

3. Send keys and directions out when you have received full cleared payment.
Once someone’s full payment has cleared, you can arrange to send them the details of the property’s address and directions on how to get there. Make sure you give them any information about parking they may need, and if possible send them some more information about the property and the area. Let them know how key exchange will be arranged.

Repeat information about check in and check out times and procedures – so if you need your guests to take the rubbish out or do the cleaning at the end of their stay, remind them here. If you have back-to-back bookings, you need to be strict about what time guests arrive and leave.

Finally mark the booking onto your calendar to keep your advertising up to date.

4. Check the property and return the Security deposit
Once the group has left, get your property checked and its inventory done. You can then return the security deposit. Don’t use the security deposit as a way to make extra money from bookings, but as a fallback in case something valuable gets damaged. Make sure you refund a deposit by the deadline stated in your booking contract – this will show that you’re efficient and trustworthy and will encourage guests to book again.

Don’t deduct money for tiny breakages like glasses and plates – instead ask people to buy similar replacements. If you do have to replace larger items or make repairs, keep your receipts and ask your cleaner or management company to photograph any serious damages. If you do have to deduct money from a security deposit, make an itemised bill and send copies of those receipts to the Holidaymakers.