What’s the Cost of Doing This Vacation Rental Business?

I’ve heard the phrase, “It’s the cost of doing business” on several occasions recently and thought it would be interesting to reflect on what this actually means. I use it myself at times when I feel a grumble coming on about having to replace the mesh in yet another screen door ($30 + time), or buy another set of chair cushions for the breakfast bar stools to replace the food stained ones, or spend an hour draining and refilling the hot tub because bathers have been wearing thick coatings of sun screen, contrary to instructions.

At what point do you say that this is more than can be accepted as fair wear and tear, or reasonable cost to absorb? Is there a notional figure, that once reached is then passed onto the rental client as a deduction on a damage deposit?

Dealing with damage, and situations where a property is not left in an acceptable condition, is an area some owners fail to plan for, and when presented with an issue that needs immediate attention or decision making, can be stressful. It’s worthwhile taking some time to think about how you might deal with a range of scenarios so when you are presented with one, you’ve got a bare-bones strategy for dealing with it.

I will usually overlook genuine accidental damage under $100 when the renters have called and let me know that something has been broken or damaged. I appreciate their honesty and since most have since rebooked again and again, the leniency has been rewarded. At other times, we’ve found evidence of damage that has been clumsily concealed which is irritating, particularly when it has impacted on the enjoyment of the next guests. That needs more thought as to whether a claim should be made and would take into account other variables such as whether the property was left in a good condition on guests’ departure.

Each situation needs to be assessed individually and given a lot of thought. The ‘cost of doing business’ can impact on emotions as well as pockets so having a plan is the key. Do you have a plan?