What is a breakage deposit?
A breakage deposit, also known as a security deposit or damage deposit, is a refundable fee paid by a guest before or upon arrival at a short-term rental property (vacation rental, apartment rental, etc.) or hotel room. It acts as a form of security for the owner or property manager, covering potential damages beyond normal wear and tear that might occur during the guest’s stay.
Is a breakage deposit refunded?
Yes, a breakage deposit is typically refundable, as long as the guest leaves the property in the same condition they found it in, minus reasonable wear and tear.
This refundable nature is what differentiates it from a non-refundable deposit, which might be used to cover booking fees or cleaning charges.
What is a refundable breakage deposit?
A refundable breakage deposit is the most common type of deposit. It’s returned to the guest after their stay, usually within a specific timeframe (e.g., 7-14 business days) following a final inspection of the property.
The specific terms for the deposit, including the amount and refund window, will be outlined in the rental agreement or booking confirmation.
How Does a Hotel Deposit Work?
Hotel deposits function similarly to breakage deposits in short-term rentals. They are typically refundable, but might be used to cover incidentals like mini-bar charges or late check-out fees.
Some hotels might also have a separate resort fee that’s non-refundable. Always be sure to review the hotel’s deposit policy before booking.
Can a non-refundable deposit be refunded?
Generally, no. Non-refundable deposits are meant to be final payments for specific charges, such as booking fees or cleaning costs. However, there might be exceptions in extenuating circumstances, like cancellations due to natural disasters or unforeseen emergencies. It’s always best to check the specific terms and conditions of the non-refundable deposit.
Example of a refundable deposit
Let’s say you book a vacation rental for a weekend getaway. The listing states a refundable breakage deposit of $200. You pay the deposit and have a wonderful stay, leaving the property clean and undamaged. Upon check-out, the property manager confirms everything looks good and your $200 deposit will be refunded within 7 business days.
