US-based PropTech firm Rentals United aims to disrupt the short-let market with Screen & Protect, a property damage protection service paid for by guests with a small nightly fee instead of a large upfront deposit.
Its new online service aims to save holiday let landlords the hassle of sorting security deposits and reckons it will boost their bookings in the process.
The company’s survey found that 90% of property managers had experienced at least one incident of guest-related damage over the past two years with more than half managing three or more incidents.
A typical security/damage deposit can work out at hundreds of pounds for a week’s stay to cover accidental damage which sometimes deters guests from booking. Instead, owners can sidestep the complicated process of dealing with damages using Screen & Protect’s comprehensive protection.
Rentals United explains that a guide nightly fee of about £6 added to the accommodation price will cover the cost of the service, although this can be increased or decreased.
CEO James Burrows adds that property managers can choose to increase the nightly rate of their properties to pass the cost of Screen & Protect onto their guests, and still see an increase in bookings.
“Property damage is a reality in vacation rentals - even the best guests break things,” says Burrows. “But the real stress is rarely the cost; it’s losing bookings if you ask for security deposits or wasting time negotiating compensation with guests and insurance companies if you don’t. And when you involve guests in the process, friction or bad reviews often follow.”
Guests are pre-screened during the booking process based on their past bookings through online platforms and by using their email address and phone number. If damage occurs, incidents are reported through the Rentals United platform without involving the guest, and successful claims can get compensation of up to €50,000.
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