We currently charge guests for our Waivo damage waivers a “management fee” of $25/booking. We are moving toward the “self insuring” route but curious what people are charging each reservation to make this happen? I don’t want to deter bookings by charging too much but I’d like to charge enough to create a fund that would actually cover damage.
Question
"management fee" as damage protection
I’ve been taking notes whenever I see what other PMs are charging… as I too am planning to be self-insured soon. I think it’s okay to think in terms of “what do guests expect” or “what can we charge competitively,” and let it be another profit center (sweeping excess reserves into the operational account once in a while). It’s certainly possible that you might need to lower your rates slightly to absorb the impact on the guest’s total cost, but theoretically when you add it all up it should be the same difference.
That said:
- Evolve charges $45 for a waiver (last I knew)
- Vacasa charges by the night, starting at $7
- The low-end policy sold by Vrbo is $59 for $1500 of coverage
- And when the time comes I will certainly survey the cost of all the others… Truvi, Rental Guardian, Waivo, etc.
It’s also helpful if you have some history of what your actual damage costs have been. For me, it’s been a measly $300 over 5 years, which is what got me wanting to be self-insured in the first place. Why give thousands a year to some insurance company when you can put it toward the down payment on your next property LOL
Okay this is very helpful
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+1🥴well said
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