How Do I Add A Security Deposit for Direct Reservations?

Unfortunately, vacation rentals can sometimes incur damages, and it’s one of the risks of renting out properties. In this article, we will cover how you can set up security deposits for direct bookings in iGMS, so you can protect yourself from potential financial losses.

What is the iGMS Security Deposit?

A security deposit is a monetary amount that travelers agree to pay in order to cover any costs associated with damages they could cause while visiting. The deposit is always returned to the guest if there are no damages found after the checkout.

At iGMS, a security deposit works the same way as many popular booking platforms. But unlike Airbnb, with iGMS, you have full control over when and what you want to claim.

Important note: security deposits can’t be set for direct bookings unless you have a Stripe account connected to iGMS. Keep in mind that Stripe charges a fee per successful card charge.

How does the iGMS Security Deposit work?

Let’s look at the iGMS Security Deposit feature functionality in more detail.

To add a Security Deposit that will be applied to all your direct booking channels, click on the Direct Bookings menu and then, the Payments tab.

You also have 3 options for how you’d prefer to charge the deposit.

•  Flat amount: A fixed amount that will cover the potential damage.

For example, you rent a small condo and know that $200 as a deposit will be enough regardless of the nightly rate and length of stay.

• A percentage of the reservation cost: Calculated based on the nightly rate of your reservation.

For example, you could have a nightly rate of $350 and set your deposit percentage to 30%. If the property is rented for 6 nights, the deposit will be $630. Note: make sure that you comply with your local regulations when choosing this option.

•  A percentage or flat amount: The deposit will be calculated as the greater of the flat fee and the percentage of the booking cost. 

For example, let’s say your flat rate for the deposit is $500 and the percentage for the deposit is 30%. With the same example above, where your nightly rate is $350 per night, the security deposit as a percentage of the booking cost will be $630. This is more than the flat amount. The greater amount will always be applied, so in this case, it will be the percentage deposit.

How can I add a security deposit for direct bookings?

Let’s look at an example of how a security deposit can be added as a global setting for all direct booking listings in iGMS.

1. Go to the Direct Booking menu tab and select the Payments section.                                                          

       2. Add the Deposit amount  (flat, percentage, etc). For the flat rate, you will need to add an amount.

       3. Add the Release Date of your deposit.

4. Click Save.                                                                       The same steps are applicable if you want to add a security deposit for a specific rental only. But, as a first step, you need to open the Direct Booking Listing Editor of the specific rental and scroll to the Security Deposit section.                                                                                                          

How can I claim funds if the damage was done? 

Once the Security Deposit is collected upon reservation, then you can claim funds in case of damage. Here are the steps:

1. Open the Single Property Calendar by clicking on your property’s title in the Multi-calendar. 

     2. Click on the direct booking reservation that needs your attention.

3. Click on the Invoice or Security Deposit amount.

4. Click on the Claim button.

5. Specify the amount of funds as well as the reason, which will be visible to your guest.

6. Click Claim Funds. 

After that, you will see that the claimed deposit is added to the invoice.

Once it’s done, your guest will receive a notification via email informing them what sum was claimed and for what reason.

In case nothing happened after the stay, there’s no need to release the funds manually. The deposit will be released in accordance with the settings you’ve selected for them on the global level or for this specific rental. Your guest will also receive a notification that the funds have been successfully returned to their card.

How can the deposit be released earlier?

If your guests are leaving earlier than expected, you can release the deposit before the release date. 

Here’s how you can do that:

      1. Open the Single Property Calendar by clicking on the property’s title in the Multi-calendar. 

2. Click on the direct booking reservation that needs your attention.

3. Click on the Invoice or Security Deposit amount.

4. Click on the Release button.

5. Confirm your action. 

The security deposit will be released automatically, and your guest will get a notification about it via email.

If you have questions about setting up your iGMS Security Deposit, feel free to contact our Customer Experience team via email or in Live Chat.