We place our local Transient Occupancy Tax Rates on all Rentals, and disclose the terms in the property description. If we get a rental that does not require TOT, we adjust the Quote or Reservation accordingly.
90% of the time, the renter will ask for the adjusted quote based upon our disclosure in the description.
Thinking if you need to segregate the accounting of the funds, create a new Rent Income sub-account. Something like Voucher Income.
From the Accounting Point of View, the payment stays in the Pre-Paid Rent Liability Account rather than being recorded to Rent Income or Voucher Income until the rental occurs. Ask your Tax Pro if that may be deferred income for 2020 reporting purposes.
For an example of segregating funds. We have a situation where AirBnb remits taxes to one of the municipalities we serve. We had to create an AirBnb Rent Income account in our books to differentiate those rents from those we need to remit taxes on. Achieved the desired result.
When we spoke with our AirBnb Account Manager last month, she told us they are seeing 80% of bookings occur 8 to 30 days in advance.
We had noticed this as well in June.
So, when someone who booked months ago cancels, we raise the rates before we process the cancellation. $770,000 in Cancellations this year, but we’re still likely to hit our revenue goal.
@Kevin-Poglitsch Thanks for this link. As a suggestion, perhaps adding a tag to the answer that includes “COUPON CODE” or at least “COUPON” so that others might find it. I did search the KB before coming to the community but I wasn’t thinking of “discount” so I didn’t think to search that way … just a suggestion
Thanks for shedding some light …
In my experience, TripAdvisor is an issue due to their policy of converting a Quote to a Reservation without any Payment.
I change their “Reservation” from “Reserved” to “Tentative” as I find the folks who are going to Book, do so almost instantly, while the conversion rate from sending quotes is a single digit experience.
Hopefully, you will experience more success than we do, but we don’t.
@Jenny-Oest OOps, that was my first reply … not sure why it was hanging around unsent (user error perhaps…)
I did submit and got a response that the developers are working on an update to the checkout page.
Kudos to the MyVR team - this is a very trying time and we are learning many new things that will only make all of us better business people in the end. This is an unusual business for many of us - we came to it out of love for either our property and/or our local, often with a desire to just be able to share what we love about this place - many of us had no hospitality business experience. MyVR has helped many of us grow or achieve in ways we could not without the great tools provided. This pause had highlighted some of the areas where we need tweeks, so thanks MyVR team for stepping up for us to make this system even better.
Use the steps below to turn off “automatic approval”
Go to Properties, then Properties
Next go to Settings, then Booking & Payments
Then select “booking policy” in the green window
Go to Booking Defaults then ADVANCED SETTINGS
Toggle AUTOMATICALLY APPROVE to OFF.
Thanks for reaching out via the MyVR community!
I reached out to MyVR’s VRBO account manager to get their take on this, here’s what I learned:
HomeAway/VRBO listings that are integrated through a software provider (such as MyVR) do not allow the guest the option to cancel their reservation.
Instead, the Property Manager will always be the one initiating the cancellation, and HomeAway collects a ‘reason code’ from MyVR.
As long as this reason code is indicating that the traveler canceled the reservation, your account will not be negatively impacted.
So, what does this look like in MyVR? When selecting the cancel option on a reservation, simply select a reason of ‘Renter Cancelled’ from the dropdown:
(Note that we also have a ‘Refund all payments’ option which will prove to be useful in your scenario)
I hope this helps clarify, please let me know if you have any questions!
If you cancel a reservation prior to the check-out date, we automatically cancel any insurance policy associated with the reservation and issue a refund for the original cost of the policy. If you navigate to view the reservation details in your account and click on the “Financials” tab, you’ll see the insurance expense will be zero out.
If you have already paid for the policy, you will be refunded this amount on your next insurance invoice. If you haven’t yet paid for the policy, you won’t be charged for it at all.
I hope this helps!
@joseph-coniker - I spoke with my HomeAway partner rep and they explained to me that when you process the cancellation, you just need to note the reason as “Renter Cancelled”, and that will not count toward your cancellation statistics.
@kaukuta-saint - We don’t this as a variable choice at the moment, but it would be a great feature request. When you request it, you’ll want to add more specifics too, such as, if the monthly rate applies to 28 nights, then in other months that have more nights, should be rate be pro-rated to higher amount using that 28 night rate?
For example, if a monthly rate of $2,800 kicks in at 28 nights, and they book 31 nights for January, what would you expect to see for the rate? And if they booked 29 nights out of the 31?