Insurance vs Deposit - Moral Hazard?
I see the benefits of the insurance vs deposits however my property manager feels that if people pay insurance for protection they won't take as good of care of the property. What are your thoughts and experiences? Thanks!
@brett-beckman - I've heard that story before, but to be honest, that has not been my experience. The difference I've seen is that guests are more open about telling me that an accident occurred (broken glass, stain on bedspread, or whatever) but the cost of accidental damages still runs about the same. The easier part is that I no longer have to figure out how the damages occurred, or what even is "normal wear and tear" vs. damages. I replace those items from my damage waiver funds. Easy peasy, and happier guests!
Hey @Brett-Beckman - When we thought through this scenario, we decided it made the most sense for Property Managers to have the ability to keep the damage deposit and charge for the damage protection premium at the same time. This would double down on protecting your property as you have both the renter's personal cash and the damage protection coverage.
That option is the third and final setting before activating insurance.
You'll see that we recommend to intelligently disable the damage deposits - we do that because you're likely to see a higher conversion if the cost of the rent is lower. However, we realize that it's not always as clean-cut of a decision. Hopefully this helps!