What is a typical cancellation policy when it comes to deposits?
Most states prohibit owners and landlords from keeping security deposits without just cause, and just cause does NOT include cancellations. Security deposits are collected to protect you in the event of damage, and in order to keep it, you are required to present receipts for the repair or replacement of damaged items. Some owners require a reservation deposit to secure a booking, and this amount is then put towards the total rental fee. A reservation deposit may be nonrefundable depending on your rental agreement, and as it gets closer to the arrival date, you should impose higher penalties for cancellations. However, if you end up rebooking those dates, it is good practice to refund the reservation deposit and any other payments, minus a cancellation fee. These guests could be so appreciative that they might rebook sometime in the future.
