Reservation Fees - Good or Bad?

rmason

We are talking about taking a $25 reservation fee, but I foresee more problems than benefits.  In the perfect reservation fee world, the tenant makes the reservation, pays the fee using his credit card, moves in on the scheduled date, and the fee is credited towards his initial payment.  A few questions:

1.      Assuming the fee is included in the daily close where is it collected on the tenant’s reservation?

2.      If the tenant’s move in date is the 13th and he misses that date, without notification, does he forfeit the fee?

3.      Can you apply the reservation fee to a first month’s special discount?

4.      Would you take a reservation fee both in person and over the phone?

5.      Would you take a cash reservation fee, or only credit card?

MamaDuke7

1.  I had to go back to see because we don't take a res fee anymore.  It shows on the daily deposit report as Walk-in POS.
2.  That would be up to you.  But if they never rent, the fee is yours to keep.
3.  You apply it to whatever is due at move-in, so yes.
4.  When I took the fee, I took it for every reservation no matter the source.
5.  I like cash even better than card because they can't go back and dispute the cash!!!

AnitaJohnson1269

We take a $25 reservation which automatically rolls over to their move in. It will hold a unit for 7 days, and is non-refundable.  The $25 will stay in the lead's account (we still have 2 from over a year ago, if they ever rent with us, it will probably credit over. 

teamcapitola

In the Setup, Under Reservations tab, make sure to enable the checkbox for "Apply Reservation Fee to Converted Move In by Default" makes life much easier if you use reservation fees!

We only do reservation fees (or "non-refundable deposits" as we call them) on  sizes we have a wait list for; 10x10s & 10x15s in our facility consistently have 5-10 names on a wait list year round. when one opens we call #1 on the list and offer the unit. 

 If somebody wants to hold that unit when they are called, its $100 for us to "hold" it for 7 days. As long as they rent the unit within the 7 days the deposit amount will be applied to the 1st months rent, but if they don't, or change their mind, they lose it. If they do not want to do it, we call the next person on the list.

We started doing it  because we were ending up with empty 10x10/10x15s for a whole month while we called each person on the list, waited for them to call back &  invariably would say "I need a day or two to decide" and then pass on it or want to wait for the next one because of timing etc.

It got pretty silly, having super high demand units sit empty...so we finally had to do something.

I don't think we've ever had to keep a deposit, but then only serious renters put the $$ up for the hold.