Prepayments and deposits in vacation rentals: how to take and track them

Why take a prepayment

• Confirms the guest’s intention. A guest who has paid a prepayment takes the booking more seriously.
• Compensation for no-shows. If the guest does not arrive, the prepayment covers part of the lost revenue.
• Occupancy planning. Prepaid bookings are more reliable, which makes it easier to plan the week.

How much to take and when

The prepayment is most often the price of the first night or part of the total. In high season and for long stays it is usually higher, and for short bookings in low season lower.

Ask for the prepayment right after the dates are confirmed and collect the balance at check-in. Channels with online booking take the prepayment themselves and keep their commission.

Refund terms

Set the refund terms in advance and tell the guest before they pay: for example, a full refund for cancellations several days before arrival and no refund for later cancellations or no-shows. The same terms for all properties mean fewer disputes.

Why take a deposit

A deposit covers possible damage: broken dishes, ruined linen, lost keys. It is usually comparable to the price of one night and depends on the standard of the property.

• The deposit is taken at check-in and returned after check-out, once the property has been checked.
• Record the property’s condition before and after the stay with photos.
• A deposit is not revenue: it is tracked separately from the price of the stay.

Tracking every booking

To keep the amounts straight, every booking should show:

• the nightly rate and the stay total;
• the prepayment received and the balance due;
• the deposit, separate from the total;
• the booking source and the channel commission, if the booking came from a channel.

It helps to see payment status right in the calendar: bookings without a prepayment, prepaid bookings and checked-in stays should each have their own colour. Then a manager can see at a glance whose balance to collect at check-in.

No-shows and penalties

A no-show frees the property, but the booking should not vanish without a trace. Keep it in a separate list with the penalty amount, if your terms include one, and a status: expected, received or not charged. That way you see the real losses from no-shows and their share of revenue.

Channel commissions

With a channel booking, the guest often pays the prepayment to the channel, which keeps its commission. For an honest view of each property’s profitability, you need to see the owner’s income after commission, not just the booking total.

How it works in Glavbook

• The booking card brings together the nightly rate, stay total, prepayment and deposit. The balance is calculated automatically, and the deposit is kept separate from the total.
• A booking’s colour in the calendar shows its payment status: yellow for no prepayment, orange for a prepaid booking and green for a check-in. A prepaid booking shows the prepayment amount.
• The deposit and cleaning fee can be set in the property’s terms.
• For Avito bookings, you see the guest’s prepayment, the channel commission and the owner’s income after commission, if Avito shares this data.
• No-shows are collected in a separate list with a penalty status: expected, received or not charged.
• For now, payments are recorded in the booking card by hand; online payment is not connected.

More on the page “Prepayments”. How to track expenses for each apartment is explained in the article “How to rent out several apartments”.

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