Introduction

The security deposit is the magical money set aside to cover your rear should something go wrong. You decide how much this deposit should be and authorize that amount before allowing anyone to rent your RV.

Security deposit authorizations

You may see that the security deposit is authorized more than once because some credit cards providers release their holds after 7 days while others release holds after 30 days. The security deposit gets auto-released by the system, however it automatically reauthorizes the security deposit immediately; and it continues to do that to ensure you have a security deposit. Meaning you may see an authorization charge, and then the Credit Card company releases it, and our system will reauthorize it.

Usage of the Security deposit

The primary use for Security Deposits is to cover Insurance Deductibles. It can also be reserved for damages, repair costs, and interior damages.

The security deposit is NOT intended to cover any ancillary charges such as mileage overages, generator overages, cleaning fees. Those should be charged to the customer's credit card directly by clicking the make payment button on the reservation page.

Security deposit amount

We recommend setting your Security deposit amounts to match your vehicles deductible (2% of your vehicle's value) with a minimum of $500, and though the max deductible is $1500 this is open to exceed where you feel comfortable. A higher deposit offers more protection, but be cautious about driving customers away with excessively high Security deposits, we see anything above $2,000 significantly reduces renter conversion. Consider the value of your vehicle: If you have a Class A luxury RV, you may want to charge a higher deposit than if you have a pop-up trailer.

Security deposit FAQ

How does the security deposit work?

If your RV is returned and you need to dip into some or all of the deposit, be sure to claim that money within 7 days. You can manage this from your reservation page by selecting the Manage Security deposit button on the top

If you don’t do anything, the deposit money gets automatically released to your renter 7 days after the return date on the reservation.

What does the security deposit cover?

The security deposit covers any damage caused by the guest which is not covered by the Outdoorsy/Wheelbase protection package.

This includes but is not limited to:

Interior damage, such as broken cabinets or interior scratches
Awning damage if awning use was not authorized by the owner in the rental contract.
Damage due to illegal activities of any kind
Missing items that were provided at the beginning of the rental
Towing and repairs, during the rental that are not covered by insurance or roadside assistance
Your insurance deductible

How do I manage the security deposit?

Be communicative and transparent with your guest so they know exactly what’s happening with their deposit. Here are your options:

Hold the entire security deposit: This gives you time to estimate the charges needed upon return. A hold re-runs the authorization until you take additional action.
Claim the entire security deposit: A claim turns the deposit authorization into a charge, and you will be paid out the entire deposit amount, minus processing fees.
Release part of the security deposit: Allows you to release part of the deposit, a box will appear for you to enter the desired released amount. Once you select release part of security deposit, that will be released to the guest and they will then be charged for the difference. Keep in mind that you will not be able to further manage the deposit after this action is taken.
Release the Entire Security Deposit: The entire deposit is released to customer immediately, without waiting for the 7 day period to expire.

If there are variable add-ons costs or fees that need to be charged once your guest returns, follow the steps below:

Go to the reservation page on your dashboard
Select the applicable reservation
Select Edit
Add the add-ons/line items to the reservation and save
Select the Make payment button on the reservation to charge the customer's credit card

What if I need to charge more than the security deposit covers?

You’ll need documentation of all the additional charges, including the signed RV Return Form. Go to your dashboard and select Manage Deposit on the specific booking to claim the full security deposit. Clarify with the guest why you need to charge an additional amount. Once the guests confirms, charge the guests directly for the amount due over deposit with the "Make payment" button.

How does the security deposit apply to the deductible?

In the event of a covered damage claim:

claim the security deposit amount needed to cover the insurance deductible.
When the claim is settled by the insurance claims team, the payout to your bank will be for the settlement amount minus your deductible.
The amount you claimed from the security deposit covers the deductible amount, combined with the claim payout with the deductible withheld, you will have the total claim settlement amount.

For example:

A vehicle has a $1,000 deductible based on its replacement value
The security deposit on that vehicle & reservation is $1,250
The total damage & claim amount is $3,000
- You claim $1,000 from Security Deposit
- The payout from the insurance claim is $2,000 (claim amount minus your deductible)
- The Sec. Deposit claimed amount + the insurance payout = $3,000 for the repairs

How much should I set my Security deposit for?

As a business, it is your prerogative to set the security deposit at whichever amount you see fit.

However, it is a common and recommended practice to set the security deposit at the same amount as your insurance deductible.

Wheelbase's protection deductible is 2% of the value of the vehicle, with a minimum of $500 and a maximum of $1,500.

If the unit were damaged and needing a claim, you would have the deductible amount already from the renter and not have to chase them down for it.