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This is a hypothetical question. I would like to hear opinions from a host and guest perspective…basically if you were charging as a host, and the other side - if you were being charged as a guest.
This topic is NOT about the legalities of what is considered damage, etc. NOR is it about Airbnb policies etc.
I would just like to start a good discussion regarding charging guests at replacement cost or at a rate of depreciation.
The reason I ask is because many hosts spend A LOT of time only purchasing things on clearance, sales steals, estate deals, thrift store gem finds, etc. Some have been “given” very expensive brand new items.
For example - let’s say I got the steal of a century for a $2,000 mattress that I negotitated with the Sam’s Club floor manager for $200. After a few guests, one damages it. Should I only be entitled to what I paid? Yet, I have had people book who are expecting this specific mattress, etc.
That’s just one example. Thoughts??
This is just a hypothetical discussion and no…I have no mattress to replace.
I don’t know what the actual rule is, but I believe you should be entitled to the amount it would cost you to replace it. So maybe you bought it on sale, but that opportunity has now gone and it would cost you more to replace like-for-like.
I don’t have any experience of claiming for anything, but in a fair world I think this should be the case.
I believe that the most fair way of charging would be at depreciated replacement cost. If the mattress was new and would cost $2,000.00 to replace, then I would request $2,000.00. If the mattress had a life expectancy of 10 years and a guest ruined it when it was 5 years old, I would request $1,000.00.
I don’t understand this. It’s going to cost you $2000 to replace the mattress. Regardless of how old it is, if you only get a reimbursement of $1000, you’re going to be out of pocket $1000 because a guest damaged something.
I dropped my sister’s 2 year old camera. I bought her a whole new one, not 70% of one.
First of all, you should make everything so that guests are unlikely to damage it.
And mattresses are a bad example, they wear fast.
If you buy a $2000 mattress for guests, you should be adding a $100 protective cover.
Accidents can happen, this is part of doing business. You cannot charge a guests for it unless, you can prove it was them, and they did it on purpose or there was huge negligence.
And then you would have to proof that the mattress was new, by showing the receipt. They will see you only bought it for $200 so no insurance will pay $2000 for it, and my self as a guest would also not pay $2000 for the matress.
The idea is that I’ve had the use of the mattress for half of its expected life expectancy. It’s not worth what it was when it was new. I’m may have to spend $1,000.00 out of pocket, but I’ve been charging guests to sleep on that mattress. Also, in another 5 years I would have to buy a new mattress.
It is very hard to make a guest pay for a mattress, so you should charge all you guests some extra for it.
Remember you are running a business. And should also calculate with business depreciation and life expectancy.
Yes, under normal home use a mattress can last up to 10 years. But when renting you can about half that.
So write off should be done in 5 years. So with an occupancy of about 60% you a mattress costs you about $1,20 per. day. On top of that you should add some profit, and some “insurance” for early change.
So, you should charge your guest about $2 per day for a $2000 mattress.
And $2 days is a lot, I would never buy a $2000 for my guests that would be “to cast pearls before swine”…