Resources
Articles

How to lose your vacation rental guest's trust in 5 easy steps

No items found.

When it comes to vacation rentals, trust is the cornerstone of a successful guest experience. It can take years to build a reputation of trust and just moments to destroy it.

Here’s a cautionary true story of how one property management company failed spectacularly and lost the trust of their guests visiting for a conference.  

Step 1: Provide Confusing Directions and Allow Parking Issues

After a long day of travel, clear directions are a guest’s first touchpoint with the rental experience. For our guests in this story, the company’s directions to their designated parking spot were unclear, leading to a frustrating search through underground parking garages. When they finally found their spot, they discovered it was already occupied by another vehicle.

This initial hiccup set a negative tone for their stay. Clear, precise instructions for finding the property and designated parking spots are crucial. The lack of preparation and oversight made the guests feel frustrated right from the start.

Step 2: Ensure a Cold and Unwelcoming Arrival

After finally parking and struggling with a finicky keypad lock, the guests entered their rental unit only to find it dark, with all the curtains drawn. The cold, unwelcoming atmosphere made the place feel more like a desolate hotel room than a home away from home.

A simple gesture like turning on some lights, opening the curtains, and providing a warm welcome note can significantly enhance the guest’s first impression. By ignoring these small but vital details, the company missed an opportunity to make their guests feel immediately comfortable and valued.

Step 3: Automation Error Causing Unsolicited Attempts to Double Charge for the Security Deposit

Halfway through their stay, the guests received multiple notifications from their bank of repeated attempts at being charged $1000. This was concerning on its own but to discover that this was being charged by the rental company for a security deposit they had already paid at the outset was alarming. This error was compounded by the company’s insistence that the charge was correct, despite clear evidence to the contrary.

Hours of back-and-forth emails, complete with screenshots of receipts, were needed to rectify the mistake. This not only disrupted the guests’ stay but also significantly eroded their trust. Automated systems are prone to errors, and it’s essential for property managers to promptly and politely address such issues, acknowledging their mistakes and resolving them efficiently. as As this involved a significant amount of money that would have been withdrawn without the security measures of the bank preventing the transaction, the company were less than gracious as to the significance of this issue and the upsetting position this put the guests in.

Step 4: Handle Incidents Poorly and Suspiciously

On the same day as the deposit debacle, the guests had returned from a day at the conference to discover a canvas painting had fallen off the wall. Due to it landing on the couch in the living room the arm had punched a hole through the canvas.

The guests immediately reported the incident with photos. Initially, the company seemed understanding, but a few days later, they began questioning the guests’ account and implying they might be responsible for the damage.

This sequence of events felt like more than just coincidence to the guests, who were already wary due to the deposit issue. The guests' perception of accusations and distrust further alienated them.

Trust can be maintained even during incidents by believing in your guests, thanking them for their prompt reporting, and handling the matter with professionalism and fairness.

Step 5: Delay Returning the Original Security Deposit

After their stay, it took the company three weeks and several reminder emails to return the initial security deposit. Blaming the payment processing system only made the guests’ frustration worse, making them feel their concerns were not taken seriously.

Timely refunds are a basic expectation in the vacation rental industry. Delays and poor communication during this process can leave a lasting negative impression. It’s critical to handle deposits promptly and to communicate transparently if delays occur.

This story of a guest's disappointing experience serves as a powerful reminder of how quickly trust can be lost through neglect and poor management practices. By failing at key touch points—clear communication, warm welcomes, accurate billing, fair handling of incidents, and prompt refunds—this property management company severely damaged its reputation.

The principles of our THRIVE Training System—Trust, Hospitality, Responsibility, and a Vibrant Environment—can help avoid all of the issues we experienced. Here’s a quick recap of what went wrong and how to do better:

Clear Directions and Parking: Provide precise directions and ensure parking spots are reserved and easily accessible. Test these instructions by putting yourself in the guests shoes. Poor lighting, faded signs or parking spot numbers may not be your responsibility but all play a role in the first experience a guest has as part of their stay.



Warm Welcome: Create a welcoming atmosphere by preparing the unit with lights on, curtains open (for daytime arrivals), and a personal welcome note. Ensure the temperature is comfortable and set the TV  to an ambient music channel.

Accurate Billing: Double-check automated systems on a regular basis and quickly resolve any discrepancies with apologies and clear communication. Always offer the guests the option to discuss the issue over the phone or in person as you can easily show concern and empathy with tone of voice and inflection. Emails and text messages can often be misinterpreted.

Incident Management: Handle incidents with trust and professionalism, believing in your guests and resolving issues fairly. Even if you have been stung in the past by a guest being dishonest, do not operate on the principle of penalising the 98% for what the 2% might do.

Prompt Deposits: Process deposit refunds promptly and communicate transparently if any delays occur. The memory of a stay can be seriously impacted if your guests have to chase the return of their deposit.


By embedding these values into every aspect of your operations, you can build and maintain the trust that keeps guests coming back and recommending your services to others. Avoid the mistakes this company made, and ensure your guests leave with memories of a positive, trustworthy experience.

Mike Bayer

Co-Founder & CEO

Vacation Rental Formula
Every superstar talent needs a producer to help keep the ship on course, and Mike has held this role since their idea for an online vacation rental education resource was first formed in 2004. Being an adult educator, multi-media creator, STR property maintenance expert, and online marketing enthusiast makes Mike's contribution wide but valuable on many levels.

ARE YOU A SHORT-TERM RENTAL (STR) BUSINESS OWNER LOOKING TO TAKE YOUR BUSINESS TO THE NEXT LEVEL?

Then it's time to enroll in the Vacation Rental Formula Business School!
With many different courses to help you solve the problem you are having right now.