The success of any party rental business revolves around the satisfaction of its customers. The level of customer satisfaction eventually decides the long-term success and stability of such a firm. Clients not just want timely delivery but they want a flexible rental payment and security deposit system too. If you want to know more about how security deposit plays a crucial role in rental business, click here.
As a party rental owner, when you are charging a security deposit fee, make it customer-friendly and reasonable. No customer wants to pay a lot of funds just as a security deposit. But from the owner’s perception, the security deposit is important. It makes clients conscious about how they are using the party rental equipment.
In the case of any damage or misuse of any equipment, the party rental company won’t suffer loss. The amount of security deposit is fully refundable.
Companies charge security deposits from clients because it keeps clients in check. They will safely handle rental equipment while preventing their misuse. Charging security deposits is almost rampant in rental industries dealing in vehicle rental, party rental, real estate rental, boat rental, and others.
For the last few years, there has been a growing debate concerning the necessity of security deposits in the rental business. But, it offers a win-win scenario for both customers and party rental business owners. Clients can acquire party rental equipment by paying deposit fees with a promise of returning them to the owner on as is where is basis.
It also makes customers conscious of protecting the party rental items at the live events or ceremonies. Even guests are requested to carefully use utensils, plates, balloons, standee, and other items.
New Trends in Payment Models in Party Rental Business
Under this model, a party rental business offers equipment and other tools to its clients for a predetermined amount. Customers who opt for subscription modely need not pay any security deposits.
Part Payment or Instalment
Another method is to pay a small fee per month as rent. It helps clients acquire quality equipment and tools by paying just a monthly fee or rent. It helps users stay away from making the security deposit upfront. Usually, monthly rental fees aways cost way less than security deposit.
Fifty Percent Deposit
Some party rental businesses also work on a 50% down payment. Under this method, a client has to pay 50% upfront to the party rental firm and the remaining payment is to be cleared by the client based on their mutual agreement with the party rental firm owner.
Insurance In Rental Business
Some party rental businesses also add insurance fees to their equipment and utensils. Usually, party rental business owners give equipment to clients on rental fees, which include insurance amounts as well. However, this fee is non-refundable, and covers charges of damage, and doesn’t include minor charges. In this method, clients don’t pay a security deposit.
The party rental business is a tricky deal. It is always essential that you have to keep customers’ interests in mind while conducting any business or charging fees from your clients. The primary purpose of any party rental business is to initiate a long-term relationship with clients and customers alike.
If you are running a small or medium-scale rental business, it may not be easy for you to keep a track record of deposits, payments, and other factors in mind. You should start using rental booking software in your business to make your accounting process easy and smooth. No matter what sort of charges you are taking from your clients, you need to record everything. Using dedicated software can maintain all necessary details and their historical records in the software to help you maintain your accounting process without any fuss.