How high should the down payment for a holiday rental be?

20 to 30 per cent of the booking value is common. Below that a cancellation does not hurt the guest; above that it feels risky to them. In the Alpine region 30 per cent is the most widespread value, payable within 5 to 7 days of booking — only then is the booking firm.

What does a typical cancellation tier structure look like?

A proven pattern: free of charge up to 31 days before arrival, 70 % of the booking value from 30 to 7 days before arrival, 90 % from 6 days before arrival, and 95 % for a no-show. Adjust the thresholds to your season — transparency before booking matters more than the exact percentages.

Should the down payment include the tourist tax?

There is no right or wrong, but your booking flow, confirmation email and invoice must give the same answer. A typical setup charges the down payment on accommodation plus fees, but excludes the tourist tax (a pass-through item) and the pet fee.

Guide · Booking rules

Down payment & cancellation policy for your holiday rental: fair rules that protect you

Updated 22 July 2026 · Approx. 6 min read

Without a down payment guests book quickly — and cancel just as quickly. With rules that are too strict they do not book at all. The art lies in between: rules that protect you from no-shows without scaring off guests who want to book. Here are the practical values that have proven themselves in direct bookings — and how to communicate them so there are no arguments.

The down payment: how much, when, on what?

Amount: 20 to 30 per cent of the booking value is common. Below that a cancellation does not hurt the guest; above that it feels risky. In the Alpine region 30 per cent is the most widespread value.

Deadline: the down payment should arrive within 5 to 7 days of the booking — only then is the booking firm. That protects you from “parkers” who reserve three properties at once. The balance is due either before arrival (e.g. 14 days beforehand) or on arrival, as you prefer.

Calculation basis — the underrated detail: 30 per cent of what? Only of the accommodation price? Including final cleaning? Including tourist tax? There is no right or wrong — but your booking flow, your confirmation email and your invoice must give the same answer. Typical: down payment on accommodation plus fees, but excluding the tourist tax (a pass-through item) and the pet fee.

The cancellation tiers: a proven pattern

Tiers are fairer than “down payment gone, full stop” — and guests understand them immediately if they are visible before booking:

Cancellation	Cancellation fee
up to 31 days before arrival	free of charge
30 to 7 days before arrival	70 % of the booking value
from 6 days before arrival	90 % of the booking value
no-show	95 % of the booking value

You can adapt the exact thresholds to your season (longer deadlines in high season, because replacement guests are harder to find). More important than the exact percentages is transparency: someone who saw and accepted the tiers when booking will not argue later.

The goodwill trick that saves reviews: formally you charge according to the tiers — but if you can re-let the period, you refund voluntarily (minus a small handling fee). It costs you nothing, takes the wind out of every cancellation argument and turns annoyed guests into returning ones. Phrase it exactly like that: “If we can re-let the dates, we refund proportionally.”

Legally: three things that must be right

Visible before booking: cancellation terms and down payment rules are part of the contract — they must be accessible to the guest before the booking is completed, not only in the confirmation email.
Unambiguously worded: “70 % of the booking value” instead of “an appropriate fee”. Unclear clauses count against you in a dispute.
Consistent everywhere: website, booking flow, confirmation and invoice must state the same rules. Contradictions can cost you the entire clause.

This article does not replace legal advice — have your final terms reviewed once, especially if you also rent to consumers outside your own country.

Checklist: can your booking tool handle this?

Down payment as a percentage with a selectable calculation basis (with/without fees, tourist tax, pet fee)?
Freely definable cancellation tiers with several steps and a no-show rule?
Are the tiers and the down payment shown to the guest in the booking step — not just in the small print?
Does the booking confirmation automatically contain the same breakdown including the payment deadline and bank details?

Your rules, represented exactly

In BineBoost you configure the down payment (percentage plus calculation basis via tick boxes), the cancellation tiers and the payment deadline freely — guests see everything transparently before booking, and the booking lands with the correct breakdown straight in your Smoobu.

Try it free for 7 days See the live demo

No credit card required — the trial ends automatically.

Note: this article is for general information and does not replace legal advice.