Select Page

Suggested Cancellation Terms and Conditions – Required vs Strongly Suggested Rules

Master Cancel | Required vs Strongly Suggested Rules
Required Rules:
  1. Master Cancel enables a property manager to be able to offer flexible terms & conditions where a guest can cancel from 60 days up to and including 2 days before check-in date without penalty.
  2. Master Cancel coverages reported on all paid bookings of an eligible property manager with a check-in date on or after August 1, 2020.
  3. Property Manager requires a minimum 25% deposit with initial booking. The only exception to this rule is bookings via OTA’s (Online Travel Agencies like Airbnb and VRBO).
  4. Property Manager requires any balance owed by guest is due no later than 30 days before check in date. The only exception to this rule is bookings via OTA’s (Online Travel Agencies like Airbnb and VRBO).
  5. Master Cancel Benefits: Cancellations for unforeseen reasons, up to a maximum benefit limit of $25,000. Bookings with trip cost over $25,000 do not qualify for Master Cancel.
  6. Maximum Eligible Trip Duration: 180 days. Bookings with trip length over 180 days do not qualify for Master Cancel.
  7. Property Managers reimburse the guest the full deposit or amount that was paid by the guest.
  8. Master Cancel is applied to all paid bookings for all rental units.
    1. NOTE: Some property managers have been granted the right to exclude a very small
      number of units. These excluded units are typically an “event” or wedding unit, a B&B,
      the owner’s personal unit or some other unique circumstance.
  9. The Property Manager’s refund policy for 61+ days must not be more punitive than their 60-2
    days refund policy. If the 61+ day refund policy was more punitive than the 60-2 term, it would create a situation where the underwriting data would drastically change from where the client was originally underwritten.

    1. NOTE: See below for our optimal (strongly suggested but not required) cancellation policy.
Strongly Suggested Rules:
  1. Suggested Guest Refund Policy:
    1. Refund Payments for cancelled bookings 61 days or more before check in date will be
      released to the cancelling guest within 5 days of when the cancellation is made.
    2. Refund Payments for cancelled bookings from 60 days up to and including 2 days before check in date will be released back to the cancelling guest between the cancellation date and the scheduled date of check-out of the original booking. Within this range, it is at the discretion of the property manager with the important stipulation that the 61+ days refund policy is not more punitive than the 60-2 day refund policy.
    3. Cancellations made 1 day prior to or on the day of check-in will not be eligible for
      refund. Example: For a check in on Saturday, Guests could cancel the prior Monday,
      Tuesday, Wednesday, and Thursday, but not Friday (1 day prior) or Saturday (day of
      check in).
    4. Guests may cancel their reservation by notifying their property management company in writing that they wish to cancel.

Permitted Additional Options:

  1. Additional permitted options for Managers/Owners:
    1. PERMITTED: Approved terms because the 61+ and the 60-2 day terms are the same (full
      booking rental deposit refunded). Example:

      1. Cancellations can be made up to 2 days before check in date and receive a full
        refund of their booking rental deposit.
    2. PERMITTED: Approved terms because the 61+ and the 60-2 day terms both fully refund the booking rental deposit and include the same non-refundable booking fee. Example:
      1. Cancellations made up to 2 days before check in date receive a full refund of
        their booking rental deposit, and are charged a one-time X% non-refundable
        booking fee.

Managers/Owners are NOT permitted to do the following:

  1. NOT PERMITTED: The primary rule is that managers/owners CANNOT have a more
    punitive term for the 61+ day cancellations vs. the 60-2 day coverage period of Master
    Cancel, thus forcing ALL claims within the 60-2 covered period. Example:

    1. Cancellations 61 or more days from check are charged a 10% non refundable fee
      and refunded immediately. Cancellations from 60 days to 2 days before check in
      receive an immediate refund without any penalties.
Table of Contents