Sunday, September 18, 2011

Movers and Deposits - How Much Should I Pay for a Mover Deposit

Know When a Deposit is Required and a Reasonable Amount to Pay

By Diane Schmidt, About.com Guide

In some jurisdictions, when hiring a moving company, movers may require a deposit to hold the moving date. Down payments aren't very common except in areas where there are high rates of households moving or at times of the year when moving is at its peak. People who have been asked by their movers for a deposit, often wonder how much is expected and at what point is a mover asking for too much.

Why Are Deposits Required?

First, it's important to know that moving deposits are not common and rarely should you be faced with making a down payment. When a mover asks you for a deposit, it's a good idea to question the mover, asking why they require upfront funds. If you're moving in the summer - May through August - some moving companies are concerned that without a deposit, they could miss out on the busiest moving season if a customer cancels the move at the last minute.

If you've hired a mover through a moving broker, you may find yourself paying a deposit to the broker. While you may think that hiring movers through a broker will be easier, often it means that your mover is unknown, making it difficult for you to know if your mover is reliable. Overall, I don't recommend that you use a moving broker and if you do, make sure you know who the mover is so you can do your own research.

Down payments or deposits may also be common among rogue movers.
So if you've been asked for a deposit, make sure the mover is reliable. Do your research. Check the mover's moving history before you pay any money or sign any contracts.

How Much is a Reasonable Amount?

If the moving company you're thinking of hiring is reliable - has a good moving record - and asks for a deposit, it's important to know that the deposit should be a reasonable amount. Some movers will base it on a percentage of the cost of the move, so if you're moving a longer distance than you could be paying a slighter higher deposit. Other movers may adjust the deposit amount according to the day you're moving. Moving on a weekend may require a higher down payment while weekdays are often lower. Overall, deposits may range from as low as $100 up to $500. Any amount between is considered reasonable.

What If I Need to Cancel the Move?

If you've been asked for a reasonable deposit, the mover should also provide you with a reasonable time to cancel the move and still retain your deposit. Most cancellations need to be done at a minimum of two weeks before the moving date. However, during slow moving periods, companies may allow you to cancel a week prior to the move without a penalty. Know what the penalty date is so that you don't lose your deposit should your move date change or your move be canceled.




No comments:

Post a Comment