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Moving company deposits – what to know and what to expect

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It is standard practice to charge a moving deposit. Many companies require a down payment, even when you book a hotel or a flight, so the moving industry is no different. Moving company deposits ensures that you won’t cancel the service and cause the company to lose money and time. However, many questions are raised. Is it legal, why is it required and what is the reasonable amount? Best Movers NY will try and answer your question, so keep reading and find out more about moving deposits.

What is a moving company deposit?

A moving company deposit is a sum of money that many companies require in order to book a move and set a date. For a moving company, this is a certain sort of insurance. They will be compensated for losing profit opportunities if the customer cancels the move. It is generally a smaller amount of money. However, before booking any of the moving companies Manhattan offers, you should check what their payment policy is. There are also a couple of questions you need to ask your movers beforehand:

what is the reasonable amount to pay;
are moving company deposits refundable;
what happens when you work with a moving broker.

Hand holding a wallet and a dollar bill — Don’t be afraid to ask any questions about moving company deposits before you hire movers

What is a rational price to pay for a moving deposit?

The terms and conditions of every moving company are different, and each company has its own policy. Deposits should, however, be no more than a few hundred dollars. Anywhere from $100 to $500 can be considered reasonable. It is not uncommon for deposits to vary from mover to mover. It even depends on the location. For example, long distance moving companies NYC offers usually take bigger deposits than local moving companies.

Furthermore, moving deposits will be higher if you need to move during peak season or when there is high demand. Some companies have a policy where they calculate a percentage from the total moving price- so if you have a large home with plenty of belongings, the moving price and the deposit will be more expensive. Make sure to avoid any moving scams. An amount that is unreasonable should be considered a red flag.

Refundable moving deposits

The moving company cancellation policy will determine the amount that can be refunded. They are typically refundable within a certain time frame. If a customer cancels the move within a reasonable time, for most companies that is 2 weeks, they will get a full refund. We strongly advise that you check the exact terms and conditions, so you won’t have any ugly surprises.

Moving company deposits can lock your funds — In a situation where you need to cancel the move, there is a possibility that your downpayment might not be refunded

Before hiring movers Brooklyn offers, we have more tips that will help you with moving deposits. First of all, if you do agree on an amount, and you pay it, make sure you have written evidence. If the relocation is completed, this amount should be included in the total price for the relocation. In the case where you need to cancel or push your move to another date, make sure you give proper notice. Don’t do it over the phone or regular mail/email. By following this tip, you will avoid any misunderstandings along the way.

Working with a moving broker

In terms of deposits and payment terms, every individual has the right to establish their own rules under the law. A moving broker will always require a deposit. These deposits might not go towards the move. The brokerage company usually charges a separate deposit in order to arrange the relocation of your belongings. The fact is, you are not paying the moving company, but the middleman. You may also get an estimate that is far less than the actual amount for the move. Brokers typically give estimates online or over the phone, and they are never as accurate. We recommend that you stick with any of the moving companies Queens offers and that we can match you with. You won’t have any surprises along the way.

More tips on moving company deposits

Before even getting to the point of paying a deposit, make sure that you chose the right company to relocate your belongings. A moving company that requests a deposit does not necessarily mean they want to scam you. However, there are some basic steps and ways to research a company and be safe. You can verify their license, ask for recommendations and read online reviews.

Before you sign anything or pay any money, do your homework on the company. There is always a risk associated with paying upfront. Unfortunately, it is not uncommon for scammers to just leave with your money in their pocket. In the case you have to cancel the move, advance payments can even entangle the process. Make sure to complete all the transactions with your credit card, as you will have clear proof of the payment.

Hands holding a credit card and lap top — Paying with a credit card is a safe way to cover moving company deposits

Have a better understanding of moving company deposits

Relocating to another place can get expensive. Giving a deposit of couple hundred dollars before the relocation even started might make you suspicious. It’s always good to have a better understanding of why and what exactly are you paying. A majority of moving companies use reservation calendars to schedule their time and resources. Any last-minute changes and disruptions of the calendar can mean that the company will lose time or money.

A moving deposit is a sort of guarantee that the customer will follow through, and respect the company they chose. Furthermore, and especially in the peak of the moving season, movers need to be careful when scheduling and accepting jobs. Any reputable company will do everything in its power to keep its reputation pristine, and disruption in the calendar might cause further issues with other customers. Moving company deposits are a dedication, both on the customer and the company side.