Is it necessary to charge a security deposit for an Airbnb stay?

Is it necessary to charge a security deposit for an Airbnb stay?

Whether you’re a first-time or seasoned Airbnb host, you may wonder whether you should charge an Airbnb security deposit for your rental home. As a vacation rental owner, you are well aware that renting is not a risk-free endeavor.

Accidents happen, and things might be broken or damaged, no matter how hard you try to keep your stuff in excellent shape. As a precaution, you might include a security deposit in your ads to guarantee that any damages, breakages, or missing goods are covered.

Adding a security deposit to your Airbnb home, like many other things, has both advantages and disadvantages. Continue reading to learn all there is to know about security deposits.

What Is an Airbnb Security Deposit, and Why Do You Need One?

The software takes a specific amount of money from visitors as an Airbnb security deposit. This policy covers any property damage that happens during their stay. If the property was not harmed in any manner, the security deposit is refunded.

Airbnb enables hosts to put up a security deposit to cover small damages. The visitors cover the damage costs, so you don’t have to. You may charge visitors for thorough cleaning if, for example, they break glassware while staying at your house. The cost of the cleaning charge may be deducted from the amount if you have a security deposit in place.

What Is the Process for Putting Down a Security Deposit?

All security deposit claims are processed via Airbnb’s website. They guarantee that guests’ funds are protected and that hosts are adequately compensated for property damage. Outside of the Airbnb website, security deposits may not be collected.

Guests are not charged for the deposit right away when making a reservation. If a host wants to receive a security deposit payment from a visitor, they must follow a certain method.

Should I Charge an Airbnb Security Deposit?

You have the ultimate choice on whether or not to need a security deposit as a host. While having a security deposit safeguards your property, it may deter potential guests from making a reservation.

Hosts should evaluate their listings. Consider eliminating any barriers to booking that may be preventing visitors from doing so. Getting rid of a security deposit might help you increase your occupancy rate. However, if you don’t have a security deposit, you may have to pay the price of any property damage yourself.

What Should a Security Deposit Cost?

Airbnb does not propose a set amount for the deposit, although it does state that it might range from $100 to $5,000. The amount of the security deposit will be determined by the hosts themselves.

According to what Airbnb hosts have reported on many sites, there seems to be no predetermined amount for an Airbnb security deposit. However, a prevalent theme is that the security deposit should not exceed 20% of the overall booking fee. The typical security deposit is between $100 and $500.

Remember to make your security deposit and house rules requirements apparent in your listing description. Having your wishes written down might help you avoid misunderstandings and complaints.

What Is the Difference Between a Security Deposit and AirCover?

It’s vital to understand how a security deposit varies from Airbnb’s AirCover, even if it’s optional.

The security deposit demanded by the host protects the property and belongings against harm caused by visitors or their pets. For “rare occurrences of harm,” the Host Guarantee offers insurance coverage of up to $1,000,000.

  • Damage to your property caused by visitors, which the Host Guarantee may cover.
  • Guests causing damage to your belongings
  • A guest’s pet causes damage to property and belongings.
  • Theft of cash or securities, which the Host Guarantee does not cover (savings bonds, stock certificates, jewelry, etc.)
  • Damage from normal wear and tear 
  • Bodily damage to guests or others (which may be covered by host protection insurance)

The Host Guarantee protects all hosts. For increased security, some hosts may charge a refundable host-required security deposit in addition to the guarantee.

What’s the Difference Between a Security Deposit Required by a Host and a Security Deposit Required by Airbnb?

There are many sorts of Airbnb security deposits that may be perplexing. Depending on the property’s features and/or the length of the reservation, the owner or Airbnb may need a security deposit. A security deposit will never be sought based on a guest’s race, gender, culture, or background.

The two types of security deposits are the Airbnb-required security deposit and the host-required security deposit.

Security Deposit Held by Airbnb.

The permission holds that Airbnb puts on a guest’s payment method is known as an Airbnb-required security deposit. It covers the deposit and occurs two days before their reservation.

The money will not be charged to guests, but they will not be able to access it until the hold is removed. Airbnb will remove the hold on the debit or credit card 14 days after checkout or before a new guest checks in, whichever comes first if there is no damage to the property.

Security Deposit (needed by the host)

The host requested a security deposit for a booking made on their rental property is, known as a host-required security deposit. Unlike the security deposit needed by Airbnb, this deposit does not put a hold on any costs. If you’re a guest reserving an Airbnb property that requires a security deposit from the host, you’ll see the amount before you book.

The deposit will only be charged to guests if the host asks to collect it. The amount that hosts wish to collect may be more or less than the specified amount, depending on the kind and level of damage.

How Can I Recover My Airbnb Security Deposit?

As previously stated, host-required security deposits are distinct in that no fees are held in reserve. If you want to collect your Airbnb security deposit, you must complete the steps outlined below, as outlined by Airbnb:

  1. You must submit the request to Airbnb’s Resolution Center within 14 days after the guest’s departure or before a new guest’s arrival. You’ll need to describe the damage, provide proof, and make a compensation request.
  2. You will have 72 hours to answer your request from your visitor. If the visitor agrees to pay the desired amount, Airbnb will process the payment and deliver it to you, which might take 5 to 7 days. Your visitor might potentially refuse your request or pay a different amount.
  3. You may then engage Airbnb if your visitor refuses to pay what you asked or refuses to pay anything at all. Based on the Host Guarantee Terms and Conditions, an Airbnb Support representative will contact the guest to address the issue. Airbnb will send the guest a payment request if they authorize the request by the conditions.

Is there any paperwork I need to submit?

You must provide documentation of the damages to your property as part of the request. Photos, videos, receipts for repairs, bills, or written estimates may all be used. To decide whether the deposit is required, Airbnb will review these documents and documentation from guests.

What Are the Consequences of Leaving a Security Deposit?

While a security deposit may be an effective approach for hosts to safeguard themselves and their homes, it also seems to have certain drawbacks.

• Guests are concerned about unexpected expenses.

Some owners are concerned that requiring a security deposit may discourage visitors from renting their accommodations. According to one Airbnb host on Reddit, guests who were new to Airbnb asked a lot of questions regarding the security deposit. This might be true, based on what some hosts are saying on the internet.

These visitors wanted to know whether the security deposit was paid in advance or included in the booking fee. This host claims that some visitors have opted out of booking because they fear they would be required to pay the security deposit in advance. However, according to Airbnb’s website, this is not the case. 

• Confuses the booking process by requiring a security deposit that is refundable if no damage occurs during the guest’s stay.

Because a security deposit is optional, mentioning it in your ad may lead to more inquiries from potential customers. You’ll need to spend more time explaining how your security deposit policy works and what it means to your visitors. Consequently, the booking procedure may seem more difficult, deterring travelers from making a reservation.

•Taking a security deposit might lead to problems with trust.

By requiring a security deposit, some hosts seem to be less trusting of their visitors. This is because hosts are not obliged to place a security deposit on their houses. According to one Airbnb host, she has a frequent visitor who refuses to book with hosts that want security deposits.

The visitor expresses her desire for the host to have faith in her ability to leave the space clean and damage-free. A host who charges an Airbnb security deposit, she claims, is demanding and searching for a way to claim it as a secondary source of income.

If you additionally have a tight cancellation policy, guests are likely to be even less reluctant to book. If you want to charge a security deposit, consider what additional choices you provide to customers to make the booking process smoother.

• Complaints concerning charges that are still pending

According to Airbnb’s official support website, guests are not charged for the security deposit until a host lodges a claim. However, some of the visitors disagree. Several consumers have complained that Airbnb has established outstanding charges for their security deposit payment method. This gives hosts a negative reputation since it seems that they have provided their visitor’s misleading information. Hosts may still be required to transport their visitors to the court.

Court actions are not prevented by having a security deposit in place. If neither the Host Guarantee nor the security deposit amount covers the cost of damages, some hosts may still have to take their visitors to the court.

While adding a security deposit to your listing may seem like a good idea, you must consider all of the factors before making a choice. Consider the benefits and drawbacks of having an Airbnb security deposit before deciding whether it’s ideal for your rental company.

Consult with your insurance agent to determine the best method for ensuring that your property is adequately secured. You’ll know you’ve made the appropriate selection and have enough coverage this way.


Every host has the option of charging a security deposit. Think over your rental items, cancellation policy, and total booking fee before deciding. This will guarantee that you make the greatest selection possible for your rental company, whatever it is. Vacation rental software like Lodgable to make management duties more efficient. This frees up your time so you can concentrate on expanding and developing your business.

  • Syncing your calendars and managing multiple properties on Airbnb, Booking.com, and Vrbo; 
  • Enabling you to handle direct bookings efficiently through direct bookings management functionality; 
  • Processing online payments securely via Stripe integration.

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