WELKEYS INFO: What is an Airbnb security deposit?

Hosts add a security deposit to their Airbnb listings. Why? Simply to avoid finding themselves in a difficult situation if guests cause damage during their stay. Welkeys makes it easy for you and explains all the features offered by Airbnb regarding security deposit management.

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How do you add or change a security deposit for your listing?

Having a security deposit is a good thing. But knowing how to add one is even better. A security deposit encourages guests to be more careful during their stay, as they know in advance that they will have to pay for any potential damage. Furthermore, it provides peace of mind to the host, as they are protected against any damage to their property.

To do this, hosts should go to the "Host" section on airbnb.com, select "Listings," and click on the relevant listing. Next, they should click on "Pricing" at the top of the page, select "Extra charges," enter the amount, and save.

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What is the ideal security deposit amount?

A host can request between $100 and $5,000 from guests. Be careful, though, as an excessively high security deposit can lower your occupancy rate. A guest might be deterred by a high deposit amount and choose not to book your Airbnb listing. However, when you face significant damage, repair costs can sometimes exceed your initial price. Therefore, you need to think about a reasonable, not excessive, price. Also, keep in mind that a security deposit cannot be applied retroactively. This means it does not apply to bookings already made. It is therefore necessary to add your amount as soon as you create your listing. That said, any changes to your security deposit will apply to all your future bookings.

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Can a security deposit be collected outside the site?

A security deposit cannot be collected outside the site. In such cases, guest payments are not protected because Airbnb has no proof that hosts have been compensated in the event of breakage or theft during a stay. Consequently, security deposits must be paid and verified through the Airbnb platform.

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How does Airbnb manage security deposits?

First, the platform checks the guest's bank to ensure they are able to cover any damages. The guest does not actually pay the deposit when booking; it is simply held during the reservation. However, they will be charged if the host submits a claim to withhold the deposit to report damage via the site's Resolution Center within 14 days of the guest's checkout date and before new guests arrive.

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What should you do if a guest breaks something in your property?

First, if your guest has caused damage to your property, there are several steps to take. The first step is to go to the Resolution Center on airbnb.com. Click on the relevant reservation and select "Request compensation for damages." It is also important to add photos of the damage along with a repair estimate and/or a purchase invoice for the damaged item. However, if the guest refuses or does not respond within 72 hours, you must click on "Involve Airbnb" in your Resolution Center case. You may be asked for additional documents, which you will also need to provide within 72 hours. If Airbnb deems it legitimate for the host to receive financial compensation, the platform has the right to charge the guest the necessary amount. On the other hand, if the damage caused is greater than the security deposit amount, Airbnb may offer you Host Guarantee coverage of up to 800,000 euros.