Can a guest claim damaged property?

[Jonothan2]

I had guests stay at our unit the past weekend. They managed to get some of my towels stained with henna/hair dye. I sent them a request to pay for the damages, which they did, but now they are insisting on collecting the towels.

Am I obligated to give them to the guest?

Sorry if this question is inappropriate, I am still new in the hosting game and want to ensure that my guests are happy at all times, but I do not feel comfortable with handing over something, especially when the charges for trying to get them clean cost me more than the actual towels.

[Paul1255]

@Jonothan2  I hope you’re doing well.

I imagine if you’d sold the damaged towels to the guest then they’d want their purchase and be within their rights to have them- but you’ve not done that, so I don’t see why you’d be obligated to hand them over.