How to apply a damage deposit requirement to our listings?

[Traci150]

How do we apply a damage deposit requirement which holds a guests Credit Card information in the event damage has been done?  They do this at ALL Hotels/Motels and this should be an option to us hosts.

VRBO does have this feature.  I've also noticed a major decline in 2021 bookings on this site compared to VRBO.  What is Airbnb doing to justify the fee's charged to the hosts?  Just my opinion, this site charges wayyyyy too much for very little in return.

Traci Carlson

SUPER Co-Host on 2 properties

[Elaine701]

When a guest inquires, and you feel it is a "risky" guest, then tell them they are in a high risk group, and you will need to charge a security deposit of xxx. If they agree, then ok. But if they don't, you probably don't want them as a guest anyway.  "Thanks for your inquiry. Have a nice trip, wherever you end up".

If they agree, then approve their request, and as soon as they book, go to the resolution center, request money of the agreed security deposit amount. If they don't pay it as agreed, tell them to cancel their booking (don't cancel it yourself, because you will be penalised for that). 

When the guest checks out, and if there is no damage, always always give it back to them in cash. If hosts play games with this, then this will end badly. It's already not a "sanctioned" Airbnb function, and I doubt they like it. 

It works for us. And unlike the VRBO system, you can apply it at your discretion. 

[Traci150]

Thank you for your suggestion.  There has to be a much easier process?  I'd rather have the Credit Card information which Airbnb holds, to charge for damages.  No money needs to be disbursed at booking which sounds like a nightmare for our CPA. (charging and refunding constantly)

We chose the Airbnb platform because it provides all the necessary tools to run a successful rental except for the damage deposit option that other platforms offer.

Sincerely,

TLC

[Anonymous]

@Traci150   before considering @Elaine701 's suggestion here, be aware that it carries a high risk of getting your listing flagged by a Discrimination complaint, which Airbnb takes seriously enough to ban your account.

All it would take is for the inquiring guest to complain that they were unfairly profiled as a "risky" guest and subjected to different conditions from other guests, and your Airbnb career is finished. Among the reasons you can't impose different conditions are the guests' ages and familial status, disability (remember, that includes people who want to bring a so-called "emotional support animal") or any other factors listed in the link above. I can't think of any rational reason you could call one group more "risky" than another that wouldn't fall afoul of the discrimination policy. 

And believe me, if I requested a listing and the host asked me to transfer extra money to them as a "deposit" off the books, I wouldn't hesitate to report them for the violation.

[Elaine701]

@Anonymous @Traci150 

Yes, there's definitely a risk. With ANY guest complaint of any kind, really. You need to avoid guest complaints wherever possible. Or face all kinds of risks both from Airbnb and the guest 

But it's worked for us so far. Mainly because nobody who's paid a deposit has ever caused any damage (they want their money back).  And that's what it's about, really. Prevention. 

Im under no illusions. I fully expect the day that damage is caused by someone that's paid a deposit (and I keep some or all of it), will be the day that Airbnb gives the guest a full refund of the deposit AND rental, and delists our property. 

This type of erratic, irrational behaviour is just another reason why Airbnb is becoming an  increasingly risky platform for hosts.

So, if they kick me out it would be a shame, but I'm already listed with their competition and gaining credibility with them. We shall see... 

[Jeff-And-Michele2]

Since security deposit is not available through Airbnb, what other preventative measures can I take with the booking settings? Turn off instant book, show My space will only support for, instead of five, etc?  Somehow I feel a very strict refund policy and a longer stay requirement would help to prevent house parties. Because they wouldn't get a refund With a flexible or moderate cancellation, it seems the guest can have the party and leave the next day and get a partial refund .  My fellow co-host experienced this with two parties in a row.  How frustrating but I would love to know everybody's thoughts?  Thank you, Michele

[Traci150]

We host in Charlottesville, VA and Kill Devil Hills, NC (AKA. OBX).  Both are very different from one another.  One is a College Town (UVA) and the other a very desirable Beach destination.  Our Charlottesville house has a two night minimum (works great) and our beach house has a seven night minimum during peak (June-August) then a four night minimum (September), Three night (October-December).  We haven't had any issues until recently in Charlottesville the guests staying over July 1 (date they legalized marijuana) left our place with 3 half smoked joints and ashes all over the living room table (YES, we are a NO SMOKING property) and spilled something bright orange on our living room oriental rug (ruining it).  Thus the reason for wanting to secure a damage deposit on ALL of our rentals moving forward.  The current process for damage on Airbnb is AWEFUL and we'll end up taking matters into our own hands through the legal system which we can avoid if allowed to hold a damage deposit.  I hope this makes sense?

Thanks Again,

TLC

[Elaine701]

@Traci150 

There is no security deposit unless you unilaterally demand it. As I mentioned previously, if you choose this option on VRBO, >all< guests have to pay it, whether they're "risky" guests or not. And that tends to scare away the "good" guests you really want, and leave you with the "security deposit" crowd booking your place. 

On Airbnb, you can charge a security deposit at your discretion. If it's a group of 22 year olds, I'd certainly advise a security deposit. If it's a family of 2 adults, 2 kids, then you can probably relax that requirement, and welcome them to your place. 

Still, if you're unwilling or unable to take control of your guests, employing preventative measures such as these, providing more incentives for the guests you really want (and need), while putting up more barriers for the guests you don't want (and don't need), then either you shouldn't be in this business, or you should get someone else to do it for you.

[Traci150]

GREAT feedback and reasoning

We've been doing this ourselves for over 5 years, I think we're good at managing while maintaining Super Host Status at BOTH locations!!!!

Regards,

TLC

[Alexandra316]

@Traci150  @Jeff-And-Michele2   Taking a deposit from the guest is not allowed by Airbnb. Your insurance is supposedly the non-existant security deposit and the Host Guarantee, and they don't allow you to take other measures. If you're not comfortable with that, VRBO and other sites have much easier processes for collecting if there is damage. I'm an Airbnb guest as well as a host, and it makes me really mad when I see hosts trying to collect additional deposits. 

In terms of party prevention, choose a minimum stay of at least 2 nights, but preferably longer. Turn on all the conditions if you're going to use Instant Booking: make the guests add ID and a profile picture and have previous good reviews from other hosts. Others will still be able to request to stay, but you can ask questions before hosting them. Prevention is way better than trying to fix things after the fact. 

Also consider getting deterrants like a Ring video camera and/or Party Squasher. Make sure you mention it in your listing: it should deter partiers as well. 

[Traci150]

Thanks for the feedback.  We have ALL of those measures in place including exterior camera's due to an experience we had several years back.  I'm VERY disappointed with Airbnb at this point.  We only had 5 bookings at the beach this year as opposed to 15 on VRBO during Peak Season (June-August)

In my opinion, Airbnb needs to STEP UP THEIR GAME!!  I'm considering leaving their platform all together due to the ridiculous fees!  I'm paying almost as much to them as I did when we purchased our Beach property that was under a local management company.......RIDICULOUS

I'm not opposed to handling damages through the local police force and the legal system.   Thankfully nothing has brought us to that action as of yet.

Enjoy your day,

TLC

[Traci150]

Have you read the fine print of the Insurance process through Airbnb?  It's a joke and definitely weighs in favor of  you guessed it...."THE GUEST"

Terrible business practices