Induction Cooktops and Security Deposits

[Bill1150]

We are just finishing a remodel of our listing and added an induction range.  My understanding is that only certain types of pots and pans work with induction, that the cooktop surface is glass, and I have heard anecdotally from a friend that an average induction repair can easily top $1000 US.  I did buy an extended warranty, but guessing accidental damage not really covered.

I'm curious how others here have dealt with issues like this. Our biggest fear is that some renter will drop a frying pan crashing down onto the glass top.  A standard damage deposit would not even make a dent in the repair bill.

Any creative solutions? For example when we recently rented a U-Haul, they essentially scare the customer into paying $79 insurance because if you dent their van you are liable for all damages upon return of the vehicle.  So it's a bit of a hustle, but on the other hand, I'd rather be out $79 instead of $3500 for a dented bumper so I pay it. 

If you have expensive, fragile appliances, please share how you protect your investment. Thanks!

[Lorna170]

@Bill1150  We have several rental properties, one of which is used by us for our vacations and iis outfitted more to our taste.  However, we NEVER install any top end, expensive to repair appliances in homes that are advertised on AirBnb or other OTAs.  This  is solely due to the fact that a damage deposit is not actually collected and we are not able to obtain credit card information either.  

If you are going to rent via the OTAs, you are going to have to collect an administrative or management fee (check under the additional fee section) if you are going to have an actual damage deposit.   Be aware that the OTAs will collect their fee percentage on this deposit as well as applying taxes.   

1.  You could try to advertise in your listing text (prominently front and center) that a damage deposit will be collected via square/paypal etc. once the booking is confirmed.  This may run contrary to AirBnB policy -- I don't know. 

2.  I send certain guests a rental agreement that contains a request for their credit card information and a separate damage deposit.  It is then their choice to continue with the booking or cancel.

3.  You can talk to your insurance company and find out how they want to handle third party damage to this high end appliance (and other home amenitites).  Would they go after the errant guest or AirBnB?

[Elaine701]

@Lorna170 

Everyone seems to think you can't demand a security deposit, but it's pretty easy really. 

You can collect a previously agreed security deposit through the resolution center. Just "request money" of the agreed amount. The reason is "other trip related charges".  Airbnb doesn't add a commission. 

We do it whenever the guest falls into a high risk category (e.g., group of 18-25 yr old males).

Most of the time it scares them off, which is ok with me. But sometimes not. And so far, each one has left the house in an amazingly good state.

A 1000 buck carrot can do miraculous things 😉

[Lorna170]

@Elaine701   How and when do you inform your guests that they will have to pay a damage or security deposit?  I understand that you can send the resolution center request and can probably deny access until the deposit is paid, but when do you tell them that it is required if it is not requested of all guest groups?  I didn't see any mention of it on your listing.

I have entered information on the "bogus" AirBnB security deposit section, but have not been able to collect it at booking as I used to before the OTAs took over the billing.

Fees that can be collected directly by the host:

Airbnb only authorizes these fees to be collected if they’re detailed in the listing description and included in the price breakdown before guests book.

• Resort fee: Resort fees often cover the cost of a property’s amenities, like pool, gym, or wifi use
• Security deposit: A refundable deposit that can be used to cover any damage that occurs during the stay
• Cleaning fee: A one-time fee used to cover the cost of cleaning
• Incidentals: This can include things like pet fees, valet or parking fees, airport shuttle fees, etc.

[Elaine701]

@Lorna170 

The >how< is very easy. 

The >why< is more complicated. 

First, it's important to know that at least in my case, the main objective of it is to scare away risky guests. 

We have a countryside property in a very popular tourist destination. I receive dubious enquiries and requests very often. It's at least once a week, sometimes daily. 

If it's just an enquiry, there's not much need to discuss it. There's no obligation to accept or decline. Adios. 

But if it's a request, I have to clarify their motives and decide how to proceed. There is a penalty for declining requests. Especially if you're forced to do it often. I ask a lot of questions. 

So, if in the vetting process, I discover that it's a group of 18-25 year old males, I indicate that since they statistically represent the highest risk group, I will require a 1000€ deposit. Insurance companies charge triple for high risk groups. I demand a security deposit. 

Usually this scares them away, which is just fine with me, because I'm not handing my house over to a group of 18 year olds without any security. If I don't require a deposit, then they have no motivation to avoid damage nor leave the house in any kind of order or cleanliness. None at all. There is no penalty. Go ahead, trash the place. 

But 1000 bucks is a very effective carrot. In the handful of cases where they've agreed to it, they've left the house in amazingly good condition. 

It works extremely well. I couldn't care less if Airbnb likes it or not. And so far, nobody's complained. But I'm not handing my house over to a bunch of kids without some security. It's my house, not Airbnb's.