Security deposit

[Debbie18]

I have previously let my place through an agent wso I did not have to think about deposits. But, having read some of the posts here, I am wondering whether I would be wise to ask for a Security deposit. If so, how much and how does it work? Is it held by AirBnb? I haven't found details on the site of exactly how the process works. If it is there, a link to the page would be great.

Thank you

Debbie

[Sue247]

@Clare0  The refundable damage deposit has been *standard practice* with rental agencies and owners for decades. If Airbnb is concerned about protecting its own reputation and the owners' properties, it needs to incorporate a system to collect/refund damage deposits IN ADVANCE of the guest arriving. I have no confidence that Airbnb has the wherewithal to perform on its promise to make the owner whole in the event of damages. They would have to employ a legal team just to handle claims against guests.  

The way the bad apple host has always been managed in the past has been through damning reviews.  The owner who doesn't refund damage deposits or who considers minor wear and tear as damage will soon be blackballed. Airbnb has the ability to cancel his participation. Blackballing a guest will not accomplish anything towards paying damages to the owner, nor will it alert a future host to the bad guest who simply registers under another name. (Easy to change your name and contact. Impossible to change your rental location.)

[Janet83]

I have been renting my property for 20 years and requesting a Security Deposit for Accidental Damage!  No insults to anyone, common practice and common business sense.

We would like to protect ourselves too - Airbnb has to get on board here.....

[Helen3]

Hello @Janet83

If you want to list your property on Airbnb you are not allowed to request a deposit outside of their system.

It is not Airbnb that needs to 'get on board'. If you want to list with them, then you sign up to their terms which includes them not you holding the security deposit.

[Sue247]

Airbnb's current promise to make a host whole after damages is unfeasible. Posts in this forum document that hosts have not been compensated by Airbnb even after the claims have been recognized by Airbnb. 

This needs fixing if Airbnb wants to broker expensive properties from owners who are not naive about risk.

Airbnb needs a system to hold and refund dmage deposits from guests or -- easier for them --  to charge guests an outright fee to insure against damages. Damage insurance is available for as little as $59 on up to $1500 claims. 

Unless you've had extensive damage, as I have had, you may not understand your risk as a host. It cost thousands of dollars to repair my condo's kitchen from heat and smoke damage caused by the guest who bought a hibachi, put it on my kitchen countertop and cooked on it. Luckily for me, that guest was not booked by me, but by our rental agency. They pursued the guest for what they could get from him, then made up the difference from agency funds. They arranged for the work, oversaw it, and paid the contractor to repair my kitchen. BTY, I am in Illinois; the guest was from an island in the South Pacific; the condo is on Maui. How do you think *you* would recover damages in a similar situation?

Cearly Airbnb knows damage happens, because they make a token effort to address it in their contract. However, their proffered 'solution' -- to try to recover damages from a guest -- is not only completely inadequate, but it also serves to convince a naive host that he is 'covered', when he's not.

[Mary167]

Is the $59 insurance available through Airbnb?  At the events they host to bring in hosts and guests they say every host automatically has free coverage up to $1,000,000.   Is this just a sales gimmick?

[Sue247]

@Mary0-- Read the Host Guarantee on Airbnb. The million dollar policy is largely about liability insurance. As I read the fine print, an owner must first go after the guest to attempt to collect damages. Only after that will Airbnb entertain proofs of damage. Settlement is at their discretion.

If your claim is accepted as valid, you could receive the depreciated value of whatever was damaged/destroyed. I think you would also have to prove that the guest did the damage, not just that it was discovered after he checked out.  Seems to me a guest could claim he wasn't responsible. Since we are not present while the guest is present, and any damage is only discovered by our cleaners, this would be a hard case to prove. Anyway...it's all on the owner to try to settle before -- or if and when -- Airbnb steps up. 

None of this reassures me. I think an owner should be allowed to receive a damage deposit or insurance specifically for damages during the time the guest rents the property. (I could see an 'out' here for the guest who entertained his fraternity buddies at a condo when the buddies took a door off its hinges "to go surfing with it".) 

[Sue247]

@Helen0 -- What "security deposit" are you talking about? There is no damage deposit that I can find in the Airbnb literature. They collect no funds to apply against damages. Airbnb merely says they *will attempt* to collect from a guest when a host presents evidence that *in their opinion* is allowable as damage. 

I get your point, though. Since Airbnb doesn't protect me as a host and they won't allow me to collect a damage deposit, I'd have to agree to assume total risk to do business with them.  

[Tim213]

Hi Mary;

You wrote; " I did recently add a $200 security deposit to my listing."

What does that look like?

How do you do it?

I think it is a legitimate topic and concern from both sides.

However, as a new participant, I might be hesitant to put a couple hundred dollar deposit on a sixty dollar booking, if the listing had appeal but the host had a limited review history. 

[Wendy214]

The real problem is that Airbnb do not take/hold from the guest ANY security deposit!  If you are like me and let your home during the summer months you only need one guest to trash the place and potentially loose you the rest of the season.  Either way your next guest is going to be disappointed.  Why then, when other sites do take the security deposit does Airbnb not do the same?  Surely they should be as committed to their clients doing the letting as those renting?

Seriously considering not using them next year as this is a major issue for me as i cannot take such losses and continue letting plus other companies i use allow me to take a security deposit direct or they do for me.

[Annette33]

@Wendy214 , I hear you. So most of us hosts don't really feel safe with Airbnb, even if we have a security deposit in place, never knowing if they would actually honor it when an incident arises.

On the other hand, when I travel as an Airbnb guest, I do like the idea that the security deposit is not actively taken out of my account by Airbnb at the time of booking: Just recently I had booked a place, total was something like $450 for two nights, fine. If I had booked the same plave at vrbo, it would have been slightly higher, AND they would have taken the $500 security deposit out of my account right then, bringing that booking to over $1000. Most people, including me, simply can't afford to have that kind  of chunk taken out of our accounts, even if it is temporary: my trip goes on to other places, so if each 2 night stay I book requires something like that of me, how can a plan and book a 2 weeks trip??  So as a guest, I take Airbnb iver those otger places!

And keep in mind that, at least here in the US, yes, hotels might put a hold on your credit card for incidentals, but they do NOT actively take the money out. so that is   pretty much what Airbnb does. Just something to consider from the guest's perspective, which  would make them favor Airbnb over the other sites - and us hosts would benefit from that with bookings.

[Wendy214]

Interesting that your very first point is that you too are not happy with the way this is handled.  To my mind this is all about what level of risk you are prepared to take at the end of the day.  For a substantial number of us here in France who let our own private homes on a regular basis and except that there will be damages small and sometimes more we would like Airbnb to burden some of the responsibility as well as taking OUR money.  After all at  the end of the day without US they have no business!!!  Let's not forget we are their client and paying their wages!

Think i've made my mind up what i will be doing for next year.  The other sites i use allow me to have direct contact with the guest when booking and to have a contract directly with them which safegards both parties.  This also includes a Security Deposit.  Good luck everyone onwards and upwards.

[Mary167]

I'm fine with Airbnb doing it this way.  I think if Airbnb actually collected the money it might discourage people from renting, fearful we might make frivolous claims.  I feel just having a security deposit shown in my listing is a deterrent for careless guests. I have only had one guest who caused damage, by putting hot plates on my antique coffee table without using the place mats as I always specifically ask guests to do. Other than that the only issue has been a missing (probably broken & trashed) bowl, theft of a couple of lovely Irish linen tea towels and a broken Denby English salt shaker. I replaced the coffee table with an iron & glass table, replaced all the Irish linens with ordinary tea towels and bought another matching bowl. I also raised my rates slightly to help compensate for my losses. And I only added the security deposit after the damage was done.

[Mary167]

My feeling is that it acts as a warning to guests who might be careless with other people's' property.  I was recently a guest at an Airbnb in Washington, D.C. As a host myself I knew how important it was to respect the host's space and property, but the "security deposit" in the listing made me want to be extra careful to double check before leaving to make certain there was nothing they could claim I damaged.

[Wendy214]

I totally agree it can be a fine line on both sides of the arguement.  However, from sad experience there are some people that go to extraordinary lengths to hide damage that they have done and even more sadly some that lie directly to your face :(.  It is always those exceptions to the rule that then make things in life more complicated.  I would just like to have the peace of mind that if someone breaks or damages something by accident or otherwise that i will not be the one to loose out.  I suppose there  are those who try to take advantage of their guests as well as vice versa, sadly this is the way the world is in reality.  I have never had anyone not book because i have asked for a security deposit.  I can see that low cost rentals may have an issue with this as they feel it may put people off from booking but if everyone is playing by the same rules it shouldn't make any difference.  Surely this is where Airbnb needs to make some flexibility in their policies to accommodate all types of lettings  They have chosen to enter into larger lets so surely they should reflect this in procedures.

[Wendy214]

Hi

I am letting my primary residence in France and remaining on site in a smaller building.  My airbnb site details that all guests are required to sign a contract with me to cover the rental of the property.  It details a security deposit is required.  I had already added a security deposit to my airbnb site but feel concerned that i this may not be of any use as i now understand that airbnb do not hold any security deposit from the guest.  As all our guests sign this contract and agree to our own general terms and conditions when booking is there a problem with us asking for the security deposit under airbnb rules.  They have after all signed in agreement to do so.   I have guests coming from abroad and feel concerned that once they leave i may have no way of recovering damages.  This is a large house sleeping 10 and it is impossible to check everything thoroughly at their point of departure as it is unrealistic to expect guests to wait while i do so.  

Many thanks