Security Deposits

[Doug8]

Hi--

All Airbnb hosts should know that the Security Deposit touted by Airbnb is actually non-existent. It is a mirage constructed by Airbnb for the purpose of making hosts believe they are protected from damage caused by guests, when they are not.

1.  If you put a security deposit on your listing, Airbnb does not collect a security deposit or put a hold on the guest's payment method.  There is no deposit, therefore there is no security.

2. Airbnb prohibits you from collecting a security deposit on your own and will de-list you if you do.

3.  If the guest causes damage, you can make a claim against the security deposit, but you will never get it.

     a) As no security deposit was collected, there is no security deposit to collect from.

     b) The guest can simply refuse to pay and Airbnb will consider that to be the end of the matter.

     c) There is no appeal (as there is no avenue of appeal for any Airbnb ruling against a host).

     d) If a guest leaves a maliciously negative review after receiving a claim for damage, Airbnb approves of and will not remove the review.

     e) The list of things Airbnb does not consider damage is so exhaustive, there is effectively no such thing as damage.

Get your own homeowner's insurance if you are hosting in case of major damage such as a fire.  Be prepared to pay for small damages to your place yourself and factor it into your price.  Do not rely on Airbnb for protection of any kind.  Airbnb is nothing more than a webpage where you can list your place for rent.  It does not offer protection or support.

The security deposit is just one of the many deceptive practices Airbnb employs to dupe its hosts.

**
Doug

[Elaine701]

I collect  real security deposit whenever I feel the need (risky guests, say group of 20-somethings). I request it on platform. It works very well, and every time I've imposed it, the guest has left the house in amazingly good condition. 

[Karen3381]

On the platform?   How is this done?  Messaging the guest to pay or using the hosting customer service.  Be good to know.  Thanks, 

[Debra300]

@Karen3381,

@Elaine701 explained how to do it.  Send the guest a request for money through Airbnb's Resolution Center.  If you are unfamiliar with the Resolution Center, you should first visit the Airbnb Help Center to become familiar with its processes and policies, where you can find information about the RC before delving into asking for security deposits.  Most of the pages are written in simple language, the topic search is very user friendly, and the site covers a wide breadth of topics.

[Karen3381]

Ok, thanks

[Nikki51]

Hello Elaine701, How do you collect this deposit? 

This is what the rules are here in the US: "

Hosts aren’t allowed to charge guests a security deposit through our Resolution Center or outside the Airbnb platform. Instead, we inform guests at the time of booking that their payment method may be charged if they cause damage during a stay.

There is one exception: Hosts who manage their listings with API-connected software can set a security deposit using our offline fees feature. If a Host has done this, the deposit requirements will be clearly communicated during the booking process."

I was just told by an Airbnb rep that instead of a security deposit, a host can use the management fee or community fee option to impose an additional charge. If one is going to do that, they might as well simply increase the rent and offer a Renter Incentive of refund if the home is vacated on time and left in the same condition it was in when offered to renter. When this incentive is refunded to the renter at the end of their stay, Airbnb would refund the fees paid on that amount (the guest may have to request it but it sounded, to me, as if the refund would be automatic).  When handled this way, the renter doesn't have any ownership of the money until they complete the agreed upon terms whereas with a security deposit it might be assumed that the renter still owns that money and the host has to prove that they earned it.  Does that make sense?

[Glen846]

Hi, Elaine. I'd also like to know what @Cindy1221 was actually asking which is:

What do you call the security deposit charge when using the resolution center to charge it?

Airbnb's rules explicitly prohibited charging a security deposit. So when you charge a guest for "extra services" do you state in the box where you have to give a reason to the guest that "this is the security deposit"?

And is Airbnb OK with that? 

[Mike-And-Jane0]

@Glen846 you might need to tag @Elaine701 to help her see your question.

[Glen846]

@Elaine701 sorry apparently replying to a post doesn't notify you of the reply, so I'm tagging you here. Thanks @Mike-And-Jane0 .

[Elaine701]

@Doug8 @Glen846 @Mike-And-Jane0 @Cindy1221 @

Sorry, I've been busy with day to day stuff.

I simply write "security deposit". But I need to qualify that a bit: 

The vast majority of guests we receive are not natively English speaking, so in the rare cases where I am forced to demand a security deposit, I use the terms of their native language. In German, for example, it's "Kaution".

I don't know if Airbnb flags any specific words, but if they have a problem with it, I'd just demand cash on arrival, or by bank transfer (which is very common in Europe). The outcome is the same either way. 

And again, this tactic isn't intended to solicit a security deposit. It's mainly intended to scare away risky guests (which I'd actually prefer).

Yet those that aren't scared away and pay it have (so far) left the house in excellent condition. I've never had to withhold any part of a security deposit. They've always received it in full, in cash, on departure. 

I believe every other platform has a facility to demand a security deposit. I'm not sure why Airbnb is averse to it. It's a very effective tool. And we'd all be spared a lot of "air cover" grief if Airbnb would simply embrace it. But I suppose they presume it would encourage dubious behaviour by the host. We are guilty until proven innocent, after all 😳

[Miranda250]

And this is ok with Airbnb terms of service ? I’m down to go the extra step just want to make sure my listing won’t be removed or a guest could come back at me with anything..

[Elaine701]

@Miranda250 

The "terms of service" with respect to security deposit is vague. The most applicable term is taking money "off platform", which you don't need to do, since you can request money through the resolution center, with the reason "other trip related charges". That also keeps it credible in the eyes of the guest. We've done it often, and nobody's ever complained.

However, our primary motivation has never really meant to get a security deposit, but to scare away risky guests, which it succeeds most of the time. 

Why go to the trouble, when you can just decline? You might ask? Well, first, declining carries penalties. But often, the risky guest is booking at top rates, often 3000€ or more. I'd like to capture that business, but not without a security deposit. A security deposit is the only thing that motivates a group of young party animals to be conscientious. Otherwise, there's no penalty whatsoever. May as well trash the place. 

All I can say is that so far, the handful that have accepted it have left the house in extraordinarily clean and orderly condition. Very surprisingly. 1000 bucks is a very effective motivator 👍

[Cindy1221]

So you can request money through the resolution center for "other trip related charges" before the guest checks in? I'm still a bit confused?

[Cindy1221]

You request money beforehand and then they get it back if it's not needed?

[Debra300]

@Cindy1221,

Welcome to the forum.  I see that you are new to the community.  Here's a tip to make sure that the person you are responding to is aware of your message.  Type @ and then you will see the user IDs of recent posters to the thread  @ symbol.

If you don't see a person's ID, keep typing until you see the specific ID that you want.

To answer your question about using the Resolution Center for security deposits.  First, you must mention the requirement for a security deposit in your listing description.  I state this in the Things to Know Section.  It also must be included in your house rules.  When I receive a reservation, I re-state in my greeting message that a security deposit is required, and that I will send a payment request via Airbnb's Resolution Center about 14 days before arrival.  After I send the request, I send another message via the Airbnb message system,

"Hello XX,

I've just sent the payment request for the refundable security deposit as stated in the listing and my greeting message.  The deposit will be fully refunded at checkout, or less any amounts for incurred costs due to loss, damage or use of extra services.  Please pay it as soon as possible to avoid any delays with accessing the space upon your arrival.  If you are using the mobile app, and unable to find where to pay, go to www.airbnb.com/resolutions.

Thanks,

Debra"

At checkout, I ask the guest if there were any issues, accidents or incidents that they want to share with us.  Soon after checkout, we do a cursory check for any damages or missing items (our spaces aren't very large and we don't stock a lot of supplemental items), and usually issue a refund immediately afterwards.  I use a deposit primarily as a behavior motivator, because the amount it's nominal, usually between $75 to $300 USD.  That's not enough to pay for any significant damage or loss, but it does give the guest an incentive not to be careless with our stuff.  

[Cindy1221]

@Elaine701 You request the money through the resolution center before check in and then send it back, minus any repairs, after the checkout? We are mostly interested in making guests very aware that we expect them to respect and take care of our property. This sounds like a perfect solution,  if I am just sure of exactly how to do it. Thank you!