AirBnB to start getting security Deposits

[Chris232]

Just received an email stating :-

Airbnb-required security deposits

As part of our continuing effort to build trust on Airbnb, we may apply a security deposit for a small number of guests 48 hours before they check in. This is a limited test based on certain reservation details like timing and listing features.

No need to do anything—we’ll apply these security deposits automatically.

Thanks for hosting,

The Airbnb Team

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More about security deposits

Who decides the amount of the security deposit?

Since your listing doesn't have a security deposit set, if Airbnb applies a security deposit, the amount will automatically be calculated based on several factors, including the reservation total.

How do I collect from a security deposit?

You can report an incident and submit a claim within 14 days of check-out or before a new guest checks in.

To learn more about security deposits visit our Help Center.

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Note: If a security deposit hold can’t be authorized, the reservation will be subject to cancellation up to 36 hours before check-in. While Airbnb-required deposits are intended to protect our community, we are not responsible for failure to apply a deposit in any case where one may have been advisable.

[Rebek0]

Hosts need the ability to set the security deposit based on total charge for rental, or perhaps duration of rental.  For whole house/residence rentals, the opportunity for an inconsiderate guest to do damage is a function of how long they are in the property.

Also, I believe Airbnb will need to publish its criteria for charging automatic security deposits.  There needs to be transparency so guests know that it is objectively based on their actions (first Airbnb booking; booking on short notice, etc.) and not on anything personal about them that could be construed as discriminatory.

[Sarah-and-Alex0]

@Rebek0  This was my thought exactly (re discrimination) - it seems nuts, and more poorly thought out than spitting into the wind (waiting until 2 days before check in to potentially leave the guest with no accommodation and the host with no income?). 

[Sarah-and-Alex0]

We reached out to Airbnb just to see what they would say, and had a conversation with a rep who did everything possible to avoid providing a straight answer - and the answer provided doesn't make a ton of sense / is inconsistent with what other hosts are saying.  Seemed worth sharing just to add to the record of conflicting info hahaha. 

APRIL 11, 2019
Airbnb Support
11:26 AM
Good Day Sarah & Alex H! This is Jhon from Airbnb, I received a call from the number registered on the account. However I got no response when I received the call.

I tried calling back but I was routed to your voicemail. I would like to ask on what assistance you would like Airbnb to do for you.

Feel free to call us back or respond on this message for further assistance.

Thanks

Sarah & Alex
11:28 AM
Hi, thanks for getting back to us!
sorry my connection to the phone is not great
I wanted to ask you about the change to the security deposits
i got an email saying that AirBnb will now be authorizing the security deposits on the guests payment method
I also saw at the bottom of the email: Note: If a security deposit hold can’t be authorized, the reservation will be subject to cancellation up to 36 hours before check-in. While Airbnb-required deposits are intended to protect our community, we are not responsible for failure to apply a deposit in any case where one may have been advisable

Airbnb Support
11:30 AM
Can I offer call back so that we can discuss this over the phone ? or you preferred here in the messages ?

Sarah & Alex
11:30 AM
actually, I think this may be easier

Airbnb Support
11:31 AM
Understood. So base on my understanding you would like to change the amount of the security deposit in your listing ?

Sarah & Alex
11:31 AM
my question is - if the guest books today for a reservation two weeks from now - when is the security deposit charged?
48 hrs before the booking starts?

Airbnb Support
11:31 AM
Allow me to check it for you. I will check my resources..
When did you receive the email about the security deposits?

Sarah & Alex
11:32 AM
Wed 4/10/2019 8:20 PM
Subject: Update about security deposits

Airbnb Support
11:33 AM
Thanks, I will go ahead and check this for you.
I will get back to you on this, I will be sending another message due to I will be checking this with my support. Give me 5-10 minutes. Thanks

Sarah & Alex
11:35 AM
ok

Airbnb Support
11:58 AM
Sorry, I am on a call right now. I will give my answer to you after this call, but I already have an answer.

Airbnb Support
12:25 PM
Apologies for the late response,. I just finished my call. You can go ahead and update your security deposit. Once a guest attempts to make a booking with an Security deposit applied, their card will be charged for the amount of the reservation and security deposit amount will authorized for the amount specified by the Security deposit sometime before the reservation begins. Airbnb’s payment system will continue to authorize the amount on the card until the reservation has begun. Once the reservation is over the amount will be released back to the guest card and we will handle any Resolution Center claims normally. In the event that you figured out that there are damages you still need to file a claim using our Resolution Center.

Sarah & Alex
12:32 PM
Thank you for your response. We are confused by this part: "Once a guest attempts to make a booking with an Security deposit applied, their card will be charged for the amount of the reservation and security deposit amount will authorized for the amount specified by the Security deposit sometime before the reservation begins."
Guests ask us how security deposits work, so we need an accurate answer for them - they will get very angry if they book for July and we say "Some time between April and July, you will be charged $350"

Airbnb Support
12:33 PM
Just to clarify things. We will charge the credit card of the guest for the security deposit. We will hold it until the reservation is completed. Once the reservation is complete we will release back to them the security deposit.

Sarah & Alex
12:33 PM
Please advise exactly when the security deposit will be charged and under what circumstances (people in the community forums are saying that this will not apply to all bookings).
Yes, but when will the credit card of the guest be charged for the security deposit?

Airbnb Support
12:34 PM
Once the guest completed the reservation. We will charge their credit card for the total cost of reservation and Security deposit.

Sarah & Alex
12:37 PM
So to clarify the guest will be charged for the cost of the reservation and the security deposit at the time of booking. For example if I am a guest and make a booking today April 11th for April 20th - today I will be charged for the cost of the booking and the security deposit
is this correct?

Airbnb Support
12:38 PM
Yes, We will hold the security deposit until the reservation is completed. Once the reservation is over we will release the security deposit back to you.

Sarah & Alex
12:44 PM
Hi, I'm sorry but I think we are not connecting on what our question is. We will rephrase.
If I make a booking today (April 11th) for a visit on April 20th (check in April 20th), on what date is the security deposit charged to my credit card?

Airbnb Support
12:45 PM
Today as well.

Sarah & Alex
12:48 PM
So for all bookings, the security deposit for the listing will be charged the day the guest makes the booking, and the security deposit will be held until after check out. Is this correct?

Airbnb Support
12:52 PM
Yes, however not all bookings will require the guest to pay the security deposit. It is random and the only time guest will be charged for the security deposit if the guest see on the booking path that says Airbnb may require a security deposit.

Sarah & Alex
12:55 PM
So it is random - the guest will not know about this until they try to book?

Airbnb Support
12:55 PM
Yes.

Sarah & Alex
12:58 PM
OK. Do I have your permission to post this conversation on the Airbnb Community Center Help forum? There are many hosts who need more information about this issue.

Airbnb Support
12:59 PM
Go ahead. We are also starting sending the emails to other Host about this.

Sarah & Alex
1:00 PM
OK thanks.

Airbnb Support
1:01 PM
No worries, Anything else that I can do for you ?

Sarah & Alex
1:03 PM
Please do not close this chat, we are still trying to understand exactly how these changes will work and we may have additional questions.

Airbnb Support
1:15 PM
Sure, I will remain this open for the next two days. Just shoot me a message so that I can respond to you.

Sarah & Alex
1:20 PM
Great, thank you!

[Paulette23]

@Sarah-and-Alex0,

Thanks for posting that exchange. Haha, it's much like my conversations with CS: they robotically repeat the same answer without having a proper grasp of the nature of the question. 

If this CS agent is to be believed, it seems they plan to refund the guest's deposit as soon as they check out (when reservation ends) and the host is expected to pursue any subsequent claims through the normal Resolution Centre channel. 

Shouldn't they give hosts a couple days (or before next check-in) to ensure there won't be a claim? I don't use  other platforms but read here that sites like VRBO message the host, asking for authorization to refund the deposit. That strikes me as more logical and effective.

Thanks!

Paulette

[Regina332]

.

[Sarah-and-Alex0]

Sorry I was helping a friend with her account and accidentally commented as her! It is bonkers that Airbnb has communicated all this so poorly, both to CS and to hosts. I know I was just ranting about what a bad idea it is to bill the deposit two days before check in  but charging it at the time of booking seems really problematic too. Fingers crossed they provide more clarity, but from what everyone is saying now  it sounds like Airbnb is only planning to apply it to new accounts or those flagged as problematic. We'll see! 

[Jeff558]

The email Airbnb sent out was probably one of the worst emails I've ever received when it comes to TOS/policy updates. Not only was it pathetically vague, but there was no link to a full explanation of the changes. I read the email and was left wondering what the hell the changes were. 

I truly do love Airbnb and the platform, but with the ridiculous changes lately (like the egregious profile photo hiding) and changes to the TOS that forces hosts to come and ask other hosts for help or reach out to support for an actual explanation, is making me consider alternative companies to list on. 

[Carl79]

Having had a few days to think about this kack handed PR fiasco from airbnb, it really boils down to a change in who the liability falls on.

At present,  if a host trashes the place airbnb let them move into then airbnb is liable for the damages. 

What they are suggesting, in their mumbled announcement, is that hosts nominate in advance how much of an unknown amount of future damage the guest will pay for, and therefore an acceptance that the host will have pay for the rest of it. 

Airbnb walk away from the situation with a fist full of dollars in the their back pocket, and to hell with the hosts postion.

Airbnb should be completely ashamed of themselves for this selfish smoke and mirrors trickery. Its dishonourable, disrespectful and, completely contrary to their stated intentions, it makes the whole business model just look tacky and shabby. 

Their PR team should be put on the last bus back to **bleep**ville.

[Sarah977]

I'm actually quite distressed by this email, especially since it's not at all clear what it means, and all the posts here are just speculation. 

I do not charge a security deposit, I do not want to charge one ( I host a private room in my home and all of my guests have been respectful and I have never had to make any kind of claim in 2 and a half years of hosting).

So according to this email, which is not at all clear, Airbnb may arbitrarily decide to add a security deposit to my guests' bookings, springing it on them 48 hours before their arrival?  And the guest may think this is something that I, as a host, did?

This is so not okay with me. If they are only doing this for hosts who already have a security deposit on their listing, why send this email to those who don't?

[Jessica-and-Henry0]

@Sarah977 

I was thinking more or less the same thing as you~

Henry and I have never felt the need to charge a security deposit but the possibility that Airbnb will randomly charge a security deposit of an unknown amount to our guest is confusing and worrisome. What criteria will they use to determine who to charge and what amount?!?!?! 

Plus since we host long term the total payout will be a fairly large sum and if that is what this random security deposit will be based on we are worried it will be too high. Many of our guests are students and they don't have large limits on their credit cards to begin with. 

Henry feels it would be better to set a security deposit for the smallest possible amount ourselves so that Airbnb doesn't go and randomly charge potential guests an exorbitant amount. I'm thinking of adding a blurb in the listing description about the security deposit so that potential guests aren't caught off guard.

[ChuckandCarole0]

Geez, how incredibly obtuse! Sounds like the booking will be cancelled, and guest refunded, if not enough in their account to cover the security deposit...what i want to know is, who does the refunding for that cancelled booking? Do i,  the host,  still get paid for the booking, because the cancellation is within my time limits?

here's what airbnb has go say to guests about Security Deposits:

<Airbnb-required security deposits:

As part of our continuing effort to build trust and enhance safety, we may independently require a security deposit for certain reservations. This can happen if something stands out when we review the reservation details. Factors may include the timing of a reservation or the listing's features.

The security deposit amount is set by Airbnb, and you’ll always have a chance to review the amount before you decide to make a reservation.

Two days before your stay begins, an authorization hold for the security deposit amount will be placed on your payment method. You won’t be charged, but the hold means that you won’t be able to access these funds until the hold is released. For example, if you’re paying with a credit card with a total credit limit of $5,000, and there's a security deposit of $500, your credit card limit would then be $4,500 until the hold is released.

If everything goes as planned, we’ll release the hold 14 days after you check out.

Your reservation will be subject to cancellation—up to 36 hours before check-in—if we’re unable to place the authorization hold. It’s a good idea to make sure your payment method has enough money available to cover the security deposit. (If you’re not able to do that, Airbnb is not responsible for any associated fees, including overdraft fees.)

If it turns out we can’t authorize the hold for the security deposit amount, you’ll be notified by email and will have 12 hours to try another payment method. If that doesn’t work out, we’ll cancel your reservation and you’ll be refunded.>

[Branka-and-Silvia0]

@ChuckandCarole0 

"... Do I, the host, still get paid for the booking, because the cancellation is within my time limits? ..."

obviously not... according to the last sentence you copy/pasted from ABB letter to the guest:...."we’ll cancel your reservation and you’ll be refunded."

Instead of reinventing hot water it would be better and easier if Airbnb would just copy the VRBO system. It's good and already tested for years.