Security Deposit - Insurance

in
Philadelphia, PA
Level 1
95 Views

I read the new updated policies going into effect at the end of May.

 

Here's what l know after Hosting for over 5 years, in my experience...

 

As usually,  the policies are geared more towards helping Airbnb and they're bottom line as opposed to the Host who is taking ALL the risk!  You barely get them to list ALL the guests on the reservation.

 

The issue here,  the guests security deposit is now being removed, my security deposit was in place to help weed out and vet bad actors.

 

When guests put up THEIR money, l find they're much more respectful, careful about creating damage to the property, and you get a different level of clientele too.

I know because l found, l had MORE issues when l charged only $500 instead of a $1000 deposit.

 

Also, l don't feel like FIGHTING with Aircover (who by-the-way) are NOT as wonderful as you make them sound, only to get 1/2 or a partial reimbursement for damages.

 

And, l don't want to spend lengthy conversations with your out-sourced "AMBASSADORS" the customer service reps., with the fancy title and the scripted, can't think out-of-the-box answers  that doesn't apply to EVERY situation.

 

Plus,  no one covers my lost revenue if my place needs to be blocked off during the repair process.

 

Personally, I'd rather have a BETTER class of people up front to prevent and/or eliminate the problem beforehand!

 

Disappointed, 

 

Terri 

Prospect Park 

5 Replies

Re: Security Deposit - Insurance

in
Memphis, TN
Level 1

I agree with this 100%. I was really disappointed and frustrated to see that Airbnb has removed the ability to require security deposits from guests. This was a useful tool for helping prevent bad guests (guests that don't respect my home, don't follow the house rules, and trash the space) from booking my home. 

I guess Airbnb is trying to encourage or make it easier for guests to book on their platform, but I'm not sure. If this is the goal or hope underlying the removal of the security deposit, I believe it is shortsighted. Airbnb is a platform-based business, meaning that it is a virtual marketplace dependent upon both buyers AND sellers. The security deposit helped the "sellers" (hosts) of the platform have a better experience. 

If Airbnb continues to elevate the experience of using the platform for the "buyers" (guests) at the cost of diminished experiences for the sellers, eventually the sellers will find a new marketplace. A shortage of sellers will cause a shortage in supply which will, in turn, jack up prices for buyers. Higher prices for buyers mean those buyers will be more inclined to go to other platforms.

I hope high-ranked Airbnb executives read these threads and act on the feedback of its hosts. If they don't read these threads, I hope the high-ups at Vrbo read these and make changes to their platform. Then Airbnb would be forced to improve the experience for hosts in order to not lose business to Vrbo... 

Re: Security Deposit - Insurance

in
Gros Islet, Saint Lucia
Level 10

@Tristan158@Terri400,

 

Airbnb never collected any money or held a pre-authorization on a guest's credit card.  The wording has always said to guests that they may be charged upon to a certain amount if a host files a claim for camages.  Hosts may personally collect a true security deposit as long as the transaction is done through the Resolution Center.

Re: Security Deposit - Insurance

in
Memphis, TN
Level 1

@Debra300 Right, but as hosts you used to be able to set a security deposit amount that was displayed to the guests before they booked. Even though the guest wasn't initially charged by Airbnb for the security deposit, I believe it was still useful as a vetting tool. Guests had to be ok with the fact that they may be charged an additional $1,000 if they did something to damage your property

Re: Security Deposit - Insurance

in
Memphis, TN
Level 1

Unless I'm misunderstanding the old security deposit additional cost section

Re: Security Deposit - Insurance

in
Gros Islet, Saint Lucia
Level 10

@Tristan158,

 

Yes, you are correct that guests were told that they may be charged up to the deposit amount listed, but a hosts claim still was mediated by Airbnb, and they were the final decision-maker.  Often times, if a guest refused to pay a hosts claim that was the end of the matter regardless of the security deposit amount.  Or Airbnb, will act as the adjuster in the dispute, and determine the amount of compensation.  

 

I already require a refundable security deposit from guests, similar to what I do on other platforms.  It's only a nominal amount, but it is a good incentive for guests to behave responsibly.

 

When you increased the amount of your security deposit setting, did you also increase your night rate?  

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