Security Deposits

[Dee176]

Hello, I'm new to hosting and I'm wondering if it's worth charging security deposits and what most people do about this? It seems there may not be any point and perhaps it puts people off booking? I have my own insurance as well as the Airbnb Host Guarantee

thanks

Dee

[Quincy]

Hello @Dee176,

Welcome to the Community Center! 

This is a very good question that you're asking and I am sure the hosts here will be able to give you some advice on this. I've created a new post for you for more visibility as you've previously posted this question on an old thread.

[Francesca-and-Dave0]

We use high security deposits ($1500-$2000) when we rent out our entire house because we have found it tends to weed out those guests who are irresponsible, clueless and/or “cheap”. However, do NOT count on ABB for recompense of all — or any portion — of that security deposit should any damage occur from guest use. There are NUMEROUS posts and complaints about ABB failing to pay out when guests have done damage — regardless of the security deposit or the ABB host guarantee.

We also always add a temporary policy by Slice Insurance, which can be purchased by the day, to cover us when we have rental guests. It covers much more than ABB, is easy to use and reasonably priced for those who only rent part time. I have mostly heard good things about Slice, but so far we have had no need to use it so whether or not they would pay out is a bit of an unknown.

When doing “Home Stay” room rentals while we are in residence, we charge a security deposit of $300-$500 per room. Again, I think a sizable, but not ridiculously high, security deposit is self-selecting for more responsible guests and weeds out those who might be a problem. We also use  Slice by the day for additional liability coverage in our home with a pool even when we are in the home with the guests.

Please note that we are Part Timers and the rentals are additional income and NOT a full time business for us. If you are going to do a full time business with rentals we recommend you purchase a Commercial Insurance policy to cover you, your property and your guests. Slice is great for occasional guests, but not at all economical for full time rentals.

Despite our relatively “high” security deposit, we are continually booked as much as we want to be and so far we have had only wonderful, respectful guests and NO damage! 

On a final note: I think more and more often guests do NOT even check on deposits before booking so possibly never know that one is required...

[Mikki0]

@Dee176 

I have a $200 security deposit. In the US, the security deposit is not charged to the guest unless the host files a complaint for damages within 48 hours of the check out. I mostly instituted the security deposit to cover the costs of any of the small appliances that might go out the door (which has not yet happened) and any small damage not considered wear and tear (only once, a guest had a dinner party against the rules and left the place a mess. I filed for a cleaning fee), and to weed out any riff raff who might want to abuse my hospitality. 

Very few of my guests have asked about the deposit before booking. When they do, I simple explain that it is not charged unless I file a complaint. 

[Daniel1598]

@Dee176 I'm aligned with @Mikki0.  I have a $100 deposit,  but have luckily never had to make a request for it. My thought was that it might cover a future broken window or major rug stain. All of my guests have been respectful of the space and there have been no questions beforehand about the deposit.

Daniel

[Dee176]

Thanks to all of you for your replies - very helpful advice!

Dee

[Kate-Mary0]

I would suggest that you charge a security deposit too. With regards to being worried that guests will be reluctant to book, I always say that the guests who have an issue with your security deposit are usually the ones that will most likely cause problems. I hope this helps. 

[Cody116]

I am new to Airbnb in fact just went live last Tuesday so far going very well I have had over 2000 views in a week however I added a 300 deposit Saturday and have not had a booking since but until then I had been booking reservations everyday. What gives am I worrying