Charge of Security Deposit

[Jamie-And-Stacy0]

I am a new host and have two guest reservations. My pricing specifications include a $1000 deposit. However, Airbnb is not collecting the deposits when guests book. My expectation is that Airbnb would collect it, just as VRBO/Homeaway does. Is Airbnb failing to do something it should, or is my understanding of their procedures wrong?

[Kate157]

@Jamie-And-Stacy0 Airbnb does not collect the damage deposit except if there are proven and documented damages. It is not easy to collect, and it will not be collected for infringements of house rules.

[Jamie-And-Stacy0]

Thank you for your reply, Kate. Airbnb is inferior to VRBO in this respect. It really isn't a security deposit at all and they should not call it that. Since it's not in escrow or easy to enforce, they would have to be creative to name it anything meaningful!

[Aogán0]

Hi @Jamie-And-Stacy0,

I definitely agree that the 'deposit' that Airbnb talk about is not really worthwhile, they don't take it when booking (I've used the site as a guest, and as a host) and from the numerous threads on here, you'll see that getting a payout is next to impossible anyway, especially if you have changeovers on the same day, as you need to put the claim in before the next guest arrives...! Not an easy task for many hosts.

[Gerry-And-Rashid0]

@Jamie-And-Stacy0

You are right - it is not a physical payment, just an agreement to pay up to a certain amount if the guests agrees to the damage (and in some cases if AirBnB agrees too). It may feel less 'secure' than other sites - however, guests on other sites also have to agree to damages being paid from a deposit (albeit one that is physically held).

[Jann3]

@Kate157: Do you know if AT LEAST AirBnB puts a hold on funds - that they then release? (ie: like when you rent a car) so at LEAST you know the person renting is *capable* of paying the money if needed?

[Kate157]

Very good question, @Jann3, and I don't know the answer. I don't believe they hold the money or make sure it is available until someone makes a claim. I have read in the forum about hosts who could not collect because their guest cancelled the credit card as soon as the stay was finished, so no damages could be collected. This would lead me to think the deposit is not put on hold in any way.

[Jessica-and-Henry0]

@Jann3

Based on my experience as a guest, there was no "hold" on funds for the deposit. This was 2~3 years ago so I'm not sure if anything has changed, but my understanding of the airbnb security deposit is just an agreement from the guest at the time of booking basically saying, airbnb CAN initiate an additional charge up to that security deposit amount IF the guest provides sufficient proof for reimbursment AND the guest in question agrees to the amount & to pay for damages. So basically no use if the guest refuses to take responsiblity or does not agree to pay - which means this shouldn't even be called a "security deposit". There is no "deposit" to start with.