Host Deposit for Damages is a Hoax

[Donna635]

Apparently there is no such thing as host protection with airbnb.  The host deposit is definitely a joke. 

I had extensive damage from a past guest.  I have had damage before, but because I could not be sure which guest did the damage, I did not pursue the host deposit.  This time I was sure and called and followed customer service direction given me.  Apparently, even after several more calls to make sure I was  on track, I was told the same thing.  They saw the conversations, I was on track and just waiting for the escalation department.  I told them over and over I initially just wanted the host deposit for damages.   They told me it does not matter.  All requests go through the same channels.  This is not what the website says. Airbnb is intentionally misleading hosts in regard to their recourse and protection 

When you make a request, they will reiterate the timeline over and over, when the truth is they who do not access your request during the allotted time.  In my experience, airbnb does not  investigate or consider evidence of damage.  You cannot contact them and they will never give you a reason you were not granted the  host deposit for damage.  I have never had  a guest "confess" to doing damage.  Why would they? I am losing faith in this business and the lack of host protection and rights.  

I would file a complaint with the BBB, but they already have an F rating and are not accredited.  I am also considering filing a complaint with the CFPD.  

After finding holes my garage walls, kitchen counters damaged beyond repair, cookware ruined or missing, bath and bedding stained, or missing or destroyed, patio screen doors broken, insulated front doors dented in, blinds broken, drapes  taken down and put back wrinkled,  and pieces of furniture damaged with no recourse over the past 2 years, I believe I will have more control and better luck on a different platform where I can actually require a damage deposit and  apply it to damages  incurred.  

Others have similar frustrations about the service at airbnb.

https://www.asherfergusson.com/airbnb-customer-service-is-horrible/

https://www.bbb.org/us/ca/san-francisco/profile/rental-listings/airbnb-inc-1116-375521

[Anonymous]

@Donna635  It's true - Airbnb doesn't actually collect or hold hosts' so-called "deposit," and it has no bearing on the outcome of a damage claim. It's 100% fictional, and it boggles the mind that they've pulled off this lie for so long.

Some hosts have had more successful resolutions than others, but the consensus among veteran hosts is that it's very risky to list an entire home on Airbnb without a robust STR insurance plan.

[Donna635]

Yes, I am surprised as well.  I am suspecting fraud and have filed a federal complaint to have them investigated.  

[Meg150]

Hi there, I have just recently had to evict guests due to them not adhering to the House Rules and noise regulations consistently over 6 nights. Neighbours were constantly woken up with foul language and music.  I intervened a number of times, the police were called and then we evicted them.  As per my House Rules on the booking platform, it clearly states that if this happens they will forfeit their security bond and any remaining tariff.  Going through the resolution centre I am being told I cannot retain the bond for this reason or the fact that they left an excessive amount of rubbish and the property was left in a disgusting state. With photographic evidence of everything shouldn't the host be able to use the bond as per what is listed in the house rules?  I feel totally unsupported by Airbnb in this instance.

[Bez8]

Hi @Meg150 

im sorry that this has happened to you. I recently went through something very similar. It was horrible and it really impacted me and my trust. However, Airbnb did cover extra cleaning since the guests had a party and trashed the place. 

what photos did you provide? Where does your case sit right now?

I just wanted to take the time to reply and let you know that you’re not alone. We are all with you. I hope you provide more clarity and your case gets resolved.  

just don’t give up on hosting. I know how devastating an experience like that can be. But for every bad guest there are thousands of amazing guests. I promise. 

[Donna635]

@Meg150 I provided photos of the damaged kitchen countertop where the guests poured permanent glue all over it (and the floor).   There were several towels missing and a bath mat.  I do not know how to repair the counter without replacing it.  I was assured after many phone calls with airbnb customer service that I was within the time frame.  Well after my first contact, and after several phone-calls, I received an email that I was denied the "host guarantee."  I was not requesting a "host guarantee." I was requesting the host damage deposit.  Every time I mentioned it to customer service they immediately directed me to the "Host Guarantee." 

 I also had several reminders from airbnb that I had until the 26th to rate the guest.  They had a similar rating from a previous host who issued a warning about them.  After I received the last notice, and wrote the review that day, it would not go through.  I called airbnb right away and they said they will look into it.  When I went back in, the reminder was gone and I could not access it. They seem to be very good at lying by omission and misleading and misrepresenting the public on many counts.  How are they able to do this?  

And which also brings me to the subject of reviewing guests before you accept them.  Why do they threaten hosts with penalties (such as being difficult for a guest to find) if you choose to review and not allowing them to  "instant book" before you accept them as guests in your own home?  Does anyone have a way to get around that?

[Anonymous]

@Donna635   When you file your complaint, you might refer to the language as it's presented to users here:  https://www.airbnb.com/help/article/140/how-does-airbnb-handle-security-deposits

"Some hosts require a security deposit for their listing. The amount, between $100 and $5,000, is set by the host, not by Airbnb. If you’re a guest and you’re booking a listing with a host-required security deposit, you’ll be shown this amount before you make your reservation.

Host-required security deposits are different from Airbnb-required security deposits in that no authorization hold will be placed. Guests will only be charged if a host requests to collect on their security deposit. Depending on what was damaged, the amount the host requests may or may not be the same as the security deposit.

If and when a host makes a request to collect on their security deposit, it will be handled according to the Host Guarantee Terms and Conditions. Airbnb’s Host Guarantee is a program that provides property damage protection of up to $1,000,000 USD for hosts of homes. Under the program, hosts are required to provide documentation of the damaged or missing items, and request reimbursement from the guest through our secure Resolution Center within 14 days of checkout or before the next guest checks in (whichever is earlier). If the guest is unwilling or unable to reimburse them, the host can then involve Airbnb."

So while there's some butt-coverage in the fine print, it still makes no sense that they continue to call this a "security deposit" when it's nothing of the sort. They might as well call it an elephant or a spaceship. I don't know if a specific law is broken here, but there should at least be a pop-up alerting hosts when they select their deposit amount, that there's not actually a deposit. 

[Donna635]

@Anonymous I agree.  I am not sure how they can continue to use that language and mislead hosts.  My question: does this amount to fraud?  Also, since they have recently become a publicly traded company, does this mean they will fall under the FTC and have to be accountable to the public?  During the several phone calls I had with "customer service" and asked about the "host deposit" I was diverted each time.  Yes, I responded in time, I took as many photos as I could of the damaged structural items (how do you take photos of stolen/missing items?) and was told that when it went to the "escalation" department that no one is allowed to contact them or communicate with them -   they will contact you when they are done.  No time frame. No accountability.  No real assurance that anything is being "investigated" at all.  The last customer service agent told me they would call me back in "a few minutes" with more information, but never called back. Can they really get away with this?  I find it very difficult to believe.  I will contact the senators offices that are on the consumer protection committee.  Certainly there are enough instances of misrepresentation and misinformation that they should be investigated.  

[Bez8]

@Donna635 

Hi Donna, 

First of all I am so sorry for your experience. But I want to get the facts right before trying to give you my opinion. 

The damages you described in your post seem extensive and if they were caused by the guest should be covered or at least investigated. You put all the evidence through the resolution center in detail correct?

You're still waiting on a decision? or were you flat our denied? 

I went through a similar process and I do see improvements in terms of customer support training to be able to handle cases like this. 

[Anonymous]

@Donna635  I can't comment on what the evidentiary standards are - that's honestly just something I don't know about.

All I can point out here is that the "Host Guarantee" has nothing to do with withholding money from the guest. It's an insurance policy underwritten by Lloyds of London in which Airbnb acts as an intermediary for claims filed by the host that can't be collected from the guest. A "host guarantee" claim is going to meet its end on the desk of a claim adjuster at Lloyds of London whose primary duty is to find a reason to reject it. 

A "deposit," if it existed, would be charged directly to the guest. It isn't. Instead, we have the "Resolutions" protocol, in which you kindly ask the guest for compensation and, if they don't provide it, you interface with an outsourced operator working from home or a foreign call-center who is by no means qualified to authenticate your evidence.  They might ultimately reach the ruling that the guest should pay out for their damages, but they're limited by their ability to collect through the payment method that the guest has already attached to their account. 

Of course it would be far less complicated if hosts could collect a real deposit. But I don't think that system is compatible with a site where anyone could throw up a random fake listing in minutes and begin taking bookings overnight. 

[Donna635]

I guess until things become more transparent and are resolved at airbnb (I have not had a great experience as a guest, either) I will just place my trust the other brand or use marketplace to have more control over damage deposits and who I rent to.  I will still be contacting senators on the FTC committees dealing with corporate fraud.