Security deposit - how much?

[Branka-and-Silvia0]

I am thinking to set up a security deposit for my studio, 2 bedroom and 3 bedroom apartments but I have no idea how much to ask. Any suggestions?

What do you think about the SD? Is there any difference if you have it or not?

Thank you

[Cynthia-and-Chris1]

I think you'd be a fool not to have one.  The amount depends on you, your home, and possessions.

It really baffles me why people would not have one.  They argue it deters guests from booking.  But do you really want to attract the type of guests who specifically seek out listings WITHOUT security deposits?  If you are a respectful guest, the security deposit shouldn't be a concern at all, because you know you will leave the listing in perfect order.

[Branka-and-Silvia0]

@Cynthia-and-Chris1 thank you for your comment. We didn't have it because we are new hosts, we started at the begining of this summer and from the day 1 we were fully booked and busy all the time, so sec. dep. was somehow overlooked ...until now.

Now I finally have some time to read threads here on CC and I realized that the security deposit does not guarantee that the damage will be compensated. If so, what is the purpose of setting it ?.... and how much to ask?  If a guest trash the apartment it could be few thousands € in damage.... so, to set sec. dep. on 500 € seems not enough for a host and too much for a guest... 

[Cynthia-and-Chris1]

You have a much higher liklihood of receiving compensation if you have a security deposit listed as opposed to not having one listed.  Yes, it is still up to Airbnb to grant your request for reimbursement and they will consider the "proof" you have.  I only rent a guest room in my house, so my security deposit is only $250.  Other people who rent whole apartments have $500 or more as their security deposits. 

[Jean123]

That is a great tip, Cynthia and Chris.  I too need to add a security deposit.  When the renters leave and all is well with the cottage/home, does Airbnb return the security deposit or is the host that is responsible?

[Dee33]

@Jean123

On Airbnb, the security deposit is not actually "charged" to the guest. Airbnb puts a hold on the guest credit card for the amount of your security deposit. If you make a claim for damages against the deposit, then the funds have already been authorized to be drawn down by Airbnb and forwarded to you. If the host does not make a claim, there is never an actual bill to the guest and the credit hold goes away.

In most situations, I believe the only effect on the guest is that the cardholder counts the hold against their credit limit. Many people will never notice it.

[Jean123]

Thanks, Dee!  I appreciate your input.  I will definately add a security deposit.  

[Alexander301]

I think you are wrong. 

https://www.airbnb.com/help/article/2526/as-a-host-what-should-i-know-about-security-deposits

There are 2 types of security deposits. Type 1 is Airbnb-required security deposit for certain reservations. In this type, the guest's credit card would be put a hold for a certain amount. 

Type 2 is the host-required security deposit. This type would not put a hold on the guest's credit card AT ALL. Guests. They will be charged only if you make a claim which is approved by Airbnb.

[Branka-and-Silvia0]

@Alexander301  yes, that's new since Airbnb accepts hotels and agencies, they can charge a real security deposit. Small private hosts still can't

This post is written before Type 1 existed

[Magdalene9]

I seem to agree with this idea of security deposit and i think i will set up one for each of my listings.  As you said, it is better to have a small refund rather than having nothing. I am a freshman in the business lol. just started 2 weeks ago.

[David126]

Plus points are that they have sufficient credit on their card for a SD , they might not otherwise.

They may not realise how difficult it is to recover a SD claim and think it is much easier and hence be more careful.

People renting a whole place would expect there to be a SD.

I am not aware there is much of a difference in recovery rates, I have not seen an comments from AirBnb on how they adjudicate and if it different to the Host Guarantee. 

[Regina38]

I have my security deposits set high. A few newbies have questioned it and I explained that ABB does not put a hold on that amount or take it. It is the amount that I have estimated if someone trashed the whole apartment. I did an estimate on what it would be to repalce all furnishings and appliances quickly. The 2 bigger units are $3000 and the smaller one i $2000 I believe.

I am usually booked so I do not think it hurts and it may discourage guests who would not repsect your property.

I would set one now.

[Ivette1]

I have never understood the purpose of the security deposit.  I require one for my property....$500.00 however it is not until recently that i treid to enforce it.

You know to expect the guest becoming angry....clearly they do not want to be charged for the damage they do ...Airbnb typically sides with the guest and the ropes that Airbnb put the host through to recieve conpensation is tough  ...I usually just pay out of pocket. 

[Renata50]

 We had some long term guests so we gave them a discount but charged a cash security deposit as I'd  read that airbnb usually sides with the guest. Just before they left we discovered they had damaged the tops of 2 tables with hot pots and coffee cups. (One was an antique) they also left the bathroom filthy. When we told them we wouldn't be giving back the security deposit. They said they didn't do it and refused to leave. We had to call the police to get rid of them. Awful experience. 

[Magdalene9]

wao!!