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May 10, 2023

Understanding the Importance of Airbnb Security Deposits

by Alices Home
Airbnb Security Deposit - Alice's Home

Understanding the Importance of Airbnb Security Deposits

Alices Home
May 10, 2023
Airbnb Security Deposit - Alice's Home

Table of Contents

When booking into a hotel, a guest is always required to leave a credit card that will be charged in the event of any damaged or lost items during the guest’s stay.

Guests expect an authorisation hold will be placed on their credit card.  The amount is then returned to the guest upon leaving. Staying at an Airbnb property is no different – guests will pay Airbnb security deposits upon booking.  

A host will add it to the total fee at the time of booking, and the amount is encouraged to be in the realm of $200. The security deposit amount is then returned to the guest when they leave.

What are Airbnb security deposits?

Airbnb security deposits are a common feature of the platform that provide assurance to both hosts and guests that their property and belongings are safe during a stay. When a guest makes a reservation on Airbnb, they may be required to pay a security deposit, which is held by Airbnb and may be used to cover any damages or losses that occur during the stay.

Airbnb Security Deposit meaning - Alice's Home
Guests won’t be surprised to be charged a security deposit.

They understand that a security deposit being held will ensure Airbnb and STR (short term rental) properties are looked after. If there is a breakage or damage outside what is considered normal wear and tear, the amount will be taken directly from the security deposit, and there won’t be any conflict after guests have left.

It is important to follow the specific steps laid out by Airbnb to add the deposit. It can’t be added into the amount of the property itself, it has to be separate.

  • Log into your Airbnb owner login page
  • Go to Your listings and select the listing
  • Click Manage listing
  • Click Pricing settings at the top of the page
  • Click Edit next to Extra charges
  • Under Security deposit, add the amount required  (it has to between $100 and $5,000 USD – Airbnb recommends $200 USD as an acceptable security deposit fee.)
  • Then click Save

After adding the Airbnb security deposit, you are welcome to add any extra amounts that are required for additional services, like housekeeping.

If the guest causes damages during their stay, the host should go through the Conflict Resolution centre to claim the security deposit.  It can be requested before 14 days of checking out, or when a new guest checks in.  After that time, the host will no longer be entitled to it and it is returned to the guest.

The Conflict Resolution centre will require photos, invoices, written estimates and other information to back up your claim and allow assessment.  This is why its important to ensure you go through the Airbnb website to lodge the security deposit, rather than privately or through another app. These methods could be insecure and hosts may not be able to retrieve their security deposits should they need to.

Guests may choose not to pay Airbnb security deposits when they initially book. If they don’t, an authorisation hold will be placed on the method they paid with to book the accommodation. This will happen two days before their arrival. Then, in the case of damages afterward, the deposit amount will be taken from there.

Airbnb security deposits are important to ensure your investment and property are taken care of. Holiday apartments and hotels will always take an authorisation hold and so should you. Claiming damage and collecting the deposit is much easier than going back to guests afterward and trying to prove damages and collect payment.

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