how does Airbnb security deposit work?

How Does Airbnb Security Deposit Work?

The travel industry is constantly progressing and taking innovative approaches; Airbnb is a great example of how the internet has evolved the way we explore the planet, book business trips, and escape the pressure of daily life.

You see, bed & breakfasts have always served a fantastic purpose, but in recent times, large resorts and fancy hotels have acquired dominance. The charm and homely feel to a BnB is often underappreciated. That’s why Airbnb aims to combat that, by providing an easy, secure and modernized platform for people to host and book houses on.

Although, people still question whether it’s possible for it to be completely safe…

Bed & breakfasts have been accompanied by risks. After all, you’re opening your home up to absolute strangers. So, how does Airbnb go about softening the concerns of hosts?

Airbnb Security Deposit

This is their response to protecting the hosts who put faith in the Airbnb platform. Yes, the guests are a hugely important aspect of it, but it is those that are making their house available that are arguably taking the most risk.

Now, you probably have questions running through your mind right now – ‘how does Airbnb security deposit work?’, ‘do you get security deposit back on Airbnb?’, ‘when is the security deposit charged on Airbnb?’

We’re here to answer all of those questions, and explain the ins and outs of the system.

In a Nutshell

Although it’s a new concept in the BnB world, the security deposit feature is actually relatively straightforward. Essentially, this is how it works:

  • A security deposit is agreed before the reservation is made, which is held separately
  • The reservation goes ahead without the guest paying any deposit
  • If there are any damages, the host can make a claim on the security deposit

Sounds simple, right?

Well it is, but of course, there are some finer details that you do need to be aware of, both as a host and as a guest. Plus, you need to be aware of the actual procedure, so that there aren’t any surprises at the end of guests’ stay.

The Entire Process

When you list your property on Airbnb site for guests to make reservations on, you can also set a security deposit amount. It can be as high as you like, but just remember, guests will probably avoid your listing if it’s extraordinarily high, so it’s vital you find the right amount for you.

Alongside the security deposit, should also be a clear outline of what would incur any charges, so that guests are aware of what isn’t allowed. Other than the obvious charge for damages, you could also include things such as no smoking, or a lost key.

Next, if someone does make a booking, Airbnb will not charge them a single penny for a deposit. Instead, their payment information is stored on the system. If the host feels that there has been some damage, then they have 14 days from when the guest checked out to make a claim.

To make a claim, Host would contact the Airbnb resolution center, and provide some sort of evidence to support  their request. Although, Airbnb tend not to get involved; if the guest agreed to the criteria in advance, accept responsibility, and pay for the damages, everything  should get resolved quickly. Airbnb will only step in if the guest disputes the claim made by the host.

So, there you have it, that’s how the Airbnb security deposit feature works.