As a vacation property management company, protecting our homeowners’ properties is our top priority. One way we do this is by collecting a security deposit from renters. In this article, we’ll discuss the purpose of security deposits and how we handle them to ensure the safety of your vacation rental property.
What is a security deposit?
A security deposit is a fee paid by renters to cover potential damages, losses, or unpaid bills during their stay. It’s designed to protect the homeowner against any unexpected costs that may arise from a guest’s stay. Some examples of what a security deposit may cover include damages to the rental property or its contents, key replacement costs, or cleaning costs if the property requires excessive cleaning.
How much should my security deposit be?
At Beach Please, our standard refundable damage deposit for vacation rentals ranges from $200 to $400 USD. However, for luxury rentals or larger properties, the damage deposit can range from $500 to $1,000 USD. It’s important to note that large security deposits can be a turn-off for potential renters, so it’s crucial to check what similar properties in the area are charging on platforms such as Airbnb and VRBO to stay competitive.
How do we handle guest security deposits?
To ensure that security deposits are handled efficiently and effectively, we use an authorization hold on the guest’s credit card. This means that the funds are frozen and held during their stay and will be released within 5 days after checkout if no damage or loss is reported. If damage or loss is reported, we will work with the homeowner to determine the appropriate action, including using the security deposit to cover any costs that may arise.
How does Airbnb handle it?
If there is damage or loss, you as the host have 14 days after the guest checks out to make a claim on the security deposit. You will need to provide documentation such as photos or receipts to support your claim. Airbnb will review the claim and may ask for additional information before making a decision. If Airbnb determines that you are entitled to some or all of the security deposit, they will collect the amount from the guest’s credit card and transfer it to you.
Airbnb also offers Aircover. According to them:
AirCover for Hosts is top-to-bottom protection for Hosts. It includes guest identity verification, reservation screening, $3M Host damage protection, $1M Host liability insurance, $1M Experiences liability insurance, and a 24-hour safety line.
To submit an order, we need the following:
- Photo evidence of the damage
- How old is the item that was damaged?
- Receipt of the original purchase
- Receipt or quote for replacement
How does VRBO handle it?
Since we use Stripe and we do not depend on VRBO’s payment processor, we have more control over how and when to use the security deposits. We have up to 14 days after a guest checks out to file a claim.
Conclusion
By collecting a security deposit from renters, we can protect your vacation rental property from unexpected costs or damages that may arise during their stay. At Beach Please, we handle guest security deposits with an authorization hold on the guest’s credit card, ensuring a smooth and efficient process for everyone involved. If you have any questions about our security deposit process or want to learn more about how we can protect your vacation rental property, don’t hesitate to contact us.
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