How does the Airbnb Security Deposit Work?

In order to compensate yourself for any unwanted surprises, you can add a security deposit to your listing on Airbnb. Here at Luckey, we've summarized everything you need to know about this useful feature.

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How to add a deposit to your Airbnb listing?

It is very easy to add a deposit to your listing. First, go to Your listings and select a listing. Then click Manage Listing, click Pricing settings and next to Extra Charges, click Edit. Finish by entering the amount you want and clicking Save. Bear in mind that this will only apply to future bookings and not those that have already been reserved. It is therefore wise to add the deposit as soon as you add a listing

How much can be requested? 

You can ask for anything between $100 and $5000. However, it's important to keep in mind that a deposit that is too high may discourage travellers from booking your accommodation and therefore lower your occupancy rate. On other hand, a deposit that is too low may be insufficient to cover the costs of repairing any damages or replacing stolen items. 

How to declare a problem? 

After a guest leaves, you have 14 days to report any issues to Airbnb and request for some or all of the deposit amount. To do this, go to the Airbnb Resolution Center, select the reservation, and select Request Damage Compensation. Then click Continue, and indicate the damages you found. As well as adding a quote for the repair costs, remember to add photos of both the damage itself and of any invoice you may have received for what was broken or stolen. 

What happens next? 

Once you have reported a problem, the guest has 72 hours to respond. They then have the option of either accepting the amount you requested (and the sum will be transferred to you in at least 7 days) or refusing it. If the guest either refuses the request or doesn't respond, you can notify Airbnb through the Resolution Center and they will initiate a mediation process to try to resolve the dispute. 

If Airbnb concludes that the situation requires financial compensation, they reserve the right to directly debit the guest the necessary amount. If the cost of the damage exceeds the amount of the deposit, Airbnb also offers a Host Guarantee which covers costs of up to $1,000,000.

Ready to say goodbye to the hassles of managing a short-term rental and boost your property’s value?

Luckey and Airbnb
Since its purchase in December 2018, Luckey has become an Airbnb wholly-owned subsidiary.
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