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How do you handle security deposits?

Just curious how much other people are charging with regards to security deposits. Do you ever need to keep them? 

The past few guests I've had, I waived the security deposit simply because I didn't want to deal with the hassle of issuing a refund if everything was OK.

I know that's putting myself at risk of losing money. Luckily, as of yet, I haven't had to deal with any guest issues that would require me to keep it should I have collected it. 



11 Replies

1
chiara guglielmetti

I charge my guest a deposit upon arrival and refund it at check out as I prefer to be safe than sorry. Having said that up to know I never had an issue that required me to keep part of it but I guess it depends on the conditions you have for your properties. I apply common sense when a guest breaks something depending on the value of the item and circumstances (e.g. I do not charge a guess for a broken plate or glass)

1 year ago
1
Chad Davis

I also feel that it's perhaps too complex, and perhaps a turn-off, for the guests. I take the risk and do not request for a security deposit. (If Payments by Booking.com would also handle deposits for me, then I might go with that approach). If I needed more security, I would be more interested in an insurance (which would perhaps cause me to raise my prices).

1 year ago
1
Matthew Brooks

Hello, we used to charge security deposits and met very little resistance to this. In my view, having the security deposit gives an incentive to those who may be more carefree with your place to look after it. However, we now no longer charge the security deposit but pre-authorise it on the guest's card. This has been welcomed by guests and still gives us the same protection. It is extremely rare that we have cause to claim on the security deposit.

1 year ago
2
Tony Clout

Hi guys. Are booking.com handling security deposits now? I know that trip advisor and AirBnB do it for the hosts and refund after the guests stay subject to no claim being made. It would make life a lot easier for hosts if this could happen.

1 year ago
1
Elizabeth Lockwood

I don't take one. Too much hassle. I do leave a welcome note with a few "pointers" and meet and greet. Eye contact can be important. I also have private STS insurance. Important to get the "right" one

1 year ago
1
MirriamBalubal

Being new to Booking.com, how is insurance applied here?

If there is a major damage to the property, how is it handled by Booking.com?

I understand that the risks is pretty high for this platform.

I just had a NO SHOW yesterday (6nights), I turned down 5nights booking for AirBnB, to take my very first reservation with Booking.com - only to be taken for granted by a client, who did not give the correct telephone #, no Zip Code, despite 3 messages i sent for check-in details - they never responded and I wasted my whole day waiting for this guests....

I have another booking today, very short notice, I will give it another try and keep my fingers crossed!

I just feel that this platform may be quite risky unlike VRBO + AirBnB with at least 1Million liability insurance. My home is worth 3m, so just being on the cautionery side here.

1 year ago
1
Jlcaproperties

I collect a credit card to hold on file during the guests stay. I 'verify' the card, but do not formally charge any amount. Upon departure I shred the form.

1 year ago
2
Liz M Lockwood

Curious. How do you verify a card without charging it? I have a lot of guests who use a debit card which doesn't necessarily have any funds.

1 year ago
1
Jlcaproperties

My credit card processing company (converge) has an option to 'verify' a card. I put in a $ amount and if it's a debit card, they place a 'hold' on the funds. A credit card will only verify that they have that credit limit available. If it comes back declined I tell them they have to use a different card.

1 year ago
1
Tobi

I'm using Payments by Booking.com which has been a pretty good experience so far. I list damage deposit on my listing, but have never actually collected it. Things went pretty well so far, but I feel like I'm putting myself at more risk with Payments by Booking.com not automatically collecting and refunding that amount – and with Booking.com not offering insurance for e.g. vandalism.

1 year ago
1
Hamiltonsue

I am not always at the cottage, so have a self check-in system. Unless I get a photo of the guest ID, and bank transfer of £50 for the damage deposit, the guest does not get the key security details. Works well for 98% of guests who read my ‘important information’ and ‘polocies’. For others who book online in a hurry, they are surprised when I ask for it. We have very slim profit margin, and this ‘insurance’ has proven invaluable in the past. Unfortunately yesterday a guest swore and threatened me in my own home, not happy! Seeking a better solution :(

5 months ago