6. Should you charge a security deposit?
Some hosts charge a security deposit; many do not. Make sure that you fully understand Airbnb’s $1,000,000 Host Guarantee and decide whether you need a deposit or require additional insurance.
Some hosts may have an expensive piece of art, furniture, or piece of equipment in the rental that cannot easily be taken out. In this kind of situation, it may be a good idea to charge a security deposit.
The guest is not charged the security deposit until you make a claim through Airbnb’s Resolution Center and the guest accepts the charge. If the guest does not accept the charge, the claim goes to Airbnb’s mediation, where Airbnb mediators decide whether the guest will be forced to pay.
If the damage exceeds the amount of the security deposit or you don’t require a security deposit, the Host Guarantee provides protection of up to $1,000,000 for damage caused by guests on the host’s property.
We personally do not require a security deposit, because we do not have any high-priced furnishings in our units. However, some hosts feel that charging a security deposit encourages guests to take better care of their rental.