Security deposit: how much, how to collect, and how to enforce

Category: Legal & Regulations

By: Grace Kim

Posted: 2026-01-07T04:49:45.482Z

I want to add a security deposit to protect against guest damage. Some questions: 1. How much is reasonable without scaring off guests? 2. Should I use Airbnb's built-in damage protection or collect my own? 3. If I collect my own, how do I enforce it? Looking for practical advice from hosts who've actually collected on damage claims.

Reply by Tyler Jackson:

Security deposits are one of the most misunderstood tools in STR hosting. Here's the practical guide: **How much is reasonable?** - $200-$500 for budget/mid-range properties - $500-$1,000 for luxury properties - $1,000-$2,500 for large group/event properties - Rule of thumb: 1-2 nights' rack rate **Airbnb's damage protection vs your own deposit:** **Airbnb AirCover (free, built-in):** - Up to $3M damage coverage - You file a claim in the Resolution Center after checkout - Airbnb decides whether to pay - No money collected from guest upfront - Success rate: ~50-70% for well-documented claims **Your own security deposit (via Airbnb settings):** - Airbnb lists it on the reservation but does NOT actually charge the guest - It's a "pre-authorization" — Airbnb may or may not enforce it - Confusing and unreliable as a collection mechanism **Third-party deposit collection (best option):** - Use **Safely** (https://safely.com) — they offer guest damage protection with actual enforcement - **SUPERHOG** — guest screening + deposit collection - **Autohost** — guest verification + damage deposit **How to enforce a damage claim:** 1. **Before checkout:** Document the property condition with photos/video 2. **After checkout:** Document any damage with photos/video 3. **Within 14 days:** File through Airbnb Resolution Center with before/after evidence 4. **Include replacement costs:** Receipts, invoices, or replacement quotes 5. **If guest refuses:** Escalate to Airbnb case management 6. **If Airbnb denies:** File through your STR insurance **The harsh truth:** Collecting on damage claims is difficult. Prevention (guest screening, noise monitoring with Minut at https://minut.com, clear house rules) is always more effective than trying to collect after the fact.

Reply by James Wu:

My take after 4 years and about 10 damage claims: - Airbnb paid out on 7 of 10 claims. The 3 denials were for "wear and tear" items that I probably shouldn't have claimed anyway. - Average payout: $200-400. I've gotten one payout of $1,800 for a damaged TV and broken window. - Documentation is EVERYTHING. The claims I won had clear before/after photos with timestamps. The claims I lost had weak evidence. My best advice: photograph everything after every turnover. It takes 3 minutes and covers you completely.