Airbnb security deposit: Know this before you host online

Airbnb offers a convenient way for hosts to list their properties and connect with guests looking for short-term accommodation. Alongside its booking and communication tools, the platform also includes a number of features designed to help hosts manage risk, including security deposits and AirCover.

However, it is important to understand the limits of the protection available through the platform. Some hosts may feel Airbnb's safeguards useful support in certain situations, but these may not necessarily be a substitute for having your own insurance.

For hosts, understanding how Airbnb's security deposit system works, who is entitled to it, and where its limitations lie may make it easier to decide whether additional protection may be worthwhile.

How does the Airbnb security deposit work?

Airbnb recently updated its deposit policy, removing the option to set a deposit amount as a host. Instead, guests will use Airbnb as normal and if they cause damage to your property, you can submit a claim for damages through the Airbnb's Airbnb Resolution Centre.

Some hosts, such as software connected hosts, are still able to set a deposit. Where deposits are permitted, this must be properly disclosed to guests and displayed in the appropriate fee field.

The difference between Host Damage Protection and a security deposit

The recent changes to Airbnb's security deposit system make it more of a part of their overall Aircover policy. In the past, many hosts you could set their own security deposit amounts. Now Airbnb will simply charge a guest directly if they side with hosts following a dispute. This is included as part of Aircover's overall protections.

A security deposit generally protects you for smaller amounts and may be more often used when minor breakages occur. Aircover also provides more protection through Aircover. However, you may want to consider if this alone is appropriate for your insurance needs depending on what you require and any existing insurance policy you may have. Pikl's Airbnb insurance page covers this topic in more detail.

How to resolve a dispute through Airbnb

If a guest damages a property, the host will generally need to submit a reimbursement request through Airbnb's Resolution Centre. Damage-related requests should be submitted within 14 days of the responsible guest's check-out.

Hosts can request reimbursement for eligible damage, missing items and certain unexpected cleaning costs. They should provide evidence to support the claim, which may include photos or videos, receipts, invoices, repair estimates and details of replacement costs.

Once a request has been submitted, the guest has 24 hours to respond. They can agree to pay, make a partial payment or decline the request. If they do not respond, only pay part of the amount or decline to pay, the host can ask Airbnb to review the claim.

Airbnb will then assess the information provided and determine whether the claim is eligible and whether the amount requested is reasonable. If the guest is found responsible, they may be asked to pay and, in some cases, Airbnb may charge the payment method associated with their booking.

What alternative is there to security deposits?

Security deposits, as you can tell from the above, aren't available to all hosts. Getting money back from the guest also depends on how Airbnb favours hosts vs the guest. Having an individual insurance policy in place that meets your needs may ensure you have the cover you require regardless of the platform your property is listed on. If you have any queries regarding cover, get in touch with a member of the Pikl team today.