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Do you think adding a Security deposit discourages booking?

I have tried to experiment with and without a deposit to see what works best , I mean even if you have one you would still have to go through the same measures to claim it as if you didn’t have one.

The guests always has to approve wether or not to give you the deposit if you report an accidental

But I also feel that if you have a security deposit it encourages people to be more responsible with your property, what do you guys think ?

I have a regular guest who won’t book anywhere that has a security deposit. She says that it’s not because she doesn’t want to take responsibility for damage and she always leaves our place clean. She says that in her view a host who charges a security deposit is probably picky and looking for ways to claim it.

I’ve always charged a security deposit because this is my home, and I don’t want things stolen or for people to be careless. It hasn’t discouraged bookings, and so far, I’ve never had to use it.

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Apparently on the Air platform, it is hit or miss whether making a claim on the deposit will end favorably for the host. Allowing a third party (Air) to make the decision whether I’m entitled to it is one of the aspects I don’t like about Air. On another platform, I handle the bookings and payments…and refunds so the security deposit carries more clout and supports its purpose.

I’ve always had a security deposit in place. In seven years I’ve only withheld it twice. Both occasions involved unauthorized occupants and in one case, damage as well. My house rules specifically spell out what the deposit is for and that it will be applied for infractions. The guests knew the rules and had to deal with the consequences. The fact that neither of the guests submitted a review was fortuitous but I would have countered anyway if they had.

Does having a security deposit encourage people to be more responsible, I believe it has some influence but unless the money is collected up front with the rental amount, it seems to be less of a deterrent.

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I think that the answer is “it depends.” I expect to leave a security deposit when I rent a self-catering house or apartment for a week or more. But that isn’t how I use AirBNB as a host. As a host, I have people staying in my own home for 2-9 days [give or take.] I go to their rooms daily to replenish their breakfast so I am fully aware of what the rooms look like during their stay. I have elected not to ask for a security deposit. It just doesn’t make sense to me or for my guests [as I perceive it.]

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Yes I believe it does!

Unfortunately, I think Airbnb does a piss-poor job of explaining the “security deposit”. So, I do it myself in our description and just say “Please note that the security deposit is NOT held from your account prior to or during your stay and is not a charge or authorization.” So far that has worked.

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No, I don’t think that it discourages bookings. Even hosts don’t understand how the deposit works so most guests certainly don’t.

Our security deposit is $100 or $150 (I forget exactly) and because guests don’t understand the system, they do understand that they are liable for that amount if they cause damage. This brings a better quality guest, I believe.

If I rent anything - from a car to a cement mixer - I have to pay a security deposit. People are accustomed to this.

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I think the opposite. We provide a whole house for guests to stay. They pay few hundreds of dollars. We invest Hundreds of thousands of dollars. If they don’t want to or can’t afford to pay $250, $300, even $500 deposit, I don’t want to rent to them. Also if they are responsible guests, what’s to worry about. We as owners are worry the most.

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It depends on your market and the demographic of your renters. If you’re renting to mature adults I don’t believe it is a deterant.

This. If people make a fuss about a security deposit, I don’t want them in my house.

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I agree. All snowbirds coming to rent places in the desert, ours included, expect to pay a security deposit…don’t bat an eyelash. It’s the same for similar locales with the same demographic.

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I rent a room in my house. I think that people are more used to paying a security deposit for a whole house than for a private or shared room.

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Yes definitely - I would expect for a whole house rental but not for a private and shared room.

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I’m suprised that rooms are seen as different. In a hotel situation (where you’re also getting just a room), you also have to provide credit card details in case of damages/ additional expenses.

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The idea is that if the guests are renting a room in the house where you live you will notice if they are doing damage. If the listing is a whole house; the host won’t know until check out.

I’m not sure about this assertion as so many hosts don’t enter the room until the guest checks out. Equally for those of us that do enter the room, you may not see less obvious damage like broken bed slats until after the guest has left.

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It’s only one room that you don’t see throughout the guests’ visits. Also, you can stop guests from bringing extra guests and having parties.

Noticing when it happens isn’t any different than noticing after the fact. Damage is damage.

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If you notice that guests are damaging your property; you can stop them from damaging it further.

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