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Post by Mary Ann on Nov 14, 2015 14:21:41 GMT
I was wondering what amount people are using for security deposits for their listings. Is there a good rule of thumb for calculating the amount? We're using $300 right now, but I'm wondering if this is too high/low. We live in a historic old house (read: expensive to fix). I'm not so worried about smaller things like wine stains on carpets -- $300 should more than cover. But my concern is more for something like a broken window, which could amount to much more. But not something we would file with homeowners. To give you a little context, the space we rent is an in-law suite on the top floor of our main home. Guests have their own private suite, which includes a bedroom, kitchen, living room, 1.5 bath. I would appreciate any feedback as to what others are doing! We haven't had any problems thus far, but I figure if you rent for long enough it's only a matter of time until an issue arises, and I want to make sure we are reasonably covered. Thank you!
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Post by High Priestess on Nov 14, 2015 15:47:09 GMT
Hi Mary Ann
Opinions vary on how much to set as a security deposit. KEep in mind that whatever amount you set, the guest is not actually billed that. A hold may be placed on their credit card in that amount, just to make sure it is available, but they aren't billed unless there is damage.
My security deposit is generally more than $300 (it's $350 usually) just for a bedroom, not a whole unit, and I don't have trouble staying booked. I would suggest at least $300-500 for an entire unit, and really to me $500-750 seems more appropriate. One thing I am continually surprised by is the number of hosts on Airbnb who have no security deposit or a very low one, when renting out a whole unit. Some say that they have had no significant damage so far, and use that as a rationale to continue to have no security deposit. But the way I look at it, you dont' have a security deposit because you expect to have a lot of damage or frequent incidents of damage -- you have it for that rare case where there is a significant amount of damage.
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Post by salvia on Nov 16, 2015 12:59:41 GMT
For a long tiime I was reluctant to have a security deposit but I finally set it at 400 $. (Had no impact on bookings). I rent a room only but guests move freely through my flat and there are so many things that could be damaged. The 400 would no way cover costs if I e.g. Would have to replace the wall-to-wall carpet in the guest room, the ceramic glass stovetop or an expensively framed picture in the corridor but could ease my pain. But the deposit covers the loss of keys and the necessary change of locks which I consider as one of the biggest risks. I lived once in an historic art deco flat with wonderful french mosaic glass doors. I smashed a small glass once and learned how expensive it was to replace it. I always make sure that Insurance-wise I am covered if I (!) cause damage to somebody"s things. "Small" things can turn out to be sooo expensive in the end!
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Post by Mary Ann on Nov 17, 2015 13:33:54 GMT
Thanks to both for the feedback! I think I will raise the deposit amount to cover us a little better.
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Post by beeandbee on Nov 18, 2015 14:45:29 GMT
Hi Mary Ann,
Your space sounds nearly identical to ours. When we started out, I came up with a deposit of $250 because I'd thought the most likely thing to get stolen or broken were the electronics/small appliances (tv or dvd player or microwave) that no, the HOUSE was more likely to need fixing instead of the small stuff.
Now the deposit is $350 or $450 depending on the time of year (We mostly get bookings about three months in advance so this is easily managed).
Don't be worried about a deposit scaring people off. If they can't pay it, they shouldn't be staying here.
I've also removed all the things that have any personal meaning to me from the rental. Just slowly replaced them with tasteful neutral objects over time. It helps me sleep at night.
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