As a short-term rental property owner, your guests won’t be staying as long as those of a traditional landlord’s tenants. But that doesn’t mean your property is at less risk of damage from unruly guests or mishaps. In fact, given the high rate of guest turnover, you may be at even greater risk.
Fortunately, Airbnb allows property owners to require and collect security deposits through a property management software (PMS) connection like Uplisting. This article will briefly cover how Airbnb handles security deposits and the pros and cons of their model.
Airbnb has shifted much of its deposit model to the AirCover for Hosts program , which features up to $3 million in damage protection and $1 million in liability coverage. This means guests generally aren't charged a deposit upfront, reducing booking friction but also reducing immediate financial security for hosts. If a guest causes damage, the host can request reimbursement from them through Airbnb's Resolution Center. Airbnb then reviews the case and may charge the guest if they conclude that the guest was responsible.
According to a 2022 survey by Vacation Rental Management Association, many hosts find the AirCover claims process lengthy, with reimbursement outcomes often limited for major incidents. Research from Hostaway's 2023 industry report indicates that approximately 77% of hosts now skip direct deposits and rely solely on AirCover or third-party insurance for safeguarding.
Some software-connected hosts still opt for off-platform deposits, especially when they're renting out properties with unique or high-value amenities.
In the past, Airbnb offered two types of security deposit models—Airbnb-required deposits and host-required deposits—but both have since been phased out in favor of AirCover for Hosts. Today, if you want added protection, your only options are relying on Airbnb’s built-in AirCover or collecting a deposit outside the platform via a PMS or direct agreement.
Here’s a quick look back at how Airbnb's security deposits used to work:
This type of deposit was automatically applied by Airbnb based on the listing’s features or booking details. No money was collected upfront. Instead, Airbnb would place a temporary authorization hold on the guest’s payment method—similar to how a hotel might hold a credit card for incidentals.
For example, a $500 deposit might reduce a guest’s credit card limit by that amount during their stay. If no damage occurred, the hold would expire without any charge. If the host submitted a damage claim and Airbnb approved it under the AirCover for Hosts program (formerly the Host Guarantee), the guest could be charged up to the hold amount.
This model gave hosts more control. You could manually set a deposit amount—typically between $100 and $5,000—and request reimbursement after the stay if damage occurred.
However, Airbnb didn’t actually collect or hold this money in advance. Instead, if a host filed a claim, the guest had 72 hours to approve or dispute the request. If the guest rejected the claim, Airbnb’s support team would step in to mediate, but resolution wasn’t guaranteed. Many hosts found this process unreliable, especially with uncooperative guests.
This brings us to our third option.
There is still a way that property owners can collect security deposits in the traditional manner of paying the deposit in advance of their stay. And that's with an " offline security deposit ."
Here, a guest pays the fee in advance directly to the property manager using the chosen payment method as part of the booking process. This fee can sometimes be listed under "extra charges." If there are no security incidents, the fee is refunded in full by the property manager once the stay is over. For properties with valuable items like antique furniture or high-end electronics, this option provides an extra layer of protection beyond AirCover.
Many property owners don't know taking offline security deposits is allowed. In fact, Airbnb's official guide to security deposits actively discourages guests from paying property owners directly. This is because they want to ensure that most damage claims can be resolved through AirCover, which provides hosts with up to $3 million in damage protection.
However, Airbnb allows exceptions if you’re one of the following :
A software-connected host is a host that uses vacation rental software like Uplisting to connect with Airbnb's system. This connection allows you to manage security deposits and other aspects of your listing more efficiently.
As explained by Airbnb’s fee guide:
In limited cases, Airbnb might permit select software-connected hosts to collect certain mandatory fees using a payment method outside of Airbnb—as long as they’re included in the listing’s price breakdown at checkout.
This option offers the best protection for property owners as it functions the most similarly to the traditional security deposit arrangement. However, keep in mind that guests may have concerns about paying deposits outside of Airbnb's platform, so clear communication about your process is essential.
There are a few ways that Airbnb lets you handle security deposits, each with their own levels of convenience and risk. When deciding which option is best for you, consider factors like the value of items in your property, your comfort with the claim process, and how the deposit might affect your guests' booking experience.
If you rely on the AirCover for Hosts program, selecting a security deposit amount is a moot point since you can only request reimbursement after the damage is done. At that time, you know exactly how much it will cost to rectify the issue.Under AirCover, deposit claims must be made within 14 days of checkout or before the next booking.
If you decide to collect a security deposit offline through Uplisting, many hosts set a range of $100 to $5,000. Your deposit amount should factor in property size, furnishings, and the likelihood of rowdy stays.
Balancing a deposit size that doesn’t scare off potential guests yet discourages damage is key—hosts often find 10–30% of the total reservation cost to work well. Those who anticipate higher risks might add external insurance solutions for additional peace of mind.
In addition to security deposits, Uplisting can help you set up eSign rental agreements, automate guest messaging, and even manage cleaning schedules. This integration makes handling security deposit claims and refunds much more streamlined.
It’s fairly common to see deposit requests from soft-ware connected hosts, but an estimated 77% of hosts now skip them and lean on the AirCover for Hosts program instead. Whether a property has high-end amenities or frequent large gatherings often determines the deposit requirement.
Airbnb doesn't charge security deposits. If you accidentally do damage during a stay, the host can request reimbursement from you after the fact. Airbnb doesn’t charge your card unless the host proves damages under the AirCover resolution process.
If you're charged an off-line Airbnb security deposit, the money will return to your account after the reservation has ended, assuming there are no damages. The exact timeline depends on your host's provider. If they're using Uplisting, then all bookings are pre-authorized and and the uncaptured deposit amount is refunded automatically within 7 days of the reservation ending. Guests can rest assured that they won’t lose funds if everything goes smoothly.
No, Airbnb does not allow most hosts to charge a security deposit. The exceptions are hotels and software-connected hosts, such as short-term rental operators who are using a property management software (PMS) like Uplisting. With Uplisting, guest credit cards are pre-authorized for the deposit amount but the expense isn't charged unless damages occur.
Hosts who aren’t software-connected generally can’t take deposits directly through Airbnb. However, properties linked via a property management software or those labeled as hotels can collect deposits off-platform. These offline deposits must adhere to transparency rules and local laws, so guests know exactly what they’re paying and why.
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