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Don't charge a security deposit for a shared/private room

Discussion in 'Hosts' started by SI MON, Mar 25, 2015.

  1. SI MON

    SI MON New Member

    It's my opinion that charging a security deposit for a shared/private room will result in a lot less bookings. Look how many of your competitors don't do this. In hosting for a year I've never had the use for a security deposit. Entire home listings are a different story, although even in this instance it's probably best to check your local competition and see what they are doing.

    I do however charge a $5 cleaning fee, which probably deters a few folks. However I do it because I offer a very cheap room - $40 a night, and the cost to wash the 2-3 loads of laundry is more than $5 not including my time. What's $5 anyways, especially on a stay that's more than 1 night.
    Shirey likes this.
  2. Shirey

    Shirey Member

    I agree I stay more desirable by not charging a security deposit or a cleaning fee. Generally I only see those hosts new to the site charging security deposit, unless like you say it's an entire home. Sometimes those amounts are ridiculous as well. As a traveler I am always dissuaded by security deposits, especially those in excess.
  3. Castle Woman

    Castle Woman Active Member

    No security deposit or cleaning fee here. I run a 2 day minimum stay as well.
  4. Tessa

    Tessa New Member

    I wouldn't want any guest staying in my home who had a problem with funds being placed on hold to protect my property. My second guest ever, I had to make a claim on my security deposit because he damaged my property. As far as I know, the same thing happens when you check in to a hotel, a security deposit amount is reserved on your credit card in case of damages. I don't see why this should be a problem for someone staying in my home. If it loses me business, I'm okay with losing those kinds of customers.
  5. Shirey

    Shirey Member

    What kind of damages did you have? How much do you charge for your security deposit? Somewhere else here on the forums it was said that if charging a security deposit it should be substantial enough to cover serious damages. From what I have seen hosts are a lot more likely to charge security deposits on entire place rentals compared to private rooms.
  6. KonaCoconutz

    KonaCoconutz Active Member

    I believe the security is a shadow charge....not collected upon until claimed. As for the cleaning, for me it's $85. You guys are losing money by not charging a cleaning. Four to five hours @25...you do the math! That's work you are doing for free....Cleaning fee is expected and I've not had a guest complain in five years about cleaning. If it is a two night stay, they realize it is not a good value but still book anyway...it is cheaper than a hotel here in Hawaii, of which there are basically only the big ones... Sheraton, Hilton, etc. The guests will pay a mandatory resort fee at a hotel additionally, ranging from $30-50 per night for wifi and parking....

    Now, on the mainland you guys are probably getting tons of competition because nowadays everyone now has an airbnb, just like everyone has an email account and you have to stay competitive... My competition here mostly want five to seven day minimums and I get lots of those shorty bookings,because I don't have a minimum. I feel like I make more $ turning over these little stays...even though the cleaning is involved, but I make $85 on the cleaning!

    My deposit is $180 now. I raised it after a stupid guest broke my table and caused damage in excess of her deposit. I think if you don't have a damage deposit if a claim comes up Air MAY be less likely to side with you because you don't have one? Just conjecture, but hosts you ought to have a damage deposit. It's not charged unless needed, like putting down a credit card at a hotel desk when you check in.
  7. Tessa

    Tessa New Member

    Exactly, it's what they would have to do even at the cheapest motel in town, so why not in my home?

    I currently have a $175 security deposit. The guest stuck adhesive hooks on my bathroom walls because he felt the huge towel rack and shower rail were insufficient space for hanging his towels to dry. When he left he didn't even bother removing them (thinking I would like the modification?!) and when I tried to carefully remove them, they tore the paint and dry wall off. I already owned spackle and paint, so I asked him to pay me $30 for me having to repair it. Not a lot, but I felt he should not get away with that kind of behavior. He refused and Airbnb intervened and awarded me the money.

    $175 is not a lot but I figure it will help me if someone is careless and destroys something in the room such as drapes, bedding, or smashes their suitcase into the wall while hauling it up the stairs. My guests stay in a guest room in my home and I am typically there.
    KonaCoconutz likes this.
  8. KonaCoconutz

    KonaCoconutz Active Member

    I remember when that happened Tessa. It gets filed under "Guests are Idiots" a chapter which is sadly expanding day by day.
  9. Geezer

    Geezer New Member

    "What's $5 anyways, especially on a stay that's more than 1 night."

    I'm not a disgruntled host, I use airbnb as a guest only.

    Cleaning fee? Goodbye. That's a way to advertise a lower fee, while actually charging a higher fee. I consider it duplicity, and you wouldn't want me at your place anyway. :)

    The more complications, the more a customer will go somewhere else. But the extra charges and complications are definitely the host's prerogative.

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