Airbnb Security Deposits

Once upon a time, Hosts had control…

Security deposits on Airbnb used to be simple. Hosts could set a deposit, Airbnb would put a hold on the guest’s credit card, and if something got broken, you’d go through Airbnb’s Resolution Center to claim the money.

Then, in 2022, Airbnb decided to remove the ability for hosts to set security deposits directly—except for a loophole (which we’ll get to in a minute).

Why the change? Airbnb wanted uniformity. They wanted every host under the same AirCover system, so they could say, “Don’t worry, hosts! We’ve got you covered.”

But here’s the problem: AirCover isn’t perfect.

How the Current System Works

As of March 2025, Airbnb still doesn’t let you charge security deposits directly through the app. Instead, every host gets lumped into their $3M Host Damage Protection plan under AirCover.

Sounds good, right? Except:

• No upfront hold—Guests aren’t charged or even pre-authorized for damages. They just get a heads-up that their payment method might be charged later.

• No host control—You can’t set your own deposit amount. You’re relying on Airbnb to maybe approve your claim.

• Claim delays—Expect 2–4 week delays when trying to get reimbursed for damages. (Good luck if you need that money fast)

Basically, Airbnb made it “simpler”, but took control away from hosts.

The Loophole: How to Still Charge a Security Deposit

Here’s what they don’t advertise: If you use a third-party property management system (PMS), you can still charge a security deposit.

How It Works:

• You connect a PMS to your Airbnb account. We’ll use Hospitable for this example.

• You set a security deposit amount ($100–$5,000).

• This deposit is collected as an “offline fee” (meaning outside of Airbnb and the regular booking process) and is managed through Hospitable's integration with Autohost.ai, which handles the guest screening and collects the guest's security deposit payment method.

• The security deposit is a pre-authorization hold, not an immediate charge to the guests card.

• If there’s damage, you log into Autohost.ai, process the charge, and get paid. If no claim is made, the hold automatically releases 7 days after checkout.

Essentially, this bypasses Airbnb’s restrictions and gives you back control over security deposits—but it requires extra software and it's an extra step the guest has to take (which adds complexity to the booking process).

Final Take: Is It Worth It?

Airbnb’s new system is designed to make things “easier” (for them), not necessarily for hosts. As a host trying to protect your property, you’ve got two choices:

• Go all-in on AirCover—Hope Airbnb sides with you in a dispute and deal with claim delays.

• Use the PMS Loophole—Take deposits into your own hands, but set up third-party software like Hospitable and Autohost.ai.

Either way, know this: Airbnb didn’t kill security deposits. They just buried them under layers of complexity.

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