Security Deposits, Damage Protection, and Guest Trust

A security deposit is an amount used to cover potential damage caused by a guest.
It may include:

• Broken furniture
• Damaged equipment
• Extra cleaning costs (smoking, pets, stains)

Vrbo offers three main protection methods.

1. Refundable security deposit

Guests pay a deposit at booking. Vrbo holds the funds and automatically refunds them 7 or 14 days after checkout if no claim is made.

Advantages:

• Guaranteed funds
• Strong deterrent

Disadvantages:

• May discourage price-sensitive travelers

2. Credit card hold

Vrbo stores the guest’s card details. You have 14 days after checkout to claim damages.

Advantages:

• Smooth guest experience
• Default option

Disadvantages:

• Payment not guaranteed (expired or insufficient funds)

3. Damage insurance

Guests pay a non-refundable fee for coverage.

Advantages:

• Guaranteed protection
• Low cost for guests

Disadvantages:

• Non-refundable
• Claims process may be longer

The amount should balance protection and booking conversion.

Best practices:

• €250–€500 standard
• Or ~10% of total stay for high-end properties

Always benchmark against similar listings.

If no option is selected, Vrbo applies credit card hold by default.

Setup steps :

• Log in to your account
• Select your listing
• Go to Calendar > Settings
• Click “Damage Protection”
• Choose option and amount
• Save changes

You have 14 days after checkout to file a claim.

Process:

• Log in to your account
• Go to messaging and select the guest
• Click “Damage Protection” >“Report damage”
• Enter the claimed amount (within the allowed limit)
• Write a clear message describing the damage
• Confirm the request

• Communicate with guests first
• Provide clear evidence (photos, invoices)
• Inspect property immediately
• Respect deadlines

The security deposit is a useful tool, but not sufficient on its own.

Rental agreement:
A rental agreement strengthens your legal position. A written agreement helps clarify the terms and responsibilities related to the rental.

House rules:
Clear house rules help prevent misuse. Rules regarding noise, pets, smoking, and occupancy limits should be clearly defined.

Insurance:
A dedicated short-term rental insurance policy provides broader protection.

Properly managing deposits and damage protection allows you to operate with confidence.

Combined with clear communication and rules, it builds long-term trust with your guests.