Leaving Hostaway because of their booking fee?

Airbnb reservation and API connected damage deposit collected directly via Stripe

Ted W
May 14, 2024 9:30 AM
Joined Jan, 2024 23 posts

So we had our first damages since converting to API connection with OR.  It's an Airbnb reservation and the guest paid us the damage deposit directly via our Stripe account listed in our OR.  I want to find out the process for retaining that damage deposit (it's less than the damages but better than nothing).  Do we have to do something through Airbnb directly or can we simply notify the guests of the damage/amounts and retain the damage deposit without concern for Airbnb?  Thank you.

Ken T
May 14, 2024 11:09 AM
OR Team Member Joined Aug, 2019 1706 posts

Here's how to keep the security deposit hold:

https://www.ownerrez.com/support/articles/security-deposit-holds#charging

This does not require any interaction with Airbnb at all.

However, it sounds like your situation is a bit more complicated, in that, even if you keep the entire security deposit amount, the cost of the damage still would not be covered.

Therefore, you have a couple of options, that you'll need to make a risk-based decision on.

1. You could file a claim with Airbnb, and not keep the security deposit.  This has the potential of full coverage of the damages, but, the risk that you'll get nothing at all.

2. You could file a claim with Airbnb, and also keep the security deposit.  If Airbnb rejects the claim, you still have the security deposit funds.  If Airbnb accepts the claim, you could refund the excess to the guest.  However, this may confuse matters, and could result in both the Airbnb claim being denied and the security deposit getting hit with a chargeback.

3. You could reach out to the guest to discuss and negotiate.  However, this depends on the honesty of the guest.

4. You could keep the full amount of the security deposit, then immediately open another security deposit, and keep whatever amount is necessary from that one to cover the full cost of the damage.  However, doing this twice increases the likelihood that the guest will file chargebacks, and likely get all their money back.

Note that security deposit holds do not last forever - they automatically expire, and, while OwnerRez will attempt to renew them, by that time the guest may have put a block on the card to prevent this.