Hotels have used this trick for decades, and short-term rental hosts are just catching on...
Summary
AI-generatedThis video explains why short-term rental hosts should use 'authorization holds' instead of traditional security deposits. It highlights how this hotel industry tactic saves on transaction fees and provides better protection for properties without the administrative burden of manual refunds.
Key insights
Collecting and refunding a real security deposit often costs the host money because merchant processing fees (typically 2-4%) are usually not refunded by the payment processor.
Mistakes to avoid
Leaving properties exposed by skipping the security hold step entirely, relying solely on platform-provided insurance which can be difficult to claim.
Tools & resources
STR Management Handbookwebsite
Comprehensive guide for setting up STR management systems.
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial