One expired authorization hold cost $500...
Summary
AI-generatedThis guide breaks down the three primary methods for protecting short-term rentals from guest damage: damage waivers, security deposits, and built-in OTA protections like AirCover. It highlights the financial trade-offs between authorization holds and cash deposits, specifically noting the hidden costs of processing fees.
Key insights
An authorization hold is technically different from a security deposit; the hold secures the funds without a transaction fee, whereas a deposit involves an actual transfer of money.
Mistakes to avoid
Charging guests a physical security deposit for every stay without realizing that processing fees are eating into your profit margins on every transaction.
Tools & resources
Booking.com Damage Programservice
A specialized program for hosts on Booking.com to manage property damage claims.
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial