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Security Deposits: Overview

Tim Parry avatar
Written by Tim Parry
Updated today

Currently in Beta for Direct Premium users

Hospitable’s built-in security deposits feature helps Direct Premium hosts protect their properties by automating the collection, management, and release of deposits for Direct bookings. This removes the need for third-party tools and ensures a smooth experience for both hosts and guests.

What is a security deposit?

A security deposit is an amount of money collected from a guest before check-in to cover issues such as:

  • Accidental or intentional damage

  • Missing or stolen items

  • Excessive cleaning required after check-out

  • Violations of house rules

If no issues occur during the stay, the deposit is released automatically after check-out.

How to set a deposit amount

  1. Go to Properties

  2. Select the property you want to add a deposit to

  3. Go to Pricing > Hospitable security deposit

  4. Enter the amount you'd like to collect between $100-$5000

How does it work?

  • Deposit collected automatically 2 days before check-in

  • Deposit released automatically 2 days after check-out (if no charge request is submitted)

  • Hospitable handles all guest communication:

    • Guests see the deposit amount and collection dates during the booking flow

    • Deposit details are shown in the guest portal

    • Guests receive a reminder email before the deposit is collected

  • Check-in instructions are withheld until the deposit is successfully secured

  • Hosts can submit a charge request from the Inbox if there’s an issue

  • Hosts can track the deposit status in the Inbox, including:

    • Deposit amount

    • Scheduled collection and release dates

    • Real-time status: Scheduled, Secured, or Released

Who can use this feature?

This feature is currently available to Direct Premium hosts only.
It applies to new reservations only — it does not affect existing bookings.'

What are the benefits of Hospitable security deposits?

  • Chargeback protection - because Hospitable handles the payment processing, we help safeguard you from disputes or reversals

  • Host control over funds - there’s no lengthy claims process or third-party approval; you retain direct access to the funds and can submit a charge when needed

  • No third-party tools required - everything happens within Hospitable

  • Guests are automatically informed - no need to manually message or follow up

  • Check-in is restricted until the deposit is secured - giving you peace of mind before guests arrive

What does it cost?

A processing fee equal to 2% of the deposit amount is charged once per reservation where a deposit is collected. This fee will be invoiced to you separately each month.

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