Security deposits help protect your property by allowing you to place a temporary hold on a guest’s card to cover potential damages or additional charges.
For Direct bookings, deposits are shown during the booking flow and completed by the guest through the Guest Portal as part of their required tasks.
How Security Deposits Work
When a security deposit is enabled:
A deposit amount is set for the booking
The guest is required to provide card details in the Guest Portal
A temporary authorization hold (card hold) is placed on the guest’s card
The hold is automatically released after checkout if no charges are submitted
Security deposits are separate from the booking total and are not part of the rental price.
Security deposits are authorization holds, not charges. The guest is not billed unless a charge is submitted.
When the Deposit Is Authorized and Released
For Direct bookings managed by Hospitable:
A card authorization may occur when the guest adds their card details
The deposit hold is typically placed 2 days before check-in
The hold is automatically released 2 days after checkout if no issues are reported
If no damage or additional charges are submitted, the full amount is released back to the guest.
How Guests Complete the Deposit
Guests provide their deposit details through the Guest Portal as part of their required booking tasks.
They can access the Guest Portal:
From the booking confirmation email
Through messaging links using the
%guest_portal%shortcode
Within the portal, the deposit appears alongside other required steps, such as:
Confirming their details
Guest verification (if enabled)
Signing the rental agreement (if required)
Guest Portal Security Deposit flow before adding the card for authorization.
The guest experience includes entering card details and confirming the deposit before completing their booking requirements.
Who Collects the Deposit
You can choose how the deposit is handled:
Hospitable collects and releases it (recommended)
The deposit is placed as an authorization hold on the guest’s card (not a charge)
The hold is typically placed 2 days before check-in
The hold is automatically released 2 days after checkout if no charges are submitted
If needed, you can submit a charge against the held amount
Guests are not charged upfront. The deposit is only collected if you submit a charge.
Host collects it manually
You collect and refund the deposit outside of Hospitable
You are responsible for handling the full process, including:
Collecting payment
Managing refunds
Handling disputes
No security deposit
No deposit is collected for the booking
Pricing settings page in Hospitable showing security deposit options including Hospitable-managed, manual collection, or no deposit
What Happens If You Need to Charge the Deposit
If there are damages or additional charges:
You can submit a charge against the deposit
The approved amount is captured from the held funds
Any remaining amount is released back to the guest
The deposit is only charged if you submit a claim. Otherwise, the full amount is released automatically.
Where Guests See the Deposit
Guests can review the security deposit:
During the Direct booking flow
In their booking confirmation email
In the Guest Portal
The deposit may also appear as a required step before check-in.
Relationship to Payments and Refunds
Security deposits are handled separately from booking payments:
They are not included in the booking total
They do not follow the payment schedule
They are not governed by the cancellation policy
Refunds for deposits are processed independently of booking refunds.
Security deposits are separate from booking payments and are not affected by cancellation policies.
When to Use Security Deposits
Security deposits are useful if you want to:
Protect against minor property damage
Cover incidental charges (e.g., extra cleaning, small breakages)
Add an extra layer of guest accountability
Security deposits are best suited for situations where:
The issue can be resolved quickly
The cost is relatively small
You want to charge directly against a held amount
When to Use Damage Protection (Direct Premium)
For more significant issues, damage protection may be more appropriate.
Use a damage claim (Direct Premium only) for:
Major property damage
Theft or missing items
Incidents requiring formal review and documentation
Damage protection is only available for Direct Premium bookings and requires submitting a claim through the Inbox.
How They Work Together
Security deposit → Immediate, host-controlled charges from a held amount
Damage protection → Claim-based process with coverage review
Also see: How to Report Damage for Direct Bookings
Key Things to Know
Security deposits are authorization holds, not upfront charges
The hold is typically placed 2 days before check-in
The hold is released automatically 2 days after checkout if unused
Guests must complete the deposit step in the Guest Portal
Deposits are separate from booking payments and refunds
Charges must be submitted to collect any portion of the deposit