Deposits in short-term rental: how to take one and what to do when a guest damages the apartment

Guests spill wine on the sofa, break plates, damage appliances or leave the apartment needing a deep clean. That is not pessimism, it is the reality of short-term rental. A deposit is one of the basic tools protecting you against it. And yet many owners either do not take one, or take one without knowing how to use it properly.

What a deposit is in short-term rental

A deposit is an amount taken from the guest before or at check-in, returned after departure as long as the apartment needs no repair or extra cleaning. It is financial security, not extra income. Do not confuse it with a cleaning fee, which is always charged and is not refunded.

In short-term rental a deposit works differently than in long-term letting. With a long let you have a month to settle and a written contract. With nightly stays you usually have a few hours between one guest checking out and the next arriving, so you have to act quickly and efficiently.

How much to take

There is no single answer. It depends on the standard of the apartment and the average booking value. Some rough brackets:

• A studio flat: PLN 200 to 500
• A standard 2 or 3 room apartment: PLN 500 to 1,000
• A premium or larger apartment: PLN 1,000 to 3,000

A practical rule: the deposit should cover the cost of the most common damage, that is, stains on a mattress or sofa, broken crockery, damaged equipment. Set it too low and it is merely symbolic. Set it too high and it can put guests off and reduce occupancy.

How to take the deposit: through the platforms or yourself?

Booking.com

Booking.com lets you set a deposit in the owner panel (Extranet → Policies → Deposit). You can specify the amount and how it is taken: cash at check-in or credit card. Important: Booking does not collect the deposit for you, it only displays it to guests as information. Taking it and settling it are your responsibility.

Airbnb

In 2023 Airbnb replaced the classic Security Deposit with AirCover for Hosts, which covers damage up to USD 3 million directly from Airbnb, with no need to take a deposit from the guest. It is a convenient arrangement, though it has limits: it does not cover cash, jewellery, or damage caused by animals in apartments that are not pet friendly. Worth knowing before you conclude that AirCover handles everything.

Your own page or a direct booking

Here you have the most flexibility. You can take the deposit by transfer before arrival, by card authorisation (a pre-authorisation) or in cash on the spot. A card pre-authorisation is the most professional option: you block the amount on the guest's card without actually taking it, and after departure you either release it or charge it. It needs a payment gateway that supports pre-authorisations (Stripe or PayU, for example).

Cash or card?

Each form has its pros and cons:

• Cash. Simple and immediate, but it requires you to be there at check-in. It becomes a problem with foreign guests, who often do not carry zloty.
• Bank transfer. Convenient for bookings made in advance. Harder to hold on to if a dispute arises.
• Card pre-authorisation. The most convenient for both sides. It does not physically block the money and the release is automatic after authorisation. It does require integration with a payment system.

What to do when a guest damages the apartment

This is the hardest part. You have the right to keep the deposit or part of it, but you have to act efficiently and document everything.

1. Document the state before and after

A handover record in the form of photos is absolutely fundamental. Photograph every room before the guest checks in. After checkout, compare. Without photos taken before, you cannot prove the damage happened during the stay, and the guest can claim they found the apartment already damaged.

2. Price the damage quickly and realistically

Do not inflate your valuation. If a plate costs PLN 25, write PLN 25. A guest who sees an inflated figure will argue, write negative reviews and file complaints with the platform. A fair, documented valuation ends the matter fastest.

3. Tell the guest in writing

Send the guest a message (through the platform or by email) describing the damage, with photos and the amount you are keeping. Even if the guest is unhappy, written documentation protects you in a dispute on Booking.com or Airbnb.

4. Watch the refund deadlines

Return any deposit you are not keeping within 24 to 48 hours of checkout. Delaying without reason generates negative reviews and complaints. If you need time to assess the state of the apartment, tell the guest straight after departure that you are checking and when they will hear back.

When the deposit is not enough

If the damage exceeds the deposit, you have several options:

1. Airbnb AirCover. File a claim through the platform within 14 days of checkout, or before the next guest checks in.
2. Property insurance. If you have a policy written for short-term rental, you can report the loss to your insurer.
3. Court. For large losses. If you have a written agreement with the guest and full photographic documentation, your position is strong.

Remember: for bookings made through platforms, check that platform's rules on pursuing claims. Each has its own procedures and deadlines.

House rules and the deposit

A deposit works best when it is backed by clear house rules. Guests should know before booking:

• How much the deposit is and when it is taken
• In what situations it may be kept in whole or in part
• When it will be returned and in what form
• How the owner makes a claim

Transparency builds trust and limits arguments after departure. A guest who knows in advance that damaging the sofa costs PLN 800 will think twice before putting wet boots on it.

Put a deposit in place before your next booking

A deposit is not bureaucracy, it is a tool that genuinely protects your apartment and your wallet. Set at the right level, backed by good photographic records and clear house rules, it will deter careless guests and let you settle minor damage calmly without needless conflict. Do not wait for the first guest to leave you an unpleasant surprise. Put a deposit in place before your next booking.