Charging extra fees like security deposits and requiring rental agreements for Airbnb bookings might seem overwhelming at first, but with the right information and tools, it can be a simple and effective process. Rental agreements and security deposits are a pivotal part of any vacation rental operation; they provide legal protection for you as the host and help set clear expectations with guests. In this guide, we’ll walk you through how to set things up correctly on your listing and how OwnerRez can help automate the process so nothing slips through the cracks and you have time to focus on scaling your business.
We’ve also included copy-and-paste examples for your house rules, which will help you comply with Airbnb's rules and be upfront with guests throughout the booking process.
Let’s get started.
Why Should I Require a Rental Agreement on Airbnb?
Rental agreements are more than just a formality. They play an essential role in protecting and helping you grow your vacation rental business.
- For guests, a rental agreement sets clear expectations about their stay and allows them to raise any concerns before arriving at your rental. This helps you get ahead of potential issues and avoid misunderstandings before they step foot on the property.
- For hosts, it offers a strong foundation for legal protection and an excellent opportunity to collect guest information, such as email addresses and phone numbers. In OwnerRez, any guest information collected through the rental agreement is automatically added to your CRM database, making it easy to create email and even SMS marketing campaigns. Check out our Vacation Rental Marketing Strategies Guide for more helpful information on this topic.
While Airbnb does a great job connecting you with potential guests, it is your responsibility to protect your property, enforce your policies, and manage any risks that may arise during the stay. Too many hosts assume Airbnb's built-in protections are enough when, in reality, those protections are extremely limited. That is why it is so important to communicate clearly and set up your own independent systems for handling any issues that may arise.
Are Rental Agreements Allowed on Airbnb?
Yes, absolutely. Airbnb allows hosts to require guests to sign a rental agreement as long as the terms are clearly disclosed before the guest books. That means you must mention the rental agreement in your house rules and make the full terms available to guests who ask for them in advance. If you fail to disclose this information upfront, the guest can refuse to sign the agreement and request a full refund.
Example rental agreement disclosure for your house rules:
"A separate rental agreement is required after booking and can be reviewed in advance upon request."
To update your Airbnb house rules inside of OwnerRez, go to Settings > Channel Integrations > Airbnb > and then Select Change. For more suggestions on what to include in your house rules, please check out our Guide to Creating Effective House Rules for Vacation Rentals.
Once the booking is confirmed and you've properly disclosed the agreement, you will then send a link to your rental agreement for your guest to sign. Airbnb does not allow contracts or fee collection to be conducted through Airbnb messaging so this step must happen through a trusted third-party tool like OwnerRez. OwnerRez will automatically generate the rental agreement based on your set template, send the link to the guest, and save the agreement under their profile. Everything is streamlined, professional, and compliant with Airbnb’s policies.
Why Should I Require a Security Deposit or Security Deposit Hold on Airbnb?
Security deposits offer a strong layer of protection for your property. Airbnb does have some built-in protections for hosts, such as "AirCover," however this damage protection policy is extremely limited and does not guarantee coverage in all situations. Choosing to require a security deposit gives you the control if damage occurs or if your house rules are broken during a stay. It also reinforces to the guest that your home is professionally managed.
- For guests, a clearly disclosed security deposit helps reinforce your house rules and sets the expectation that your property is professionally managed and cared for. It can also act as a subtle screening filter. Guests who do not intend to follow your rules are far less likely to book when they see a deposit is required.
- For hosts, a security deposit adds a layer of accountability and provides peace of mind that you’ll have grounds for financial recourse if something goes wrong. Whether it’s property damage, extra cleaning costs, or broken house rules, you’re no longer left at the mercy of Airbnb.
While handling security deposits may seem daunting, the protection and control they provide make it more than worth your time. And with powerful tools like OwnerRez, you can fully automate your security deposit protocol from start to finish, so you never have to manually send payment request links or try to remember when to release funds.
Are Security Deposits and Security Deposit Holds Allowed on Airbnb?
Yes. Airbnb allows hosts to charge specific fees outside the platform, including security deposits, as long as they are clearly disclosed in your house rules and included in the price breakdown at checkout. Other examples of allowable fees include resort fees, utility fees, and HOA fees. Airbnb also requires that these fees be collected through a third-party platform and not through Airbnb messaging.
Example security deposit disclosure for your house rules:
"A security deposit of (Enter your set amount) will be required after booking. This will be collected through a secure third-party platform. Details available upon request."
With OwnerRez, security deposits are flexible, automated, and designed to protect your business. You can choose between a traditional Refundable Damage Deposit (RDD) or a Security Deposit Hold, depending on how you prefer to manage guest funds.
- A Refundable Damage Deposit (RDD) means the guest is charged upfront and refunded after checkout, assuming there’s no damage or rule violations. Most payment processors charge transaction fees for RDDs, so we recommend checking with your processor to confirm what those fees are and when they apply.
- A Security Deposit Hold places a temporary hold on the guest’s card without charging it, avoiding credit card transaction fees unless the hold is captured due to damage or issues. In our experience, this is the most reliable way to protect against guest damage, and we recommend using it whenever possible.
Once a booking is confirmed, OwnerRez automates the entire process. The system sends reminder emails, provides secure payment links, and handles all scheduling for charging, holding, reauthorizing, or releasing funds based on your selected deposit type and settings.
How to Stay Compliant with Airbnb's Rules
Staying compliant with Airbnb's rules is simple. If you require a rental agreement or plan to collect fees directly, just make sure:
- Guests are clearly informed before booking (add the rental agreement and/or security deposit details to your house rules)
- All agreements and payments are handled through a third-party platform
Taking these simple steps keeps you aligned with Airbnb’s policies, while also protecting your business. Start today by using the example language shared above in your listing.
Final Thoughts
Handling rental agreements and collecting extra fees outside of Airbnb might feel like a lot at first, but with the right systems in place, it becomes a simple part of your daily operations. Rental agreements lay the groundwork for legal protection and set clear guest expectations. While security deposits give you the control when unexpected issues arise and can act as a clear signal that your property is professionally managed.
Whether you manage one property or hundreds, OwnerRez helps streamline this process. From automating rental agreements and digital signatures to handling security deposits, everything runs in the background so you can stay focused on growing your business. Get started today!
FAQs About Rental Agreements and Security Deposits for Airbnb Hosts
Q: Can I require a rental agreement for guests who book through Airbnb?
A: Yes. Airbnb allows hosts to require a separate rental agreement as long as you clearly mention it in your house rules. Guests must be informed before booking, and the full agreement must be available upon request. Once the booking is confirmed, you’ll need to collect the signed agreement through a third-party tool, outside of Airbnb messaging.
Q: What should I include in my Airbnb listing to stay compliant when using a rental agreement?
A: Include a short disclosure in your house rules. Here’s an example you can copy and paste: "A separate rental agreement is required after booking and can be reviewed in advance upon request."
Q: Why should I use a rental agreement if Airbnb already has agreements in place?
A: Airbnb’s terms are limited and often favor the guest in disputes. A rental agreement gives you stronger legal protection, helps you collect guest contact info, and sets clear expectations about your rules, policies, and procedures before guests arrive.
Q: Can I charge a security deposit or hold funds for damages on Airbnb?
A: Yes, but it must be clearly disclosed in your house rules, and you need to collect it outside Airbnb through a secure third-party platform. Airbnb allows refundable deposits and deposit holds as long as they’re properly communicated and handled off-platform.
Q: What’s an example of a security deposit disclosure I can add to my Airbnb listing?
A: Here’s an example you can include in your house rules: "A security deposit of [your amount] will be required after booking. This will be collected through a secure third-party platform. Details available upon request."
Q: What’s the difference between a refundable damage deposit and a security deposit hold?
A: A refundable deposit means the guest is charged upfront and refunded after checkout, assuming no damage or rule violations. A hold (also called an authorization) temporarily reserves funds on the guest’s card without charging them unless an issue arises. OwnerRez offers a variety of security deposit methods to help protect your rentals.
Q: Isn’t handling deposits and agreements outside Airbnb risky or complicated?
A: Not with the right information and tools in place. Powerful tools like OwnerRez are designed specifically for short-term rental operations. They help you automate rental agreements, collect deposits securely, and stay compliant with Airbnb’s rules.
Q: Will requiring these things scare away potential guests?
A: Not necessarily. Most guests are used to signing agreements and paying deposits when booking professionally managed properties. In fact, clearly communicating your policies and using agreements can build trust; it signals to guests that your property is well run.
Q: How does OwnerRez help with rental agreements for Airbnb bookings?
A: OwnerRez automatically sends rental agreements to guests after booking, using your own custom template. It handles digital signatures, stores signed copies under each guest profile, and adds their contact info to your CRM. This means no manual emails, no chasing paperwork, and full documentation in one place.
Q: Can OwnerRez collect and manage security deposits automatically?
A: Yes. OwnerRez supports both refundable deposits and security deposit holds. You set the amount and timing, and it handles the rest. The software sends reminders, collecting funds through a secure payment link, and automatically releasing or reauthorizing the deposit based on your settings. It’s hands-off and fully integrated.