How do security (damage) deposits work with Houfy?

All payment transactions, including security deposits, are between the host and guest. Check with your payment processor if you have questions about their policies and what they offer regarding holds/security deposits.

There are several methods hosts commonly use to collect a security (damage) deposit. You will need to choose a method so that your listing accurately reflects the correct payments due. Remember, Houfy is never holding nor processing these transactions.

1) Authorization Hold

A hold (not a charge) is placed on the guest's credit card, and is released after check out unless a charge is made. Holds are typically processed close to arrival date, or upon check in. You would also use this method if you don't process an actual hold, but keep the credit card number on file. Check with your payment processor to see if this is something they offer, or if using a channel manager, they may be integrated with your payment processor.

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How do security (damage) deposits work with Houfy?

2) Collect Separately

With this method, the deposit is charged/collected separately from the regular payment schedule. Often used when the final payment due date is far in advance, but the host does not want the guest to have to pay till closer to arrival date. This is also used if you collect the deposit by check while the regular payments are paid by credit card. Check with your payment processor regarding any fees for refunds.

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3) One time non-refundable fee

The host requires guests to pay a non-refundable fee that includes accidental damage up to a certain amount. Example: On Vrbo many hosts have opted for their guests to pay a $59 damage protection fee. You will need to research what services are best for you and your guests. This is not something you purchase through Houfy. You need to check your local laws to see if this fee is taxable. Often, mandatory fees are taxable.

Go to Manage Listings>Edit>Pricing>Rates & Fees.
Scroll down to Additional Pricing Options.

4) Collect with regular payment schedule.

The host collects the security deposit as a non taxable fee along with the regular payments. For example, if you collect 50% upfront and 50% later, one half of the deposit would be paid with the first payment, and the other half with the second payment. Check with your payment processor regarding any policies/fees for refunds.