Vrbo Security Deposits: Everything You Need to Know

Key Takeaways

• Vrbo gives hosts control over whether to charge a security deposit, how much, and which method to use.
• Deposits are meant to cover actual property damage, not lost items, extra services, or general wear and tear.
• Most refundable deposits fall between $200–$500 and are automatically returned to guests if no damage is reported.

If you've ever had a guest break something and then ghost, you know the stress that comes with covering unexpected damage to your short-term rental (STR). Even when it’s accidental, it still costs time, money, and energy to make things right.

That’s why security deposits matter.

They give STR hosts a layer of financial protection, set expectations with guests, and can prevent headaches down the line. However, depending on the platform you’re using, the way security deposits work can vary quite a bit.

If you're hosting on Vrbo, or thinking about listing there, it’s worth taking the time to understand how this specific platform handles security deposits and how to make the most of the options available.

In this guide, we’ll break down how Vrbo approaches security deposits, how refunds work, and when it makes sense to file a claim.

What Is a Vrbo Security Deposit?

Not all platforms handle property protection the same way. For example, Airbnb includes up to $3 million in damage protection through its Host Damage Protection program. While that sounds reassuring, it’s a behind-the-scenes process. Hosts don’t set the terms, and payouts are managed entirely through Airbnb’s internal claims system.

Vrbo takes a different approach. Instead of relying on platform-level protection, Vrbo gives hosts more direct control. You decide whether to require a security deposit, how much to charge, and whether to use a refundable deposit, a card on file, or a damage protection plan. It’s a more customizable system, but it also means you’re responsible for choosing the right level of protection and for filing any claims yourself.

That flexibility can be a major advantage if you like having more say in how your business is run. However, it also means understanding the types of coverage available and what you’re actually protecting against.

What does a Vrbo security deposit cover?

Vrbo security deposits are meant to cover actual property damage caused during a guest’s stay. This includes things like:

• Broken or damaged furniture
• Appliance or fixture damage
• Spills or stains that require extra cleaning
• Structural damage (e.g. holes in walls, broken doors)
• Damaged décor, linens, or kitchenware

What a Vrbo security deposit doesn’t cover:

• Lost or forgotten guest items
• Missing amenities (like beach towels or games)
• Normal wear and tear
• Utility overages
• Extra services or fees not tied to damage

Vrbo recommends documenting your property before and after each stay with photos, notes, or checklists. This can help you resolve claims quickly and fairly if something goes wrong.

Vrbo Security Deposit Refund Conditions

As long as guests leave your property in good shape and follow the house rules, getting their security deposit back is straightforward.

That means:

• Leaving the rental in the same condition they found it
• Respecting noise policies and quiet hours
• Following occupancy limits and pet rules

After checkout, the host or property manager inspects the property for any damage. If everything checks out, Vrbo automatically refunds the full deposit to the guest's original payment method within 14 days. Depending on their bank, it might take up to an additional seven business days for the funds to show up in their account.

If there’s damage, hosts can file a claim directly through Vrbo’s platform, providing details and documentation. Once the claim is reviewed, Vrbo deducts the cost of repairs or replacements from the deposit. Any remaining amount is then refunded to the guest.

How Vrbo Security Deposits Work

Vrbo gives you a few different ways to protect your property from damage, and you get to choose the option that fits your hosting style.

Refundable damage deposit (paid upfront)

Hosts can require guests to pay a refundable deposit upfront at the time of booking. The amount is set by the host and should be clearly stated in the listing. Vrbo holds the funds and automatically refunds them within 14 days of checkout, as long as no damage is reported. If damage does occur, you can file a claim through Vrbo, and funds may be withheld to cover repair or replacement costs. 

This type Vrbo security deposit offers direct financial protection and encourages guests to treat your space with care, especially helpful for properties with valuable furnishings or frequent turnover.

Credit card authorization (no upfront charge)

Instead of collecting money in advance, you can require guests to have a valid credit card on file. If there’s damage, you can submit a claim, and Vrbo may charge the guest’s card after reviewing the request. If no damage is reported within 14 days, the authorization expires and nothing is charged. This option can feel less intrusive to guests but relies on a successful claim process.

Using a credit card on file as a Vrbo security deposit lowers friction for guests. Since there’s no upfront payment, that may help boost bookings, while still giving you a backup if something goes wrong.

Property damage protection (non-refundable coverage)

This functions more like short-term rental insurance. Property damage protection (PDP) is optional insurance purchased by travelers to help protect them from paying out of pocket for accidental damage to your property. As a host, you can suggest an insurance plan level, or the guest can choose to pay the PDP amount as a refundable damage deposit instead of the non-refundable amount.

The plan is underwritten by a third-party provider and covers accidental damage up to a set amount. If something goes wrong, you submit a claim to the insurer rather than deducting from the guest directly.

Using this option simplifies the security deposit process and reduces the risk of guest disputes. Choosing non-refundable coverage is great for premium listings, longer stays, or when you want protection without holding guest funds.

Ultimately, each Vrbo security deposit method offers a different balance of protection, guest experience, and administrative effort.

How Vrbo Handles Refundable Damage Deposits

When you choose to require a refundable damage deposit on Vrbo, the process is built into the platform and handled automatically, with no third-party tools or manual tracking required.

Here’s how it works:

Deposit setup

You set the deposit amount when configuring your listing. There’s no official maximum, but most hosts charge between $200 and $500. The amount should be clearly stated in your property listing so guests know what to expect.

Collected at booking

When a guest confirms their reservation, the deposit is collected alongside other booking fees. Vrbo holds these funds securely until after the stay.

Automatic refund timeline

If no damage is reported, Vrbo automatically refunds the full deposit within 14 days after checkout.

Once Vrbo initiates the refund, it's out of your hands. The bank or payment provider determines how long it will take for the funds to reappear, typically up to seven business days after Vrbo releases the deposit. Vrbo notifies guests via email or through their Vrbo account once the security deposit refund has been processed.

Guests typically receive their security deposit refunds through the same method of payment used for booking. This may include credit card refunds, direct bank transfers, or other electronic payment methods via their financial institution.

If there’s damage

Hosts have up to 14 days after checkout to inspect the property and submit a claim through Vrbo’s platform. You’ll need to describe the damage and provide documentation (like photos or receipts). If Vrbo approves the claim, funds are withheld from the deposit and applied toward repair or replacement. Any remaining balance is refunded to the guest.

This setup offers a clear and standardized process for both hosts and guests. Guests know they’ll get their money back if they respect the property, and hosts have a built-in system for collecting and holding funds without needing to coordinate directly.

Dispute resolutions and claims

Navigating disputes over property damage can feel daunting, but Vrbo’s platform aims to simplify the process. Hosts generally have up to 14 days post-checkout to submit a claim, backed by evidence such as photos, messages, and receipts.

Vrbo’s resolution center reviews these materials to assess the validity of the host’s claim and determine compensation for covered damages. Certain scenarios, like theft or intentional property destruction, may require additional insurance or local authority reports.

Average Vrbo Security Deposit Amounts

There’s no one-size-fits-all deposit amount on Vrbo. What you choose to charge often depends on your property’s size, location, amenities, and how much risk you’re comfortable taking on. While Vrbo doesn’t set a minimum or maximum, most refundable damage deposits tend to fall between $200 and $500 for standard properties.

Higher-end or luxury rentals, especially those with high-value furnishings, pools, or specialty amenities, may go as high as $1,000 or more.

Not sure what’s typical for your market or property type? Tools like AirDNA can help you analyze comparable listings to set a deposit that balances protection with guest expectations.

Here are some factors to consider when choosing a security deposit amount:

Here are a few factors that can influence your deposit amount:

• Larger properties with more bedrooms or higher guest capacity often warrant a higher security deposit.
• Rentals in high-traffic tourist destinations may need added coverage for risks like beach sand, snow, or seasonal crowds.
• Homes with premium amenities (like hot tubs, pools, or designer furniture) typically justify higher deposits to offset potential replacement costs.
• During peak seasons or special events, some hosts raise their deposit to reflect the increased risk of damage or high turnover.

Ultimately, the coverage amount should balance the need for adequate protection against damages with attracting guests and encouraging bookings.

Hosts may also consider their property's rental pricing,cleaning fees, andcancellation policies when calculating a Vrbo damage deposit amount so that it aligns with their overall strategy.

What to Consider Before Requiring a Vrbo Security Deposit

Charging a security deposit has obvious advantages, but not all property owners choose to go that route. Some prioritize bookings and guest perception and therefore have a higher risk tolerance. This is why property owners should weigh potential advantages against disadvantages when considering a Vrbo damage deposit.

Here are some key factors to consider:

Security deposits can protect your financial position

Charging a security deposit creates a financial safeguard against potential damage or incidents during a guest's stay. Hosts who are confident in their property's condition and trust their guests can choose to roll the dice and forgo a security deposit.

Guests are more likely to follow the rules when money is at stake

Guests are more likely to follow house rules and treat the property with respect when they’re financially on the hook for any accidental damages or breaches of rental terms.

On the flip side, guests may view properties without deposit requirements as more trustworthy and accommodating, leading to better reviews and higher guest satisfaction.

Your peace of mind 

For hosts, charging a security deposit lets them focus on providing exceptional hospitality without worrying about potential damage or liabilities.

Keep in mind, though, that damage protection plans or insurance coverage can provide similar peace of mind without involving the guest in a traditional security deposit.

How guests may perceive your listing

Some guests, especially budget-conscious travelers or first-time bookers, might be discouraged by a deposit. Others may see it as a sign of professionalism and feel more confident about booking. Think about how your ideal guest might respond and how much friction you're willing to introduce at checkout.

Your property type and booking patterns

Luxury rentals, family-friendly homes, and event-ready properties tend to benefit more from deposit protection. Meanwhile, hosts who primarily book short stays, repeat guests, or low-risk renters may opt for less formal protection methods.

How to Add a Vrbo Security Deposit to Your Listing

1. Log in to your account on the Vrbo website and navigate to your dashboard, where you can manage your property listings.

2. Access the property details page and select the property to which you want to add a security deposit.

3. Select Calendar from the navigation menu.

4. Select settings, then select Damage protection.

5. Select Damage deposit and enter the amount for your security deposit.

7. Carefully review all the details to make sure they’re accurate, then save the changes and update your listing.

8. After adding the security deposit, update your listing to let prospective guests know about how damage deposits are used to cover repairs. Specify that refunds are contingent on not damaging the rental property.

How to Submit a Vrbo Security Deposit Claim

Accidents happen. When they do, either your security deposit or another coverage option will come in handy to make your rental property guest-ready again.

Here's a step-by-step guide on how to submit a claim through Vrbo:

1. Sign in to your account.

2. If you manage multiple rental properties, choose the specific listing for which you want to file a claim.

3. Navigate to your Inbox.

4. Use the Filters option to narrow down your conversations.

5. Alternatively, you can search by the guest’s name or reservation ID (Res ID) in the search bar.

6. Click on the guest’s name to open the conversation.

7. Scroll to the Damage Protection section and select it.

8. Click on Report Damage.

9. Enter the amount you are requesting from the guest. This cannot exceed your posted damage deposit.

10. Provide a detailed description of the damage. This information will be sent directly to the guest.

11. Click Confirm to submit your claim.

Vrbo Security Deposit vs. Vacation Rental Insurance

A Vrbo security deposit can help cover guest-related property damage, but it doesn’t cover everything. For broader protection, many hosts layer in vacation rental insurance to handle bigger risks and edge cases.

Here’s what insurance can typically cover that a security deposit won’t:

• Liability protection for guest injuries or legal claims
• Property damage that exceeds the deposit or isn’t tied to a specific booking
• Lost rental income if your property is out of commission during repairs
• Theft, vandalism, or intentional damage not caused by booked guests

A deposit is great for everyday incidents like broken dishes or damaged linens. Insurance steps in when the costs (and consequences) go further.

Before you choose a policy, take time to understand what’s covered, what’s excluded, and how deductibles work. Then match that with your property type, guest profile, and how much risk you’re comfortable carrying.

FAQs

What if the damage to my property exceeds the damage deposit amount?

If damage exceeds the security deposit, hosts can file a damage deposit claim through Vrbo's resolution center. Additional insurance coverage may also help cover the costs beyond the coverage amount.

Can guests dispute security deposit deductions?

Yes, guests can dispute security deposit deductions through Vrbo's resolution center. Hosts are required to provide evidence of damages to support their claim.

When should I charge a Vrbo security deposit?

Vrbo recommends always charging a security deposit to protect against potential damages. However, some hosts waive the deposit for certain guests or bookings based on their own risk tolerance. Hosts’ choice to charge a security deposit can also take into consideration how trustworthy they view different types of guests (e.g., individuals versus large groups) and whether they use security deposit waivers as a pricing incentive.

How long does it take to get a Vrbo security deposit back?

Vrbo security deposit refund times are consistent, with refunds typically issued within 14 days after check-out if no damage is reported. Your financial institution may take up to an additional seven business days to process the refund back to your original payment method.

Can I charge different Vrbo security deposit amounts for properties?

Yes, hosts can set different security deposit amounts for each of their Vrbo listings.

What happens to the security deposit if a guest cancels?

If a guest cancels their booking, the security deposit is typically refunded according to the host's cancellation policy. Hosts may keep a portion or the full deposit, which is part of their cancellation terms.

How does Vrbo security deposit work?

Vrbo’s standard approach involves either collecting a refundable deposit upfront, storing a credit card on file without an immediate charge, or offering a non-refundable property damage protection plan. If a refundable deposit is collected and no damages are reported, the amount is automatically released within about 14 days after checkout. The host must file any claims in that same window and provide evidence of damages, which Vrbo then reviews.