STR Damage Deposit Retention Calculator

Damage deposit retention is a material revenue source for STR.

Annual bookings

Deposit amount

Claim frequency %

Avg claim amount

Admin cost per claim

Claim success %

Net damage recovery

$172

Total claims filed

Gross recovery

$432

How the math works

Claims filed = bookings × claim freq. Gross recovery = claims × avg amount × success rate.

100 × 4% = 4 claims. × $180 × 60% = $432 gross − 4 × $65 admin = $172 net damage recovery.

How to Use

Enter number of bookings.
Enter deposit amount.
Enter claim frequency %.
Enter avg claim amount.
Enter admin cost per claim.
Read retention economics.

Frequently Asked Questions

Deposit structures?

Authorization hold: credit card held, not charged unless damage. Standard. Deposit refundable: taken and returned — rare now, complicates accounting. Deposit non-refundable: taken as 'protection fee' — host keeps regardless. $150-500 typical for most markets. Airbnb Resolution Center: dispute resolution through platform. Vrbo offers optional 'Vrbo Protection Cover' insurance ($50-200 per booking).

Typical claim rates?

Total bookings with damage: 2-8%. Minor damage (no claim): 20-40% — swept under rug. Moderate claim ($100-500): 1-4%. Major claim ($500+): 0.3-1%. Catastrophic (thousands): 0.05-0.2%. Higher claim rates in: party houses, pool properties, pet-friendly, resort. Lower in: business travel, corporate, luxury. Airbnb AirCover + Vrbo Protection: platform coverage $1M-3M for damage.

Claim processing economics?

Processing time: 2-6 hours per claim (documentation, submission, dispute). Admin cost: $50-200 per claim. Success rate on Airbnb Resolution Center: 40-65% of filed claims. Higher success with: detailed photos before/after, specific quotes for repair, clear documentation. Low-effort claims often fail. Professional property managers deliver 70-85% success rate vs 45-60% for DIY hosts.

Platform insurance?

Airbnb AirCover: $3M liability + $1M damage protection, included for hosts. Vrbo Protection: $1M damage + $1M liability, included. Booking.com: Host-Led Protection, $1M. These reduce need for host-level claims but have deductibles/limits. Major claims still require host documentation and approval process. Helpful on catastrophic damage; not cheap on minor damage (which host absorbs).