Set Up a Security Deposit in Smoobu

What a deposit setup in Smoobu does

A security deposit protects you against the cost of minor damage or rule violations without you having to collect cash at every check-in. In Smoobu, the deposit process can be automated in two ways: through a card pre-authorization as part of your online payment integration (the amount is reserved but not charged immediately), or through an automated message that asks the guest to transfer the deposit manually before arrival.

Which option makes sense depends on your payment provider, the booking channels you use, and whether you already use Smoobu's online payment feature. The exact feature set and the naming of deposit settings can vary by Smoobu plan and account version — check the current feature list at smoobu.com/pricing before committing to a specific deposit method.

Step 1 — Choose a deposit method

There are three common ways STR hosts handle a deposit through or alongside Smoobu:

1. Card pre-authorization (recommended for direct bookings): Through Smoobu's online payment integration (provider-dependent, often Stripe), an amount is reserved on the guest's card at booking or shortly before arrival, without being charged. If there's no damage, the hold expires automatically after checkout or you release it manually.
2. Manual collection via bank transfer: The guest transfers the deposit to your account before arrival, and you refund it after checkout if there's no damage. Works regardless of the booking channel, but requires you to track payments in and refunds out by hand.
3. Relying on platform host protection instead: For Airbnb bookings, you can rely on the platform's own protection program (e.g. AirCover for Hosts) rather than requesting a separate deposit — the exact coverage terms and limits are set by the platform and change occasionally, so verify them directly with Airbnb before deciding.

Many hosts combine approaches: card pre-authorization for direct bookings via their own website, platform protection for Airbnb bookings, and manual collection only as a fallback on channels without an online payment option.

Step 2 — Set the deposit amount and terms

Before turning on automation, you need a clearly defined amount and written terms.

1. Set the amount: In Smoobu, under Settings → Payments or Online Payment (naming varies by account language and version), enter the deposit amount per booking. There's no legally mandated amount for vacation rentals in Germany — common ranges run from €100 to €500 depending on the property's size and furnishings, but this is common practice, not a fixed rule.
2. Document the terms in writing: In your rental agreement or house rules, specify under what circumstances the deposit will be withheld in full or in part (e.g. damage beyond normal wear and tear, missing key return, serious violation of house rules), and the timeframe for refunding it after checkout.
3. Communicate the amount and terms before booking confirmation — for example in the listing description or an automated pre-booking message — so there are no surprises at check-in.

Step 3 — Automate the collection

So you don't have to request the deposit manually for every booking, the process can be tied to a trigger.

1. For card pre-authorization: Enable automatic pre-authorization in your payment settings and set the trigger — typically booking confirmation or a fixed window before check-in (e.g. 3 days). Smoobu, via the connected payment provider, then reserves the amount on the card used at checkout.
2. For manual collection: Under Automation → Messages, create a template that asks the guest X days before arrival to transfer the deposit, including the amount, bank details or payment link, and refund terms.
3. Save and test with a sample booking before going live for real guests — this is especially worth doing for card pre-authorization, so you can see how the hold appears to the guest in their banking app.

Existing bookings aren't retroactively covered by newly enabled automation — for those you'll need to request the deposit manually once.

Step 4 — Review and release the deposit after checkout

This last step shapes guest satisfaction and reviews — a forgotten release is one of the most common reasons for a bad review after an otherwise smooth stay.

1. Review within the agreed window: Inspect the property shortly after checkout (24–48 hours is common) for damage before releasing the deposit or charging any amount.
2. No damage: For card pre-authorization, manually release the hold in your payment provider's dashboard if it doesn't expire on its own — most card networks release holds automatically after a few days, but the exact window is network- and provider-dependent and can't be stated as a single fixed number. For manual collection, process the refund promptly.
3. Damage found: Document it with photos, inform the guest of the planned partial or full charge, and only then charge the amount via your payment provider or withhold it from a manually collected deposit. Put the justification in writing to avoid later disputes.

Troubleshooting common issues