The Ultimate Guide to Listing on Vrbo (2026)

Last updated: November 2025

‍As a vacation rental host, your property is your business. Protecting that investment from accidental damage is crucial for your peace of mind and long-term success. Vrbo provides several tools to help you do just that, and understanding their damage deposit policies is the first step.Damage deposits hold both you and your guests accountable. They set clear expectations for how your property should be treated and provide a safety net for the occasional broken lamp or stained carpet. While serious damage is rare, having a solid policy in place ensures you're prepared for any situation.This guide will walk you through Vrbo's damage protection options, help you choose the right one for your business, and show you how to manage claims effectively.

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What is a Vrbo damage deposit?

A Vrbo damage deposit is a set amount of money held or authorized to cover potential damages to your property caused by a guest during their stay. It covers issues like broken appliances, damaged furniture, or extra cleaning needed due to smoking or undeclared pets.Vrbo offers three main ways to handle damage protection. You can require an upfront refundable deposit, keep a guest's card on file for post-stay charges, or have the guest purchase a non-refundable insurance policy.As the host, you have the control to choose the method and amount that best fits your property.

Vrbo's damage protection options: A comparison

Choosing the right damage protection strategy depends on your business goals and risk tolerance. Here’s a clear breakdown of the three options Vrbo offers hosts.

Upfront refundable damage deposit

The guest pays a deposit in full at the time of booking. Vrbo holds the funds and automatically refunds the guest 7 or 14 days after checkout if you don't file a claim.

• Pros for hosts: Guaranteed funds are available if damage occurs. Sets a serious tone and encourages guests to be careful.
• Cons for hosts: Can deter some potential guests who are sensitive to high upfront costs.

Card on file authorization

Vrbo securely stores the guest's credit card information. You have up to 14 days after checkout to report damage and charge the card for a specified amount.

• Pros for hosts: This is the default setting and the lowest-friction option for guests, potentially increasing bookings.
• Cons for hosts: You are not guaranteed payment if the guest's card is expired or has insufficient funds, though Vrbo may cover valid claims.

Property damage protection

The guest purchases a non-refundable damage protection insurance policy for a small fee at the time of booking. This policy covers you for a set amount of accidental damage.

• Pros for hosts: You are guaranteed coverage up to the policy limit without charging the guest directly. It’s a low-cost option for the guest.
• Cons for hosts: The fee is nonrefundable for the guest, which may feel unnecessary to some. The claims process can involve the insurance provider.

How much should you set for a Vrbo damage deposit?

The right amount for a damage deposit is a balance. It should be high enough to cover common repairs but not so high that it scares away potential guests.Most hosts set a refundable damage deposit between $250 and $500. Another common practice is to charge 10% of the total booking price, especially for longer or more expensive stays.To find your sweet spot, research comparable properties in your area to see what other hosts are charging. Consider the value of your furnishings and amenities when setting your amount.

How to add damage protection to a Vrbo listing

Setting up damage protection on your Vrbo listing is straightforward. If you don’t manually select an option, your listing will default to the card on file method.To set your preference:

1. Log in to your Vrbo account.
2. Select the listing you want to update.
3. Go to Calendar, then Settings.
4. Click on Damage protection.
5. Choose your preferred option:

• For a Damage deposit, enter the amount you want to collect.
• For Property damage protection, choose a coverage amount.

6. Save your changes.

How to file a damage deposit claim on Vrbo

You have 14 days after a guest checks out to inspect your property and file a damage claim. The process is handled entirely through your Vrbo dashboard.To file a claim:

1. Log in to your Vrbo account and select the relevant listing.
2. Go to your Inbox and select the guest's name.
3. Click on Damage protection, then select Report damage.
4. Enter the amount you wish to claim (up to the security deposit limit).
5. Write a clear, concise message to the guest describing the damage.
6. Select Confirm.

Best practices for filing a claim

• Communicate first: Before filing an official claim, message the guest directly through Vrbo. Politely explain the issue and include photos. This transparency can prevent disputes and maintain a positive relationship.
• Document everything: Take clear photos or videos of the damage as soon as you discover it. This documentation is your best evidence if a dispute arises.
• Act quickly: Don't wait until the last minute. Inspect your property promptly after checkout to ensure you stay within the 14-day claim window.

Beyond deposits: Other ways to protect your property

A damage deposit is a great tool, but it shouldn't be your only line of defence. Empower yourself with these additional layers of protection.

Use a short-term rental agreement

A legally sound short-term rental agreement is essential. Have guests sign it before they check in. The agreement should outline damage policies, penalties for breaking house rules, and the state of the property upon arrival.

Set clear house rules

Your Vrbo house rules should be specific and easy to understand. Clearly state your policies on smoking, pets, parties, and undeclared guests. This makes it easier for guests to do the right thing and strengthens your case if you need to file a claim.

Invest in vacation rental insurance

Your standard homeowner's policy likely doesn't cover commercial activities like renting your property. Specialized vacation rental insurance provides liability coverage, property damage protection, and even loss of income protection. Vrbo often recommends providers like Proper Insurance.

Frequently asked questions (FAQ)

How much should I charge for a Vrbo damage deposit?

Most hosts charge a flat rate of $250-$500 or a percentage-based fee of 10% of the total booking cost. Check similar listings in your area to set a competitive amount.

Are Vrbo damage deposits automatically refunded?

Yes. If you do not file a damage claim within 14 days of checkout, Vrbo will automatically refund the full deposit to the guest.

How long do I have to make a damage claim?

You have up to 14 days after the guest’s checkout date to report damage and file a claim through your Vrbo account.

Which damage deposit option is best?

The best option depends on you. An upfront deposit offers the most financial security. A card on file reduces booking friction for guests. Property damage protection is a good middle ground that guarantees coverage through insurance.

Take full control of your business

Vrbo provides essential tools for protecting your property, but managing your listing is just one piece of the puzzle. As you grow your business across multiple platforms like Airbnb and Booking.com, keeping everything in sync can become a challenge.Lodgify’s channel manager empowers you to take control. It automatically syncs your calendars, rates, and bookings across all major channels from one central dashboard, eliminating the risk of double bookings and saving you valuable time.

Don't see the form to download our rental agreement template? Click here.