Airbnb will in fact do the damage deposit. However, with them holding the damage deposit on your credit card, it locks up $500 on your credit card limit.
Since it is very rarely used, I didnt want to bother folks with it.
From my point. Should there be a need to make a damage deposit claim, I would now have to go through airbnb and prove my case which takes time. For example, in the guest agreement, there is a note about leaving garbage. It costs about $15 for me to get rid of someone's garbage that is left there. Would it be worth my time and effort to make the claim to airbnb for $15 ? If you leave it in a mess, its a minimum $100 fee. I'd have to pay that and then try to deal with airbnb to cover the cost . If they disagree, then I am out at least the $100 for the cleaners (I cant wait until i settle the dispute between airbnb and the guest before getting the cleaners in as my turnaround time during the summer months is only 4 hours; if you leave at noon and the place is a mess, I have to get it cleaned (2 hours minimum) before the next guests arrive at 4 pm. Since most of the cottages are not mine (i rent then for clients), the damage incurred could easily exceed any commission that I make on the cottage rental itself.
Although I have not as of yet, gone through Airbnb to recover any out of pocket expenses due to rental damage, (and i did suck up that $15 out of my commission on that rental that left garbage), I see it as an extra time delay in getting things done.
Hope this explains why i request the damage deposit cheque as I dont really have the time to deal with a 3rd party when trying to recover any renter incurred out of pocket expenses.
I do understand that it is a pain to provide this security (not many younger folks have cheques available) deposit but at this time, i really dont know of any other way to cover it.
Hope this helps