Legal Term
short-term rental guest damage security deposit
Legal Definition
A monetary sum collected from a guest prior to or upon occupancy of a short-term rental property, held by the host, platform, or third-party escrow, to compensate for verified physical damage beyond normal wear and tear incurred during the guest's stay, as stipulated in the rental agreement and subject to applicable state or local regulations.
In Plain English
Money you pay upfront when renting a place for a short time (like a vacation home), kept by the owner to cover any damage you might cause. If you leave everything intact, you get it back; if not, deductions may be made for repairs.
Example in a Contract
Guest shall pay a Damage Security Deposit of $500 at the time of booking, which shall be held in escrow by [Platform Name]. Within 72 hours after checkout, Host shall provide an itemized list of any damages with supporting evidence. Deposit refund, minus approved deductions, will be processed within 14 business days. Disputes shall be resolved via [Platform's] mediation process.
This content is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for legal matters.