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GUEST MANAGEMENT AUTOMATIONS
for short-term rentaLs & BOUTIQUE hotels

Security deposits made simple: Damage protection for every stay

Ensuring you’re covered is the most important part of hosting

Happy Guest is the industry standard for making damage waivers and security deposits a part of the guest journey.

★★★★★

"What I appreciate most is how clearly everything is explained to guests — especially the option to either place a security deposit or purchase a damage waiver. Higher completion rates and less back-and-forth."

Rental Host / Operator
Rental Host / Operator
90%
Of hosts are not fully STR compliant
50+
Major US cities now regulate STRs
85%
Of STRs are managed by independents
★★★★★

"Thanks to Happy Guest and their ID verification I stopped a convicted burglar from entering my million dollar property for a stay."

Rental Host / Operator
Rental Host / Operator
★★★★★

"It's added another level of protection and security for our properties and puts us in a better position to scale."

Rental Host / Operator
Rental Host / Operator

Protect each stay exactly how you need

Require one — or up to three — types of stay-level coverage for every reservation.

You can include some coverage during the guests’ booking process — or, have your guests make their selection during digital check-in before access details can be released.

✦
Security Deposits
Collect upfront · You control the refund
With a security deposit, you collect funds from the guest before the stay begins. If nothing is damaged, the amount is returned after checkout. If something goes wrong, you decide how much to keep. The refund process and timeline are entirely in your control.
Upfront Collection Host-Controlled Refunds Claim Documentation
✦
Authorization Holds
No money moves · Hold disappears if no damage
An authorization hold temporarily reserves a set amount on the guest's card without actually moving any money. If the stay ends without incident, the hold is released and the guest is never charged. If there is damage, you initiate the charge from the amount already on hold.
Card Hold No Upfront Charge Host-Initiated Capture
✦
Damage Waivers
Small fee · Insurance-backed · Claim-based
With a damage waiver, the guest pays a small non-refundable fee before the stay. That fee purchases coverage through a licensed insurance partner — so if something is damaged, you file a claim with the provider rather than charging the guest directly. Most hosts prefer waivers because it removes the post-stay collection conversation entirely.
Non-Refundable Fee Insurance-Backed Coverage Claim-Based Resolution

Happy Guest offers stay-level protection

Rental coverage can get complex, sometimes covering less than it seemed at first — or worse, being hard to claim when it actually counts.

We recommend layering coverage to maximize coverage and simplify the claims process. Want to understand the difference between these three layers?

Read our guide: Rental Insurance 101 →

✦
Business Insurance
01 · Commercial Policy · Host-Purchased
A commercial policy you purchase for your business. Covers major property damage, liability, and lawsuits. Guests don't buy this — you do.
✦
Stay-Level Protection
02 · Stay-Level Coverage from Happy Guest
Security deposits, authorization holds, or damage waivers tied to each reservation. Happy Guest ensures this layer is completed before every check-in.
✦
Platform Coverage
03 · OTA Programs · Platform-Controlled
Host protection programs from Airbnb or Vrbo. Controlled by the platform — not a substitute for your own coverage, but an additional safety net.

Most hosts and operators prefer damage waivers

Damage waivers are the common choice because they are uncomplicated and can earn you extra revenue per stay.

✔ No refund timelines ✔ No post-stay disputes ✔ No collection requests ✔ Earn more per stay ✔ Broader coverage

Choose how much coverage you actually need

Select the exact coverage amount you want for each stay, then set the guest-facing fee. Based on your coverage amount, the protection amount scales accordingly. If you mark it up, you keep the difference.

✔ Security Deposits ✔ Authorization Holds ✔ Damage Waivers ✔ Claim Documentation
+ Revenue
Earn on every booking · Guests opt in, you keep the majority
Every stay that includes a damage waiver or early check-in generates income before the guest arrives. You set the markup. You keep the split. Your owners' insurance stays untouched — no claims filed, no rates affected.
  • ✔ Recurring Revenue
  • ✔ Predictable Per-Stay
  • ✔ Zero Out-of-Pocket
+ Listings
Owner retention · A differentiator when you're pitching
Owners who feel protected renew. Owners caught off guard by an uninsured damage bill don't. "Every booking, every channel, covered — and we manage it" is a short sentence that closes a lot of conversations. Some HOA boards are starting to require it. You'll already have it.
  • ✔ Owner Retention
  • ✔ HOA-Ready
  • ✔ Competitive Edge
+ Control
One process · Every channel · No retraining
Same workflow whether you have 10 units or 500. Airbnb, Vrbo, Booking.com, direct bookings, travel agents — one SOP, one claim process, one set of rules. Add properties without adding complexity.
  • ✔ Scales Instantly
  • ✔ One Rulebook
  • ✔ Every Channel
Full platform, no per-property fees, no surprises. Coverage is issued and administered by a third-party partner. Happy Guest facilitates collection and documentation — it does not underwrite policies, guarantee coverage, or determine claim outcomes.
See how coverage pricing works
See how coverage pricing works

The process stays simple if something does happen

 

Since protection, documentation, and reservation records are already collected and attached to each stay, everything you need is ready to go if and when the time comes.

  • You document the issue and upload photos.

  • The reservation details and stored guest ID are already on file.

  • If you used a damage waiver, a claim is submitted and an insurance partner reviews and processes the claim.

  • If you used security deposits or authorization holds, you keep the agreed amount via payment details already on file.

★★★★★

"Happy Guest has been amazing for our business. I would recommend them to every PM I could."

Rental Host / Operator
Rental Host / Operator
★★★★★

"The guest portal is far more robust than a protection plan. I completely recommend Happy Guest — big thank you to Kanan and the team."

Rental Host / Operator
Rental Host / Operator
★★★★★

"Excellent experience overall. The platform is well built and the team behind it is great to work with."

Rental Host / Operator
Rental Host / Operator
+30%
Increase in top-line revenue
70%
Average time saved per week
80%
Fewer guest questions
50
States now regulate short-term rentals

Frequently asked questions about security deposits and damage waivers

  • A security deposit holds or collects guest funds that you control and return after the stay. A damage waiver is a small fee the guest pays for insurance coverage — if something breaks, you file a claim with the provider rather than charging the guest directly. Both are available inside Happy Guest. Many operators prefer waivers because they remove the post-stay conversation entirely.

  • Damage waivers are guest-paid coverage products issued and administered by licensed third-party insurance providers. Happy Guest partners with these providers to deliver a dependable coverage experience but does not issue policies or adjudicate claims.

  • No. Coverage is issued by licensed insurance providers. Happy Guest facilitates the workflow and documentation.

  • No. Damage waivers provide stay-level protection tied to a specific reservation. They do not replace commercial short-term rental insurance that protects your broader business from major liability or structural losses.

  • Yes. You can require security deposits, authorization holds, waivers, or a combination. The structure is fully configurable per property.

  • Yes. You control pricing and structure. If you choose to offer a waiver, you define the rate.

  • If protection is required, access instructions are not released until it is secured. This prevents manual follow-up and inconsistent enforcement.

  • Documentation and reservation records are already attached to the stay. Claims are handled through the insurance provider's process. Happy Guest does not determine claim outcomes.

  • After booking, guests complete required steps inside their check-in link. If you require a waiver or deposit, it is presented during registration alongside their rental agreement and ID upload. Completion is tracked in real time, documentation is attached to the reservation, and access is only released once protection requirements are satisfied. No app download required for guests.

  • Yes. Happy Guest connects with Airbnb, Vrbo, Booking.com, Expedia, Hostaway, Guesty, OwnerRez, Lodgify, Operto, Duve, and other supported platforms. Unlike tools like Guesty or Hostaway that manage reservations and billing, Happy Guest manages what happens after a reservation is made — including protection collection and enforcement.

  • Coverage varies by tier and is issued by a licensed third-party insurance provider. At minimum, accidental damage to furnishings and fixtures. Higher tiers add coverage for unpaid guest fees, linens, bed bugs, real property, and host liability. Coverage terms and claim outcomes are determined by the insurance provider — Happy Guest facilitates the collection and documentation workflow.

  • Yes. You can adjust your coverage level at any time.

Happy Guest is not an insurance provider. Damage waiver coverage is issued and administered by licensed third-party insurance partners; Happy Guest facilitates guest-facing collection and documentation only, and does not underwrite policies, guarantee coverage, or determine claim outcomes. Security deposit and authorization hold structures are operator-configured; Happy Guest enforces collection within the guest registration workflow but does not hold, process, or disburse funds. Hosts and property managers are solely responsible for understanding applicable laws, coverage terms, claim requirements, and financial regulations in their jurisdiction.
Get Started

Protect your process and your property

Book a demo and we'll walk through protection setup — how it fits into your guest journey, which structure makes sense for your properties, and how to get everything up and running.

NO CREDIT CARD REQUIRED.
$99 per year, or $0 — when you qualify.
See plan pricing
See plan pricing