Security Deposits and Damage Protection for Orlando Vacation Rentals

The platform you book through decides more about deposits than Florida's landlord-tenant law does

By David Myers, Broker Associate · MyOrlandoVacationHome.com · Last updated October 2026

Florida's landlord-tenant deposit rules do not apply to transient stays in hotels, condominiums and similar public lodging, which covers typical short-term rental (STR) stays. Deposit and damage terms are set mostly by the booking platform and the rental agreement. Airbnb says most hosts may not charge a security deposit and handles damage through its Resolution Center and AirCover for Hosts. Vrbo lets owners require a damage security deposit or offer a damage protection plan the guest buys. For direct bookings, the manager's rental agreement sets the terms, so read it before you buy.

Owners new to vacation rentals often expect to collect a security deposit the way a landlord does. Short-term rentals work differently, and on Airbnb most hosts cannot collect one at all.

Here is how damage protection actually works for an Orlando vacation home, by booking channel.

Do Florida Security Deposit Laws Apply to Vacation Rentals?

Generally no – Florida's residential deposit rules exclude transient stays in public lodging.

Florida's residential landlord-tenant law, including its security deposit rules, does not apply to transient occupancy in a hotel, condominium, motel or similar public lodging (Florida Statute 83.42). Florida treats a unit rented more than three times a year for less than 30 days, or advertised that way, as a transient public lodging establishment. A typical vacation rental stay is therefore governed by the platform's terms and the rental agreement rather than the landlord-tenant deposit rules.

Monthly or longer stays can be different. If you rent to someone for months at a time, ask a Florida attorney which rules apply.

Can You Charge a Security Deposit on Airbnb?

Most hosts cannot – Airbnb handles damage through its Resolution Center and AirCover for Hosts.

Airbnb says most hosts are not allowed to charge security deposits, on or off the platform, and that hosts may not collect fees outside Airbnb unless Airbnb authorizes it. If a guest causes damage, the host requests payment through the Resolution Center, and AirCover for Hosts may help if the guest does not pay. Document damage quickly with photos, receipts and the cleaner's report.

How Does Vrbo Handle Damage Deposits?

Owners choose a damage security deposit or a damage protection plan the guest pays for.

On Vrbo, an owner can set a damage security deposit the guest is responsible for, or offer Property Damage Protection, a plan the guest buys that covers accidental damage up to a chosen limit. To deduct repair costs from a deposit, Vrbo requires the owner to document and report the damage within 14 days of check-out; the rest is refunded to the guest.

What About Direct Bookings?

The rental agreement sets the deposit or damage-protection terms, so it has to be clear and signed.

Many Orlando managers take direct bookings through their own websites. For those stays, the manager's rental agreement decides whether the guest pays a refundable deposit or a non-refundable damage protection fee, how much, and when it is returned. Ask to see the agreement your manager uses, and how deposits are held and refunded. Ask a CPA or the Florida Department of Revenue whether any damage fee or retained deposit is taxable.

How Do Owners Prevent Deposit Disputes?

Clear house rules, check-in and check-out photos, and fast, documented claims.

• Post house rules, occupancy limits and pool rules in the listing and the home.
• Have the cleaner photograph the home after every check-out.
• Report damage within the platform's deadline, with photos, receipts and repair quotes.
• Keep an inventory of furnishings and their replacement cost.

Your management company usually handles claims; ask how it does so, and whether it uses owner free days to settle guest problems – see our guide to management fees.

What Happens When Damage Exceeds the Deposit?

Your own insurance is the backstop, so make sure it covers guest damage.

A deposit or damage plan covers small losses. Larger damage, or damage on a booking without one, falls to your insurance. Confirm that your policy is written for short-term rentals and covers guest damage – see our guide to vacation rental insurance.

Pros, Cons and Our Take

Pros

• Platform programs handle most small damage claims for you.
• Vrbo and direct bookings let owners require a deposit or damage plan.
• Clear photos and agreements make claims quick to resolve.

Cons

• Most Airbnb hosts cannot collect a security deposit.
• Claims have deadlines, and late reports can be denied.
• Large damage still falls to the owner's insurance.

Our Take

Do not count on a deposit to protect your investment. Pick a manager with a documented check-out inspection and a fast claims process, read the rental agreement it uses for direct bookings, and carry insurance written for short-term rentals.

What Owners Should Know

• Ask your manager for its damage claim history and how quickly it files.
• Keep the home's inventory and photos current after every refresh.
• Review the platforms' damage policies each year; they change.

See our overview of Orlando short-term rental laws.

Official Sources

• Florida Statute 83.42 (exclusions from residential tenancies)
• Florida Statute 509.013 (public lodging definitions)
• Airbnb: security deposits
• Vrbo: protecting your property from damage

David Myers is a licensed Florida real estate broker, working as a broker associate with Ziro Realty, and is not an attorney or tax professional. This article is general information, not legal or tax advice. Laws and local rules change; confirm current requirements with the county, the DBPR and a Florida attorney or tax professional.