How Are You Handling Damage Protection for MTRs

Question

I’m testing out third-party damage protection plans in place of deposits. It’s worked well so far, but I’m curious what others are using—security deposits, insurance, or a hybrid approach? I actually haven't had to make a claim through Furnished Finder's Damage Protection so curious what that experience is like as well.

Miguel Del Mazo · Answer

I belong to a mastermind that is a pretty good mix of experienced and apprentice MTR operators, and last night Waivo came up (again).  We have always relied on good tenant screening and expectation-setting coupled with a modest deposit, and that has served us so well that we've always been able to fully return the security deposit (after 4 + years and currently with 6 properties that we own/operate).

Still, I heard so many good stories about Waivo paying quickly in the event of damage, that I am seriously considering switching to the hybrid model.  I am curious what experience others have had.

I, too, do not have great faith in AirBnB's coverage, but if you have to go that route, I would suggest waiting until after the resident's window for reviewing you closes but before your window to file a claim slams shut to start the process. No one wants the guest that destroyed your place to also leave a 1-star review unfairly.

Hope Sawyer · Answer

@Brian Malavsky

That’s a smart move—many landlords are shifting toward third-party damage protection as it reduces friction for tenants and can boost bookings. Personally, I’ve seen a hybrid approach work best: a modest deposit plus damage protection for peace of mind. Some platforms make claims pretty straightforward, but Furnished Finder’s process can vary, and I’ve heard mixed feedback—mostly that documentation is key. If you haven’t had to file a claim yet, that's a good sign your screening process is solid.

Good luck!

James Carlson · Answer

To me, these third-party damage protection options shift the power over the money away from the owner. Maybe it will be fine, but my experience with Airbnb's protections, for instance, is not good here in Colorado

We've needed some help with damage at our midterm rentals in Denver and Colorado Springs, and Airbnb sided heavily with the tenants and did not pay out what we thought they should. I've seen this with STRs in Colorado as well.

Tenants rights advocates might be happy how Airbnb handles these things (and I'm not a tenant hater, by any means), but I do like the comfort of keeping the deposit in our hands, not the hands of a third-party neutral.

Brian Malavsky · Answer

Thanks! That’s reassuring to hear. I’m definitely leaning into the hybrid model too—it feels like a good balance of guest experience and protection. I’m on my second round of guests requiring the damage protection plan and haven’t had to file a claim yet, thankfully. I do a pretty thorough screening process: detailed application with expectation setting, verification of employment and previous landlords or hosts, plus full background and credit checks. So far, it’s worked well and I’ve had great guests, hoping that continues!

Guests haven’t had any issues with paying the flat rate for damage protection in lieu of an upfront security deposit, which has made the process smoother all around. I also require a $300 refundable pet deposit since the protection plan has a separate pet-related deductible. Still hoping to hear from someone who’s actually gone through the claims process with Furnished Finder. I’d love to know how it played out and how responsive they were.

How Are You Handling Damage Protection for MTRs

Most Popular Reply