A damage waiver is a small, non-refundable fee charged to guests at the time of booking in exchange for waiving your right to pursue them for accidental damages up to a certain limit. Unlike a traditional security deposit, which is collected and refunded, a damage waiver is pure retained revenue.
Enso Pro Tip: if less than X% of your guests cause damage, and X% equals the ratio of your damage waiver to your security deposit, then damage waivers are more profitable than security deposits.
The Arbitrage Math: Should I Offer Damage Waiver Option to My Guests?
Before setting up a damage waiver, confirm that the math works for your portfolio. Here is the formula:
Variable | Example |
Security deposit amount | $150-250 |
Damage waiver amount | $35-$50 |
Waiver as % of deposit | ~23–33% |
Break-even damage claim rate | < 23–33% of guests |
Recommended waiver (higher-risk markets) | $50 |
Recommended waiver (lower-risk markets) | $25–$35 |
💡 Example: An operator with 120 listings generates ~$120/listing/month from damage waivers against a $250 security deposit, with fewer than 1-in-5 guests ever causing an issue, making the waiver highly profitable.
Setting Up a Damage Waiver
Step 1: Navigate to Fees
Go to Boarding Pass config and open the Fees bucket
Locate the “Damage Waiver”, “Security Deposit or Waiver” or “Optional Damage Waiver”, depending on your needs. Click Use template
Step 2: Configure the Damage Waiver Fee
Name it clearly: "Damage Protection Waiver", “Damage Waiver of Safety Deposit” or “Optional Damage Waiver”, depending on the type of damage protection you want to offer to your guests.
Write the description
Set the amounts - recommended $35–$50 for higher-risk markets, $25–$35 for lower-risk markets
Step 3: Assign to Properties
Start with a pilot group: choose lower-risk properties in your portfolio
Assign the fee template to those listing groups
💡 Recommended: Test on one group first. Compare damage claim rates and revenue vs. your security deposit approach before expanding.
Setting Up an Optional Damage Waiver ( Important for Airbnb)
Airbnb does not allow mandatory extra fees, but as an official Enso partner, you can offer an optional damage waiver. Guests can accept or decline it at checkout.
Step 1: Create an Optional Fee Template
When you choose the Optional Damage Waiver template, adjust the fee description to your setup and language.
Set amount (e.g., $42 — reflects value without being too large to deter acceptance)
Mark the fee as optional
Step 2: Assign to Airbnb Listings
Assign the optional fee template specifically to your Airbnb listing groups
Airbnb Air Cover protection remains in place, this is additive, not a replacement
How It Works for Guests
When an Airbnb guest sees the booking, they are presented with two options on the Boarding Pass:
Accept damage waiver: pays the optional fee and gets waiver coverage
Decline protection: no fee charged, Air Cover still applies
💡 Expect roughly 10-20% of Airbnb guests to accept the optional waiver. Even at 20% conversion, this adds meaningful revenue — e.g., $42 waiver × 20% = ~$8.40 average revenue per booking.
Pricing Recommendations
Average Daily Rate | Security Deposit | Recommended Waiver | Expected Conversion |
<$100 | $150 | $25-$35 | 40% |
$100-250 | $150 | $35-$50 | .60% |
>$1,000 | $150-$250 | $50 | 60-80% |
Airbnb (optional) | N/A (Air Cover) | $35-$50 | ~10-20% |
Pro Tips
Keep security deposits active on high-risk channels alongside the waiver to retain fallback protection
Combine damage waivers with Enso's automated upsell reminders to maximize guest touchpoints
Use guest tags (e.g., "VIP") in Enso to selectively waive fees for returning or high-value guests without removing the fee structure for everyone
Ask your Enso account manager for a custom pricing grid and ROI benchmarks based on your market
Need help with damage waivers?
Book a call with the CS team → Our team can review your account configuration and make sure your protection tools are set up to convert.