Security Deposit Calculator

It depends on the risk level. Low-risk items like tables and chairs typically need 10-15% of the item value. Standard equipment needs 15-25%. High-risk items like vehicles and heavy machinery should be 25-40%. Boats and luxury items often warrant 40-50%. The goal is to cover your likely repair costs and insurance deductible.

Percentage-based deposits scale automatically with item value, which is easier to manage for large inventories. Flat deposits are simpler for customers to understand and work well if your items are similar in value. Many businesses use a hybrid: percentage-based internally, but round to clean flat amounts for the customer.

Set clear policies upfront. Inspect items at return using a checklist, document any damage with photos, and refund the deposit minus repair costs within 3-7 business days. Always communicate deductions in writing. Using a booking platform that handles hold-and-release deposits saves significant administrative time.

Yes, credit card authorization holds are increasingly popular. They reserve funds on the customer's card without actually charging them. If there's no damage, the hold releases automatically. This improves the customer experience and reduces your refund processing. Most modern booking platforms support this feature.