A caution fee is a refundable deposit you pay in case of damage or unpaid extras. Many hotels in Nigeria ask for one at check-in, as cash, a transfer or a hold on your card, and settle it when you check out. A shortlet usually asks for it with the booking, and returns it after the host has checked the home. So a shortlet deposit can take a little longer to come back.
Here is how the two compare, how to get your money back from each, and what to ask before you pay.
What a caution fee is
A caution fee, caution deposit or security deposit is money held in case something goes wrong. It is not a charge for your room or your nights. If nothing goes wrong, all of it should come back to you.
It can pay for:
- damage beyond normal use;
- missing items, such as towels or remote controls;
- lost keys or access cards;
- in hotels, unpaid extras such as room service, the minibar or laundry.
Renting a home for a year? That caution fee works differently. See caution fee in Nigeria explained.
How hotels usually handle it (it varies)
Hotel practice differs from one hotel to the next, so treat this as a guide, not a rule. Many hotels in Nigeria:
- ask for the deposit at the front desk when you check in;
- take it as cash, a bank transfer, or a hold on your card;
- use it to cover extras you charge to your room, as well as damage;
- check the room when you leave, then give back what is left.
A card hold is not a payment. The hotel asks your bank to set an amount aside. You cannot spend that money until the hotel releases the hold, and your bank decides how fast it shows in your account again.
A cash or transfer deposit is often returned at check-out, once the room has been checked. Ask for a receipt when you pay, and keep it until the money is back.
Two more things to ask a hotel: is the deposit per room or per stay, and does it rise if you stay longer? If you are booking several rooms for a group, the deposits add up. Keep that money apart in your trip budget, so you are not short while you wait for it to come back.
Card hold, cash or transfer: which suits you?
- A card hold leaves the money in your account, but you cannot spend it until it is released. Make sure your card limit covers the room and the hold.
- Cash is quick, but only as safe as your receipt. Count it back at check-out.
- A bank transfer leaves a clear record. Ask how the refund will be sent, and to which account.
Whichever you choose, the receipt should say “refundable deposit” and show the amount.
How a shortlet caution deposit works
A shortlet host sets the caution deposit, usually as a fixed sum in naira. Some hosts ask for none. You pay it with the booking or at check-in, depending on the host. It comes back after you leave, once the host has checked the home.
| Hotel | Shortlet | |
|---|---|---|
| When you pay it | Usually at check-in | With the booking, or at check-in |
| Who sets the amount | The hotel | The host, usually as a fixed sum |
| What it covers | Damage, and extras charged to the room | Damage and missing items |
| Who checks | Hotel staff, often while you wait | The host, after you leave |
| When it comes back | Often at or soon after check-out | After the host has checked the home |
| If you disagree | The front desk or the manager | The host, or whoever handled your booking |
Because a shortlet is a whole home with more to check, the refund can take longer than at a hotel. Agree the timing before you pay.
Compare how much different hosts ask by looking at a few homes of the same size in shortlets in Lekki or shortlets in Abuja.
On Cabans, the caution deposit is always a fixed naira amount set by the host. It shows under the calendar as “Caution deposit: ₦…, refundable”, and in the “Price Breakdown” as “Caution deposit (refundable)”, before you pay. You pay it once, with your booking, securely online through Paystack. Discounts never apply to it.
If you cancel before the free-cancellation deadline, or the host declines or cancels, the caution deposit is refunded with the rest of what you paid for the stay. Paystack’s processing fee, which you pay on top, is not refunded.
Caution fee or another charge?
A bill for a room or a stay can have several lines. Only the caution fee is meant to come back:
| Line on the bill | What it is | Comes back? |
|---|---|---|
| Room or nights | The price of your stay | No, once you have stayed |
| Cleaning fee | A one-off charge some shortlets add for the clean after you leave | No, once you have stayed |
| Taxes and service charge | Added by some hotels on top of the room rate | No |
| Caution fee | Money held in case of damage or unpaid extras | Yes, less any fair charges |
If a line is called a “caution fee” but the hotel or host says it will not come back, it is really a fee. Ask what it pays for before you agree.
Getting it back
Whether you stay in a hotel or a shortlet, the same habits protect your deposit:
- Film or photograph the room or home when you arrive, and report anything broken straight away.
- Keep the receipt or booking record that shows the deposit.
- Pay room charges or extras as you go, so there is nothing to take from the deposit.
- Leave on time, and leave the place tidy.
- Take photos again when you leave, and hand back every key or card.
- Ask in writing when and how the deposit will come back.
If a hotel or a host wants to keep part of it, ask what was damaged and how much it costs. Ask for proof too, such as photos and a receipt or quote. For shortlets, our guide is a shortlet caution fee refundable? covers disputes in more detail.
On Cabans, your stay page shows where your deposit is after check-out. It says “Deposit being checked” while the host checks the property, then “Deposit returned” once they release it. If the host has neither released it nor raised a dispute 14 days after you leave, press “Request caution release”. Our team then releases it, unless the host raises a dispute first.
Only the host can raise a dispute, and nothing is kept until our team decides. Refunds reach you within 14 days at most, and usually in about 5 days. See how to get your caution deposit back.
Reasons a deposit can be kept
These are the charges to watch for:
- Unpaid room charges. Drinks, meals or laundry in a hotel that were never settled.
- Smoking indoors where the rules forbid it, which can mean deep cleaning.
- Parties or extra guests the rules did not allow.
- Stains and breakages on bedding, sofas, glassware or electronics.
- Lost keys, cards or remote controls.
Normal wear, such as a slightly worn towel, is not a fair reason to keep your money. Neither is a fault that was there before you arrived, which is why arrival photos matter.
Questions to ask before paying
- How much is the caution deposit, and is it refundable?
- Is it a payment, or a hold on my card?
- What exactly can it be used for?
- When will it come back, and to which account or card?
- What happens if we disagree about damage?
- Will my receipt show the deposit on its own line?
A hotel or host who cannot answer these clearly is a warning sign. Our list of shortlet scam warning signs covers the others.
Want the deposit shown before you pay? Find a shortlet you can book, or start with shortlets in Victoria Island.
Hosting? See how caution deposits protect hosts, then list your short let with your caution deposit clear from the start.
Frequently asked questions
What is a caution fee in a hotel?
It is a refundable deposit a hotel may ask for when you check in. It is often taken as cash, a transfer or a hold on your card. It covers extras you charge to the room and any damage, and what is left comes back when you check out.
Is a hotel caution fee refundable?
Yes, less any room charges or damage. A cash or transfer deposit is usually returned at check-out. A hold on your card is released by the hotel, and your bank decides how soon the money shows again.
Why do hotels ask for a caution fee?
To cover things they cannot check until you leave: room service, drinks from the minibar, laundry, damage or missing items. It saves chasing guests after they have gone.
Do shortlets charge a caution fee?
Some do and some do not. The host decides, and sets the amount. It is held in case of damage or missing items, and comes back after you leave, once the host has checked the home.
Which returns a caution fee faster, a hotel or a shortlet?
A hotel often settles it at check-out, because staff check one room while you wait. A shortlet host checks a whole home after you leave, so it can take a little longer. Agree the timing before you pay.
What does caution deposit mean?
It means the same as caution fee: a refundable sum held against damage, loss or unpaid charges. It is not a payment for your room or your nights, and it should come back to you if nothing goes wrong.
How is the caution deposit shown on Cabans?
Before you pay. It appears under the calendar as “Caution deposit: ₦…, refundable”, and in the “Price Breakdown” as “Caution deposit (refundable)”. You pay it once, with your booking. After check-out, your stay page shows where it is, and refunds reach you within 14 days at most, usually in about 5 days.
Related guides
Is a shortlet caution fee refundable? · How much caution fee? · Caution fee when renting a home · Shortlet vs hotel in Abuja · Shortlet vs hotel in Lagos
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