A shortlet caution fee should be a fixed naira amount that covers the small things guests most often break, lose or stain, plus one deep clean. It should not cover the value of the whole home. Big enough to make guests careful, small enough not to scare them away.
There is no legal amount and no fixed rule. So this guide gives you a simple method to work out your own figure from your own costs. It also explains why a fixed amount beats a percentage, what the deposit should and should not cover, and how to return it quickly.
Caution fee vs caution deposit
They mean the same thing. It is money a guest pays with the booking, held in case something is damaged, and paid back after check-out. In yearly rentals, people usually say “caution fee”. For a shortlet (or short let), “caution deposit” is clearer, because it tells the guest the money comes back.
A caution deposit is not:
- A cleaning fee. Normal cleaning between guests is a separate, fixed charge.
- Income. It belongs to the guest until damage is shown.
- A fine. It pays for real costs, not for breaking a rule.
How caution works on a yearly tenancy is different. Caution fee in Nigeria explained covers renting a home. For the guest’s side of a shortlet deposit, read shortlet caution fee: is it refundable?
Percentage or fixed amount?
People often search for a “caution fee percentage”. For a shortlet, a fixed amount works better. Here is why:
- The bill changes with the nights. A percentage of one night is tiny. A percentage of a month is huge.
- The risk does not. A glass can break on night one as well as on night thirty.
- A fixed figure is easy to understand. Guests see one clear number before they pay.
On Cabans, the “Caution deposit (₦, fixed amount)” is always a fixed naira amount, never a percentage. Guests pay it once per stay, and discounts never apply to it. Enter 0 for no deposit. Like other listing changes, a new amount goes live once the Cabans team has approved it.
What the deposit should cover
| Fair to claim | Not fair to claim |
|---|---|
| Broken glasses, plates or small appliances | Normal wear, such as a slightly worn sofa |
| Lost keys, remotes or gate fobs | Things that were already broken before the guest came |
| Stains that need special cleaning | Your normal cleaning between guests |
| A deep clean after an unusual mess | Power, fuel or water you included in the price |
| Missing towels, linen or kitchen items | Costs you cannot show with photos or receipts |
The deposit is for small accidents. Serious damage, such as a flooded floor or a broken door, may cost far more. For that, keep good records and talk to your insurer if you have one.
A simple way to set the amount
Work from your own home and your own costs. Follow these steps:
- Walk through the home. List the things guests are most likely to break, lose or stain: glasses, plates, remotes, keys, towels, bedding, lamp shades.
- Write down what each costs to replace. Use your own receipts or quotes from shops near you, not guesses.
- Add one extra deep clean. Include the cost of a deep clean after a messy stay, beyond your normal cleaning.
- Add up the likely costs, not everything. Pick the few things that really go wrong in a stay. The deposit covers small accidents, not the whole home.
- Adjust for your home and your guests. Go higher for a large home, costly fittings, or dates when parties are likely. Go lower for a small, simple home.
- Round it to a clear figure and review it. Pick a round number guests understand. After a few stays, check whether it was too high or too low.
A short worksheet helps. Fill in the blanks with your own figures:
| Likely problem | Cost to fix or replace |
|---|---|
| Two broken glasses or plates | ₦________ |
| A lost key or remote | ₦________ |
| A stained sheet set or towel | ₦________ |
| One deep clean after a messy stay | ₦________ |
| Something special to your home (a costly lamp, a glass table) | ₦________ |
| Total: a starting point for your deposit | ₦________ |
Then look at similar homes. Browse shortlets in Lekki, Ikeja or Abuja and note what homes like yours offer and, where it is shown, the deposit they ask for. If yours is far higher, guests may pick another home. If it is far lower, check your sums.
How the amount affects bookings
Guests pay the caution deposit at the start, with the booking. So it changes how much money they need on day one, even though it comes back.
- Too high and guests may choose a similar home with a smaller deposit. Short stays feel it most, because the deposit can be large next to one night’s price.
- Too low and it does not make guests careful, or cover the common accidents.
- Clear and fair works best. State the amount, say it is refundable, and say when it comes back.
A higher deposit can make sense for homes that attract parties or large groups. Put your party and visitor rules in writing too. The shortlet house rules template has wording you can copy.
How guests see it
Guests should see the deposit before they pay, in plain words. Put it in your listing: the amount, that it is refundable, and when it comes back. Give a receipt when it is paid.
On Cabans, guests see it under the booking calendar as “Caution deposit: ₦…, refundable”, and again in the “Price Breakdown” as “Caution deposit (refundable)”. It is part of the total they pay. If the guest cancels in time, or you decline or cancel the booking, the deposit is refunded in full with everything else.
Talking to guests about the deposit
Many arguments about a deposit start because nobody explained it. A few clear messages prevent them. You can copy and change these.
In your listing:
“A refundable caution deposit of ₦[amount] is paid with the booking. It comes back after check-out once we have checked the home. We only keep money for damage or missing items we can show you.”
Before arrival:
“Welcome! Please tell us straight away if anything is broken when you arrive, so it is not counted against your deposit. A quick photo is perfect.”
After check-out, when all is well:
“Thank you for looking after the home. Everything is fine, and your full caution deposit is on its way back to you.”
After check-out, when something is wrong:
“Thank you for staying. We found [what was damaged or missing]. Here are photos. It costs ₦[amount] to replace, with the receipt attached. The rest of your deposit is on its way back.”
Friendly, specific and backed by photos. That is how you keep both your home and your good name.
Returning it quickly
A fast, fair return is the best advert a host can have. Make it a habit:
- Photograph the home before each guest arrives and after they leave.
- Check the home soon after check-out, the same day if you can.
- All fine? Return it in full at once, and tell the guest.
- Something wrong? Tell the guest quickly, with photos and the cost, before you keep anything.
On Cabans, you settle the deposit from the booking after you confirm the check-out. Press “Approve full refund” to release the whole deposit. If something was damaged or is missing, press “Raise a dispute”, enter the “Amount to keep” (up to the deposit), explain what happened and add evidence. Nothing is kept until the Cabans team decides.
Do not wait too long. From 14 days after check-out, the guest can ask our team to release the deposit, and the team may do so unless you have raised a dispute first. Refunds reach the guest within 14 days at most, usually in about 5 days.
How to release or dispute a deposit shows each step, and caution deposit protection for hosts explains the whole process. Set your deposit when you make your short let bookable. Found damage after a stay? Read guest damaged your shortlet? What to do next.
Ready to set your terms? Take bookings online with a refundable deposit and state your caution deposit clearly. New to hosting? Price everything first with the shortlet startup cost checklist, then put your home on Cabans.
Frequently asked questions
How much caution fee should I charge for a shortlet?
Enough to cover the small things guests most often break, lose or stain, plus one deep clean. Not the value of the whole home. Work it out from your own replacement costs, then compare it with similar homes near you. There is no fixed rule or legal amount we can point to.
Should a shortlet caution fee be a percentage?
A fixed amount usually works better. A shortlet bill changes with the number of nights, so a percentage gives a one-night guest very little cover and a month-long guest a very large deposit. The risk of damage does not grow in the same way.
Is a shortlet caution fee refundable?
It should be. A caution deposit is held in case of damage and returned after check-out, less the cost of any damage you can show. Call it refundable in your listing, and return it promptly.
Can I keep the caution fee for cleaning?
Not for normal cleaning between guests. That is what a cleaning fee is for. You may claim from the deposit only for extra cleaning after an unusual mess, and you should be able to show why with photos.
Should I charge a caution deposit for a one-night stay?
You can, and the risk of a broken glass is the same on one night as on ten. But on a one-night stay the deposit can look large next to the price, and some guests will choose a home with a smaller one. Keep it clear, fair and quick to return.
When should I return the caution deposit?
As soon as you have checked the home after the guest leaves. A quick return builds trust, and guests remember it. If something is damaged, tell the guest quickly, with photos, rather than holding the whole deposit in silence.
What if the damage costs more than the deposit on Cabans?
On Cabans, the most you can ask to keep in a deposit dispute is the deposit itself. For bigger damage, keep your photos and records, talk to the guest, and contact our team.
Related guides
Caution fee in Nigeria explained · Shortlet house rules template · Is a shortlet caution fee refundable? · Shortlet insurance: what a deposit cannot cover · Security deposits in Nigeria · Shortlet startup costs · Start a shortlet business · Start a holiday let
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