Understanding the "Working capital" per listing
The "Working capital" is a fund to cover potential refunds to guests in the event that a host fails to meet their obligations. Importantly, this fund is fully refundable upon the termination of your listing if no refunds or costs are due.
Warning: Please note that this article is designed specifically for hosts. If you are a guest seeking assistance, we recommend visiting support.huswell.com/stay for the most relevant information.
What is the Working capital?
The Working capital is an essential component of managing a property listing effectively, particularly for those utilizing our online management services.
It serves as a dedicated and essential fund to cover potential refunds to guests or costs due to HUSWELL in the event that a host fails to meet their obligations.
Importantly, this fund is automatically fully refunded upon the termination of your listing if no refunds or costs are due.
How does the Working Capital work?
Working capital is a dedicated fund of €200 per guest, calculated on the maximum amount of guests the listing can host, with a minimum €500 per listing.
The working capital is build up with the first reservations funds. As soon the amount is covered, you'll start receiving payouts. Upon listing termination, the working capital will be released if no open costs or charges are applicable.
It's designed to cover essential initial and ongoing costs associated with managing a vacation rental property. This ensures your property is ready to attract guests from the very start. These costs include:
Upfront operational expenses: Investments required to prepare your property for bookings, such as creating your listing.
Each listing accumulates a working capital based on its guest capacity:
- €200 per guest, calculated on the maximum occupancy of your listing
- Minimum of €500 per listing, not taking into account multiple listings
This reserve helps cover initial and ongoing costs, such as:
Upfront operational expenses – Costs associated with setting up and optimizing your listing, including professional photography, listing creation, and marketing efforts.
Third-party service fees – Expenses related to cleaning, maintenance, and other services necessary for a seamless guest experience.
Why and since when do I require a Working Capital?
The working capital, serves as a dedicated fund to cover potential refunds to guests in the event that a host fails to meet their obligations. Importantly, this fund is fully refundable upon the termination of your listing if no refunds or costs are due.
It was also introduced because As of January 1, 2025, you can terminate your listing agreement with HUSWELL at any time, provided there are no confirmed reservations, just as Airbnb works. This means we have eliminated traditional termination fees and duration requirements for this process.