Why Security Cameras Could Be a Bad Idea for Vacation Rentals

Home security companies have marketed their products to vacation rental owners by pitching the benefits of using devices like wireless cameras to ensure that guests don't break the rules. Perhaps installing security cameras was a good idea years ago, but things have changed. Security cameras might actually be a very bad idea for modern vacation rentals.

Security cameras create a privacy risk for guests. So much so that Airbnb recently changed its policies to ban interior cameras altogether. Exterior cameras have been severely restricted as well. Other rental platforms have similar policies in place. As for vacation rental owners who avoid online platforms, they are still subject to state and local laws.

Modern Guests Are Security Savvy

The original reasoning for suggesting vacation rentals be equipped with security cameras was sound. Renters have a reputation for not behaving properly while staying in rented homes. Some renters think nothing of violating the rules, in ways that often lead to property damage. But without evidence, landlords have very little recourse against poorly behaving renters.

Security cameras gave property owners the leg up. But it did not take long for the tide to change. These days, modern guests are security savvy. They know what to look for. They are smart enough to know that property owners might even go so far as to deploy hidden cameras in various spaces.

This should matter to property owners. Why? Because, according to survey data compiled by Vivint Smart Home, vacation rental guests check for security measures when first arriving at a house. Not only that, the number of guests who report checking for security measures continues to rise.

Just 54% reported doing so in 2023. So far this year, 75% have said they check for security measures. But that's not all. Some 76% said they would not stay in a rental home with interior cameras in 2023. The number has risen to 92% for 2024.

Between a Rock and a Hard Place

The reality of security cameras and how guests react to them puts property owners between a rock and a hard place. As I see it, a guest willing to search high and low for security features is a guest also looking for opportunities to break the rules. They are the very guests that security measures are intended to control.

Property owners are opening their vacation homes to people they don't know, people who have been trusted to behave themselves. A property owner takes a huge risk every time one of his homes is rented. Here is the problem: guests ultimately pay for that risk.

When property is damaged, owners need to pay for it. But vacation rentals are a business like any other. Money spent on repairs is ultimately paid for through higher rental rates. So guests who insist on breaking the rules only make it more difficult and expensive for those who behave themselves.

On the other hand, what else are property owners to do? They cannot simply absorb the financial costs of misbehaving guests. A property owner that does not set and enforce clear rules is likely to see plenty of property damage along the way. That damage adds up until renting is no longer economically feasible.

There Are Bad Actors

All the blame for the security issue doesn't lay at the feet of vacation renters. There are bad actors among property owners, too. Guest concerns over privacy are legitimate. They do not want property owners spying on them under any circumstances, but especially in situations where the expectation of privacy could be shattered by a hidden camera.

We have all heard and read stories describing how wireless security cameras have been misused and abused for nefarious purposes. If someone can plant a hidden camera in a public restroom, they can just as easily plant several hidden cameras in a vacation rental.

Laws in most states already bar property owners from installing interior cameras in any spaces in which a guest has a reasonable expectation of privacy. For all intents and purposes, this means bathrooms and bedrooms. But the states generally allow interior cameras in public spaces – like kitchens and family rooms. Given that there is no reasonable expectation of privacy outdoors, few states restrict exterior cameras at vacation rentals.

Assuming a property owner maintains compliance with all state and local laws, the issue of taking security measures boils down to a simple question: is it worth losing a certain percentage of renters in order to maintain a more secure property? The answer to that question likely lies in vacancy rates. A property owner who has no trouble renting even with security features deployed is unlikely to get rid of those security features. He doesn't have to.

It's a Balancing Act

Looking at the security camera issue from every possible angle reveals that it's a balancing act. The property owner is trying to balance his need for security and rule enforcement against a guest's need for privacy and trust. Rarely is the balance perfect. In most cases, one side needs to give at least a little. I don't see any way around it.

The fact remains that vacation rentals are subject to unruly guests with a bad habit of abusing the properties they stay in. I personally know of family members who have abused vacation rentals – sometimes intentionally and other times accidentally. If my well-behaved family members can be guilty of vacation rental abuse, imagine other guests whose normal behavior is boorish.

If you own vacation rentals, I do not envy you. You are faced with the prospect of having to simultaneously protect your properties while respecting your guests' privacy. You also face the very real possibility of chasing guests away by installing security features on your properties.

Unfortunately, security cameras may not be the wisest course of action these days. Guests actively look for them. And if they find them, they may take steps to disable them. Chances are that they will not be back next year, either.