Airbnb guest throws 'New Year's banger' party, trashes the house

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Airbnb guest throws 'New Year's banger' party, trashes the house

Kevin Lefeuvre
Los Angeles, CA · Member since 2016 · 565 posts · 391 votes

"A New Year’s banger at an Ohio Airbnb, meant to be the party to kick off 2018, turned into a nightmare when the host lost control and police officers from five departments were forced to shut down the celebration while 200 party goers trashed the residence."

From what I can read, Airbnb declared this is extremely rare, banned the guest (oh thank you airbnb), but didn't compensate the host. $10k according to the host easily verified based on the video

Video and more on this here: Link

What do you have in place to prevent this at your place(s)? What would you do?

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Jon Crosby
Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
8y

Great story @Kevin Lefeuvre! Definitely one of my major fears as an STR/VR owner and operator!

This owner was actually in the house playing video games when the party started though, so not sure why it took him so long to get control of the situation (must have been a great game).  :) 

Not sure why it's AirBNB's fault or liability since I'm guessing the homeowner is the one that approved the guest to stay there. If they did pay out for this guy, then they open Pandora's box for other hosts to not enforce policies and pay out even more down the road I would think.    

For me, I use a variety of methods to help combat parties such as:

> External video cameras

>30 and older rule to book property and families only

>No parties specific rule in contract along with maximum allowable persons in home at any time

>Stay in touch with my neighbors so they can be my second set of eyes on the place

>I use Evolve so they cover up to $3000 in any damage and they will go after the guest's credit card if further funds are required. 

That being said, just this last summer, I had a group come in and cause a little damage and had more guests then they were allowed to.  I banned them from my property for future bookings and I now pay particular attention to guests that book 'last minute' as most families and those over 30 will usually plan their vacations and trips well in advance.  

Thanks for the post, good stuff! 

Cheers!

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  • Andrew Wong
    Investor · Milpitas, CA · Member since 2015 · 278 posts · 155 votes
    8y

    The article didn't it say AirBnB didn't compensate the host.  Why do you say that?

    1Reply
  • Jon Crosby
    Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    8y

    Great story @Kevin Lefeuvre! Definitely one of my major fears as an STR/VR owner and operator!

    This owner was actually in the house playing video games when the party started though, so not sure why it took him so long to get control of the situation (must have been a great game).  :) 

    Not sure why it's AirBNB's fault or liability since I'm guessing the homeowner is the one that approved the guest to stay there. If they did pay out for this guy, then they open Pandora's box for other hosts to not enforce policies and pay out even more down the road I would think.    

    For me, I use a variety of methods to help combat parties such as:

    > External video cameras

    >30 and older rule to book property and families only

    >No parties specific rule in contract along with maximum allowable persons in home at any time

    >Stay in touch with my neighbors so they can be my second set of eyes on the place

    >I use Evolve so they cover up to $3000 in any damage and they will go after the guest's credit card if further funds are required. 

    That being said, just this last summer, I had a group come in and cause a little damage and had more guests then they were allowed to.  I banned them from my property for future bookings and I now pay particular attention to guests that book 'last minute' as most families and those over 30 will usually plan their vacations and trips well in advance.  

    Thanks for the post, good stuff! 

    Cheers!

    5Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    8y

    @Andrew Wong did you watch the video with the host talking? He considers he's left with 10k damage, even though he does not explicitly say if he asked airbnb or if they refused. So it's not explicit but implicitly he says he has to take the loss.

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    I thought they had insurance for exactly this kind of thing?

    0Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    8y

    @Jon Crosby from what I understand the guest is clearly an outlaw criminal. He tweeted the party while booking a single room. Underage alcohol, drug, etc... I am not sure any of the legal binding "paper" you mentioned would stop him. BTW we don't know if the host had or not similar terms. Maybe he had. Even the cameras... what do you want to do with your videos other than after-the fact actions? Five police departments were necessary to get rid of the 200 vandals!!!

    1Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    8y

    @Matt K. I wish we had more information about the Host - airbnb interactions on this. Given the host's comments it seems he didn't receive coverage. I personally never really believed in that insurance. An insurance with a policy which is defined in one paragraph and has no explicit premium may cover just as much as the premium they receive.

    0Reply
  • Andrew Wong
    Investor · Milpitas, CA · Member since 2015 · 278 posts · 155 votes
    8y

    @Kevin Lefeuvre, I guess I'll just have to disagree with your conclusion. The only thing he says is, "Damage costs ten thousand dollars" and that was the end of that.

    I would be surprised that AirBnB won't cover this! But I guess we'll never find out. 

    Lesson here is to get insurance, and vet your guests. Another reason to not rent to vacationers.

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Kevin Lefeuvre:

    @Matt K. I wish we had more information about the Host - airbnb interactions on this. Given the host's comments it seems he didn't receive coverage. I personally never really believed in that insurance. An insurance with a policy which is defined in one paragraph and has no explicit premium may cover just as much as the premium they receive.

     granted I'm not a host, in fact I've never used AirBnB.... but 

    https://www.airbnb.com/host-protection-insurance mentions some stuff about damage.

    And it's more than a paragraph it's like 29 pages (and I didn't read through it)

    https://www.airbnb.com/users/hpi_program_summary_pdf

    0Reply
  • Ian Kurela
    Specialist · Charlotte, NC · Member since 2016 · 239 posts · 117 votes
    8y

    Really terrible to hear. Especially hearing that the property was just one city away from my home. I think it may all come down to the paperwork and liability within AirBNB. I also think that the business will compensate above and beyond whatever the legal terms extend. Simply to keep a good position in the public eye. A few thousand dollars is nothing compared to the potential revenue that may be disrupted as nervous Hosts retract their properties due to this incident. 

    Only time will tell! (and the lawyers)

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    8y

    I use external video cameras, minimum age requirements with photo ID required for all.

    My video cameras send me pictures on motion. Then I can log on and see live video. I would have known something was wrong quickly and been able to call police right away.

    1Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y

    The homeowner is an Idiot , plain and simple . 

    3Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    8y
    Originally posted by @Matt K.:
    Originally posted by @Kevin Lefeuvre:

    @Matt K. I wish we had more information about the Host - airbnb interactions on this. Given the host's comments it seems he didn't receive coverage. I personally never really believed in that insurance.

    Thanks

    Thanks Matt, I had never seen their policy, but had noticed scepticism on the Airbnb forums about it. The program you posted expires 12/31/2017. Hopefully it's just a matter of update on the site. But will definitely check next time I have to renew and review my policies.thanks.

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Kevin Lefeuvre:
    Originally posted by @Matt K.:
    Originally posted by @Kevin Lefeuvre:

    @Matt K. I wish we had more information about the Host - airbnb interactions on this. Given the host's comments it seems he didn't receive coverage. I personally never really believed in that insurance.

    Thanks

    Thanks Matt, I had never seen their policy, but had noticed scepticism on the Airbnb forums about it. The program you posted expires 12/31/2017. Hopefully it's just a matter of update on the site. But will definitely check next time I have to renew and review my policies.thanks.

     I wonder how that works, if the incident occurred during the active period of the policy would it still go through or you SOL if you didn't get it in before (assuming it really did expire)? This is well outside my wheelhouse... so really just brainstorming here (and trying to avoid reading a 30 page insurance pamphlet lol).

    1Reply
  • Kevin Lefeuvre
    OP
    Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
    8y
    Originally posted by @John Underwood:

    I use external video cameras, minimum age requirements with photo ID required for all.

    I also require ID right after booking. Some guests don't like it, but it's a good way to let weirdos run away. On Airbnb they argue Airbnb has already their ID. But just the person who books. If they refuse I cancel. 

    The deposit amount is also useful here. Higher better. But only for VRBO since Airbnb doesn't "collect" the deposit.

    0Reply
  • Cynthia Hartley
    Investor · Washington, DC · Member since 2014 · 81 posts · 47 votes
    8y

    Things just do not add up for me. I don't understand how he was in the home and not realize that there is a party going on in his own home until more than 100 people are in the house and the place is trashed. I suspect that he gave consent to have a party, which is why he stayed in his room, but did not realize that things were out of control until it was too late. I am an AirBnB host and live in my house. I know when my guests come and go and certainly would know if there is a party going on. Moreover, I find it difficult to believe a guest would book a house to have a party, knowing that the owner is in the house, without the owner's consent. 

    4Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y
    Originally posted by @Matthew Paul:

    The homeowner is an Idiot , plain and simple . 

    $40 per room. LOL

    I'll be following just for the fun value of hearing various theories pinning liability on AirBnB.

    Gimer Law516 Reviews
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    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y

    Back in the 1980's there was a party like that around me . The parents went away for the weekend . Kids threw a "small" party but the word traveled . Soon enough the place was full of drunk and high teenagers .  They trashed the place , stole mothers clothes , all fathers tools , soaked the carpets with beer , broke furniture .   It was in a very affluent neighborhood .  

    Mom and Dad were not happy 

    1Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    8y
    Originally posted by @Matthew Paul:

    The homeowner is an Idiot , plain and simple . 

    That is an understatement.  The only reason I think the owner is claiming $10,000 in damages is that the carpet is dirty.  It just needs to be shampooed.  Judging from the video, $10,000 is my estimate of the cost to replace all the carpet in the house.

    0Reply
  • Matt P.
    Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
    8y
    Hello everyone, sorry to sidetrack the thread but I've always wondered about this. To all of you landlords who are doing short term rentals like this, is your HOI policy similar to a normal rental policy or does your insurance company charge you a lot more once they know how the property is being used or does it even matter to them? Thanks and happy new year to everyone at Biggerpockets!
    0Reply
  • Samuel Kobielush
    Minneapolis, MN · Member since 2017 · 2 posts · 1 vote
    8y

    Here's another Airbnb party house that occurred on New Year's Day, when many folks had to wake up and go to work the next morning: http://kstp.com/news/airbnb-rental-house-party-plymouth-monday/4729020/

    1Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    8y

    @Matt P.

    My rentals are self insured, and they are paid for up front in cash.  Actually a cashiers check.  We save all the cash people pay their rent with and buy a cashiers check when buying a house.

    0Reply
  • Gerald Barron
    Investor · Naples, FL · Member since 2017 · 69 posts · 34 votes
    8y
    “Each partygoer was charged $5 entry fee for the night.” My guess, this guy was on board with the party till it got outta hand. Then he tried to break it up but it was too late.
    0Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y
    Originally posted by @Gerald Barron:

    “Each partygoer was charged $5 entry fee for the night.”

    My guess, this guy was on board with the party till it got outta hand. Then he tried to break it up but it was too late.

    They were giving door prizes.

    And windows. 

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    1Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Kevin Lefeuvre Typically, Airbnb could charge the guest if the host is able to prove the damages. Now, with this kind of amount, it might get a little trickier. 

    In addition, insurance may cover some of the costs at the end of the day, but Airbnb tends to be responsive and helpful. 

    0Reply
  • Lisa R.
    New to Real Estate · Seattle, WA · Member since 2016 · 95 posts · 32 votes
    8y
    That is terrible! I have cameras in every room and garage of my home other than bedrooms and bathrooms of course! I receive notices on my phone when there is any movement and I can view The rooms immediately to see what the movement is. I would have been to the house immediately to stop it. Even being a remote host I would have a property manager available 27/7 nearby to kick everyone out. There shouldn’t be more people in the house than The host originally booked for.
    0Reply
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