Airbnb fidelity to “host guarantee” and host deposits????

Question

I’ve been an successful vacation rental host since 2014. This year I opened a new stand alone property for rent. I’ve noticed immediately that guests treat the home you live in and host rooms from very differently than a property you may not see them at all.

That said, I had some minor damages ($140) that I asked to be compensated for and Airbnb is not going to cover ANY of this. I require a $500 deposit for this property but that is of no consequence as Airbnb will not pull anything from the deposit to or cover it from the touted “host guarantee”.

This is the first damage I’ve experienced worth asking for compensation and I’m getting the impression that all the risk is on me.

I’d like to try and require a deposit from guest directly now with a credit card, as I have no confidence in Airbnb’s protection system. Has anyone done this before or learned how to successfully navigate the system to protect yourself?

Julie McCoy · Answer

I've almost never had a problem with destructive guests, or even accidental damage, but AirBNB is notorious for being terrible about reimbursing hosts for costs like that.  What I do personally incur I write off as the cost of doing business, and of course I have a great insurance policy just in case the damage is of greater cost.  (fortunately my insurance company - Proper - has been awesome about honoring any claims I've had)

Re: requiring a deposit from the guest directly, I suspect that would be a violation of AirBNB's TOS.  I'd recommend looking closely before trying something like that (and in any case, you'd have to confirm the booking before you could ask for CC info, which puts you in the position of having a high cancellation rate against those who refuse to give you their info).

I've started looking into whether I can purchase Accidental Rental Damage Insurance for my guests and just bypass worrying about the deposit altogether, but haven't gotten very far in my research, so can't state if it's worth it.

Benjamin Vail · Answer

The Airbnb resolution center is a real pain to deal with. However, after many claims in the last 1800 guest check-ins, I can say that they do actually make some payments for damages. They have a very strick format to follow though, and you need to get it wrong a few times before getting it correct. They try to make it hard enough that most people will give up before getting a payout!

You must take pictures, and document everything. Everyone one on your team should download a time stamp app for your phone, and use it when you are taking evidence photos for A claim. You MUST file all claim evidence and photos before the next guest checks in to qualify for the Host Guarantee. Also, be prepared to answer several more probing emails and phone call about it from them. They will always ask for more documentation before making a payout.

Have your cleaning company create a blank invoice for you, that way you can fill it out on the fly with whatever damages occurrd, and can use that invoice as documentation. By the way, the Airbnb definition of an invoice says it must include a company logo, date, company phone number, and a Signiture. They last denied a claim because our cleaning crew invoice didn’t have a phone number on it!

Paul Sandhu · Answer

You are correct, all the risk of damage is your responsibility.  It's a cost of doing business.

I've gotten to the point where if there is damage, it's just a cost of doing business and it does not upset me.  What upsets me is a dead body or someone I find that is unconscious and unresponsive due to an overdose in a property.  I've had both events happen.  Oh, walking in to a vacant STR property and finding an intruder, that bothers me too.  That happened twice.  I'd gladly take $140 worth of damage instead of dealing with the things in this paragraph.  Would you @Catherine Ventling?

Nancy Bachety · Answer

It is essential to take pictures of the damage to document or else Airbnb will not listen to your claim. Make sure your cleaner takes photos before trying to correct any damage and be quick to get a quote for repair or replacement. And be sure to use Airbnb’s messaging to document conversations with guests, and get them to admit and acknowledge their responsibility, being kind yet strategic.

Ken Latchers · Answer

My Philosophy is that almost everything in our short-term rentals for sale. We have a sales tax number You Dent / stain / break / misplace etc, you buy it.

Someone just left two dents on a nice refrigerator and a lot of nicks on an antique. They are going to be billed for 200 or they have the opportunity to replace the refrigerator and/or replace the antique for 700 or so each.

No ABB/VRBO involvement. Our agreement spells out in intricate detail. We tell them the cost so they can pay. If not, it can go to court, be reported as retail theft or vandalism, and be reported to the credit agencies for nonpayment against all adults in booking party.

This happens after 14 day review period to prevent retaliatory reviews. And of course there some bluff aspect here. For small damage, not worth it.

Now, check or credit card?

Luke Carl · Answer

@Catherine Ventling. You just received some  VERY excellent responses from the most knowledgeable folks on BP and I agree with all of them.

Get it wrong a few times before you can get it right was the best advice. AirBnB customer service is nothing short of terrible ESPECIALLY if you’re calling Memorial Day weekend. Weekdays 9-5 they’re not as bad (read 4 hour work week to find out why).

I’m with Uncle Paul as usual. I highly doubt I would bother with $140. If you’re going to notice the $140 the property is not making enough money to deal with STR.

I don’t know what they broke for said $140, but for me to give a darn they would have to message me and say something like “We broke your floor lamp on purposed because we know you won’t do anything about it and we’re leaving you 3 stars because we can.”

Otherwise I’m on my amazon or lowes app spending about 20 seconds replacing the broken item with shipment to my cleaner. I might also put the $140 on a spreadsheet to write off at the end of the year. Depends on my mood.

Ken Latchers · Answer

I don't contact abb/vrbo about damage for the most part.

Small damage, not worth the bad review or aggravation

Significant, I remind the guest about lease agreement. Check or credit card? *smile*. If they refuse, I remind them about the very good local court clause they agreed to and I will see them there. A lot of it is bluff

Airbnb fidelity to “host guarantee” and host deposits????

Most Popular Reply