How are you handling Coronavirus cancellations?

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How are you handling Coronavirus cancellations?

Andrea Cole
Real Estate Investor · Summerfield, NC · Member since 2016 · 56 posts · 55 votes

We have a Strict cancellation policy but guests are asking for full refunds due to events that are cancelled in the area. We are not in a region of the US that Airbnb recognizes in the extenuating circumstance guidelines. I'm inclined to adhere to our cancellation policy but I'm having trouble putting into words the rational. Thoughts?? Am I being unreasonable?

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y

I just had my first cancellation due to virus concerns. It was beyond the full price refund time.

I gave them a full refund. I think it was the right thing to do.

I don't live hand to mouth and I can afford to do this.

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  • Patricia Taveras
    New Bern, NC · Member since 2017 · 246 posts · 173 votes
    6y

    @Andrea Cole

    We have been giving full refunds. It made me a little nervous about the finances, but honestly we're getting bookings in the gaps where people have cancelled so things are working out so far.

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  • Michael Greenberg
    Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes
    6y

    Now up to $17k in net cancellations.  Just had guest that was supposed to check-in today play the cancel card.  This is getting VERY UGLY!

    1Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    6y

    @Cody L. Isn’t that the definition of socialism?

    Private Mortgage Financing Partners, LLC
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  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    6y
    To answer the thread question, More and more often.  Probably lost about $2K in bookings today.  I was letting folks get 100% refunds before and have always done it when the roads closed due to snow.  It is painful and thankfully I can afford for now to do it.  I had an unprecedented 6 folks give notice and move out of LTRs in February.  Usually February is very slow for my STRs, but I had a traveling nurse book one for the entire month at a decent discount, and the other rented very well.  It really buoyed up the big hit from losing so many LTRs and the $1,800 in increased utility bills I had to pay.  Thank goodness it was a mild February.  I have purchased 2 properties this year that I intended to make into STRs this summer.  It was unrealistic, it takes a long time to do them right.  As of today they are going to become LTRs as fast as I can.  Maybe next year on the STR idea.  It is funny how quick each side STR and LTR flipped in only a few months.  Lets hope this gets over soon.
    1Reply
  • Frank Borzen
    Member since 2020 · 61 posts · 39 votes
    6y

    I have only read the first page of this thread (started 5-6 days ago), but I am shocked at the people who are not recognizing that this is an unprecedented nationwide event. I canceled my own family vacation and received a vrbo refund, no questions asked. We had multiple cancellations in our own vacation rentals, and we processed refunds, no questions asked.

    I was happy to see the positive nature on both sides. The "as soon as this is over we will be back" from both owners and renters.

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y
    Originally posted by @Frank Borzen:

    I have only read the first page of this thread (started 5-6 days ago), but I am shocked at the people who are not recognizing that this is an unprecedented nationwide event. I canceled my own family vacation and received a vrbo refund, no questions asked. We had multiple cancellations in our own vacation rentals, and we processed refunds, no questions asked.

    I was happy to see the positive nature on both sides. The "as soon as this is over we will be back" from both owners and renters.

    I don’t think anyone is not recognizing the gravity of these events. No one wants to be here.  Everyone is going to feel this.  There are not only ethical questions but legal questions.

    After weighing all of this as a property manager, I have concluded that I have a contractual and fiduciary obligation to my clients, the homeowners. My contract with them states such. It is not ambiguous.

    And while I am empathetic to guests during this most awful of times, I do not have a contractual and fiduciary obligation to them.  Quite the contrary:  Cancellation policies are very clear cut and in fact are legally binding.

    While I am emphathetic to the guests, I am not Robin Hood:  I cannot arbitrarily decide to take money from my clients and distribute it to guests out of charity. In that event, I am then picking “who is more deserving”.  I do not have contractual authority to make that call.

    If no contract existed between me and the homeowner, no contract existed between me and the guest, and trip interruption insurance was unavailable to purchase, then yes, I would then have to play Robin Hood.

    Thankfully, contracts ARE in place with the parties and trip insurance IS available, so there’s really no dilemma here.







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