All Forum Posts by: Michael Greenberg

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!

I searched Homeaway, anyone else find the same thing?  In other words, they're allowing the host to decide.  I've taken to social media, specifically twitter, stating that Airbnb should be ashamed of themselves for unilateraling making this decision and unfair business practices.  

Net $14k in losses and counting.  Yes, the floodgates are open and I'm guessing they proactively sent out this communication to guests.  I was up to $20k, but have been able to mitigate some of the issue by dropping rates. 

• Terms of Airbnb's updated policy below.  A unilateral stance and completely unfair to not include hosts in the process and just refund guests 100%.  Heck, they didn't even offer "no fee" bookings for new guests.  I'm down about $10K already.  Nice of them to not affect our SH stats - WHO CARES?!  I would like to understand what an attorney might think about this, whether or not we would choose to reimburse.  My preference would have been that Airbnb allow guests to cancel without penalty, but allow them to rebook at a later date, at the same rates.  Would have been a less painful stance.
• The guest will receive a full refund (including any fees)
• Hosts won’t incur any cancellation fees
• Hosts can accept new reservations for those dates
• Superhost status will not be affected

Now that Airbnb has unilaterally decided to refund all guests that cancel, this is crushing our short term rental high season.  This is the nail in the coffin for me and Airbnb.  So far, losses are $10k and likely to get worse before it gets better.  I understand allowing guests to cancel, but why not treat it like the airlines, "no change fees" but the rates stay the same?  Anyone up for a class action lawsuit?

There is quite a bit of good advice posted already, just want you to know I share your sentiment and then some.... We purchased our first STR in 2015, one year prior to the state of AZ legalizing STR's statewide, meaning local counties & cities could not disallow them. We purchased three additional properties shortly thereafter. This legislation created a huge demand for STR's, which grew from 900+ to over 4,000 in two years! Corporations bought high end homes and have been busing droves of people into neighborhoods without regard. The few ruining the business for the many. Then came the "noise" and the local money applying pressure to local constituents. Municipalities have now instituted fines (up to $2500) for police visits, not imposed on the guests, but the owners. Other legislation has limited guests to 6 adults, plus their children. Two of our homes host over 12 adults. On the docket is the attempt to repeal the 2016 ruling. Our properties are still highly profitable as you stated Tehane, but we are starting to see price erosion, partly due to the legislation, partly due to these corporations. The business has been a "side hustle" for nearly six years and has been very successful, but this noise is becoming overwhelming. Not only do we deal with guests, but now we respond to neighbors who complain about noise, lights, or whatever else they feel is their "right". The high season is in full swing, and so comes the annual burn out, which now feels like a bonfire. The motivation has moved from monetary gain to lifestyle loss, and frankly lifestyle is winning. In summary, we are looking to divest from our two larger properties, seeking solace in remote areas to re-invest. Point being, all good things must come to an end for one reason or another, and while many of our fellow BP-er's and operators are "crushing it" now, it is important to always have an exit plan. I commend you for choosing to do so. Lifestyle wins!

I receive a weekly update of BP posts and was searching for this very topic.  Yep, just yesterday I had two guests request cancellations and I deferred to Airbnb's recent statement regarding Covid-19.  Once guest is hosting a business team meeting, the other has a 70 year old traveling.  Bummer during high season.

Do you research within a tool, time consuming but free.  Once you settle on an area, buy one month of Airdna (make sure to cancel on time or they will bill you again), price varies by market.  Take 10% off their numbers and you'll be doing well.

Thanks for the input Melanie!  There are new ordinances within the city of Scottsdale, specifically ordinance 4416 and 4417 that are adding additional restrictions beyond what the standard restrictions.  Worth a look and review to understand the additional risk.