Host guarantee - airbnb refused to use amount on the receipts and quoted super low market value

[Lily203]

I have been hosting exclusively on Airbnb in Toronto for a couple of years given its host guarantee programme which provides safety net whenever there is damage. However, it all changed now. Although I have provided my all the necessary receipts, they only compensated based on what they called "market value". The breakdown of their market value is as follows

Sheet set - 20.00% per year / Actual Cash Value = CAD $38.66 -> meaning the full market value is 38.66/80% = CAD42.76
Cover duvet-20.00% per year /Actual Cash Value = CAD $60.03 -> meaning the full market value is CAD 75.04
Bath Towel 1- 20.00% per year / Actual Cash Value = CAD $6.10 -> meaning the full market value is CAD 7.62
Bath Towel 2- 20.00% per year / Actual Cash Value = CAD $6.10 -> meaning the full market value is CAD 7.62

We used 100% cotton linens for our airbnb and the last time I checked, there is not anywhere I could buy same quality items at the price they provided. Their reimbursement did not even take into account the tax (13%) that will be paid for the purchase.  I kept going back to ask them to show me the places I could get the same quality items at the price they provided and they refused to address the concern. So this implies 2 things: 1) Airbnb is telling me to use low quality items to serve our guests or we are fully liable for excess coverage or 2) Airbnb is telling me they are not providing the safety net and the only reason I am hosting exclusively on the platform anymore. 

[Brian2036]

@Lily203 

Most insurance doesn’t pay replacement cost unless you pay extra for that coverage. A lot extra usually.

Actually, used linens are practically worthless, if you tried to sell them on the open market. You wouldn’t find many willing buyers for anything close to the price of new ones.

”Fair Market Value” is defined as : a price at which buyers and sellers with a reasonable knowledge of pertinent facts and not acting under any compulsion are willing to do business.

Actually Airbnb is offering to reimburse you for your cost-20% per annum depreciation, which is more than I would expect them to pay and is well in excess of fair market value.

As for sales taxes, I doubt that insurance companies will pay that. You may deduct your losses on your own tax returns however.

 I know that losses due to theft are infuriating but I don’t think there’s anything you can do about it. 

Good luck with your future guests. I hope they will be more honest.

[Lily203]

You give me the impression you are being paid by airbnb to make these responses. I don't think you are referring directly to what Airbnb has put out publicly.

https://www.airbnb.ca/help/article/2869/host-guarantee-terms-and-conditions

"Airbnb agrees to pay you, as a Host, to repair or replace your Covered Property (as defined below) damaged or destroyed as a result of a Covered Loss (as defined below), subject to the limitations, exclusions and conditions in the Host Guarantee Terms."

"For all Covered Property (other than that described in paragraphs 1 and 2 above), the loss amount will be the lesser of (i) the Actual Cash Value; (ii) the cost to repair such damaged Covered Property; (iii) the cost to rebuild or replace such Covered Property on the same site with new materials of like size, kind, and quality; (iv) the cost to rebuild, repair, or replace on the same or another site, but not to exceed the size and operating capacity that existed on the date of the Covered Loss; or (v) the cost to replace unrepairable electrical or mechanical equipment, including computer equipment and Electronic Media, with equipment that is the most functionally equivalent to that damaged or destroyed, even if such equipment has technological advantages and/or represents an improvement in function and/or forms part of a program of system enhancement."

“Actual Cash Value” means the amount it would cost to repair or replace damaged or destroyed Covered Property as a result of a Covered Loss, measured on the date of occurrence of such Covered Loss, with material of like kind and quality, with proper deduction for obsolescence and physical depreciation."

So i don't deny the 20% which is the deduction for obsolescence and physical depreciation as described above. But per my calculations, if you work backwards, what airbnb has used is not even close to the replacement value. And how is taxes not counted as part of the cost to replace? Can airbnb help me replace the items without paying taxes?

[Katja202]

@Lily203 @Brian2036  I think it is normal to lily, sorry. The towels all ready gave you an income and you should have saved or set a side money to replace them. It is just normal business practice. I have calculated a percentage in my price to cover this costs. It is a easy som to make. Calculate all the cost you have maked during a certain amound of stays. Then count the days of all that stays and divide the amount of costs by the days. Calculate the percentage and tadaaaaa you never have trouble with all this. 😀🌺

[Brian2036]

@Lily203 

Airbnb has told what they are willing to pay and you can either take it or leave it.

It appears that they don’t believe that the receipts you submitted represent Fair Market Value.

Why don’t you ask your homeowners insurance company what they would pay? You might actually get to talk to a human.

Or you can waste your time complaining to CS.  While you’re doing that, please ask them how much they are paying me and when I can expect a check.

[Sarah977]

@Lily203 "You give me the impression you are being paid by airbnb to make these responses. I don't think you are referring directly to what Airbnb has put out publicly."

Every so often there is a host who posts here on the forum for more or less the first time who makes these rude accusations because another host gave them an answer which reflects the reality of dealing with Airbnb, instead of an answer they would have preferred.

The other hosts who take time to try to answer posts here do not work for Airbnb. We are just hosts, like you, who may have learned either from our own experience, or from reading about other host's experiences, what we can expect from the platform.

Airbnb's so-called security deposit and host guarantee and all that is smoke and mirrors. They put hosts through endless hoops to try to collect money for damages and it is often completely unsuccessful. You can't believe Airbnb's PR and it's best to just realize they are a listing service and don't come to hosts' rescue. 

They will characterize obvious guest damage as "normal wear and tear" and wiill never pay you replacement value.

You should have a fund set aside for repairing and replacing small items, and have your own short term rental insurance to cover anything major.

This is not to say you shouldn't try to pursue payment for guest damages, just that you need to understand the reality of how much to expect.

And you have to be practical- if you are in the hospitality business, you can expect to have ruined sheets and towels from time to time, some furniture damage, broken dishes, etc. that you won't get compensated for at all. It just goes along with the business of hosting.

[Brian2036]

@Sarah977 @Katja202 @Lily203 

I have noticed that a lot of hotels provide a price list for all the amenities that people like to steal.

 The prices listed include the entire replacement cost plus something for the labor involved.

If you decide to steal that wonderful fluffy bathrobe they provide at the Marriott, it will cost you $300, but if you ask at the front desk they will sell you a new one for $150.

If Airbnb would collect a real security deposit we could do this also, but they won’t and we can’t.

[Michelle53]

@Lily203  "Actual Cash Value" refers to the value the item has today, i.e. the depreciated or resale value, for example if you took the used items to a thrift store, or listed on eBay,  and not the replacement cost of a similar item today at the store. 

"For all Covered Property (other than that described in paragraphs 1 and 2 above), the loss amount will be the lesser of (i) the Actual Cash Value;  ..... (all the other choices)".

Obviously, they are not going to pay the actual replacement cost, but the resale value of the used items.