Hello @Jill184,
Hosts really should have all aspects of the listing sorted before the listing is public as guests expectations and money are involved.
If this guest has booked your "Designer house in the heart of Sherman Oaks" listing then, if he cancels, he won't get a full refund for, two reasons.
First, you have a strict cancellation policy so he'll get back at most 50% of the accommodation fees and may not get any back, depending on whether his cancellation is done more than or less than 7 days before the checkin date.
Second, he won't get back the fees that Airbnb charge him, which are about 10% of the accommodation fees.
So if he cancels he looses money, all because you didn't have your listing's setup ready.
He'll get a full refund of accommodation fees and Airbnb fees if you cancel but there are host penalties if you cancel.
You can either honour the reservation as it stands, contact Airbnb and plead your case or cancel it unilaterally and take the penalties. I'm a host. What penalties apply if I need to cancel a reservation?
These articles, found when I typed "price" in the search box having clicked on "Help", describe various aspects of price setting.
How do I set my nightly price?
How do I set a custom price for specific nights, weeks or months?
How do I set custom prices for weekends or holidays?
How do I choose my listing's price?
You have a security deposit set on the "Designer house ..." listing. maybe the guest is asking for that to be returned. If so there's nothing for you to worry about. Tell the guest two things. First that all payment issues are between him and Airbnb as he pays Airbnb, not you. He should contact Airbnb support. Second, Airbnb does not actually charge him that deposit in the normal sense of a deposit. It's just an ammount that Airbnb may charge him in the case that a host makes a claim for damage and if Airbnb supports that claim.
The "Help" search box came to the rescue again when I typed "deposit" there. The following article showed up.
How does Airbnb handle security deposits?
Steve.