long term loophole - look out hosts!!

[Karen57]

I had a guest in my home who booked in December 2018 for check in 2/3/2019 for 83 nights. I called airbnb shortly after check in because the first payment was short the amount owed for the stay. The representative told me that there was not a problem, that Airbnb would release the guests' money monthly and that they would collect the money from the guest on my behalf; I had no need to worry. The guest contacted me 15 days into the stay that they needed to depart suddenly. I called Airbnb again and was told that the guest should just hit cancel, that there were no problems, and that I would be paid according to the cancellation policy for long term guests.
Unfortunately, the guest had cancelled the credit card on file sometime after the booking and now Airbnb will not respond to my requests to be paid. The massive time block has resulted in massive calendar openings and since airbnb cannot collect from the guest, despite being a superhost for two years, I cannot receive an answer as to when and how I will be paid according to my agreed policy.
I am dismayed as a host that airbnb allows this loophole to exist and refuses to compensate superhosts when they cannot collect due to their own negligence. Imagine if they had stayed all 83 days and I never got paid but for the original small payment of less than 25% of the booking... If airbnb had told me that they were unable to collect, (they tried to collect on 2/12 and could not due to declined card), I would have demanded a settlement from the guest or involved the police. I did not know anything was wrong even though airbnb could see on their side they could not collect. Not being aware of the problem, when they cancelled on the 20th, I let them stay till the 23rd and hosted them with wine to see them off! Now they are gone, they damaged my home and stole items from me. I am left with their damage and uncollected reservation charges of more than $600 and Airbnb is leaving me on hold for 90 minutes and refusing to answer my requests. Until I hear back, this superhost is blocking my full calendar.

[Helen3]

Sorry that you have had such an awful experience @Karen57 

Obviously submit a claim to the guest for damages caused (with photo evidence) and flag with Airbnb before your next guest arrives in case you need to claim on its guarantee.

If Airbnb told you in writing that there wasn't a problem and you would get your money and didn't tell you to two weeks in that they were unable to collect. I would push for them to cover the first month of the booking as them not notifying you in advance of the guests stay has cost you money.

[Karen57]

I do not have Airbnb in writing guaranteeing the money.  The long term policy says we get the first month plus 30 days notice.  They "cannot" pay me since they cannot collect from the guest.   I am angry that even though Airbnb knew of the problem, they never notified me by email, flagged the account nor did they tell me on the numerous times I have tried to contact them.  For nearly a month now, they tell me that they are "escalating" the issue. I had no idea that the loophole existed for customers to book and cancel the credit card and that means we as hosts go without payment. 

[Rosemary-and-Lisa0]

Hello Karen.  You are not alone in this instance.  Same thing happened to me.  A guest made a reservation for 4 months. Guest arrived, I was paid for the first 30 days.  That payment went through. The guest cancled 20 days in and when Airbnb tried to collect the cancelation fees the guest had already submitted to her credit card company that it was a fradulent charge (at least that is what Airbnb told me).  The worst thing was a message she left me telling me that I should play fair and not try to collect the remaining $509 that was due to me per Airbnb policy, because she would hate to let the city know that I was had paying guests in my house.

Nice.... I was under the impression that Airbnb puts a hold on the funds, then distributes them monthly in increments. NOT so I guess.  This does not protect the host in any way.   I am thinking that if a guest wants to stay for three months, have them book each month seperately. Would this work?

Each booking the amount is held, if it is not available then the booking doesn't go through?

I am horrified that for the entire month of May and three weeks of June, the months of June, July, August, September, and part of October were booked.  I am positive I lost thousands of dollars worth of bookings because of this guest.  Then to threaten to go to the city and report me..... Airbnb refunded her $2488?  How is that possible if they didn't have a hold on her credit card?

The guest still owes me $509.68.  This loop-hole needs to be corrected.  

[Mike1034]

@Karen57  And @Rosemary-and-Lisa0  As hosts, we have to be prudent in screening guests for long-term stays. Long-term guest’s are normally take a huge discount. 

I have been lucky to host long-term guests who are interns working for tech companies in Silicon Valley. I also hosted a few travel nurses staying for their contract work. All of them are pretty good. Therefore, the purpose of the guests staying for long term should be considered.

In addition, there is a risk of guest establishing residence status, if they stay without pay, you have to use the standard eviction process that can take a month or two.

[Rosemary-and-Lisa0]

Hello @Mike1034  and @Karen57 

Yes, even though I was prudent in screening it turned sour when it came to paying the penalty for cancelation.   I also am very lucky to have hosted many travel nurses and interns, this particular guest had four good reviews, two as a long term (3 month) guest, and this intro:

Hello, I will be relocating to the area for work and I am exploring various locations. My work requires coverage of 12 states, which may require overnights outside the area on fairly regular basis. Previously I worked as a travel nurse and used Airbnb for my 13 week assignments. I always had a great experience. Most of my work will be in Chicago and Milwaukee area. Have you hosted long term professional guests? I appreciate any further information you can provide. Thank you

I should have have questioned her asking if I've hosted long term guest since the title of the listing starts with Interns. : )    So, the issue is really the way payment is handled by Airbnb.    If the total amount of the reservation was held on a credit card, by Airbnb, similar to the way car rental companies secure payment (this verifies the credit line is available) that may help.  

In my case putting a hold on the funds would not have helped because, I am most certain, this woman had the funds available.  Ultimately she was unhappy that she wouldn't be able to utilize the room as often as she thought she was going to.   She canceled  and obviously hadn't read the long-term cancelation policy.  So what I am being told by Airbnb is that the funds she owes me are unavailable.    Maybe she is using a debit card for payment and can keep the account under the amount she owes me.

As hosts I believe there should be a solution to this.  I am sure I lost thousands on this one, just for the fact summer internship programs and halfway over so those interns already are booked elsewhere.    

Any suggestions for a better way to get guests to make good on their payment/penalty obligations for long term stays?     Verifying fund availability and holding funds is the only solution I can think of.

[Mike1034]

@Rosemary-and-Lisa0 When the guest owes money, Airbnb should send the guest to collection. If there is no way to control this, many bad guests will just do the same.

[Rosemary-and-Lisa0]

@Mike1034  I spoke with Airbnb this morning and collections  is where this guest will be going to.  What it seems like the guest did was to call in her credit card as lost or stolen, it would not cancel the credit card, but it would stop any charges being put through on that particular card number and the card holder would be issued a new card.   Loop-Hole 

I will also give Airbnb another few days to see if they have luck collecting the funds.  If not then I will have to have a lawyer contact their legal department to initiate a small claims againt the guest.  If I do not do this and the guest does not pay through Airbnb, then I believe the guest will feel like " I got away with this".   At least if I get a lawyer involved she may think twice before not paying her bill.

I am providing feedback to Airbnb with suggestions on how to manage payments on long term stays.  

[Mike1034]

@Rosemary-and-Lisa0 Good job! Some bad  guests wishfully think that they can get away with not paying by cancelling credit card. If we host don’t do something with it, they may do it again.

Please do leave a review stating this fact. Then other hosts will not accept her booking.