The strict cancellation policy is not strong enough. A one week cancelation is probably OK if you are only renting one room.
However, we have a large house of 6 rooms, meaning the whole house is available to one renter. if they cancel with more 8 days or more they pay no cancellation fee. This is a huge loss to the owner, leaving almost no time to find new renter. I feel the policy should be more flexible. In our case I would expect a minimum of 1 months’ notice when cancelling a large reservation.