Understanding Airbnb Monthly Stays (28+days) - GUIDE
Long Term Stays – Important Cautions
Long term stays can be an option for Hosts and can be very successful. However, be sure you thoroughly familiarize yourself with Airbnb’s long term stay policies (and other OTA platform policies) before offering them and fully understand the additional risks. This will help you avoid some common (and costly) mistakes made by other hosts. Some hosts prefer not to offer long term stays, due to these issues. Below are some of Airbnb policies and things to consider:
New Hosts & Monthly Stays
Your goal is to obtain your first 3-5 bookings (and 5-star reviews) as quickly as possible during the “New Listing” period. Airbnb gives you a temporary boost in search results rank for a limited time (about 4weeks). This sets the stage for continued success on the platform. Don’t accept long term bookings during this period, as it will delay obtaining those 3-5 bookings and ultimately negatively affect your continued success on the platform. The algorithm looks for a high number of bookings with good reviews and views those listings as “popular”. If you accept a long-term booking in the first few months (and you receive a negative review), it will have a significant, negative impact on your search results rank. After you get 5 bookings (or more), you might consider long term stays, but review the information below and be sure you are willing to accept the risks.
Monthly Stay Payouts May be Delayed for New Hosts
https://www.airbnb.com/help/article/285
If you’re a new Host, Airbnb may hold your payouts for 30 days after your first reservation is confirmed.
Getting Started with Monthly Stays
https://www.airbnb.com/help/article/2729
Things to Consider Before Hosting Monthly Stays
https://www.airbnb.com/help/article/805
Tenant Rights & Receiving Mail
In most states, if a guest stay is more than 28 days (sometimes less), they are now legally considered a “tenant” and not a guest. If they refuse to leave after their stay (squatter), you will have to go through court proceedings to get them evicted. Guests will also try to receive mail at the listing address to prove they are a tenant. Most Hosts add that guests are not permitted to receive mail or packages at the listing address.
https://www.airbnb.com/help/article/805
Cancellations
Cancellations for long term stays override your short term stay standard cancellation policy. Be sure to set your long term stay cancellation policy on the Listing, before accepting monthly stays!
https://www.airbnb.com/help/article/475
Guest Reservation Alterations
Guests can alter a long-term stay reservation without Host approval in some circumstances.
https://www.airbnb.com/help/article/1361
Payouts – Only Monthly
Payouts for long term stays are different than short-term stays. Guests pay monthly and don’t pay upfront for the entire reservation.
https://www.airbnb.com/help/article/285
https://www.airbnb.com/help/article/913
Price Calculation Errors
Price errors occur more often with long-term stays. This requires the host to verify each one for accuracy (sometimes weekly or other discounts you have set are incorrectly applied to a long term stay). You might consider only using Special Offers for long term stays. Be sure you include all fees (cleaning, pet fees, etc.) in your calculation. Airbnb will add the Guest Service Fee and any taxes for you.
Potential Damage
The longer a guest stays, the more wear and tear and potential damage can occur at the property. Be sure to document the condition of the property prior to a long term guest with time-stamped video and photos. Advise the guest to notify you within 24-48hrs of arrival of any damaged or missing items and provide photos/video of the items/damage. Otherwise, the property will be considered in good repair with no missing or damaged items.
Rental Agreements & Security Deposits
Hosts can ask for a guest to sign a rental agreement, but the entire agreement must be posted clearly on the listing description PRIOR to the guest booking. Hosts must also inform guests a rental agreement is required. If a Host tells a guest about a rental agreement AFTER a booking, Guests must read the agreement within 48hrs of receipt and can refuse to sign it and ask the Host to cancel the reservation. The reservation will be canceled with no penalty to the guest. That said, many Hosts have found it difficult to enforce a rental agreement without being able to obtain a security deposit. Only listings that have 3rd party property management software (channel manager) attached to their listing are allowed to ask for a security deposit and this is disclosed at the time of booking.
https://www.airbnb.com/help/article/465
https://www.airbnb.com/help/article/140
Utilities
Excessive utility usage (electrical, heat, AC), can be an issue for long term stays. Hosts should install smart home devices that can be used to remotely manage utility use. These include smart thermostats, smart mini-split remotes, and electrical usage monitoring devices. Some Hosts also only allow for cold water use for washing machines. You can set temperature limits on your heating/cooling and allow guests to change it within certain ranges. Restrictions on temperatures, and other utilities should be clearly shown on the listing, in additional House Rules and in the House Manual. Some Hosts also mention that electrical usage above “usual and customary” will be charged to the guest, but it may be difficult to collect that.
Scams - Long Term Stay Guest
Guests can ask for a steep discount in exchange for a 3-month stay for example. They know they will only stay one month, but want a larger discount. Then they either cancel the stay after one month, or cancel their credit card. Airbnb is not able to collect the next month’s payment from the guest and initiates the cancellation for the rest of the stay. The Host had their calendar blocked for 3 months (sometimes months in advance) and only got paid for one month at a very steep discount. Be aware the average discount for monthly stays is 20%.
Hopefully, this guide will help hosts decide whether they want to offer long-term stays to guests and provide strategies for managing potential risks.
