Funding Damage Claims

Robin4
Level 10
Mount Barker, Australia

Funding Damage Claims

 

I realised from posts just like one I just read from Lisa in Chelsea MA that have been circulating here on the forum since I became an active host in 2015, that I could not rely on support from Airbnb if a hosting turned sour.

There is a possibility that I might get something but, the probability is that, that something may be less than 20% of what I was claiming. 

I, at that point, upped my hosting price by $6 per night and put $10 per hosting night into a 'damage' account. There is currently over $1,860 sitting in that account, earning interest....at one stage it was well over $2,000, but I have had to make a couple of claims on it.

 

Nobody argues the point with me when damage is done....I don't have to go through the hassle of abusing the guest, submitting a claim, potentially loosing a reservation until the damage has been assessed and then getting a pittance offered to me by CS.....why would you put yourself through that?

 

I am insured for public liability and major occurrences like the building burning down, but I have a $3,000 excess to keep the premium really low.  Minor things like a broken microwave or a lost key, I just go to Kmart and buy another microwave for $45.00, I go to Bunnings and buy another lock, about the same cost....an hour later I am back in business....no hassle, no agro, no let-downs! And Airbnb thinks I am ace because I don't expect them to be anything other than a booking platform...I have never approached them with a damage claim....and, I never will!

 

I just fix the problem and get on with the business of hosting! In short, it is money I would not have otherwise had, so, I win on all fronts.

We as hosts need to understand we are running a business and it is up to us to make sure we run that business in a professional way and that includes insuring our risk.

 

I would ask hosts to please do not expect Airbnb to be our 'fairy godmother'...they aren't, they are simply a booking platform. Like Fred I would dearly love to see Airbnb get rid of this sham business of lottery win compensations if things go wrong.....It's never going to happen, and believe me, I have seen a lot more of these problems across this computer keyboard than you have.

 

Hosts, please do what you do well, host...... and let Airbnb do what they do well, book guests!

 

Don't expect something that will in all probability, let you down!

 

Cheers.....Rob

86 Replies 86
Christine1
Level 10
Glenbrook, Australia

Hi Rob. I  am with you on this. I  don't keep any money in a set aside acvount but mentally work it in the same way. Set a tariff to include wear and tear and the occasional accident and damage. For sure these things are going to occur from time to time. Its like your own inhouse Airbnb  accidental damage polucy-premium -fund-claims department. 

For some osts 5 or 10 on the nightly rate or cleaning fee would do the job. Especially if they prescreen their guests. The fund will remain intact.

Smiley face.

Robin4
Level 10
Mount Barker, Australia

Christine, it is a good policy to keep a set amount in another account because every now and then you can look at it and each time you do you think....'Wow, that's a windfall'....it is a tangible amount sitting there. When you just allow for it in your hosting amount you forget all about it as just the cost of your listing, and when an 'event' happens you are annoyed because you have forgotten that you actually allowed for it.

Put it somewhere where you can see it grow like the veggies in the veggie patch. That way you will really appreciate it and understand why you did what you did.

Christine, I know I am going to get caned by a multitude of hosts who will say..."I can't afford to raise my price by $1 let alone 6-10, too much competition in my area" ...to which I will say 'Bull'!

 

I recently set a cleaning fee of $10! Now there is no way you can turn around a listing for $10 but, my bookings have actually increased since I set that cleaning fee and the guest response has been an overwhelming....'thank you for being honest with your cleaning fee charge, if that is an illustration how you look after your guests...I am in'! I am seen as looking after them, not screwing them. Had I set that fee at $70 for an $85 pr night listing I would have been seen as a shonk, trying to gouge them for more money!

 

Good on you though Christine....we are on the right track, hey!

 

Cheers.....Rob

 

Nicely put Robyn. 

Some Hosts will benefit from having a separate pot of money. So they will be reminded of how much they have brought in separately. I don't need it but others could definitely find it handy to have ready money at short notice. 

A security deposit has always been a deterant against bad behaviour, damage, breaking of house rules etc. If Airbnb controls all payments but dose not apply this required charge, we as host should have the ability to charge it ourselves. To appear to take a security deposit but then openly inform prospective guests that they do not is simply false and is used as a commercial advantage for bookings at the hosts disadvatage. Wait till authorities impose a 2 strikes and your out for 5 years which Airbnb completely supports. You have no deterant and you are held totally accountable. Its almost impossible to vet clients prior to accepting a booking , as well declining a booking because its detramental to your house rules is very detremental to your listining. Obviously Airbnb is not really a community based system , its a profit motivated system that monitizes the community concept to the comunities detrement !

I agree Deborah,

My security deposit for bookings is used only if a large item gets damaged and or the property has damage to it. We are a large property, 35 acres and we have up to 18 guests staying at the property. You aren't going to always know what your guests are doing all the time, and if there is damage it is the renters responsibility - even when they may no know about it.

 

So, for me, know your family and friends who you are inviting to stay on your behalf. I am in a discussion right now about guests who not only broke the rules in smoking (Mariguana) in my home, but they burned holes in my carpet that can't be repaired. The cost to replace the carpet is over $3,000 US dollars, this isn't a small repair for me, but I don't think I will get any help from Airbnb to fix this. Funny thought because my microwave just died, but it's just normal use, so I bought a new one, I'm not looking to blame people for breaking stuff, sometimes things just stop working, but sometimes the guest has to be responsible for the damage they caused. This wouldn't have happened if they had just followed the house rules and smoked outside.

@Janine11 ,

Hi Janine, I'm writing to ask for an update on how you dealt with the damage to your carpet. I know you indicated that the cost of replacing the carpet  was in access of your security deposit. 

Did you decide to make a claim  that would at least give you a partial contribution towards eventual replacement of the carpet? If you replaced the carpet, did you claim the cost as a tax deduction? What options did you decide to implement and how did you feel in the end regarding the way you were ultimately able to manage the situation? For example did you opt for accepting a limited damages claim which coul be set towards an eventual if not immediate carpet replacement? Did you perhaps cover the burns with a rug, for immediate cosmetic improvement, and protection of the main floorcovering?

What benefits did you recognise in the resolution pathway that you implemented?

I'm interested in hearing your reflections on this experience now that some time has passed. 

Thanks for sharing.

Regards, Christine 

 

Hi Christine,

I did submit to Airbnb the damage to the carpet. They asked if I had a patch piece that could be put in to fix the damage area, unfortunately there are no closets or places that I could get a piece and I didn't have any leftover from the installation. They no longer make the carpet as I was asked to contact Mohawk about this and had to get a letter from Mohawk (the carpet manufacture) stating they no longer make the carpet. Airbnb basically told me the replacement was too much for the guest. The damage is literally in the middle of the floor, so not an easy spot. I did research and presented Airbnb with pricing on an area rug to cover the damage and they again refused to cover that too. So, I purchase a rug to cover the damage from my own money so my future guests don't have to look at a the damage until I can purchase a new rug for the space. It is very sad that Airbnb can't see that guests are at fault and now they know it doesn't matter what they do, they won't be responsible for their actions. 

I was able to write off the new carpet as an expense for my taxes, but that still doesn't make it right that the guest didn't have to pay for the damage. I wish there was even an option for some kind of financial compensation, but that was never even offered. I was angry, frustrated and it was incredibly time consuming for the things that Airbnb asked for that were almost impossible for nothing. 

I don't agree with Airbnb's policies on damage, my contract clearly states there is no smoking in my home and all security deposits will be forfeited. They don't agree with that statement either and don't let me as a host give consequences for guests bad decisions.

#protectthehost

Thank you for this informative reply. I appreciate the time you spent to help educate other hosts.

 

Agreed @Robin0 - I have a separate lump sum (about $1000) set aside for that purpose. I do state in my listing that regardless of intention guests are expected to take "responsibility" for damage to my home or misuse leading to breakage (and emphasize they absolutely need to read the directions I've provided before using my appliances!) but also I have no intention of going nuts over a broken cup or plate that happened to slip while the guest was doing the dishes. I'd be more concerned about making sure the guest did not cut themself while trying to clean it up.

Sorry a security deposit is a deterant against bad behaviour which effects the amenity of neighbours prior to accepting a booking rather than minor breakages. Good luck when you are shut down because your neighbours comply to authorities.

 

Cathie19
Level 10
Darwin, Australia

Same here @Robin0@Jessica-and-Henry0 and @Christine0.

 

i never charge for small breakages like a glass, or a damaged towel. That’s considered human consumables. I always buy good quality in sale, so just shake it off....

 

If a parent has a sick child, I don’t charge for the extra twice wash the items might get. Scratches happen...I do suggest to parents that they know their children best. “I have left things down, but if you feel they could be damaged or broken by your children, happily put them up high, or in the laundry where I will remove them for the duration of their stay.”   I put the onus back on the guest, and they have always taken that responsibility well.

 

My cleaning fee is Australian$30, which is only the cost of my cleaning products and maybe some water from washing linen.  No one has ever mentioned the cleaning cost. It’s obvious it doesn’t cover labour. But putting the money aside, does allow me to go and buy what needs replacing. Or if I see something I might like to add to the space, a book etc... it’s doable. 

 

Luckily, I’ve never had major damage. Chipped floor tile, but I could have just as easily done that! 

Wear and tear consumables... 

I am pretty shocked at the number of hosts that are openly acknowledging abuse  and misrepresentation on the part of Airbnb toward hosts, and then not only encouraging its occurance but actually advising hosts to ignore and pay for it.  Napkins are human consumables, dishes, linens, etc. should not be expected to be vandalized and then just written off.  This is the worst accounting advice I have ever heard.  It seems to partially explain why Airbnb is becoming so brazen in their open abuse of hosts and their utter disregard for their own terms of use.

 

It is crucial that the little guys stick together and strive to insist that the terms we sign up for are adhered to.  As a host/super host of over seven years, it saddens me to see how badly Airbnb has degenerated.  They seem absolutely out of touch with the people providing them the real estate they need for THEIR guests.  Having had to settle numerous claims (some taking months to complete), I can attest to the reality of Airbnb blatantly disregarding their own terms of use.  I would not use that as a platform to enable the abuse by Airbnb to continue.  

 

Please insist, as hosts, that Airbnb be the company they portray themselves to be.

I hope you have no neighbours, because you are obviously only concerned with minor damage rather than your neighbours amenity, no wonderAirbnb is under so much regulatory pressure all over the world including Australia. Security deposits are not about minor damage they were are deterant against bad behaviour and the breaking of house rules prior to accepting a booking. Airbnb through its polisies has undermined this process as a commercial advantaged againts their competition and nothing more or less ! (at our expence)

Ute42
Level 10
Germany

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Hi  @Robin0 ,

 

I'm glad You brought this subject up and I agree a 100% with what You say.

 

I personally don't look at a damage related to a specific booking, I look at an entire year. I host 30 groups of people per year, have an x-amount $ of revenue and a certain percentage of this revenue is dedicated to pay for repairs and broken glasses.

 

I do not get involved in a discussion with my guest over an amount of $50, let alone calling airbnb for that. Depending on the price of a specific booking, I even swallow up $200 without bothering my guest with this. This generousity of course goes along with the pricetag that I have for my place. In high season my place ends up costing $2500 a week for 10 people. Someone who pays that price will not get bothered from my side with an invoice of 200 bucks for a broken chair. 'It's been nice hosting You, thank You for Your business, leave us a nice review'.

 

Discussions about small damages will generally end up in a bad review from the guest. The damage that I have inhouse was maybe $100, the damage a bad review can cause to my business, may be houndreds or thousands of USD. It's just not worth it.

 

I fully understand that the generousity a host can show depends on his rentalprice, everyone may set his own rules concerning this matter. What I do not understand though is this: Recently i read a post here in the CC where a host was claiming $16 for a damage from airbnb. Airbnb granted $14, the host wasn't happy with it and started an argument about these 2 Dollars. Come one, correspondence for 2 Dollars? Give me a break. I suggest that airbnb sets a minimum amount of $100 for claims against the airbnb host guarantee. That would give them more time to work on real damageclains in the thousands.

 

If You drive a car, sometimes You have to get a set of new tires. That is regular wear and tear. And if You leave Your car on the parking lot of a supermarket, someone may dinge Your fender a little bit or a dude may break Your windshield wiper.

 

It You can't live with this, don't drive a car.

 

And if You're hosting, someone may brake a plate or a leave a scratch in the table.

 

If You can' live with this, don't host.