Funding Damage Claims

[Robin4]

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

[Rebecca181]

Hi Alex,

My current screening system took a year of tweaking, and I may tweak some more, but as my 5 star reviews started to pile up and I sold out every month, I was able to ask more of prospective guests before booking - Something I could not do when just starting out and no / few reviews. The fact is (and you will learn this) MANY guests do NOT read the listing or the House Rules. They read the summary and look at the photos only. And that's a real problem for us hosts, because it can result in unhappy guests and bad reviews, even though it is not our fault that they did not read the listing.

My rental is sought after now and in the High Season (Spring / Summer) I sell out early; so this puts me in a good position to ask prospective guests to step it up a bit. For example, I utilize the 'Guest Requirement' section under Booking Policies to the fullest extent, and I do add custom questions. I also have a line in my House Rules that when the guest Instant Books my place, they need to message me that they read my entire listing, 'Other Things To Note', and ALL House Rules, and they must state they agree to abide by my House Rules.

If I don't get this acknowledgement in a message from them when they book, I know that they did not read my listing. I then write them and let them know this is a requirement and to confirm the booking they need to read my entire listing and message me that they have done so, and that they agree to my House Rules. Some guests message me the first time correctly; others need a few prompts to get it right. I've never had anyone present as upset that I require this; and since instituting this, I have had no issues with guests breaking House Rules. I have had people ask if any were 'bendable', and depending on the circumstances, I do sometimes alter the rules for people if it makes sense (allowing children under 8, vaping outside, etc).  I have also had a couple of people cancel their reservation, which is just fine by me - Potential trouble avoided. If I were to not get a response at all, I have cause to have Airbnb cancel the reservation on my behalf without my being penalized, as they did not meet my Guest Requirements for Instant Booking if they do not send me a message when booking confirming they read everything and agree to my terms.

i look at other listings in my area and I am really amazed that owners rent their place out and have no House Rules listed. Some of these places are as nice as mine, or nicer. It seems they take just about anybody, no questions asked, especially the property managed listings.  I just could never be that trusting and laid back, even with great commercial insurance (which I have). In my life, often the worst case scenario happens, so I tend to plan for the worst!

Can't tag you - Hope you get this!

[Mariann4]

I just added a bonus question for IB's thanks to you, @Rebecca. Had been thinking about it more than once. But the same question applies for guests booking the standard way... One day I'm about to post notes in the bathroom. The other day I'm trusting the guests. But I see a certain type of guests are sticking out as the ones having the long shower. And communicating with them is usually a bit hard due to language barriers. I can't ask people to share a bible of information before a one night stay. It's a hard knock Airbnbhostinglife sometimes 😄

Mariann 🙂

[Alex1062]

Rob,

This was a nice read, and very informative. I just started booking guests this month, so I'm still building on my research and trying to find new ideas. 

You have a practical view of Airbnb, and I feel the separate account for damages to be a great idea that I'm likely to copy.

Thanks for the great post!

[Robin4]

Alex, you will be a successful host, you are starting out the right way.

In my first full year of hosting, I hosted 18 guests. In my second full year of hosting I hosted 127.

The only difference between me and a 400 review Superhost is, 2 years.

I will get there, and it is because of what I learned here on the Community Centre that is doing it for me.

Take on board what many of the great contributors here can offer. They are not always going to be right but they all speak from experience and the two reasons they are here is to learn more and to help others.

This is a pretty good spot to spend some time Alex, make the most of it, and....good luck!

Cheers.....Rob.

[Deborah393]

Sorry all the supposed hosts who agree that security deposit are unnecessary are completely wrong, they  are obviously Airbnb stooges, A bond is a deterant for all the negatives related to short term renata

l accommodation, when a society is aware that there is no penalty to inappropriate behaviour you are asking for real trouble, no wonder Airbnb is under such pressure all over the world. 

[Deborah393]

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. What 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.

[Stay-Asheville0]

There’s a big difference between wear and tear and a guest outright breaking something. 

For example, I charge a rekey for lost keys. Do you know how many claims I’ve won every time someone leaves with the keys? ZERO 

People steal things. They break things through negligence and abuse. They have to pay for it when they do. Airbnb is illegally handling deposits, at least in North Carolina. 

Theres no other hospitality business in the world where it’s unexpected to pay for incidentals. 

[Tueykay0]

Since I offer long-term hosting, there is always 1 -2 guests/ year that loses a set of keys. I obviously need to make a new set. It costs me about $7-10 USD depending on where I go. I've never asked a guest to re-imburse, not because I don't think they should pay, but it's because they are staying here for another 1+months and don't want to create tension between us.

Add that I also provide water and snacks, the expenses add up. I feel that Airbnb should allow long term hosts to collect an additional minimum fee of $20 for these kind of incidentals.

[Jessica-and-Henry0]

Tueykay......just simply adjust your monthly rates to factor in costs of replenishing water and snacks. 

I host a lot of long-term guests as well, and I provide the same amenities (water, snacks, soap/shampoo, TP, Q-tips) and endless supply of clean towels and bi-weekly bedsheet changes. I also handle all of the trash disposal and recycling. I make sure my monthly payout is enough to cover a generous supply of what I provide to guests. It's not hard to adjust your monthly discount to 3~4% less than what you currently have so you can get $20~30 more per month. In case of keys, I state in my listing description that I will charge $50 for lost keys to cover the time and expenses - so my guests are always very careful about the house key. 

[Tueykay0]

Jessica & Henry

I can only raise my rates so much or I won't get any bookings as it's very competitive here. Plus, being in Santa Monica regardless of the rates, the guest is charged an extra 14% in taxes. I need to factor that into what the guest will pay in total and it adds up.

Per Airbnb requirements, I supply the basic essentials (soap, shampoo, towels, bedding) plus more such, as yourself- Qtips, cotton balls, tampons, water, healthy snacks, access to my washer & dryer, separate from the small welcome basket of water, granola bars, travel size dental floss etc. This is my way of standing out from all the other rooms available in my area. 

I will put on their agreement that a lost key will cost $10 to the guest and needs to be paid in person. Thanks for that tip.

[Jess78]

Both Shawn and Rob are correct, at the same time.

Rob is adjusting to a policy that she knows she has to live with and cannot change, dealing with a problem in as rational a way as she can. If you want to keep hosting on Airbnb, that’s the only solution for hosts is to raise rates to cover the lacking security deposit funds. 

Shawn is correct. A security deposit is a trust and isn’t negotiable in almost any other circumstance except on Airbnb. It is foolish to rent a property with any investment value at all without one.  Additionally, renting a room in a home is a lot different of an investment than renting an entire home out- the risk and investment are much much higher.

Raising rates to cover the missing security deposit doesn’t work in many instances because of competitive markets. If I raised my home rental rate by $20 per booking to put into a reserve, it wouldn’t get booked. It’s that competitive here. And even over the course of doing that for a year, wouldn’t be a drop in the bucket to truly cover a guest who does a lot of damage. 

So, I agree with rob, living and adjusting to the real world is our only choice as hosts if we choose to stay here. However, that doesn’t make the practice of an imaginary security deposit ethical or excusable or even tenable from a host perspective. 

Risk v. Reward. In some cases it pans out. In others it absolutely doesn’t.

[Rebecca181]

Deborah in Terrigal, Australia: You write: "Sorry all the supposed hosts who agree that security deposit are unnecessary are completely wrong, they  are obviously Airbnb stooges, A bond is a deterant for all the negatives related to short term renatal accommodation, when a society is aware that there is no penalty to inappropriate behaviour you are asking for real trouble, no wonder Airbnb is under such pressure all over the world. "

My response to you: I find your comments to be quite abrasive in tone - Has anyone else ever mentioned this to you? Something you might want to look at. Not condusive to constructive community exchanges. Now, on to your comment, which I have cut and pasted, above:  I've voiced here many, many times my thoughts and feelings about certain problematic Airbnb practices that strike me as grossly unfair to hosts and could be considered unethical. I can do this, via this public forum, while also at the same time accepting the reality of the platform I choose to list on. So, unless you have read every one of my posts and comments, it is rather presumptuous to imply that I and other hosts here who have found our own ways to deal with Airbnb's problematic practices are 'stooges' secretly working for Airbnb. I read enough posts here to realize the security deposit is 'phantom' and likely worthless. I found my own way to handle this - Raise my price a bit, and also, protest on these forums that we need a *real* security deposit. You don't have to agree with my way of finding a solution that works for me (and for some other hosts). But you can disagree respectfully, which I believe is what is expected of us on this forum. 

[Rebecca181]

Deborah in Terrigal, Australia: You write: "Sorry all the supposed hosts who agree that security deposit are unnecessary are completely wrong, they  are obviously Airbnb stooges, A bond is a deterant for all the negatives related to short term renatal accommodation, when a society is aware that there is no penalty to inappropriate behaviour you are asking for real trouble, no wonder Airbnb is under such pressure all over the world. "

My response to you: I find your comments to be quite abrasive in tone - Has anyone else ever mentioned this to you? Something you might want to look at. Not condusive to constructive community exchanges. Now, on to your comment, which I have cut and pasted, above:  I've voiced here many, many times my thoughts and feelings about certain problematic Airbnb practices that strike me as grossly unfair to hosts and could be considered unethical. I can do this, via this public forum, while also at the same time accepting the reality of the platform I choose to list on. So, unless you have read every one of my posts and comments, it is rather presumptuous to imply that I and other hosts here who have found our own ways to deal with Airbnb's problematic practices are 'stooges' secretly working for Airbnb. I read enough posts here to realize the security deposit is 'phantom' and likely worthless. I found my own way to handle this - Raise my price a bit, and also, protest on these forums that we need a *real* security deposit. You don't have to agree with my way of finding a solution that works for me (and for some other hosts). But you can disagree respectfully, which I believe is what is expected of us on this forum. 

[Rebecca181]

Deborah in Terrigal, Australia: You write: "Sorry all the supposed hosts who agree that security deposit are unnecessary are completely wrong, they  are obviously Airbnb stooges, A bond is a deterant for all the negatives related to short term renatal accommodation, when a society is aware that there is no penalty to inappropriate behaviour you are asking for real trouble, no wonder Airbnb is under such pressure all over the world. "

[Chris1153]

The larger issue is... is AirBnB protecting hosts well enough? The answer is largely no. While a great marketing and connected commerce tool the terms of use and practices are not very good. They pressure hosts to accept any and all reservations and then push back on claims for damage and negative repercussions for rejecting inquiries.

I appreciate the sentiment that we need to run our "own" business. There is a difference between hosts and a normal hosting operations i.e. hotels is that hosts don't have security or on-site staff to ensure their property is not misused. Hosts need to make a decision up front based on little information whether to accept a questionable guest and face the consequences of a rejected reservation. While it may seem a gift that they supply guests, us hosts need to supply the inventory. Both are equally as important but not treated that way. 

Monies should be set aside for normal wear and tear but real misuse like broken items and types of property destruction are a real issue they should cover. After all they are "vouching" for guests and should be making sure that they are doing everything they can to minimize the incidents and support hosts as much as they can within reason. Which they are not quite there and I see it going in the wrong direction.

[Fred13]

At some point the Airbnb facts should hopefully paint a true picture for each individual that lists with them; this is the one that it painted itself for me at some point last year:

1. Its model is fundamentally: charge a small fee to their 'suppliers' (aka hosts) and also entice them to the 'Airbnb Community' with a cunning marketing sales pitch ('Host Guarantee'); be extremely guest centric which is attractive to the 'buyers' (aka guests); perpetually push hosts to keep their prices low to fight their true competition (aka hotels); and fight tooth and nails with hosts when one of 'their' guests proves extraordinarily 'costly' because they are a low life or a lunatic.

2. Airbnb (of all booking agencies like VRBO, Trip Advisor, etc) has the most hosts, the most listings, books the most nights in more places throughout the world than any of its competitors, by far. Let's get real, they bring the numbers!

3. It has zoomed past all the competition, with this existing model. It really hasn't changed much in years, at least not in the last 4 years I been with them.

4. While no one is forced to list with them, the great majority of hosts have and continue to do so. They can't fool all the people forever, so they must be doing something 'right'.

5. Hosts want more from Airbnb that they are offering today: a 'true' security deposit, a change in the star/review system, better Customer Service to hopefully lessen absurd decisions in host-guest conflicts, maintain Superhost and leave it 'as is', hold the occasional low life/lunatic guests more responsible, etc. Many are great changes in theory and maybe some are easy to do, some however are monetarily or marketing 'costly', and perhaps they must move cautiously for they are looking at...

6. They are headed to an IPO, which means they are not about to rock the boat radically until they do. They will, in all likelihood, change much when they do become 'public'. 

So, to me, that is where things stand, and based on the above-mentioned facts I am relatively happy (and certainly grateful) for Airbnb. Nonetheless, I am constantly thinking each day how to compensate for their 'shortcomings' and how to circumvent (quietly) their most absurd and ridiculous policies. At present, we have a 'perfect' relationship. 😉 

[Huma0]

I haven't considered factoring in extra £s to cover damages. Usually the damages are quite small things and I just let it go as part and parcel of hosting, especially when the guest has the courtesy to inform me they've broken something and offer to replace it.

However, I was left recently with a rather hefty bill (over £400) for replacing a broken front door lock. I was very wary of trying to claim for this after the all of the negative stories I've read on the forum, but thought I'd give it a shot anyway. 

It looks like all has turned out well. After speaking to a CS rep, I was told I would need to first request the money from the guest via the Resolution Centre, which I did , although I was sure the guest was going to decline. After this, I escalated it to Airbnb and very quickly got a response that the money would be refunded to me. The payout hasn't been made yet, but so far I'm very happy with result.