Guest demanding entire cleaning fee refunded "or else"

[Jeff541]

My first time as a host...My 2 bed-2 bath luxury condo (with 2 pools etc.) in a very desirable location in Phoenix AZ was offered at total cost of $105 per night (nightly rate and cleaning fee combined) This is rate was well below any other similar Airbnb condo in my area and less than half the rate for a single room at nearby hotels.

I am a college professor, accordingly my home is on occasion available during semester breaks. I asked Airbnb for 7 day notice to book a reservation. None was received; However I always thoroughly clean and prepare my home (a 7 day process) before I depart (in anticipation of friends or family that may-and have-used my condo during my absence). During my flight to the east coast to be with family for the holidays,  I received a reservation request (3 days before requested check-in date) from a guest that was unable to occupy their home due to home restoration being performed (water leaking-flood-damage). Due to their unfortunate circumstances and knowing my home was perfectly suitable for any friend or family to reside, I accepted the reservation

Unfortunately the wife of the Guest that made the reservation is a self-described "clean freak" and "extreme critic". Apparently her definition of "cleanliness" is such that it is unobtainable by any Host other than herself. She repeatedly noted that "my cleaning fee was high" (totally dismissing the amazing housing value she was receiving) and is demanding that I pay her the entire cleaning fee that was published..."or else". Such a payment would reduce their total rental rate down to $89/night (Similar to a single room at a very undesirable hotel during December in Phoenix, AZ)

The Guests did not rate or review my condo or their stay with Airbnb within the 14 days allowed. I waited till the 14 day deadline date, but given that they did not post a review...I did the same...no guest review-rating posted. However since that date (they checked out 21 days ago departing with several of my items) she has been texting me demanding the entire cleaning fee be paid to her. She also stated that her husband (the person who made the reservation) is too busy to deal with this issue...and if I don't pay her the entire amount she will file a complaint with Airbnb and get a full refund.

What should I do...short term and long term?

1. Should I pay her and move on even though I feel that is wrong in so many ways ...or refuse and await further actions-complaints from her-Airbnb
2. Should I file a complaint with Airbnb now? (I did call them concerning this issue)...Seems to me this is extortion, requesting money with the threat of ratings-complaints hanging over a Hosts head.
3. Since the term "clean" is so subjective...Is it not possible for every Guest to make such demands? Or make these demands a habit...in essence scamming many Hosts?
4. Should I ignore Airbnb's published advice...i.e. to discourage short-term stays and have ample funds to restore condo (including consumption-damages-missing items) charge a high cleaning fee and publish a low rental rate... which as a new host is what I did?
5. Should this be my last Hosting event? (This is not a business for me...may only occur twice during a year)

Thanks One and All for your insights

[John1080]

@Jeff541, cleaning fees are always on most of our minds and there has been extensive discussion about it. Personally, I have found that a lower cleaning fee is best. I have a $50 fee, but of course, that doesn't cover the cost of paying my cleaners. For the rest of the actual cleaning fee, I just factor it into the total price. 

If the fee is too high, some guests will think they don't have to clean at all. At one point, I had my cleaning fee at zero and just factored in the entire thing, but now that Airbnb has changed the way that listing prices appear, adding a smaller fee of say $50 helps to keep the nightly price more competitive if that makes sense.