@Catherine468 Some thoughts for you. I too have a strict cancellation policy. I very rarely get cancellations, but when I do, it somehow really bothers me to just flat out take the money. I know it's a business agreement, and I shouldn't feel that way, but I do. Well, how I feel has a lot to do with how the cancellation is approached by the guest.
If they are pleasant, and seem to have a valid excuse (how would I actually know? I wouldn't, but I can't do much about that), I will try to work with them to reschedule for another time. That way, the offer is there, and it's up to the guest to make that decision. You can obviously stipulate that it has to work with your calendar, and perhaps not a prime holiday weekend.
Otherwise, if that doesn't work somehow, I try to give them something. I figure I'm making several hundred dollars for *nothing* (I know, it's not really nothing), and I give them a portion back. I try to put myself in their shoes, and act accordingly. I think the good karma will be my payback.
It's obviously completely up to you, but these are my thoughts. I just gave $350 back to a VRBO guest. She was young, didn't pay attention when booking, and her girlfriend had a medical issue (not an emergency). I realized from her communication that she truly didn't understand, and that this weekend was a big deal for her and her GF, and the disappointment along with the monetary loss was a big deal as well, so I covered my cleaning and the VRBO fees and gave her the rest back. I feel okay about it.
Good luck with whatever you decide. Kia
