Airbnb Hosting Risks and How to Manage them | Safeguarding your Vacation Rental

Nothing is without risk, including running an Airbnb vacation rental. As exciting and profitable as it can be to host an Airbnb, there are several inherent risks associated with operating a vacation rental, from guest issues and legal issues to regulatory problems.

What are the Biggest Airbnb Hosting Risks?

1. Bad Guests
2. Bad Reviews
3. Guest Cancellation
4. Theft
5. Injury

What are the Risks of Hosting on Airbnb and How to Manage them?

Here we explore the main risks associated with hosting on Airbnb and provide measures you can take, as hosts, to both prevent and manage each risk.

1. Bad Guests

Hosting on Airbnb can expose you to bad guests, who damage your property, are excessively noisy, break your house rules, throw unauthorized parties, and even engage in illegal activities. To prevent and manage the risk of such bad guests, you can:

• Turn off Instant Book and screen guests to ensure you don’t allow bad guests into your vacation rental

• Set clear rules and expectations for guests, including rules regarding behavior, noise, and parties

• Ask guests to sign a short term rental agreement

• Ask for a security deposit/damage deposit

• Make sure your cleaners take photos before and after each guest’s stay so you can dispute any false claims made by your unruly guest

• Monitor the property closely, through noise monitoring devices and security cameras

• File an AirCover claim

• Be aware of local regulations regarding short term rentals and follow them closely

• Respond quickly to any complaints or issues that arise during a guest’s stay

2. Bad Reviews

Bad reviews can harm your reputation, deter future guests from booking your property, and ultimately impact your revenue. To prevent this risk:

• Communicate clearly with guests before, during, and after their stay to address any concerns or issues they may have

• Provide clear instructions in your house rules for accessing the property and using any amenities or appliances

• Keep the property clean and well-maintained to ensure that guests have a positive experience

• Respond quickly and professionally to any negative reviews and try to resolve any issues with guests directly

• If you have been negatively reviewed unfairly, you can contact Airbnb to try and get the bad review removed

3. Theft

Theft of personal belongings, whether it’s guests stealing items from your home or outside parties stealing guests’ items, can be a challenging experience and leave you at a significant loss. To prevent and manage this risk:

• Turn off Instant Book and screen guests to ensure you don’t allow criminal guests into your vacation rental.

• Install secure locks on all doors and windows

• Install a security system with an alarm

• Do not leave any valuable items in plain sight. Keep them locked away securely

• Consider installing a safe to store valuables

• Make sure your insurance policy covers theft

4. Guest Injury

When guests are injured while on your property, you can be held liable. To prevent and manage this risk:

• Make sure that the property is safe and free of hazards

• Ensure your property complies with all fire, health, safety, and building regulations

• If possible, have a professional conduct a complete inspection of your vacation rental, from appliances and wiring to stairways and furniture material to the grounds to ensure you have no cause for concern

• Provide clear instructions for using any amenities or appliances

• Have appropriate insurance coverage in case of injury or other legal issues

5. Guest Cancellations

If your guests cancel their reservations too often, it can leave you scrambling to try and fill those dates at the last minute and impact your revenue. To prevent and manage this risk:

• Don’t be too flexible with your cancellation policy. If you allow guests to cancel without incurring a loss, you are likely to experience more cancellations

• Communicate clearly with guests before and during their stay to address any concerns or issues they may have so they don’t cancel and ask Airbnb for a refund