Airbnb is a great platform and can book homes and create revenue. Setting up is relatively simple and the platform can generate revenue no problem. The devil as always is in the details.
We look at what you need to be aware of before you start working with the platform and what can be done to overcome these problems.
Use Airbnb, but go in with your eyes wide open and the problems as a host that exist and try to manage the problems before they hit you and it is too late.
Some items you may want to make sure you are aware of:
-Damage Insurance is included in guests' stay by AirBNB. Why is this a problem? A guest has no incentive to look after your home other than a bad review, figure the damage insurance will take care of any damages.
The claim process needs to be immediate and well documented with costs. It is a tedious process to claim for damages. You have to go through a technical dispute process and often you can be ruled against. Brings us to point 2
-The solution there is no real solution to this as this is an AirBNB rule.
-Damage deposits not automatically collected - should require a min of $150 per bedroom should be automatic and managed by AIRBNB. What do we mean? If the guest has in escrow $450 of their money for damages the way they treat your home will be vastly different. They may repair any minor damages and be extra clean, careful and respectful of the property. Damage insurance provides zero incentive, especially if the guest is not even fully aware of it.
-The solution being put a damage deposit in your terms and conditions and make sure you manage the process. Again, check AIrBNBs rules on this as some accounts they do not allow you to collect damages deposits at all. All, of course, must strictly be done through the Airbnb platform.
-Fake profiles - People can book with nothing more than an email and phone number. We think Airbnb should require 2 government forms of ID minimum, as well as at least 1 verified SS media profile or a third government ID for every guest. This, of course, would cut the number of users, but would dramatically alleviate bad or fake guests. You can set this, but you filter out a lot of guests. Airbnb should require this, but they will lose the people that don't want to.
-The solution, once the guest has booked request a copy of their driver's license and verify it matches the name on the reservation. You can require a complete profile for any guest to be able to book your home (but will reduce the number of bookings.
-Bad guests hard to spot. If a guest damages a home they get a bad review they can create a new profile in minutes. A host can not do this as easily as they may have other reviews. It is lopsided to the guest. Airbnb recently announced they are verifying all homes. Homes may soon be inspected and document verified with either a proof of ownership, lease or management agreement by hosts. But so should people making the reservations.
-Solution - GUests with no reviews or bad reviews, make sure the guest has at least a government IDs and some for refundable damage deposit as allowed through Airbnb for your particular account.
-Airbnb often sides with guests - Example - AirBNB gives full refunds for hurricanes, even if they do not directly affect the home area in question. No questions asked, even at the last minute !00% is the host loss. Totally unfair to the host. Why not offer travel insurance for these very reasons? This helps protect the guest, Airbnb and the host.
Solution - There is no real solution to this other than ask AirBNB to change the policy for canceling due to weather etc to protect the host.
Limited protection for hosts in scams. The newest scam is the guest to say there are cameras at home. They immediately refund guests and remove host no questions asked and no possibility to prove the claim is fraudulent.
-Solution - Document, document,...
