First, the important thing is
I use IB with these settings (and I can tell you why):
Profile photo (uploading one demonstrates a cooperative nature, though I do not actually care what they look like)
Govt Issued ID (again, getting verified demonstrates a cooperative nature, though I am not going to check their ID in person)
Pre-Booking Message I use this to get basic information (who, how many, why and dietary preferences) so that I can best customize the guests’ stay. I also mention in this message that they should turn on “notifications” in their profile so that communication is easiest.
I don’t use Recommendation from Other Hosts because it makes it harder (and effectively eliminates some) for people new to Airbnb to get booked and I personally really enjoy having guests who are using Airbnb for the first time (and spoil them so that they get hooked).
I use the Moderate Cancellation Policy. It works for me because I can almost always re-book with the 5-days notice it provides and when I do re-book I usually do so at a higher price to last minute bookers. Also, I don’t want someone coming and staying if they really don’t want to or really can’t for some reason. Life is uncertain so I am fine with people not really being certain until 5 days prior. I tried the Strict Policy briefly, right before Covid started and so it did me no good whatsoever, but I also don’t like to argue with people over money more than 5 days before their stay. I will never use the Flexible Policy because I live in a market where hosts get all crazy and drop prices to nearly nothing as dates approach so it makes it too easy for folks to bargain shop and cancel. I need a little more commitment than that and I am not going to drop prices (I actually raise them as the date nears) and am not going to participate in that race to the bottom. So, I do indeed need/want at least, but only a moderate amount of commitment, so that is why the Moderate Policy works for me.
My House Rules are primarily informative. No parties, No Smoking, Not Appropriate for Infants and Children and then I say that people have to contact me prior to booking if they are bringing a dog or need more than one parking spot. I also say that smoking is okay outside. And, currently because of Covid, that masks must be worn in common areas and that unregistered guests are prohibited for the time being (before Covid, I didn’t mind).