Building my self-insurance fund to insure against poor Airbnb CS

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It is well documented on this forum that Airbnb CS will hand out refunds and compensation to guests as candy without verifying any info with the host regardless how many guests the host has successfully hosted. Hosts end up having to recover those losses through the good guests or out of their own pockets.

If hosts continue losing money, they may quit hosting, overall the platform loses as more hosts are always better for airbnb and guests. It allows more choice and increases the likelihood of finding something that needs their needs of the guest.

Other hosts like me who had a bad experience, bake the cost of those losses from bad guests and bad CS as part of cost of business. This increases overall rates and these are paid by the good guests.

In order to prevent the good guests from paying for bad guests, I have developed a self-insurance fund from the cancellations. Since Airbnb penalizes hosts everytime you make an error, I have stopped refunding guests for cancellations because I need a way to make up those losses. If it’s my fault, I pay for penalties/compensation; and if it’s not my fault, I keep the payout from situations such as guests wanting to cancel.

Last year about 7 % of my guests wanted to cancel beyond the cancellation deadline. I did not refund them any money I wasn’t required to (some of them got 50% back, others got nothing). This fund has helped me pay for some of the compensation requests and the scams I had to put up with. I don’t count on Airbnb support to support me. I’ve a small surplus right now.

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That’s a solid business approach, but this is not self-insurance at all and should never replace official insurance, which is also funded from our pockets (as part of the commission we pay). In my opinion, it’s even more beneficial to stay well-organized: keep proof of every purchase related to your business, learn to take high-quality photos and videos as evidence, and always assert your right to reimbursement when damages occur.

File your reimbursement claim after both reviews have been posted or on the last day reviews can be exchanged (currently 14 days). Avoid arguing with guests, and never ask them directly to compensate you before the review exchange period ends. Airbnb almost never removes retaliatory reviews, and attempting to ‘educate’ uncooperative guests too soon can backfire.

Let’s not take on responsibilities that belong to Airbnb, especially since we are already paying for their protection. I’ve been reimbursed a few time, and while the compensation didn’t fully cover the damages, I gained valuable experience in documenting issues more effectively and handling the process efficiently.

Learn and give back. Flowers or showers. What goes around comes around.

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Just have your Property become API connected. Require a signed agreement and a security deposit. The bad guests run elsewhere. Place damage protection on every booking. Develop your independence.

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