hey, no worries, as my Brit friends say. as suggested- call airbnb, say you’re not comfortable with them and ask air to find them another place. your only contact is in writing. tell them you you must leave the covers on and that air would be happy to find them another place, but usually only hotels have air con in the uk. do not answer their calls. and, yes, they are arrogant, spoiled, inconsiderate, greedy and want a refund to stay somewhere else. they’ve already found another place. sounds like “california housewives”…lol!
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Forty grand!
Blimies
If I rented an airbnb with a 40,000 sofa I’d want to sit on it as well because I damn sure won’t have any other chance to sit on one. Cloth covers on a Fendi sofa is like a Cracker Jack ring on Meagan Markle. 
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Oh well of course they did! They could not handle another moment of having to sit on cotton slip covers versus the leather…Wait, they are complaining about no A/C? Would one not prefer to sit on breathable cotton rather than sweating on leather when there is no A/C ? (I jest, I jest, but not really).
Hearing this makes me embarrassed to be from the USA. I thought Californians were sooooo laid back. At least that’s what they have you to believe on the CA tourism commercials on TV. So sorry to hear of the pettiness you are dealing with.
Are you showing the sofa with or without the covers on your photos?
Have you checked their previous reviews for hosts? Does the nit picky show through?
It does sound they are positioning themselves for asking of a discount of some kind.