Sometimes not. If a cancellation is out the guest’s control like an HOA banning STR or a property sale, they may not charge the guest the administrative/booking fee.
They didn’t charge my guests…maybe it depends on getting the right CS rep
No, they do not. If they are advised of the sale situation, they do not charge cancellation fees to the former owner. Been there, done that.
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How to Sell Your Rental Property
I have now bought and sold multiple AirBnb/VRBO properties, and have finally figured out how to do it without affecting anyone’s ratings, and without upsetting guests too much.
Before closing, the buyer creates a new AirBnb and VRBO listing, but does not activate or list it. The buyer must provide a property manager’s cell phone number to the seller. The seller sends the buyer a draft list of all future bookings (more details below).
At closing, the seller (1) sends the buyer a complete list of all future bookings (including, for each reservation, the dates of stay, what site was used, the total the guest pays, the predicted payout, guest names, and guest contact info), (2) makes the property hidden or inactive for future bookings, and (3) sends each future guest a message by every means possible:
Hello,
We have sold (the place where you have a reservation).
You will unfortunately need to go ahead and cancel your reservation, which will be at no cost and no penalty.
The new owner, (owner name), has your reservation dates blocked for you, and will charge you the exact same amount you paid. His/her new AirBnb and VRBO links for the place are below. Just give him/her a call at (phone number) and ask him/her to unblock the dates for you, and make your new reservation, at the same place.
Sincere apologies for the hassle - we did make sure not to sell the place except to someone who was willing to honor all existing reservations, but we still know it’s a pain!
Thank you,
(prior owner name)
P.S. Please note that if this message is sent via AirBnb or VRBO, you will not be able to see the new owner’s phone number after you cancel your reservation, so please make sure to write it down before cancelling!
(AirBnb link)
(VRBO link)
Then the new owner double-checks that all existing reservation dates are blocked, and that the price for them is currently such that guests will pay the same total amount. The property manager will then be inundated with calls from future guests.
The vast majority of guests will go ahead and cancel and rebook without complaint.
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And what about the Airbnb service fee they paid that won’t be refunded when they cancel?
This is all very nice for the seller and buyer, but if the listing they booked, based at least partly on the reviews, is no longer available, it is up to the host to cancel, not the guest. The previous host earned the reviews and there is nothing to say the new host will be as good as the previous one.
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The AirBnb fee has been cancelled in every case. I’m always happy to call AirBnb and talk to them if they don’t refund people in full, but it’s never been a problem. Guests have an option to rebook with the new owner, they’re certainly not obligated to do it though.
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We’ve just decided to sell our house+guest house once we find a new house to buy. (Yes, I’ve had enough of being an Air host after only about 1.5 years).
I like this idea of adding the new owner as a co host. I would do all the work for the new owner and profit share. It is not legal in my community, however, because STR permits are not transferable to new owners. Since my neighbor is running an illegal STR I don’t think I have to worry about getting caught. Still, not something I want to do, especially if Air will let me cancel guests on house sale without penalty.
What I’ve done is blocked all Air dates beyond 6 months from now, and am hoping the timing will work out and I’ll only need to cancel that last couple bookings, if any. In my market people often don’t move right away.
Then I plan to use Furnishedfinder.com only if we haven’t sold or are still looking for a house by then.
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This is a great procedure thank you for sharing this! 
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I can’t agree it’s a great procedure for the guest as they’re likely to face cancellation fees when they cancel @SleepingCoyote
If as a seller you decide not to block out your calendar so that it’s only open three month ahead why should the guest be penalised