Issuing Airbnb refunds should not be a common occurrence. Especially if you’ve automated your guest communications and cleaning schedule using Host Tools, and mastered providing your guests with a top-of-the-line experience.
Of course, some situations are out of your control and you may need to issue a refund, even if you are a successful superhost,. This blog post covers valid reasons guests may request a refund, refunds related to cancellations, and how to issue an Airbnb refund.
Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!
When can Guests Request an Airbnb Refund?
If eligible, guests have 24 hours to request a refund. Guests are asked to take photos and video evidence of issues to submit to Airbnb. A host has one hour to respond to their inquiry. After that, Airbnb will decide if the guest is entitled to a refund or accommodation credit.
There are four categories of situations that allow guests to request an Airbnb refund:
Inability to access property
If a guest cannot access your property because you have forgotten to give them keys or an entry code for a smart lock, guests are allowed to request a refund. Using Host Tools to automate check-in will eliminate this scenario.
Additionally, a guest can request a refund if the host has them stay at a listing different than the one they originally booked without their consent.
Inaccurate listing description
An Airbnb description must be accurate. Guests may use a filtered search for stays with a certain amount of beds, bedrooms, amenities, and property types. For example, if a guest books a private property and arrives at a shared room, they can request a refund.
Additionally, ensure that your accessibility statement is up to date. For example, if a building doesn’t have an elevator and a host lists it with one, a guest can rightfully request a refund.
Issues with key amenities
Ensure that all necessary amenities in a listing are working. Amenities such as heat, air conditioning, hot tubs, large kitchen appliances, toilets, etc., are cause for a refund if they are not working or not quickly attended to if they break.
Airbnb is unclean or a safety hazard
A guest is eligible for a refund if the property has not been cleaned properly. Be sure to keep an up-to-date inventory of cleaning supplies and use Host Tools to automate communications with your cleaning crew to avoid this problem. Additionally, signs of mold or areas under construction may count as a safety hazard.
What are Airbnb Refund Policies for Cancellations?
When creating a listing, a host needs to select a cancellation policy for their property. Choosing a lenient cancellation policy is good for attracting guests and keeping your calendar full.
However, you will lose out on income if a guest cancels last-minute and you cannot find a new guest. Picking a strict cancellation policy may make keeping a booked calendar more difficult, but you’re protected from lost income when a guest does choose to cancel.
Below are the cancellation policies a host can choose from and what refunds a guest is entitled to:
Flexible: If your guest cancels at least 24 hours before the check-in time, they get a full refund. Cancellation under 24 hours will invoke a full refund except for the first night and any service fees.
Moderate: If your guest cancels at least 5 days before check-in, they get a full refund. Cancellations within 5 days will provide a 50% refund except for the first night and service fees.
Strict: If your guest cancels within 48 hours of booking and at least 14 days before check-in, they get a full refund of the nightly rate. If they cancel at least 7 days before check-in, they get a 50% refund of the nightly rate and cleaning fee, but not the service fee.
Long-Term: If your guest cancels within 48 hours of booking and at least 28 days before check-in, they get a full refund. Airbnb automatically applies this cancellation policy to reservations of 28 nights or more.
Super Strict 30 Days: If your guest cancels at least 30 days before check-in, they get a 50% refund. They will not get a refund of the Airbnb service fee. This cancellation policy is only available for software-connected hosts (i.e., those who list on Airbnb via a channel manager or other software).
Super Strict 60 Days: If your guest cancels at least 60 days before check-in, they get a 50% refund. They will not get a refund of the Airbnb service fee. This cancellation policy is only available for software-connected hosts.
What Happens When a Host Cancels a Reservation?
Hosts should avoid canceling reservations. Airbnb allows a host to cancel a reservation one time every six months. When a host cancels a reservation, Airbnb will not allow the property to be rented during the dates of the canceled reservation.
An automated review will be left on the listing by Airbnb stating that the host canceled a reservation. Still, hosts have the opportunity to respond with their reason for canceling on the public review.
Airbnb will not allow a host to achieve superhost status until one year has passed from the canceled reservation. If a host cancels three or more reservations during one year, their account may be suspended or deactivated by Airbnb.
However, there are exceptions for hosts who utilize Instant Book. For example, if a host cancels a reservation due to reasonable safety concerns, Airbnb will not penalize the host.
How to Issue an Airbnb Refund
There are two types of Airbnb refunds: full and partial. If a guest cancels before the check-in date, they may be entitled to a full refund depending on your cancellation policy. However, if they request a refund due to an amenity issue, you may negotiate a partial refund. Follow these steps to issue a full or partial refund to a guest:
Before Check-In – Full Refund
- Select the Reservations tab in your Airbnb account
- Click “Issue Refund”
After Check-In – Partial Refund
- Visit the Resolution Center
- Click “Send Money”
- Select the appropriate guest
- Click “Next”
- Under “Select a reason,” choose an option that best reflects your situation
- Enter the refund amount and any message to the guest
- Click “Next”
- Click “Send”
Note: Hosts are not required to issue refunds if they disagree with the guest. All refund requests can be contested.
Final Thoughts
In summary, issuing refunds should not be a part of your day-to-day hosting. When youautomate your listing with Host Tools, you’ll manage your listing more effectively and almost entirely eliminate the types of issues that would warrant a refund.
Guests can request refunds for the following:
- Inability to access your property
- Inaccurate listing description
- Issues with key amenities
- Airbnb is unclean or has safety hazards
Hosts should implement a cancellation policy that protects them from lost income due to cancellation refunds and familiarize themselves with the difference between issuing refunds before and after check-in. Be sure to sign-up for Host Tools to automate your day-to-day hosting responsibilities, so nothing slips between the cracks, and you keep a booked calendar.
Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!
