Best Practice for Refunding guests who cancel STR reservations

[Emily Taylor]

Looking to hear some best practices on dealing with guests who want refunds even with a signed policy stating a certain refund % amount within a period of time prior to arrival. All guest will indicate some sort of emergency as to why they need to cancel and want a full refund. What actions do you take, I understand Airbnb favors the guests not the hosts so much.

How to handle cancellations? 

[Erich Wolff]

We've had a few late cancellations on our STR. One was literally the day before check in, on xmas eve, which is the apex of peak season for us. The renter told us their family got covid and was in quarantine. I told this renter that I couldn't refund the $ and explained why (this is a business for us and this is peak season, we have a mortgage to pay, etc). We immediately relisted and got a new renter for part of the open time (albeit for a much lesser amt given it was last minute) and I was able to provide a partial refund to the canceling party (we didn't lose any money). I also offered her a free (except cleaning fee) stay during our very slow season - no skin off my back there. I think they were as happy as could be given their family xmas plans were cancelled last minute. I did ask if they got travel insurance (no) and after this incident I added info about travel insurance to my listing page in order to be proactive. Try to work with them to some degree if possible, it at least shows you are trying. If you do relist and don't use an automatic price adjusting tool, lower the price yourself to try to lure in a last minute renter.

My philosophy in the STR game is to try to keep the renters as happy as possible, great reviews work wonders.