How to conduct background check on mid term Airbnb guests and who pays for it

[Jin Zhang]

Hi everyone, 

I just started doing MTR on Airbnb. I have written in my rules about background check and sign a lease. I have a few groups approached and all confirmed understanding the rule. I ask them not to book since there is cancellation penalty for hosts. I want to vest them before booking. But once it reaches the stage of background check, they disappear. It seems like that they do not want to pay for the 45 dollars to go through it. Have you run into this before? Do you ask for background check? If so, do you pay for it or the guests pay for it? 

Any input would be greatly appreciated! Thanks!

Jin 

[Bonnie Low]

I advertise my MTR space on Furnished Finder only. No one has ever balked at undergoing a background check and, if they did, that would be a red flag for me and I'd just move along. Because it's not an OTA but rather just a lead gen funnel, there is no algorithm impacted by you not approving a guest or cancelling one and no penalties. My formula is simple: Step 1, background check. Guest(s) pay for this. I initiate the background check through KeyCheck, which is affiliated with Furnished Finder. The link is sent to them and they pay for it. Results are sent to me. Step 2, lease agreement. I use a state-specific lease generated by Avail. All parties over 18 must sign and return the lease agreement. I give them a time limit. Usually 24-48 hours at the most. Step 3: deposits have to be paid to reserve the property and first month's rent is due the day before check-in. They have to proceed through each of these steps or I move on to the next interested party. Hope that helps.

[Ray Hage]

If people are not willing to a small amount on a background check, that's a clear sign you should not deal with these people. Your guests should be willing to do it. If at the end of the term, you want to refund them the $45 that's up to you. Do not risk your property by foregoing a background check for all adults who want rent from you whether its MTR or LTR

[Nicole Heasley Beitenman]

I'd love to hear more from others utilizing AirBnb on their processes. I love how you laid yours out for us, @Bonnie Low! Thanks so much.

[Bruce Woodruff]

Furnished Finder has a company they work with called KeyCheck. https://www.keycheck.com/ They do all of that and the tenant pays for it. As someone else said, if they don't want to pay for it, then you don't want to rent to them.....

[Bonnie Low]

Quote from @Nicole Heasley Beitenman:

I'd love to hear more from others utilizing AirBnb on their processes. I love how you laid yours out for us, @Bonnie Low! Thanks so much.

 I've had to explain it to prospective guests often enough that I've actually set up an automated message with pretty much this exact language @Nicole Heasley Beitenman ; )

[Allen Duan]

It's unusual to ask for a background check for guests who book through Airbnb. Airbnb does some vetting on them, but its very minimal. I have seen software that integrates with Airbnb and/or a property management system to background check Airbnb bookings. I don't have personal experience with it though. 

The rationale is that Airbnb provides host protections and guest verifications, thus reducing your risk and need to do your own background checks. It's up to you to decide if you're comfortable with that.

[Nicole Heasley Beitenman]

Quote from @Bonnie Low:

Quote from @Nicole Heasley Beitenman:

I'd love to hear more from others utilizing AirBnb on their processes. I love how you laid yours out for us, @Bonnie Low! Thanks so much.

 I've had to explain it to prospective guests often enough that I've actually set up an automated message with pretty much this exact language @Nicole Heasley Beitenman ; )

 That's a great tip! Thank you!!