What to Do When Guests Damage Your Property: Before & After
Dealing with property damage after you’ve hosted a guest can be incredibly disappointing. In minor cases, dirt marks are left on the rugs or wine glasses are missing from the kitchen.
But, what if a guest causes major damage to the property—so much so that you have to pause business to accommodate for repairs? It’s a situation no host wants to be in, which is why it’s so important to be prepared!
Here’s everything you need to know about what you should do when you find damage on your property:
Be realistic about regular wear and tear
It’s important to keep in mind that the very nature of owning a short-term rental calls for wear and tear on your property. Your house items don’t have an infinite lifespan, which means that at some point they will give out. Some signs of this occurring area,
Scuff marks on the walls
Tears in rugs or curtains
Limescale on the shower
Sinking sofas
Faulty appliances
Also, guests are only human. Walking in with dirty shoes on or knocking over a wine glass are silly mistakes with easy remedies. Consider whether you want to go through the trouble of filing a complaint for something that can be resolved with petty cash.
However, some incidents are more severe such as the damages caused by dropping a heavy item on a floorboard, or reversing a car on a newly landscaped lawn. These situations signal a higher level of carelessness on behalf of guests and will likely require a higher cost-of-repair to the host.
In moments like these, you want to have home insurance that protects not just your property, but also your peace of mind.
Understanding how property insurance works
As an STR owner, you probably have some kind of homeowner’s insurance in place. Property insurance also typically includes liability coverage, which protects you in case someone gets hurt in your vacation home.
However, it’s important to note that many homeowner’s insurance policies either exclude or offer minimal protection to properties being used for business purposes. Such is the case when you rent out your vacation home on Airbnb or other booking platforms.
Booking platforms are aware of this and offer hosts some level of protection in the event of damage or injury on their property. Take a look at what Airbnb, Vrbo, and Booking.com cover
What does Airbnb cover?
Airbnb insurance provides hosts with $1 million in coverage for negligent accident claims involving injuries and/or property damage. Hosts are automatically entitled to this coverage through AirCover for Hosts.
What does Vrbo cover?
Vrbo insurance offers property managers a similar liability protection of up to $1 million for all stays through HomeAway. This comes at no additional cost to homeowners on the platform.
What does Booking cover?
If you’re hosting on Booking.com it's important to know that the platform does not offer separate insurance protection for its property owners. Whatever homeowner’s insurance you have in place is the one that will stick. If you’re using multiple booking platforms, it's highly advised that you take out additional insurance, such as a short-term rental liability or bed-and-breakfast insurance policy.
Before: Protecting your property
Now that we’ve established the importance of property insurance, let’s discuss the ways you can best avoid having to use it!
Properly Vet Guests: The first thing you want to do is establish a vetting process for your guests. Every host should have an idea of what kind of guests they want to host, but also the ones they’d like to avoid. Having set criteria for your listing will save you headaches down the road.
Remove Valuables: Next, you want to remove any items of significant monetary or emotional value. If you can’t live with the thought of losing your grandmother’s wine glass collection, take it off the property before guests arrive.
Maintain Visual Inventory: Lastly, you want to create the habit of regularly taking pictures of furniture, appliances, and other spaces throughout your rental. This makes it easier to submit damage claims to Airbnb, should your items start breaking or disappearing over time.
After: Handling a damage incident
Alas, you’ve taken all the steps necessary to protect your property and a guest still manages to cause damage—keep your cool! If you’ve followed the advice mentioned above, you’re in a strong position to resolve the issue.
It’s not unusual for guests to contact hosts when damage takes place. This is especially true if you’ve vetted your guests. But, if a major accident does occur, here’s what you should do:
Communicate with the Guest: As an act of good faith, always try to resolve the issue with the guest first. Politely ask what happened and if they are willing to pay for the damages.
Contact Airbnb: If they do not respond, or respond with a solution that doesn’t work for you, contact Airbnb Resolution Center within 14 days of the guest’s checkout. The Resolution Center is where you can lodge an official complaint and submit proof of damages through documents and photos. This is why maintaining a visual inventory is important
Check-in with Airbnb: Within 72-hours of submitting your AirCover request through the Resolution Center, the responsible guest must make a payment. If there are any disputes, Airbnb will review the charges and claims in detail and offer you a viable solution.
You can generally follow a similar process with your insurance company and/or other booking platform. If the thought of dealing with insurance policies and damage claims sends chills down your spine, contact us to see how we can help!
MBX Homes is a boutique vacation rental management company, offering full-service property management services that protect your property and increase your bottom line. Call us today to get started!
