Airbnb Risks

How to deal with the common Airbnb risks encountered by the hosts?

It is not unusual for an Airbnb host to encounter few Airbnb risks. No business is immune to risks. Each industry including the short-term vacation rental is exposed to numerous risks. If you are prepared to enter the short-term rental business, then you shall be prepared to face these risks as well. Airbnb risks are a part of your path during renting your property on Airbnb. Every host has to deal with one or the other risk at some point in time.

Listing your property on Airbnb is an excellent option for earning your income. But beware! Revenue and risks come hand in hand. Airbnb offers numerous benefits to its hosts but at the same time, all the hosts are vulnerable to the Airbnb risks. Fortunately, you don’t have to suffer much due to these risks.

If you will study in advance and formulate your strategies to mitigate these risks, then you can minimize the damage caused due to Airbnb risks. Being prepared is the mantra for dealing with Airbnb risks. Majority of the Airbnb risks are unavoidable. So, your best attempt to minimize your loss is to equip yourself well.

It is simple. Just keep reading and find out what are the most common Airbnb risks faced by the hosts and different solutions in order to mitigate them.

Common Airbnb risks and ways to mitigate them:

Local Legal regulations

We live in a society where everything is guided by established law and order. There is no reason that short-term rental will be omitted from restrictions. Airbnb services are spread all across the globe and different regions restrict the business through different means.

The worst part is that Airbnb regulations are always changing. If your local government has passed an order against any activity that you practice through your Airbnb property, then it can have severe consequences. The laws and rules regarding short- term rental business is the most critical Airbnb risk. Some regions even ban Airbnb from their locality. This could result in a ton of losses for your established Airbnb property.


Study your environment. Never be ignorant of your environment. Here environment refers to the local rules and regulations regarding Airbnb properties. You have to keep a proper check on the changing rules so that you don’t miss any important point and unintentionally break them. Being aware will help you mitigate this Airbnb risk.

Participate in the local government policy establishment. If possible, try to participate in local government. If you establish yourself as an influential personality, then you can vote in the matters related to the short-term rental business. This way you could raise your voice as well as stay aware of the internal affairs.

Damage to your property

When you enter the short-term rental business, you allow strangers to live in your property. ‘How are they going to treat your property?’ always remains a mystery for you. It is a very serious Airbnb risk – property damaged after the guests have left. This could be either a small cup broken or your whole glass window shattered. Any kind of damage could cause you a loss of money as well as time. Until you repair the damage you can not welcome the next guest, thus you have to cancel the booking and incur those losses as well.


Airbnb insurance. Airbnb takes good care of you. As a host, you shall carefully read through the Airbnb host protection terms and conditions. Under this system, Airbnb provides security to host against different kinds of liabilities such as property damage, or guest injured during the stay. However to claim any amount under this system you have to go through a long time-consuming process.

Airbnb house rules. It is always better to inform your guests how they are expected to treat your property. A list of Airbnb house rules helps the host to convey the required code of conduct to the guests. If the guests are aware that you are strict regarding the rules, then the chances of your property getting damaged are low. You can include the Airbnb house rules in your listings itself.

Airbnb security deposit. Another way is to utilize the Airbnb security deposit to protect yourself from the petty damages caused by the guests. This way you could claim the amount of loss from the guests.

Dishonest guests

Strangers could be anything from a sweet person to a squatter. You don’t want some stranger to claim his rights on your property, do you? This Airbnb risk is quite dangerous and involves court hearings and heavy bills. Some guests never tell you the date of check-out while others carelessly party in your property. A dishonest guest could land you in legal trouble or even try to claim your property. 


Airbnb rental agreement. If any guest is hesitant in confirming the check-out date then ensure to legally bind them with an Airbnb rental agreement. Through this agreement, you could protect your property from squatters.

Proper screening. It is in your hand to accept a booking. As a responsible property manager, you should always check the customers’ profiles and reviews before confirming the booking.

Airbnb ID Verification – you can read about this procedure in this article.

Sudden cancellation

Airbnb prioritizes customer satisfaction. If Airbnb receives a complaint and is convinced, your booking can be canceled even after the Check-in date. In worst-case scenarios a booking can be canceled even after the check-out date, which means, if the customer’s complaint is valid then he shall not pay for the stay. This Airbnb risk not only blocks payment from the guest but also causes a loss for the prepared arrangements.


Best guest experience. If guests are completely satisfied with your services then they will never complain to Airbnb. Thus, offering the best customer experience is the key to prevent sudden cancellations.

Prepare a risk fund. Sometimes these cancellations are unavoidable. Since you already know about this contingency you can set aside a contingency fund in order to meet the losses.

Uncertain source of income

The most evident Airbnb risk is the unstable source of revenue. Generally short-term rental business enjoys seasonal sales. Thus, for the remaining part of the year, the high vacancy rate will threaten your savings. You need to attract more people in order to mitigate the risk of vacancy.


Creativity. Use creative photographs and descriptions to grab the attention of travelers. Mention your unique selling points and the useful amenities provided by you. Use your creativity to increase the number of bookings.

Interactive. Even if you have one booking try to stay interactive and respond to them as quickly as possible. One satisfied customer could bring you thousands more. Try to stay active on your account and respond to the inquiries promptly so that they know that you value them.  

Now you know the risks you are going to face and how to deal with them. However, it could be a bit overwhelming to handle all the Airbnb risks all on your own. A good idea is to utilize a management software that provide 360 degree solutions. Hosty Airbnb management software is a good example of such software. It provides services like integrated dashboard, unified inbox, and multi-calendar that can easily help you in mitigating these Airbnb risks.