Airbnb Protection for Hosts Archives - Turno

Airbnb Horror Stories: Can You Afford Not to Know Your Guest?

SUPERHOG — Fri, 29 Jul 2022 05:32:00 +0000

Is Guest Screening Worth the Investment?

Renting out your home to strangers can raise more doubts than it does provide assurances, and the cons list can outweigh the pros list. It doesn’t have to be like this though, and investing in security measures now can prevent serious headaches and repeat stress factors down the line.

Guest screening is nothing new — the hotel industry has done it forever, and they’re not invasive or in breach of data protection laws. That said, it’s important to remember we’re not comparing apples to apples with the hotel industry and the short-term rental industry.

In the vacation rental industry, there tends to be a more hands-off approach when it comes to check-in and check-out processes. Since the pandemic, we’ve seen an increase in self-service processes, but with this, more risks have emerged. These risks may leave you with a heavy price to pay — and we’re not just talking about money.

The Real Cost of Guest Screening

When you look at your business costs and consider where the money is going out, also consider where the money is coming in and where the money could be coming in. Ask yourself: Are all the doors open for additional revenue, or are some closed because you’re afraid of the risks?

If you have some doors closed, get the right tools in place to enable you to open them. For example, if you block off your calendar during notorious holidays for parties, such as Halloween, you could be costing your business revenue. And this revenue could mean the difference between a good financial year and a great one.

Remember that not every Airbnb guest has the same risk factor, and these seemingly negative times of the year could actually be a scalable revenue source for you.

What You Could Be Missing Out On

If you choose to close your calendars during certain times of the year or from specific OTAs, you may be missing out on thousands of potential repeat bookings, word-of-mouth recommendations, good reviews — and increased booking revenue.

If you get cold feet and cancel a booking last-minute, you lose both revenue and trust between future guests and your business.

If you choose not to accept 1- and 2-night stays because they ring “PARTY!” alarm bells, you miss out on the revenue from these stays.

If you choose not to accept direct bookings because you feel there is less security and protection for you as a host compared to OTA bookings, you lose out on repeat and direct bookers. This can, in turn, bring in higher revenue since you’ll be avoiding OTA commissions.

If you choose to host and this results in hefty damages and repairs, your revenue will be affected. Not to mention, you may have to take your property off the market until repair work is done.

You get the picture.

By closing these doors because you don’t have the right toolkit in place, you’re essentially cutting yourself off from a goldmine of revenue. In reality, there are services out there to help protect and provide a solution to you.

The Right Pricing, the Right Solution

There’s no sugar-coating the fact that there are some bad eggs out there and, unfortunately, the rapidly growing vacation rental industry is susceptible to fraudulent activity and guest damages. This is where technology comes in.

An automated guest screening tech solution will save you time, money, and hassle, and you’ll be a step ahead of your competition by accepting bookings that others won’t.

Now, you can open those doors and welcome those “risky” bookings with confidence when using a guest screening solution.

Monetizing Trust and Safety

Of course, these tech solutions are another expense to add to your ever-growing list. Luckily, there are additional preventative steps you can put in place to protect your property.

Alongside using an automated guest screening technology, an effective way of building a strong sense of responsibility and accountability during a guest’s stay is to collect some form of damage deposit.

Calculating your deposit amount, how to implement the policy, and how you will reimburse the guest after the stay can be a tedious process. Instead, consider collecting a non-refundable damage waiver in place of a traditional refundable deposit. This way, you can ensure you’re protected and simultaneously monetize the security — and with minimal effort required.

Having this process in place removes the administrative headaches that can come with collecting and refunding a traditional deposit. Besides, if you’re going to be collecting a security deposit anyway, why not use it as an additional revenue stream for your business?

Additionally, say you need to repair your property’s drywall after a guest accidentally knocked a chair leg into it, creating an unsightly hole. Or maybe you need to replace your property’s espresso maker after it was stolen by a guest.

If your damage waiver doesn’t cover the full cost of the repair or replacement, there are guest screening solutions that also offer comprehensive damage protection. This way, even in the worst-case scenario, you’re covered.

Automatic Guest Screening Is Money Well Spent

Any good guest screening tech solution should help you answer the following questions with confidence on 100% of your bookings:

Do you know your guest?
Can you trust your guest?
What happens if something goes wrong?

Next time, instead of asking yourself if you can afford to invest in trust and safety for your business… ask yourself if you can afford not to.

The post Airbnb Horror Stories: Can You Afford Not to Know Your Guest? appeared first on Turno.

Understanding Short-Term Rental Regulations

The Turno Team — Fri, 15 Jul 2022 20:15:46 +0000

First Thing’s First: What’s Considered a Short-Term Rental?

Each city or county has varying definitions of what is considered a short-term rental. This will impact how you rent out your space, the types of permits you need, and what other local laws if any, may apply.

Type of Structure

Some areas do not allow entire single-family dwellings to be short-term rentals. Some definitions require the property to look and act like a residence in which someone lives.

In some cases, mobile homes, RVs, and boats are considered short-term rentals, while some government bodies do not accept this definition.

Length of Stay

In many parts of the world, the length of stay for a short-term rental is limited to less than 30 days. Other jurisdictions approve up to 120+ days a year. Note that in many locations, long stays (30+ days) are the fastest-growing length of stay.

Some jurisdictions also require that the property have a primary resident to prevent hosts who don’t live on the property from renting out a unit or entire property as a short-term rental. That said, these regulations are constantly being changed.

Examples of Short-Term Rental Regulations Across the Globe

With different regulatory dynamics across the world, it is important to understand the legal considerations for short-term rentals when you are planning to start your own Airbnb business. Below are some examples of the laws and regulations that govern short-term rentals.

United States

Destinations that place restrictions on short-term rentals include Washington D.C., Los Angeles, Santa Monica, San Francisco, Charleston, and New York City.

For example, San Francisco caps short-term rentals at 90 days, but the limit only applies when the host is not present at the property throughout the guest’s stay. In Los Angeles, rules note that homeowners can only rent out their primary residence up to a maximum of 120 days annually.

In Santa Barbara, short-term rentals are officially considered “hotels” that can only operate in designated areas, while in San Diego, short-term rentals are now prohibited in any area.

New York City has some of the toughest restrictions. To prevent disruption to residents and help prop up its hotel industry, New York limits most short-term rental stays to a 30-day minimum.

After a November 2019 referendum in Jersey City, the city enacted regulations for short-term rentals considered to be the most stringent in the U.S., allowing for only 60 rental days per year.

A new law in 2022 will make short-term rental properties located outside designated resort areas illegal in Honolulu. The city further increased fines for anyone violating the new regulations from up to $1,000 to up to $5,000.

Canada

In Whistler, short-term rental hosts and property owners must obtain a license for their business, and those who don’t, risk a $1,000 daily fine.

The property must also be zoned for tourist accommodation to be eligible for the business license. A property zoned in a residential area can’t be marketed to tourists for any length of time. Whistler takes it a step further and provides an interactive zoning map on its website.

Toronto’s short-term rentals are described as all or part of a dwelling unit rented out for less than 28 consecutive days. Hosts need to register with the city and are required to collect and remit a 4% municipal accommodation tax (MAT) on all rentals.

Europe

The short-term rental industry has come up against huge criticism in recent years for taking from the already stressed housing inventory in many markets.

Amsterdam, Barcelona, Paris, and Venice currently have restrictions on short-term rentals. For example, Barcelona issues 9,800 short-term rental licenses maximum per year and is under constant scrutiny by local housing activists to bring that number down. In Paris, hosts must register each home and have a 120-day maximum annual rental limit.

In 2021, the European Commission (EC) announced the short-term accommodation rental initiative, seeking a “more resilient, innovative, and sustainable ecosystem” for tourism including new rules for short-term rental services.

With the EC poised to adopt new rules in the third quarter of 2022, a European Union (EU) Host Action Plan seeks to ensure the benefits of short-term rentals remain while working with regulators to address negative impacts. A large part of the plan includes the establishment of an EU host registry and the enforcement of regulations.

United Kingdom

Ireland allows short-term rentals a maximum of 90 days per year for primary residences. Currently, these residences must be registered, and stricter enforcement is coming.

Hosts in London need to follow the 90-Day Rule, allowing them to rent their property short-term for up to 90 days per year unless they have express permission for extra time. Airbnb automatically blocks the calendars of all London listings once they reach their annual 90-day maximum.

Asia

In Japan, vacation rentals must be registered and can only be rented for up to 180 days annually. Additionally, short-term rentals offering less than 3-month stays are illegal in Singapore.

Short-Term Rental Regulations In Your Neighborhood

Legal restrictions on short-term rentals vary from city to city, so you must make sure there are no limits or rules against renting your home on a short-term basis, subletting, or any other form of renting in your area.

If you already own or rent a home you’d like to use as a short-term rental, check your lease or rental agreement, HOA covenants and restrictions, or co-op board regulations. In the same vein, if you’re in the market for a short-term rental home but haven’t yet signed off on the investment, carefully review the applicable documents to ensure hosting is permitted where you live.

If you’re able to and choose to rent out your property, expect to pay a processing fee, endorsement fee, local occupancy taxes, and other expenses. For example, hosts in the District of Columbia are required to pay over $100 for a two-year vacation rental license.

Short-Term Rental Licenses and Other Potential Restrictions

If you’re operating any sort of a business, including renting property, you will likely require a standard business license, just as you would in any small business. This is typically facilitated by the city you operate in.

Don’t forget to check other long-established community restrictions, such as parking and noise bylaws.

Airbnb’s Own Rules

The rental platform Airbnb has been facing a PR nightmare with reports of illegal parties. In 2020, they banned parties worldwide and introduced an occupancy cap of 16 guests mainly because of the rise in property damage and neighbor complaints.

To be a responsible host and meet the needs of the Airbnb community, keep these tips front of mind:

Be mindful of your neighbors: Provide a list of house rules to your guests to encourage them to be conscientious of those living around your property.
Prioritize health and cleanliness: Though you may not always prevent unauthorized parties and guests from leaving big messes, you need cleaners that can handle Airbnb’s 5-step enhanced cleaning protocol to maintain safety for the next guests.
Take safety measures: This includes providing emergency contacts for the nearest hospital, first aid kits, a smoke alarm and carbon monoxide detector, and directions for emergency exits.

The information in this chapter was accurate at the time of publication. We highly suggest that readers contact their local and regional authorities for the most updated regulations and potential changes.

The post Understanding Short-Term Rental Regulations appeared first on Turno.

Guest Screening Process for Airbnb Hosts

SUPERHOG — Mon, 11 Jul 2022 20:21:00 +0000

What Is Guest Screening?

Guest screening is the process of assessing the risk posed by each potential guest through legal, non-discriminatory, and detailed checks.

This may involve asking guests to submit personal information, such as their name, date of birth, home address, and a copy of their official ID, as well as their mobile phone number and email address.

How Does Guest Screening Work?

With artificial intelligence (AI) and machine learning technology, the information provided by the guest will be processed and scanned in the background, extracting key information.

The purpose of this process is to determine whether the ID is stolen, fake, or genuine; it’s also meant to verify that the personal details provided match those on and associated with the ID.

The phone number and email address of the guest are then reviewed to see if the name provided for the booking matches the registered owner. Screening tools will also look at when the email account was created. This is to check that the account wasn’t created just for the booking.

After providing an ID, guests will be asked to perform a biometric or liveness check, usually in the form of taking a selfie or short video. To help reduce fraudulent chargebacks and protect against lost revenue and bookings, hosts may choose a screening provider that also verifies credit and debit card information.

Others may prefer to use a service that also does background checks, which can include checking criminal databases and terrorism watchlists.

Why Do Hosts Need Guest Screening?

By investing in an effective screening process,hosts will save money in the long run by minimizing incidents of damage and reducing insurance claims. Picture this scene:

You’re a new host and have decided to rent out your own home while you’re away on vacation. You’re having an incredible time with your friends and family. But, while you’re enjoying yourself, your phone starts ringing. You ignore it — you’re on vacation after all.

However, your phone doesn’t stop ringing. You check the caller and see that it’s your next-door neighbor. She sounds angry and you can hear the sound of loud, thudding music and police sirens whirring in the background.

Turns out, the guest who booked your place decided to throw a party, and dozens of people showed up. The worst part? They used a fake ID and a stolen credit card to book your property.

This scenario could have been completely avoided through intelligent guest screening. Guest screening is one of the best ways to spot red flags and protect you and your vacation home from the risks that come with online booking requests. It actively prevents problems from occurring, rather than just being on hand to sweep up after the damage has already been done.

1 in 20 guests admits they treat a vacation rental with less respect than their own home. On top of that, the average cost of property damage by guests is around $1,296. For these reasons, making sure you host only the most respectful guests should be at the top of your priority list.

Guide to Guest Screening: 10 Easy Tips

Learn 10 simple tips to help prevent troublesome guests from booking and stepping foot inside your property.

1. Know Your Guests

To guarantee your hosting experience is a positive one, make sure you know as much as possible about your guests.

Ask guests to clarify whether any additional guests will be joining them during their stay. If there are, collect all the details of these additional guests, such as names, email addresses, and phone numbers. Having these details will help in case of damage to your rental.

2. Do Your Research

Once you have their name and phone number, do a quick Google search. Check on social media platforms to see if they live locally or whether what they post online is a cause for concern for you.

3. Ask for ID

By asking for a guest’s ID, you can host in confidence knowing exactly who you’re renting to. Guests that are deterred and unwilling to provide their ID are often the ones that cause damage and problems for hosts.

Having a copy of the guest’s ID also helps if the guest performs any criminal acts on your property, such as theft, and you have to report them to the police.

4. Validate Payments

Vacation rentals are unfortunately a target for credit card fraud.

To make sure that cards are not stolen or fake, and guarantee that payments are made to you, make sure that guests pay 100% of the booking fee and any other payments you request upfront. That way they are processed immediately and you will know in advance if there are any problems, such as chargebacks.

5. Collect a Deposit

We all know that accidents happen, so protecting yourself is crucial.

In addition to validating guests’ credit cards, collecting a security deposit will also help you if you need to make a claim. By holding the deposit for 7 days after a guest’s stay, you can inspect the property and charge the guest if they have broken or stolen anything. There are automated, streamlined deposit solutions on the market to make this process easier.

6. Have a Rental Agreement

Have every one of your guests sign a rental agreement committing to your house rules and the standards that you expect of them when staying at your property.

By having a legally binding agreement, guests can be held accountable for their actions and will make processes — such as insurance claims or keeping the deposit amount — much easier for you as a host.

7. Know Your Area

Keep yourself aware and up to date on big events that might be happening in the surrounding area.

If you live in an area that hosts a well-known festival or is known as a place to party, be wary of one-night bookings and guests who live locally. These are often party bookings and should be avoided at all costs.

8. Monitor the Stay

By installing noise monitoring sensors, you can rest easy knowing that guests are treating your property — and your neighbors — with respect.

Make sure you let potential guests know that you use these products and be understanding when it comes to noise spikes. You can set your levels, and if guests reach those levels for a sustained period of time, you can step in and contact them to resolve and reduce the noise issue.

9. Keep All Payments on the Platform

If you are using a major home-sharing OTA, then keep all communications and payments on the site. If a guest tries to get you to accept payment outside of the platform or move communications, report them to the platform and decline the booking, as these are often scams.

10. Note Their Reviews

If you do use a major OTA, make sure you have a look at the guest’s reviews — both the reviews that hosts have left them and the reviews they have left hosts.

It’s always good to hear both sides of the story. But if you see they are unfairly critical of places they have stayed, then these are the guests you likely want to avoid.

Why You Should Use a Guest Screening Provider

There are many benefits hosts can enjoy by using a dedicated guest screening provider, including:

Increased Guest Accountability

By collecting guests’ details, if something does go wrong, you’ll have the appropriate information to get issues resolved quickly.

Deter Party Bookings and Fraudsters

Requiring guests to verify and provide their details is a major deterrent for those looking to take advantage of your property.

Add an Extra Layer of Protection

Prevent damage and problems from occurring in the first place by deterring risky guests from booking your properties.

Automate Previously Manual Processes

Gone are the days of having to manually review a copy of a guest’s passport. AI-powered systems can automatically read and verify IDs.

Give Yourself Confidence

By knowing that the person who has booked your home is exactly who they say they are each time, you’ll have that extra peace of mind that your home is safe and in good hands.

FAQs: Guest Screening Process for Airbnb Hosts

Will using a guest screening tool put guests off from booking?

Hopefully the bad ones, yes!

For anyone coming to your property without an ulterior motive, there is no reason for them to be put off by the verification process.

A quick Google search of industries using verification as standard will show financial services, health care, education, sharing economy, retail, gaming, and more. You’ll also see that the travel and hospitality industries have been doing it for years already: hotel check-in, airport security, and boarding a plane to name a few.

While there is more work needed to standardize guest screening in the short-term rental space, it is not a process that guests are unfamiliar with or should fear — unless they’re up to no good of course, in which case, you don’t want those guests to book with you anyway.

Does guest screening stop chargebacks?

While chargebacks are never 100% preventable, guest screening processes will help minimize them.

Is the guest’s data safe?

Yes; you are not in violation of any data compliances by screening your guests. It is a long-established practice in some industries (i.e., hotels) and is becoming a common practice in many more, including our beloved vacation rental industry.

If Airbnb already screens guests, why should I use a third-party service to do it too?

Airbnb, along with some other OTAs, may perform an identity check. However, ID verification is not part of their standard sign-up process for guests, and some OTAs don’t ever do it. Airbnb does offer background checks, but they’re not always available worldwide and depend on a lot of outside factors.

Remember: Airbnb’s (as well as other OTA’s) principal business is bookings, and their principle client is the guest. Third-party services offering guest screening and/or damage protection focus on the host as the principal client.

Guest screening providers work with you to make the screening process, resolutions, and claims process faster, easier, and more lucrative.

Can I use a guest screening and protection service through my PMS?

Yes. For example, SUPERHOG integrates with many property management software and is always adding more partners based on demand.

I already pay for a lot of services for my business. Isn’t this just another expense?

There are numerous costs associated with running your business successfully, which is why it’s essential to create the right tech stack. Guest screening and protection should always form part of your business tech stack. And don’t forget: The question should be reframed from “can I afford to?” to “can I afford not to?”.

Screen Airbnb Guests, Protect Your Vacation Rental

For liability, it is important to know as much as you can about the customers entering and leaving your property. A lot of time and money has already been poured into your vacation rental business, and losing anything due to a poor guest screening is not optimal.

The post Guest Screening Process for Airbnb Hosts appeared first on Turno.