Airbnb Issues – How to Prevent Parties at your Short Term Rental?
Let me start off by saying that there are a few bad eggs in every dozen… it’s human nature. Almost every industry that deals with people has out of necessity developed policies and procedures to manage the inherent risk of working with people. Real estate is not exempt. Long-term leasing specifically is most certainly not exempt. On the contrary, there is an increased risk due primarily to the fact that they are frequently forced to wait months and months until being able to inspect their property for and identify any damage. And as any property owner knows, quickly identifying an issue makes all the difference.
The good news, and there is good news, is that there are tried and true methods for mitigating the risk of parties, property damage, and bad guests in your short-term rental. Picking the right combination of these strategies is vital to the success of your rental business and I’ll go as far to say it’s an investment to your personal well being.
At this point you should have already identified who is traveling to your area, and therefore is likely to book your rental. That’s the first step in identifying your level of risk, and putting together a plan to mitigate that risk. Research your local laws and regulations on occupancy, quiet hours, parking, trash, etc. Covid restrictions have been placed in a majority of cities around the world, including Charlotte, and need to be considered as well. Without further adieu, let’s get into the tools and strategies that are available.
Pre Booking
Preventing unruly guests starts when setting up your listing. What are Airbnb house rules? Your House Rules should contain everything you need to disclose from your policy on parties to trash procedures. It’s absolutely crucial that expectations are set, how else would guests know what they are permitted to do. Include penalties for any infraction which allow you to collect in the event any rules are broken. On top of that, communicate the rules multiple times, including but not limited to Listing Descriptions, automated Welcome Emails, Guide Books, and Checkout Confirmations.
Vital to every house rules is the section on parties and events. Parties are strictly prohibited in or on MyTripify properties. That said, hosting parties can be a source of revenue for some, but one which requires a rental strategy built around managing that risk including authorization and signed agreements.
Unregistered guests is also something to address. Every infraction doesn’t need to be enforced, but this protects you in the event you find yourself with 10+ added guests in your unit. Some hosts require all guests to submit a working verified phone number. That ensures you can reach them during and after your trip. More guests can translate to more revenue, and requires tracking the correct guest count. This is a business, run it like one.
Noise Curfew or Quiet Hours are a set of reasonable expectations of when guests are to keep noise levels down. Setting the record straight makes it much easier to enforce, and your neighbors will certainly thank you. Parking and Trash procedures are a few other byproducts of parties that should be addressed in your house rules.
Offering single nights is without a doubt going to attract more partiers, which is why increasing your minimum night stay will act somewhat as a deterrent. It’s common practice to lower minimum night stays for approaching dates to increase occupancy, but that potential revenue must be weighed against the costs. If you manage a condo or list in an area that thrives on weekend bookings this may not be possible, but again, adopt what works with your property.
Pricing out bad tenants can also be part of a viable strategy. Last minute reservations tend to be cheaper and attract the wrong kind of guests. The kind who don’t follow house rules or clean up before check-out. So be careful lowering prices too much, and keep a strict eye on last minute reservations. Self check-in can even be turned off for last minute reservations allowing more thorough vetting to occur for these higher risk groups.
Security Deposits are a staple of the vacation rental industry predating airbnb. While they can somewhat deter guests, they can allow you to recoup damage to your property. Airbnb and Vrbo have implemented a new form of security deposits which authorizes hosts to report damage and charge gusts up to 14 days after check-out. The problem here is that the OTA is in control of the situation and often will not approve the charge. Collecting your own security deposit brings control back to you. There are a few providers like Wishbox which allow hosts to collect a deposit off platform.
Check Reviews! Think about it, most hosts don’t accurately review their guests. Some even use auto review features. So when a host leaves a bad review, LISTEN. Also, turn off auto review and honestly review guests. This helps fellow STR hosts avoid bad guests in the future.
Have a good relationship with your neighbors. Notifying your neighbors of your rental strategy may feel uneasy, but take the high road and you shall be rewarded. Communicate your goal of avoiding any disturbance, and it’s likely they will keep an eye on the house and notify you of suspicious activity.
Booking Process
Steps should be taken during the booking process to validate the information provided by your guests, and allows you the opportunity to further vet those who will be staying in your home. Jump on the phone and call the number before check-in. Have a list of open-ended questions, which will give you an idea of the person you’re renting to.
We also request that guests disclose the reason for their trip before booking, along with other information about their group. Most Property Management Systems include an arrival form that the host can use to collect additional guest names, ages, and ID verification. This is especially important for direct bookings, to recapture some of what is typically handled by an OTA.
Rental Contracts are another tool that clearly define the responsibilities of each party. Important topics include rates, responsibilities, trip insurance, and terms of breach. As licensed brokers in NC we are required to use rental contracts with each reservation.
Hardware & Technology
Front Door Locks have come a long way into being viable options for monitoring occupancy, traffic, and more which all help you enforce your house rules. Notifications of high traffic during quiet hours can signal something going on. Some locks require smart phone access to unlock the door which can provide slightly more control over who is entering the property. There a ton of options with varying features but many hosts have done the leg work of posted detailed product reviews and comparisons. More advanced Home Occupancy Monitors like the Party Squasher are also available and can monitor the number of mobile devices in the property.
Exterior security cameras are also handy in monitoring occupancy and even notifying high traffic. Ring is a leader in this space but there are many affordable options. Most of which are able to track motion, record events in and out of the house, even send notification. But BE CAREFUL, there are strict rules and regulations governing disclosure both at the state/federal level and with the OTAs you list with. Airbnb’s Policy on Cameras requires they be disclosed in a certain section of the listing. That said, interior cameras can provide even more security but are not allowed in certain private areas of a home like bedrooms and bathrooms. Once again it’s important that you fully understand your legal obligations before implementing ANY security cameras.
Air Quality Monitors and Noise Monitors add another layer of protection allowing you to enforce your house rules. Receive real time updates of loud music, parties, and cigarette or otherwise smoking inside the property. If you’re in a market that lends itself to party groups or vacation goers, you may want to think about investing in one of these solutions.
The After-Party
In this business you can do everything right and still have a mess on your hands. Unfortunately, that’s inherent with rentals and is the reason every STR host should have an insurance policy specifically covering short-term rentals. So you’ve had someone party in your unit, what next?
Caught in the act?
If you’re catching someone in the act, immediately call the guest or visit the property to inquire about and enforce any rules that may have been broken. Depending on the severity and terms of your rental agreement you may be able to terminate the reservation and ask the guest to leave. Know your state and federal laws on eviction in the event the guests do not leave willingly. In NC we have an expedited 4 hour eviction for vacation rentals.
DOCUMENT EVERYTHING
Next you need to document all the damage done to the unit, and I mean everything. You are going to have to support all damage claims with photos or videos evidence. Work hand in hand with your cleaners to be proactive in reporting and documenting damage. You’re likely going to need to visit the property yourself to assess the damages. Hiring out a property manager means they should pull all the weight here and update you along the way.
If you aren’t able to prove a violation with photos then you’ll have a very hard time recouping any damage or losses. This needs to be done immediately, but at least the next check in or 14 days, whichever comes first. Be comfortable with the terms of service for any platform you use which will outline important timelines and actionable items. It’s not light reading so get out your highlighter and bookmark important sections that you can come back to when needed. Document any terms and or house rules that are violated.
Pro tip: if a guest has smoked in your nonsmoking unit, try to capture photos of ash or cig butts as proof.
Repairs and Rent-Ready
Once everything is documented, you can begin getting the unit rent-ready again. Have cleaners or any other vendors provide detailed estimates for work needed so you can later recoup the costs. Some hosts collect additional revenue by owning other related companies like cleaners or general contractors allowing the more control of the work orders.
The Resolution Center
Now you’ve collected all this information, what’s next? Your first recourse is always to contact the guest directly to cover any and all damages. This MUST be done in the resolution center if the reservation was booked through an OTA. If they refuse, you will work directly with the OTA according to their terms of service. If the OTA also refuses to cover part or all of the damages, contact your insurance provide and file a claim there. Be careful here, “claim surcharges” can mean increased premiums for claims submitted which can cost more than smaller repairs. Know your policy details and weigh your options out.
Takeaways
Ok, that may have been a lot for some of you. This article was meant to be a high level overview of some common tactics used to prevent parties and property damage as well as the general steps once a loss has occurred. There are tons of online threads from hosts that dive into specific situations which can help a host understand what situations may be covered by some of the platform insurance policies that are offered like the Airbnb Host Guarantee program. Continue to educate yourself on this ever changing industry, because a hosts job is never done.
Ryley Beaumont
(704) 286-6994
Ryley@MyTripify.com