Short-term rentals offer significant advantages for both property owners and guests, but these benefits are accompanied by emerging challenges for both parties.
Recently, there has been an uptick in cases of fraud and unlawful conduct, many of which are shared in official short-term rental groups on social media platforms.
Property owners must remain vigilant to safeguard their assets and avoid unpleasant incidents.
Common incidents reported by hosts
Several typical cases have been highlighted by verified property owners and managers on social media:
- Property damage and malfunctions: Incidents include ruined linens, broken furniture, and appliances left in disrepair—examples of disrespectful and unacceptable behaviour.
- Refund demands: False claims regarding non-existent issues, such as faulty air conditioning, blocked facilities, and dirty linens.
- Threats of negative reviews: In some instances, guests have extorted hosts by threatening poor ratings to secure free stays.
- Ghost bookings: Attempts at fraudulent bookings deliberately block property availability, resulting in lost income (read more here).
Warning signs to watch out for
These issues are often preceded by certain warning signs or ‘red flags’, which serve as early indicators that things may not be as they seem, leaving hosts exposed to risk.
Scams on platforms such as Airbnb and Booking.com tend to follow set patterns. Watch out for these signs suggesting a booking may not be genuine:
- Request for off-platform communication: A prompt to move discussions off the booking site often signals ill intentions from the outset.
- Overly hasty bookings without questions: Scammers rarely ask about the property or its location, demonstrating a lack of genuine interest.
- Vague or contradictory guest responses: Unclear information about arrival times or group size is a common tactic.
- Excessive demands or special arrangements: Requests for payment outside the platform—often in cash to avoid platform fees and commissions—are especially frequent.
How to protect yourself against unlawful guest behaviour
There are many ways in which ill-intentioned individuals may exploit gaps in owners’ knowledge or experience.
To protect yourself, consider these strategies:
- Ensure all transactions go through the platform: No matter the request or argument, always process payments and communication via the rental platform. This guarantees protection should anything go wrong.
- Define clear house rules: Make sure your property listing and pre-arrival information explicitly detail your rules, including behaviour expectations, cancellation policy, and any restrictions.
- Document the condition of your property pre-arrival: Taking photos or videos before guest check-in is increasingly common practice—providing evidence about the property’s state prior to arrivals and helping to refute false claims.
- Check guest reviews and booking history: Just as hosts and properties are rated, so too are guests. Consider requiring an approval step before bookings are confirmed, allowing you to verify the guest’s profile and reviews and ensure your property is respected.
Information is your strongest asset
Staying informed is the best tool for owners and managers. By learning to spot warning signs, setting clear boundaries, and adhering to best practices, you protect your property and your peace of mind.
By choosing Sparrow for your property management, you can rest assured that your property is safe; our guests are reliable, highly rated, and have impeccable track records.
