Beware of This Legal Loop Hole That Can Screw Airbnb Hosts (2024)

Beware of This Legal Loop Hole That Can Screw Airbnb Hosts (1)

Becky Garrison |

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This host’s horror story is a cautionary tale to all who use Airbnb.

According to the Airbnb Report on Travel & Living, the percentage of stays lasting 28 days or longer on Airbnb increased by 10% in the first quarter of 2021 in nights booked. This spike can be attributed to the drastic increase of people working from home during COVID, many of whom have chosen to adopt the life of a global nomad.

In theory, the concept of teleworking from anywhere in the world sounds idyllic. But Airbnb fails to mention the difficulties faced by those Airbnb hosts who choose to offer out a room in their house or their entire abode for extended stays should their Airbnb guests not vacate the premises. I’m not addressing landlords looking to profit from pandemic evictions orthose who use the Airbnb platform to list multiple rental properties. Rather, I am referencing those Airbnb hosts who seek to make some extra income, especially during the economic stressors brought about by a global pandemic.

Beware of This Legal Loop Hole That Can Screw Airbnb Hosts (3)

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In this situation, hosts are offering a place to stay in the homes where they reside to those guests who have been vetted by Airbnb. For example, when A. Glugla’s host accepted his reservation, the information said host received from Airbnb indicated Glugla was a 24-year-old white kid looking to relocate to Portland, Oregon, from Brooklyn, New York. Given that Airbnb verifies the identity of potential guests, the host relied on Airbnb to provide accurate data.

Despite making a good first impression, Glugla could not respect the house rules designed to create a safe, clean, and hospitable home environment. This included denying his host access to the room where he was staying so a plumber could perform emergency repairs. In response, his host concluded Glugla was not a good fit as a long-term housemate and declined his repeated requests for a rental lease agreement.

Their problems with Glugla escalated in April 2021, when he asked to pay for his lodging that month outside of the Airbnb platform, claiming that his credit card malfunctioned on the Airbnb website. While his host permitted Glugla to make this one-time payment, he was directed to make future payments using the Airbnb system. Instead, Glugla failed to make any future payments for his Airbnb stay.

Beware of This Legal Loop Hole That Can Screw Airbnb Hosts (4)

Upon researching how to get Glugla out of the host’s home legally, his host discovered he was, in fact, a 33-year-old man who had been living in Portland for over a year with multiple prior evictions on his record. They also learned that as Glugla had been an Airbnb guest for more than 30 days, he was now considered a resident of Oregon. Hence, the host had to initiate a costly and lengthy eviction process to extricate him from their premises. After he finally departed in mid-June, Glugla left behind mounds of debris that required the professional services of multiple companies for the removal of biohazards–some of which caused a rat infestation in the room where he was staying.

Since the host accepted one payment outside of the Airbnb platform, Airbnb would not intervene on their behalf. Therefore, small claims court represented the only legal way his host could try to recoup money lost due to unpaid rent, damages to their physical property, security measures such as changing locks, and other expenses incurred due to Glugla’s stay. At present, these damages total over $7,000.

Even though this host was experienced in using the Airbnb platform, they were unaware that any guest who stayed for more than 29 days could claim residency in Oregon. This loophole allows a guest to use the home address of their host to secure a place to live long-term while circumventing the usual vetting process to obtain a rental lease, which includes furnishing proof of income, credit checks, and a security deposit. Once a guest establishes residency, they can use their host’s address to apply for benefits available only for residents of that state, such as a driver’s license, Medicaid, unemployment insurance, and food stamps.

Beware of This Legal Loop Hole That Can Screw Airbnb Hosts (5)

When asked about this loophole, the Housing and Urban Development (HUD) Press office offered this response via email: “Please contact the State of Oregon or any local jurisdiction to talk about this aspect of Airbnb.” According to various state and local organizations that focus on housing issues, measures are in place regulating short-term (less than 30 days) stays with Airbnb. However, no laws exist regarding longer-term stays with no plans to address this issue in future state legislative sessions.

As reported by national and local outlets—along with a Google search of “Airbnb guests who won’t leave”—this points to an ongoing problem that precedes the current housing crisis due to COVID-related evictions. Our attempts to contact Airbnb via email to comment on this scenario and this legal blind spot have yet to be answered.

Beware of This Legal Loop Hole That Can Screw Airbnb Hosts (6)

In light of these stories, before opening up one’s home to Airbnb guests, be sure to check out this handy guide for some practical tips on how to ensure a beneficial Airbnb host-guest relationship. This will be particularly relevant come November 2021, when Airbnbs new policy goes into effect that will allow travelers to pay for their stays in installments. In promoting this policy to offer convenient and flexible booking, Airbnb fails to address how they will respond to guests like Glugla, who continue to abuse the platform.

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2Comments

M

mjbr5531 November 3, 2021

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No idea what airbnb policy is. If I were to put my property in whole or part on airbnb I would exercise my Consitutional right and openly carry a pistol within my property. Most of these tricksters believe they are smarter than everone else. Most have not factored in any consideration for a property owner than may be willing to exercise his own version of justice. After all, there are many, many situations that would allow the property owner to exercise stand your ground.

But most basically, I do not understand the greed that overtakes people to allow some 3rd party with no real skin in the game to dictate terms. Dump airbnb, have a lawyer draft air tight contracts and use altlernate sources to find short term guests. It is actually all the fault of airbnb and all the other 3rd party great idea but no skin in the game operations. They have conned the world.

Reply

S

shelemm November 3, 2021

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mjbr5531No idea what airbnb policy is. If I were to

This is weird response. Stories like this happen with or without AirBnB. "air tight contracts" are meaningless if someone is out to flaunt the law. I have never used AirBnB in any way, but if you use your gun on someone, you'll be out a lot more than $7,000.

Reply

Beware of This Legal Loop Hole That Can Screw Airbnb Hosts (2024)

FAQs

Beware of This Legal Loop Hole That Can Screw Airbnb Hosts? ›

This loophole allows a guest to use the home address of their host to secure a place to live long-term while circumventing the usual vetting process to obtain a rental lease, which includes furnishing proof of income, credit checks, and a security deposit.

What are red flags for Airbnb guests? ›

Airbnb scams by guests that every host should be aware of:

Threaten to leave a bad review if not refunded. Mention someone else will pay for their stay. Want to take the conversation to a private app. Make an overpayment and then request a refund.

What legal protections do Airbnb hosts have? ›

Host liability insurance covers you if you're found legally responsible for:
  • Bodily injury to a guest (or others)
  • Damage to or theft of property belonging to a guest (or others)
  • Damage caused by a guest (or others) to common areas, like building lobbies and nearby properties.

Can you get banned from Airbnb as a host? ›

Your account may also be deactivated or suspended as the result of an issue reported to our Customer Service team. Airbnb takes safety very seriously, and if we receive a report of a violation of our Community Standards, we will investigate the report and take appropriate action.

Can I be sued by Airbnb host? ›

Can airbnb hosts sue guests? Certainly! Airbnb hosts may find themselves in situations where legal action against a guest is considered necessary, such as significant property damage or a breach of agreement. While Airbnb's Host Guarantee program provides some protection, it may not always suffice.

How do you spot a sketchy on Airbnb? ›

Carefully review the home information, photos, and the host's profile for any red flags. If you're renting from a company with multiple listings, check their social media profile for complaints or bad reviews. As a general rule, if something looks too good to be true, it probably is.

How to know if an Airbnb host is legit? ›

Airbnb verifies users (both hosts and guests) through several factors, including government IDs, email addresses, and phone numbers. Always check the host's profile to make sure they've uploaded these things—you can find it on the left side of their profile page.

What can get you kicked off Airbnb as a host? ›

The big no-nos leading to Airbnb bans

Multiple suspensions or serious complaints. Landing in the bottom 1% of Airbnb review ratings. Violating Airbnb's terms and conditions repeatedly.

Are Airbnb hosts allowed to watch you? ›

Hosts are allowed to have exterior security cameras and recording devices as long as they do not monitor areas where users have a greater expectation of privacy, such as the inside of an enclosed outdoor shower or in a sauna.

Can you complain about a host on Airbnb? ›

You can submit a complaint via our webform. Once your complaint has been submitted: You'll receive an automated acknowledgement of your email when we receive your complaint. An Airbnb case handler will be assigned to your complaint and will aim to make initial contact with you within 96 hours.

Why are Airbnbs getting banned? ›

The exponential growth of Airbnb, combined with building restrictions that have severely limited the growth of housing supply, have led to the widespread perception that short-term rentals must be swallowing housing units at the expense of local residents, who now face higher rents.

Can Airbnb suspend a host? ›

When violations occur, we aim to first provide information to Hosts about the policy and issue warnings. However, Airbnb may temporarily suspend or remove listings for repeated or severe violations of the ground rules.

Can Airbnb host blacklist you? ›

Blacklisting on Airbnb is a process based on specific criteria. These can include severe violations like property damage, theft, non-compliance with house rules, or any form of threatening or dangerous behaviour. Airbnb's system flags such guests, and upon review, may restrict their ability to make future bookings.

Can you sue an Airbnb host for emotional distress? ›

If you incurred any of the following, you may be able to recover damages in court: Physical pain. Mental suffering. Emotional distress.

What is the class action lawsuit against Airbnb hosts? ›

Gibbs Law Group and Traverse Legal have filed numerous individual legal claims and an Airbnb class action complaint on behalf of hosts who allege that when the COVID-19 pandemic hit, Airbnb seized funds that belonged to hosts while claiming that the money would be refunded to guests.

How does Airbnb punish hosts? ›

Airbnb may take steps up to and including suspending or removing a guest, Host, or listing from the Airbnb platform if they fail to comply with our policies. Where a listing is advertised as party or event friendly, we may suspend the listing until the violating content is removed.

What is the etiquette for staying at an Airbnb? ›

Follow the Host's standard house rules

Disruptive gatherings are always prohibited. Learn more in our Community Disturbance Policy. Check-in time: Guests should respect their Host's check-in window and should not check in before or after the designated window without prior approval from the Host.

What do Airbnb guests complain about? ›

Complaints about cleanliness are the most common ones out there. Your guests expect your rental property to be as clean as an upscale hotel room. And if you miss any spot, they won't think twice about commenting about it when they leave you an Airbnb review. These Airbnb complaints are easy to prevent.

How do I avoid bad guests on Airbnb? ›

How to avoid hosting difficult guests
  1. Check profiles and guest reviews. You can gain greater control over who visits your property by screening prospective guest profiles. ...
  2. Use automated screening. ...
  3. Turn off instant bookings. ...
  4. Keep your listings up to date.
  5. Address your property's flaws.

Can you get flagged on Airbnb? ›

Reservations are flagged for Hosts to review and determine whether to accept or deny the reservation. Guests are asked to acknowledge our damage policy before they are allowed to proceed with the reservation request.

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