An Airbnb Nightmare Come True: What if this was your property?

A family in Calgary, Alberta, Canada, found their Airbnb vacation rental property completely trashed by four house guests who threw a post-wedding bash at the home, resulting in more than $50,000 in damage.

An unprecedented level of intentional damage was done to the home, as the partygoers defaced the property owner’s artwork, blocked up plumbing, and destroyed furniture. With more than 100 people allegedly in attendance at this party, the short-term rental owner will be lucky if a lawsuit doesn’t crop up with one of the partygoers.

What if this were your property? Would you be prepared to face extensive damage? What about the emotional impact of the damages? How can you prepare for the worst?

This article explains some precautions to help protect yourself and your investment in the rental property. Essentially, screen your guests, read guest reviews, and ask for a security deposit. Also, make sure you have commercial liability insurance to protect your property.

The Airbnb Host Protection might cover up to $1 million in property damage, and if any lawsuits were to be filed, that money would be quickly consumed in court costs and attorneys’ fees. You also only have a 72-hour window to file a claim with Host Protection, which doesn’t give you much time, especially if you’re not in town to see the damages for yourself.

Commercial insurance for your short-term rental will be your safety net that provides coverage for guest-caused damage, particularly if you aren’t solely using Airbnb to list your property.