How One Costly Mistake Can Sink Your Airbnb Business (And How to Avoid It)

A wild Airbnb horror story and the one move that could save your business. Don’t let this happen to you.

Author

Dom Trovato
January 16, 2025

Imagine this…

You’re kicking back, feeling great about another Airbnb booking. Then, out of nowhere, a call from Airbnb:

The guest? They’ve reported the booking as fraudulent.

The property? Involved in a lovers’ quarrel and, yep, illegal substances.

You’re left scrambling to figure out how it all went so wrong.

Turns out, the guest wasn’t the person who booked the stay. A classic third-party booking disaster. After a fight between the actual booker and the person staying at the property, the booker claimed the reservation was fraud and demanded a refund.

Cue the soap opera soundtrack:

Wow. There was a lot going on there.

But here’s where a bad situation got a whole lot worse:

The host removed the guest before Airbnb canceled the reservation. Now, the property is effectively in Airbnb limbo while they “investigate.”

The host’s calendar = Blocked. Future revenue = Nonexistent. The implications could be devastating.

Let’s break this down and make sure this never happens to you.

The #1 Rule for Guest Removal

Before you do anything, Airbnb must cancel the reservation.

Why? Once a reservation is canceled by Airbnb, the guest has no valid right to stay at the property. If they refuse to leave, they’re trespassing, and you’ve got legal options.

If you boot them before Airbnb cancels, it’s a different story—and it could cost you thousands.

How to Remove a Guest (The Smart Way)

Here’s the step-by-step guide to removing a problematic guest:

  1. Document Everything
    Snap photos, record videos, save all communication in the Airbnb app. If it’s not documented, it didn’t happen.

  2. Communicate Clearly
    Message the guest through the Airbnb app, explain the violation, and outline consequences. Stay calm and professional in your communication. Airbnb needs this documentation before they will take any action.

  3. Call in the Big Guns
    Contact Airbnb support. Be clear about the situation, your evidence, and your intention to remove the guest. This also protects you from retaliatory reviews.

  4. Follow Airbnb’s Lead
    Airbnb has processes in place for every situation. If your documentation is good, Airbnb might immediately handle the cancellation on their end. If your documentation is not good, they might ask you to take additional steps. Follow their instructions to the letter—it’s the safest path to resolution.

  5. Know Your Local Laws
    If Airbnb cancels the reservation and the guest still refuses to leave, they’re trespassing. At this point, you may need to involve local authorities. Knowing your jurisdiction’s rules will keep you on solid ground.

Why This Matters

Skipping steps or acting impulsively can leave your property locked in an Airbnb “investigation”. That means no new bookings and a gaping hole in your wallet.

Yes, handling this by the book is a pain. But it’s a lot less painful than a months-long revenue freeze.

Final Thought

Bookmark this email. Print it. Frame it. Whatever you do, don’t forget it.

Hopefully, you’ll never need to use this advice. But if you do? You’ll be glad you knew the right moves to make.

Stay smart, stay booked.

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