This Week’s News & Insights

Good morning,

Here's what's going on in the vacation rental world this week:

Airbnb’s new in-home “Services” offering is raising red flags for host liability, Sojourn doubles down on luxury coastal markets with a fresh acquisition, and Airbnb is reportedly in talks to integrate crypto payments into the checkout flow.

This week in the markets: Mortgage rates whipsawed, falling sharply last Wednesday, rebounding Friday, and hovering flat ahead of today’s inflation data. Meanwhile, STR regulations tightened: Nantucket passed a 31-day minimum in its historic district, Vermont courts backed town-level occupancy rules, and Columbia, Missouri cracked down on multi-unit STR owners with one-license-per-owner caps.

Lets dive in. 

NEWS

Headline Roundup

• Does Airbnb’s ‘Services’ take unfair advantage of hosts? (PhocusWire)

• Roami files for bankruptcy, but says they’re not shutting down (The Host Report)

• Sojourn acquires Salt Coast Hosts, adding Outer Banks to its growing footprint (Sojourn) 

• Twimo launches private platform as alternative to Airbnb amid growing rental restrictions (The Host Report) 

• Italy re-approves remote check-ins for vacation rentals (Reuters)

• OTAs boosted ad spend in Q1 2025 (PhocusWire) 

• Airbnb and Big Tech explore crypto for payments (Fortune)

• The future is hybrid: Navigating the balance between short and extended stays (PhocusWire)

INTERESTING INSIGHTS

Host’s Increased Liability and Property Risks with Airbnb Services

Four weeks ago, Airbnb relaunched Experiences and introduced a new feature called Services. The new Services feature focuses on personal, in-home offerings such as chefs, trainers, and spa treatments that happen directly inside the vacation rental.

The move earned praise from Wall Street, but it raised questions from hosts. The big one: If something goes wrong (injury, damage, etc.), who’s liable?

Last week, the team at Proper Insurance published an article every host should read. Since all Airbnbs are automatically opted into Services, it’s worth taking a few minutes to understand the risks.

Here’s some key takeaways:

Does Airbnb’s Services increase my liability risk as a host?

Yes. By allowing third-party providers like chefs or massage therapists into your STR, you're opening the door to more liability. Hosts do not control or vet these third-party providers. But if something goes wrong, the risk can fall back on the host and property owner, and you could end up involved in a lawsuit.

Does AirCover protect hosts against incidents involving Airbnb Services?

AirCover offers some support, but there are serious limitations, especially when third-party providers are involved.

Critical AirCover exclusions include:

• Assault & Battery: Not covered

• Invasion of Privacy: Not covered

• Other liability gaps: Services performed by outside providers introduce grey areas in coverage under both standard insurance policies and Airbnb’s AirCover

So if an incident occurs, whether it’s an injury, misconduct, or property damage, there’s a chance AirCover does not offer any protection.

Additionally, hosts with six or more listings see AirCover relegated to secondary coverage.

Property Damage: Who Pays?

If something is damaged during a service, who pays for the repairs?

The answer isn’t clear. It could be the guest, the service provider, Airbnb, the host, or your insurance provider.

Airbnb says service providers should carry insurance, but they stop short of requiring proof across the board.

In fact, Airbnb’s Experiences & Services Liability only steps in if the provider has active business insurance. No insurance means no coverage. Meanwhile, no extra protections are being extended to property owners.

Bottom line:

Insurance isn’t the most exciting topic, but it’s worth taking a minute to understand the risks of services and make sure you’re covered before something goes wrong.

With Services, the risk of an incident happening at your property goes up, while the question of who pays when something goes wrong remains blurry.

You can read the full article here

MARKET INSIGHTS

Mortgage Rate Snapshot

Mortgage rates fell sharply last Wednesday, marking the biggest single-day decline in over a month, before climbing back up again after Friday’s jobs report. Rates then stabilized, with modest declines of 0.02% on Monday and 0.04% on Tuesday, showing no strong momentum in either direction. Markets are now in a holding pattern, awaiting today’s CPI report for a clearer signal on inflation.

Regulations Update

• Nantucket, Massachusetts just banned STRs under 31 days in its historic district unless the property is owner-occupied, slashing investor options in one of New England’s top coastal markets.

• Vermont’s state Supreme Court upheld a host-occupancy rule, essentially setting a precedent for tighter zoning statewide that can block most non-owner-occupied STRs.

• Columbia, Missouri rolled out strict new rules requiring zoning approval, occupancy limits, and one license per owner regulations targeting multi-unit Airbnb investors.

See this weeks full regulations report here: (The Host Report)