HOW TO AVOID A PENALTY
We understand that sometimes you need to cancel a reservation.
When that happens, how you handle it matters. Booking channels like Airbnb and VRBO can charge significant penalties for host-initiated cancellations. Here is how to avoid them.
Follow these guidelines:
1. Cancel for a valid reason. Every booking channel maintains a list of acceptable reasons for host-initiated cancellations. Only reasons the channel considers valid are eligible for a fee waiver. See the links below for each channel's policy.
Airbnb valid cancellation reasons →
VRBO valid cancellation reasons →
If your property is impacted by an unforeseen event, different policies apply:
Airbnb Major Disruptive Events Policy →
VRBO Extenuating Circumstances Policy →
2. Work with Avari. We will submit a cancellation waiver request to the channel on your behalf.
3. Provide documentation. You will need to supply the necessary details and supporting documents to back the waiver request.
WAIVER DOCUMENTATION REQUIREMENTS
Documentation is needed for each cancellation reason.
Construction — at-home
- What is the impact on your home?
- How long will your home be out of service?
- What is the expected completion date?
- Copy of invoice and/or photos showing construction
Construction — in your building
- A screenshot of the notice you received, including scope of work and estimated completion time
Utility outage
- A notification from the utility company (such as a text alert or email)
- Copy of the notification you sent to Avari alerting us of the outage
Maintenance or repairs — in your building
- A screenshot of the notice you received, including scope of work and estimated completion time
Maintenance or repairs — at-home
- Photos showing the maintenance issue (for example, a thermostat reading a high temperature, or photos of leaks or damage)
- Copy of invoice for work being done
New short-term rental regulation
- Link to the new regulation
- When did the regulation take effect?
- What does the regulation require?
HOA issue
This penalty can only be waived if your HOA passed a new bylaw that directly prevents the reservation from taking place. If so, provide:
- What exactly is the HOA issue?
- When did the issue begin?
- A link or copy of the new HOA by law
Natural disaster — hurricane, flooding, tornado, wildfire, winter weather, or similar
- Supporting documents such as photos of damage or repair invoices
- Copy or link to the evacuation order, if applicable
Pests and pest control
- What is the pest?
- Which areas of your home are affected?
- What date will treatment be completed?
- Copy of pest control invoice
- Photos of damage or evidence of pests
PENALTIES FOR NON-VALID CANCELLATIONS
What happens if a cancellation does not qualify for a waiver
Canceling for a reason the channel does not consider valid, or failing to provide required documentation, can result in:
- Temporary listing suspension: VRBO will suspend your listing for 7 days per invalid cancellation. Airbnb may suspend your listing for 5 days if you cancel multiple times.
- Fees: Starting at $50 and potentially reaching thousands of dollars depending on the proximity to check-in and the total booking value.
- Channel bans: Repeat cancellations made for non-valid reasons can result in your home being removed from that channel entirely.
AIRBNB CANCELLATION FEES
Fee schedule for host-initiated cancellations on Airbnb
There is a minimum $50 fee for any host-initiated cancellation outside of Airbnb's valid reasons or extenuating circumstances policies. The booking value and timing of the cancellation determine the final fee.
| Timing of cancellation | Fee |
|---|---|
| Within 48 hours of check-in, or after check-in | 50% of the reservation amount for nights not stayed |
| More than 48 hours before check-in, but within 30 days | 25% of the reservation amount |
| More than 30 days before check-in | 10% of the reservation amount |
For reservations of 28 days or longer, the fee is calculated as a percentage of the non-refundable portion of the reservation at the time of cancellation, covering up to 30 days following the cancellation date rather than the full reservation amount.
Any applicable Airbnb cancellation fees will appear on your next monthly statement with the cancellation date and the channel the booking was made on.
VRBO CANCELLATION FEES
Fee schedule for owner-initiated cancellations on VRBO
If you cancel a confirmed reservation for reasons within your control, including using the property yourself, switching property managers, deciding to stop renting on a short-term basis, or following a home sale, the following fees apply. These charges will appear on your next month's statement as an owner-initiated cancellation from VRBO.
| Timing of cancellation | Fee |
|---|---|
| 48 hours or less before check-in | 50% of the rent |
| Between 49 hours and 30 days before check-in | 25% of the rent |
| 31 days or more before check-in | 10% of the rent |
OTHER CHANNELS
Cancellation Fees for Other Channels
Expedia
Expedia does not charge a penalty for cancellations. However, you may be responsible for covering 100% of the guest's relocation costs to alternate accommodations, depending on the reason. Cancellations also result in lower visibility in search results and a lower Guest Experience score.
Booking.com
Booking.com does not charge a penalty for cancellations. However, you may be responsible for covering 100% of the guest's relocation costs to alternate accommodations, depending on the reason.
Questions about a cancellation?
Your local property manager can help you navigate the process and submit waiver documentation on your behalf. Find their contact information in our directory.
