Crisis Management in Short-Term Rentals

Hosting short-term rentals is usually smooth sailing, but when something unexpected happens, it can throw everything off balance. Suddenly, your guests are stranded and you’re left scrambling to sort things out.

In this blog, we’ll cover how to manage these emergencies, understand your responsibilities and use platform protections from Airbnb, Booking.com and Vrbo to stay on top of any situation.

Host Responsibilities:  What’s Expected of You?

When an emergency hits and suddenly your place isn’t fit for guests, your first priority should always be their wellbeing and safety. Whether it’s an urgent evacuation because of a fire or an unexpected plumbing disaster that leaves your property uninhabitable, how you handle the situation can make all the difference. 

Reach out to your guests right away and let them know what’s going on. Be honest and clear about the situation and what you’re doing to fix it. No need to sugarcoat anything — straight talk helps them feel more secure.

If your property isn’t suitable for guests anymore, your next step is to help them find alternative accommodations. If you have other properties available, offer those as options. If not, take some time to find nearby hotels or other short-term rentals that might work for them. Helping your guests relocate isn’t just about meeting your responsibilities — it’s about making sure they feel taken care of during a stressful time.

Lastly, get in touch with your booking platform for cancellations or refunds. They have emergency policies, but working with them ensures everything goes smoothly. This helps protect your reputation and keeps your guests’ experience positive.

Platform Protection Policies: What’s Covered?

Different short-term rental platforms each have their own set of policies. Here’s a quick rundown of what big names like Airbnb, Vrbo and Booking.com have in place:

Airbnb’s Major Disruptive Events Policy

This policy is a lifesaver when emergencies like natural disasters, major travel disruptions or significant safety concerns arise. It allows you to cancel bookings without penalties or fees, even if the reservation’s original cancellation policy wouldn’t normally allow it. 

Just remember, your calendar will be blocked for the dates of any canceled reservations. Also, this policy isn't an insurance plan — it’s only for those big, disruptive events.

Vrbo’s Extenuating Circumstances Policy

Vrbo’s Extenuating Circumstances Policy helps when major travel disruptions or legal issues prevent travelers from completing their bookings. 

If this policy is activated, you must issue refunds regardless of the original cancellation policy. This means full refunds for guests who haven’t checked in and partial refunds for stays already underway. 

Cancellations that fall under this policy won’t incur fees or affect your program status, like Premier Host. But if you skip out on the refunds, you could end up with penalties or even a suspension.

Booking.com’s Force Majeure Clause

Booking.com’s Force Majeure clause is there for those "oh no" moments when something totally out of your control — like a natural disaster or civil unrest — makes it impossible to host guests. 

This clause lets you cancel or move guests without penalties, giving you some breathing room when things go sideways.

Strategies and Practical Tips for Handling Emergencies

No one likes to think about worst-case scenarios, but being prepared can make all the difference. Here are some strategies and tips to help you manage emergencies effectively:

Have a game plan

Every rental should have a straightforward emergency plan. This plan should include emergency contact numbers, alternative accommodation options and steps for communicating with guests. 

Make sure to share this with your guests during check-in, so they know exactly what to do if something goes wrong.

Get the right insurance

While platform protections are helpful, it’s wise to invest in additional property and liability insurance that covers emergencies. 

This extra coverage gives you peace of mind, knowing you’re protected from all angles.

Stay on top of maintenance

Preventing a crisis is always better than dealing with one. 

Regular maintenance checks are key — keep an eye out for things like faulty wiring, plumbing issues or any structural problems. Tackling these before they become a big deal can save you a lot of stress later on.

Build a local network

Get to know your local pros — plumbers, electricians, locksmiths — who can jump in quickly when things go wrong. 

Having reliable contacts on speed dial can seriously cut down on downtime when an emergency strikes.

Offer a little something extra

If the emergency is minor but still affects your guest’s stay, consider offering a little compensation, like a partial refund or a discount on a future booking. 

It’s a nice gesture that can go a long way in keeping your guests happy.

Set up an emergency fund

Consider setting aside some of your rental income into an emergency fund. This stash can be a lifesaver when unexpected repairs pop up or when you need to relocate guests, without putting a dent in your budget.

Stay Ready, Stay Calm

While crises in short-term rentals may be rare, they can occur unexpectedly. By understanding your responsibilities, familiarizing yourself with platform policies and having a well-thought-out crisis plan in place, you can effectively manage any emergency that arises.

Remember, your guests rely on you for guidance during these challenging times, so maintain open communication, find swift solutions and use any protections your platform offers.

Showing you can handle crises with professionalism and care will help your guests feel safe and looked after, no matter what happens.