What is the best approach for handling AirBnB cancellations and refund policies?

AirBnB Cancellations and Refund Policies

Handling cancellations and establishing a refund policy for your short stay rental property requires clear communication and a fair approach. Consider these best practice guidelines to assist with better results.

Establish a cancellation policy

Set clear cancellation policies that align with your business goals and your guests’ expectations. Airbnb offers several cancellation policy options, including flexible, moderate and strict, which determine the refund amount based on the time of cancellation. Choose a policy that balances flexibility with protecting your business interests.

Communicate the cancellation policy clearly

Make sure your cancellation policy is clearly stated in your listing description, booking confirmation and all communications with guests. This will help manage expectations from the outset and reduce the likelihood of disputes.

Be responsive and understanding

Respond promptly to guest inquiries and cancellation requests. Show understanding and empathy, as unforeseen circumstances can lead to cancellations. Being responsive and accommodating can help maintain a positive guest experience, even in the event of a cancellation.

Partial refunds or credits for future stays

Depending on the circumstances and your discretion, consider offering partial refunds or giving guests a credit for a future stay. This can help maintain goodwill with guests and encourage them to rebook in the future.

Consider Extenuating Circumstances

Airbnb has an Extenuating Circumstances policy that allows guests to cancel and receive a full refund in certain situations, such as sudden illness, natural disasters, or travel restrictions. Familiarise yourself with this policy and be prepared to handle cancellations that fall within its scope.

Check local laws and regulations

Familiarise yourself with any local laws or regulations that may govern cancellation policies and refund requirements for short stay rentals in your area. Compliance with applicable regulations is critical to avoiding legal issues.

Document and maintain records

Keep thorough records of all communications, including cancellation requests, any agreed-upon refunds or credits, and any supporting documentation provided by guests. These records can help protect you in the event of a dispute or claim.


It is important to strike a balance between protecting your business interests and maintaining good relationships with your guests. Consistency, fairness and clear communication are key to effectively managing cancellation and refund policies for your short-stay rental property.

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Contact Us

Call now and let’s chat about your AirBnB holiday accommodation cleaning and AirBnB short stay hire linen requirements, as well as your need for AirBnB guest accommodation consumables and supplies:
1300 477 937 or hello@holidaypropertyservice.com.au

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