Flexibility in Payment Policies: An Open Door to Fraud?
By following platform recommendations, property owners expose themselves to risks of theft, damage, and frustration.
09/12/2025 - Every day, owners of apartments and chalets receive online advertisements promoting the benefits of digital platforms like Airbnb to attract guests and maximize revenue. However, by registering their rental units and adopting flexible cancellation and payment policies — often recommended by the platforms themselves to increase occupancy rates — they may inadvertently expose themselves to unexpected risks, including fraud.
When registering, hosts often select default settings. Soon, bookings begin to roll in, and the apparent simplicity of the process can hide pitfalls. A common example involves policies that don’t require upfront payment and allow cancellations at any time. These conditions can lead to guests blocking calendars without paying or, worse, using bookings to fraudulently access properties for illegal activities.
Alarming cases have been reported in the U.S., where last-minute fraud resulted in significant property damage. In Canada, although less frequent, similar incidents are emerging, warning owners about abusive practices exploiting system loopholes. Platforms often disclaim liability, pointing out that hosts chose these conditions themselves.
Common Types of Airbnb Fraud
1. Last-minute booking without payment:
Guests make last-minute bookings close to the check-in date or time, receiving access codes automatically without prior payment. They use the property for parties, substance use, or other misconduct, leaving without paying and causing property damage.
2. Fake booking for a refund request:
Some users book, ignore messages, and the host cancels due to lack of response. The guest then claims a refund for a more expensive booking, alleging an unfair cancellation.
3. Unauthorized excess guests:
Guests book large properties for a small number of people but host larger groups without notice. Sometimes, the person who booked isn’t even present, making it harder to recover damages or adjust fees.
4. Use for prohibited activities:
Properties are rented for unauthorized purposes, such as commercial use, massage services, or parties, violating platform and host policies. Damages are often discovered after checkout, leaving the host with little recourse.
Preventive Measures and Professional Solutions
Preventing fraud requires more than relying on default platform settings. Consider these actions:
- Guest verification: Request ID and review their ratings.
- Review booking history: Check reviews from previous hosts to identify risky reservations.
- Require upfront payments and security deposits: Ensure financial protection, especially during peak seasons like holidays and major events.
- Monitor booking patterns: Watch for last-minute bookings by new or unrated profiles.
- Set clear rules: Specify occupancy limits, no-party policies, and other conditions in your listings.
Specialized Services for Property Owners
Even with these precautions, the risk of fraudulent bookings isn’t entirely eliminated. That’s why partnering with a professional service like TeamCHECKiN can make all the difference.
TeamCHECKiN maintains close contact with guests from reservation confirmation to check-out, identifying red flags before they escalate. With expertise in property management and secure policy configurations, the team helps maximize occupancy without compromising safety.
To learn more about safeguarding your property and optimizing bookings securely, visit TeamCHECKiN.