How to Handle Unsubstantiated Complaints and Refund Extortion in STR Hosting
If you’ve been a short-term rental (STR) host long enough, chances are you’ve encountered it: a guest making vague or unsubstantiated claims — “The place wasn’t clean,” “The neighborhood felt unsafe,” or “There was an odor.”
Sometimes, these are genuine concerns. But other times, they’re strategic — a not-so-subtle attempt to score a refund or free perks.
As a host, you're left with a tough decision:
👉 Do you offer a refund to avoid a potential bad review (and possibly encourage this behavior)?
👉 Or do you hold your ground and risk a hit to your ratings?
Unfortunately, the answer isn’t always black and white. Every situation is different, and hosts often have to choose their battles wisely.
A Real-Life Example from Our Hosting Experience
Recently, we hosted a group who reported a basement ceiling leak — and even sent a video as proof. We responded right away. Our local staff visited the property and inspected the area.
Here’s what they found:
- Water on the bathroom floor directly above the bedroom in question
- No sign of an active leak when the shower was tested
- No evidence of plumbing or structural damage
The most likely cause? The guests hadn't fully closed the shower door, causing water to seep through and drip into the room below.
We offered a proactive solution: use one of the extra bedrooms and let us know if anything worsened. They didn’t report any further issues that night.
Still, my host instinct kicked in. I suspected a refund request was coming, so I documented everything and contacted Airbnb Support right away.
I alerted my cleaning crew in advance, who found no leak, no moisture, and no odor during post-checkout inspection.
Sure enough, after check-out, the guest requested a partial refund — citing a "mysterious odor" and claiming a leak resulting in one of the bedrooms being unusable.
Here’s How We Handled It:
✅ We declined the refund, referencing our inspection findings and the support we provided during their stay
✅ We kept the tone professional and respectful and noted the incident was fully documented with Airbnb
✅ We acknowledged they left the home very clean and offered a discount on a future stay as a goodwill gesture — and let them know we’d be leaving them a 5-star review.
The Twist
They gave us a 5-star review in return. (Of course, not every case ends that way — sometimes, we’ve had to deal with retaliatory reviews too.)
Lessons for Hosts:
- Document everything
Photos, local staff reports, and early communication with platform support go a long way. - Stay calm and professional
Avoid emotional replies. It reduces liability and protects your reputation. - Hold your ground when appropriate
If the claim doesn’t check out, it’s okay to say no — especially with documentation to back it up. - Offer a future incentive, not a refund
A discount shows goodwill without admitting fault. - Expect the unexpected
You might still get a 5-star review — or a 1-star. Either way, standing by your values matters.
Hosting isn’t always smooth sailing. But every challenge is a chance to strengthen your systems, clarify your boundaries, and contribute to a stronger host community.
Facing challenges in your STR operations? I’m here to help—let’s connect! 🚀