Updated : Mar 25, 2025
Imagine you have a beautiful house you rent out to people for short stays, like a weekend or a week. This can be a fun way to earn extra money, but sometimes things don’t go as planned. Guests might throw a loud party, break something, or even refuse to leave on time. And what if there’s a natural disaster, like a wildfire or a flood? These problems can turn your dream of earning money into a big headache. Short-term rental crisis management can help you overcome these challenges. In this blog, we’ll talk about what can go wrong and how you can prevent these problems. We’ll also share some cool tips from a webinar about staying strong when things get tough.
Common Short-term Rental Crises
Short-term rentals can be a great way to earn money but come with risks. Here are some common issues that can arise:
1. Property Damage
Guests might accidentally or intentionally damage your property. For instance, in London, an apartment saw significant damage after it was rented out to guests who decided to throw a party at the premises. The property manager found the floorboards ripped and the TV stolen. The apartment also had a strong smell of cannabis left behind by the guests. This incident highlights the potential for substantial financial loss due to guest behavior.
Read more: 6 Best Ways Property Managers Can Optimize Vacation Rental Cleaning Processes
2. Noise Complaints
Guests might have loud parties, disturbing the neighbors. In cities like London, noise complaints are common issues with short-term rentals. For instance, Westminster council receives an “unprecedented” number of complaints about weekend “party flats,” with reports of loud music, shouting, and screaming. In one case, 200 people arrived at a flat in Soho, causing a disturbance that made sleep impossible for nearby residents.
3. Guests Overstaying
Having squatters is one of the most tedious crises you may have to deal with as a property manager. In the case of cash transactions or occasional long-term rentals, a guest can sometimes claim tenant rights. It is a lengthy and costly process to get rid of such squatters. In Palm Springs, a scammer declined to leave a long-term rental, leading to a lengthy and expensive eviction process. The guest claimed tenant rights, complicating the situation for the owner. To avoid such situations, as a property manager, it is wise to have a clear written agreement and know all the local tenant laws.
4. Natural Disasters
In areas prone to natural disasters, short-term rentals can be affected. For instance, during the Maui wildfires, short-term rental rules were temporarily suspended to help displaced residents. This allowed for more flexible housing options during a time of crisis. However, the aftermath also highlighted the challenges of a chronic housing shortage and the impact of pricey vacation rentals on recovery efforts.
How to do Short-term Rental Crisis Management?
The first lesson in short-term rental crisis management is that prevention is better than cure. Follow these steps to prevent crises and make a contingency plan in case one happens.
1. Screen Your Guests
Before you let someone stay in your house, it’s important to check who they are. Look at their profile on platforms like Airbnb or Vrbo. Do they have good reviews from other hosts? Have they caused problems before? For example, if a guest has a history of throwing parties, you might want to say no to their booking. This is like checking if someone is a good friend before inviting them to your house.
2. Set Clear Rules
Ensure your guests know what they can and cannot do in your house. For example, you can say, “No loud parties after 10 PM” or “No pets allowed.” Write these rules down and ask guests to agree before booking. This way, if they break the rules, you have proof that they know what to do and can demand compensation for any damages.
3. Use a Security Deposit
A security deposit is like a safety net. It’s money that guests pay before they stay in your house. If they damage something, you can use this money to fix it. For example, if a guest spills red wine on your white couch, you can use the deposit to clean or replace it. Just make sure the deposit is fair and follows local laws.
Read more: 15 Airbnb Hosting Tips To Make Your Listing Successful
4. Install Security Measures
You can also use technology to protect your house. For example, you can install security cameras outside your property to make sure no one tries to break in. You can also use noise sensors that tell you if guests are too loud. Remember to talk to your guests about these devices so they know they’re being watched. It’s like having a guard dog that barks when something’s wrong.
5. Document Everything
Before guests arrive, take pictures or videos of your house. Show how everything looks, from the furniture to the walls. Then, after they leave, take more photos. If something is broken or missing, you can prove the guests caused the damage and demand fair compensation. It’s like taking a “before and after” photo of your room after a sleepover.
6. Get the Right Insurance
Regular home insurance might not cover short-term rentals. So, you need special insurance that protects you if something goes wrong. For example, if a guest gets hurt in your house, this insurance can help pay their medical bills. Or, if a storm damages your roof, the insurance can help cover the repairs. It’s like having a superhero who saves the day when things get bad.
Read more: Airbnb AirCover vs Insurance: What You Need to Know
7. Stay Informed About Local Rules
Every city has different short-term rental regulations. Some places might say you need a special license to rent your house, and others might limit the number of days you can rent it each year. Make sure you know these rules and follow them. If you don’t, you could get fined or even lose your right to rent out your house. It’s like following the rules of a game so you don’t get disqualified.
8. Plan for the Future
You can do “scenario planning” for possible short-term rental crises. This means considering what could go wrong and planning to deal with it. For example, what would you do if a guest threw a party or a storm damaged your house? Having a plan can help you stay calm and solve problems quickly.
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Sign Up For Free Trial9. Use Technology
Technology can make it much easier for short-term rental property managers to identify and avoid a crises. For example, Minut sensors can tell if your guests are loud or too many people in your house. This helps you protect your property without being present in person.
Read more: Why Property Managers Need Vacation Rental Software to Manage Short-Term Rentals
10. Be a Good Leader
It’s important to stay calm and make good decisions when something goes wrong. Strong leadership can help you and your team overcome tough times. For example, if a guest damages your house, you must stay calm while dealing with such guests and make rational decisions to restore the damage.
Read more: 6 Ways Property Managers Can Delight Owners With PriceLabs
11. Learn from Mistakes
Sometimes, bad things can lead to good changes. For instance, the pandemic forced many businesses to rethink their plans and develop better and more profitable ones. By learning from their mistakes, they returned stronger than ever and more prepared to deal with future crises.
Conclusion
Renting out your house can be a fun and rewarding experience, but it’s essential to be prepared for problems. You can avoid big disasters by screening your guests, setting clear rules, and using technology. If something goes wrong, stay calm and follow your plan. Remember, every problem is a chance to learn and grow.
So, whether you’re dealing with a noisy guest, a broken chair, or even a natural disaster, you can handle it like a pro. With a bit of planning and care, you can ensure your short-term rental business succeeds.
