Airbnb Advice,

18th October 2021

4 common Airbnb risks + how to manage them (2021)

Airbnb can be a great way to make money, but there are always risks involved in every business, and Airbnb is no exception.

So what are some of the most common Airbnb risks, and how can you manage them?

1. Liability issues

As IGMS says, liability is a big issue when it comes to Airbnb. You can look at every piece of your guest’s social media to screen them (which I would not recommend doing), but ultimately this guest is still a stranger to you, so you have to account for them doing things that you may not predict. 

For example, guests may injure themselves, be a nuisance to your neighbours, or damage your property and YOU are liable for their transgressions. 

That is why it is so important you mitigate this risk by getting Airbnb liability insurance coverage in place before listing your property on Airbnb. Liability insurance will help you minimise money spent when these problems occur, and it can also help protect you from personal liability.

2. Local legal requirements

As Hosty points out, like every other type of rental, Airbnb has restrictions in place.

The frustrating thing about these laws and regulations is that they are ALWAYS changing, and there can be very severe consequences if you don’t comply with these governmental laws. 

To avoid this, make sure you research these local laws very carefully before you rent out your Airbnb property. You should also make sure you keep up to date with your local laws once your Airbnb is operating, as they are likely to change throughout the lifetime of your Airbnb.

You could even consider approaching an expert in this area to make sure that your Airbnb is up to scratch because above all, you don’t want to be caught out!

3. Cancelled bookings

It’s happened to us all, you’ve got an Airbnb booking, and you are so excited to host these Airbnb guests, but suddenly they cancel! Say goodbye to that money in your pocket.

As IGMS says, as an Airbnb host, it is impossible to avoid cancellations from guests. These cancellations can come after a booking is made, or a guest complaint could even result in you having to refund money if a guest has kept their booking. 

Cancelled bookings and refunded stays are rare, but you will definitely come across a few in your Airbnb career, so you need to be prepared. A great way to prepare is to account for a few instances of this occurring in your Airbnb Management strategy.

4. Uncertain risk

As Hosty says, there will always be a risk involved in Airbnb management because it depends on bookings. Airbnb bookings are likely to have increased popularity during certain seasons (eg. summer if you own a house by the beach) and decreased popularity during other seasons (eg. winter if you own a beach house).

To combat this, you will have to utilise your Airbnb listing by including a stellar title, photographs, and description that really draws people in regardless of the season, and also be very responsive and communicative with guests.


So there you have it, 4 risks that you should be aware of when it comes to your Airbnb property and how to avoid these risks. Another great solution to mitigating these Airbnb risks is to get an Airbnb company such as Zodiak Management to host your Airbnb so we can minimise the chances of these issues occurring, and you can relax and just watch the money appear in your wallet.