Does Vrbo Do Background Checks? The Complete Guide

You want to protect your short-term rental business from the risk posed by destructive or even criminal guests. One best practice is to run background checks on potential bookings, something offered by many online travel agencies (OTAs).

But, unless you’re willing to go deeper, a standard background check from a company like Vrbo can be more security theater than an effective safeguard.

You could try manually screening your guests but that’s time-consuming and imprecise, allowing unconscious biases and gut feelings to inform decision making, without really alleviating risk. This could even cause loss of potential revenue as you reject potentially great guests out of fear.

VRBO background checks

So, if you can’t rely on Vrbo background checks, what can you do to protect your investments and reputation as a responsible rental operator? This guide explains how Vrbo background checks work and what steps you can take to avoid Vrbo scams.

What do we mean by background checks?

Background checks are used by rental companies—like Vrbo, Airbnb, HomeAway, and Booking.com—to vet guests and hosts to see if they have a criminal record. In order for this sort of limited check to work, the guest has to be providing their legitimate identity. Even then, these sorts of checks are costly to run in most countries and so most OTAs are unable to run them on international guests.

Background checks like this help rental companies to appear responsible to local authorities, who often scrutinize short term rentals, and can help to ease concerns for both hosts and guests who are assured that some level of due diligence has taken place.       

But while these background checks can put minds at rest and provide some minimal barrier entry for the most obvious (and lazy) fraudsters and scammers, they’re next to useless when it comes to anticipating which guests might engage in more ‘gray’ behavior, like breaking your house rules to throw a party.

They’re also pretty ineffective at anticipating ‘dark’ behavior, like drug dealing or sex trafficking, as professional criminals are usually sophisticated enough to use false identities that make detecting them more difficult.

Both these types of bad guests, undetectable for most basic background checks, can put your investment at risk and damage your reputation. Plus, doing what you can to prevent this behavior in the local community around your properties is also the right thing to do.

Only by performing more in-depth guest screening can you confidently prevent these guests from taking advantage of your property, but if you put the right measures in place, you’ll be able to accept even last-minute reservations with confidence to maximize your occupancy rates and revenue.

VRBO Verification Process

The verification process on VRBO is a necessary step in ensuring the security of both parties in a rental transaction. It adds an extra layer of confidence when renting your property to guests. However, it’s essential to understand what this process entails to get a clear picture of the extent of its reach and limitations.

The VRBO verification process is primarily about confirming the identity of the guests to ensure that they are who they claim to be. This process involves verifying the guests’ personal information, such as their name, physical address, and birth date, using a government-issued ID.

To acquire a “Verified Identity” badge on their VRBO profile, guests must submit their government ID for verification. This process is optional for short-term bookings unless the host specifically requests it.

In addition to verifying personal identification, VRBO has a system in place to identify and eliminate fraudulent user accounts, which adds another layer of protection. This system scans for suspicious activity and inconsistencies in user information and behavior to flag potential fraudulent accounts.

However, it’s worth noting that while this verification process may provide some reassurance, it does not guarantee the intentions or behavior of the guests. For instance, a guest with a verified identity could still break house rules or cause property damage. Therefore, while the VRBO verification process is a valuable tool in identifying potential risks, it should not be the only security measure hosts rely on.

It’s also important to remember that VRBO doesn’t require in-depth background checks by third-party vendors for bookings. While some hosts may choose to request this extra layer of verification, it’s not a standard procedure for all transactions.

So, what does this mean for you as a host? It’s crucial to understand the limitations of the VRBO verification process and not solely depend on it as a security measure. It would help if you consider implementing additional screening procedures to ensure the safety and security of your property and reputation as a responsible rental operator.

While the VRBO verification process offers some level of protection, it’s essential to be proactive in taking further steps to safeguard your property. This might include using tools like Autohost to examine guests’ digital footprints or installing privacy-safe noise monitoring hardware to mitigate risks.

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Does Vrbo do background checks?

Vrbo does perform basic background checks by verifying identification and checking for fraudulent user accounts. Vrbo takes the following steps to verify guest identification and check that they’ll be low risk for hosts:

Before Guest Stay (Upon Booking Request)

Before a guest makes a booking, they can complete the Vrbo ID Verification process to mark their guest profile with a “Verified Identity” tick. They do this by using government ID to confirm their name, physical address, birth date, and other personal information.

This process is similar to Airbnb background checks, which also use ID Verification. Though in both cases, this step isn’t required for short-term bookings. The host has to choose to request a government ID.

Vrbo allows third-party vendors to verify identity via more detailed background checks but they don’t require this level of verification to confirm a booking.

Vrbo background checks

To make a booking, your guest will also agree to follow your House Rules, such as policies for parking, trash, and noise. Fellow Vrbo owners also complete Guest Reviews, which will mean prospective guests will come with a rating attached, provided they have a history of booking with the platform (which bad actors may not).

During Guest Stay

Vrbo suggests hosts install privacy-safe noise monitoring hardware so you can receive alerts if noise levels reach unacceptable volumes and stop any unauthorized parties before they get out of hand.

You’re also advised to report misconduct to Vrbo or contact authorities in the event of an emergency.

After Guest Stay

Vrbo offers liability insurance and property damage protection, though this limited coverage leaves property managers in limbo hoping insurance will cover any damage after the fact. And even if the damage is covered in full, you’ll likely experience downtime during repairs.

So, as with most things, prevention is the best cure—which means thorough guest screening in advance of booking confirmation.

What are the limitations of Vrbo’s background checking process?

As may be clear from what’s been written above, Vrbo’s background checks and guest verification policies are far from comprehensive and have some glaring limitations. Here’s a summary of some of the biggest:

ID verification isn’t enough

Great, Vrbo has verified your guest’s identity as authentic and accurate. Yet, this fact doesn’t mean the guest on the ID will walk through your door. The guest can use an altered, stolen, or forged ID with a fake user profile purchased from the darknet.

One homeowner we spoke to gave an ‘ID-verified’ guest access to their vacation rental only for the guest to steal everything from the home immediately after check-in. With incidents like this in mind, you can see how ID verification is not enough to protect your hospitality business.

IDs don’t explain guest intentions

Guests don’t have ‘felon’ or ‘rule-breaker’ stamped on their IDs. Vrbo background checks won’t reveal most of the dark, let alone gray, problems you could face. 

At Autohost, we’ve discovered 90% of our hosts’ previous issues come from the gray category, which may seem minor but add up to major problems. Once backed by our guest screenings, property managers can catch this kind of issue before accepting a risky booking. No property manager should experience the death of their business by a thousand cuts.

Consider the following scenario. A couple with verified identities rents a Vrbo vacation home with two bedrooms. Because the home has an extra bedroom, they decide to invite over a friend who lives in the area. When the friend asks if she can bring her boyfriend, a person the couple hasn’t met, they give a tentative ‘yes’.

When the second couple arrives, they park on the street in violation of the Homeowners’ Association (HOA) agreement. The unknown boyfriend smokes cigarettes inside the home all night.

Not only does he inflict smoke damage to the property, but he burns holes in the couch’s cushions. The cleaning service fee costs more than usual to remove the smoke smell. This fee, plus furniture replacement, exceeds the property damage protection from Vrbo.

Late at night, the small group listens to loud music, and the neighbor complains to the HOA. Finally, the group has extra trash because of the get-together. They place a full trash bag on top of the trash can. At a later date, the HOA fines the property manager for the parking, noise, and trash violations.

This one night displays many gray-category issues brought upon by difficult guests. The guests’ small decisions led to large problems for the homeowner’s reputation as a neighbor.

The host had to spend extra time and money cleaning and fixing the damage. And let’s not forget the HOA fines. The property ended up with downtime waiting on the new couch, an item on backorder due to the pandemic.

Nothing in the above scenario could be predicted by a Vrbo background check. The homeowner could have avoided all these problems by screening their guests with a more intelligent automated tool based on more data points.

At Authohost, we check each guest’s digital footprint (email address, phone number, IP address, social media presence, etc.). This information sheds light on both the dark and gray unknowns. This way, you experience peace of mind through screening your guests for a better idea of their intentions.

Vrbo Party Policy

As earlier explained, one recurrent issue that’s often a gray area for many is unauthorized parties. Given the increase in “party houses” or unauthorized events in rental properties, it’s crucial to understand Vrbo’s stance on this and how hosts can protect themselves.

Vrbo’s Stance on Parties

Vrbo has a clear policy against parties and events in their listed properties unless explicitly allowed by the host. Any guests who throw unauthorized parties are violating Vrbo’s terms and conditions. This can result in penalties ranging from loss of the security deposit to eviction and even banning from the platform.

Why Are Unauthorized Parties a Concern?

Such events can be destructive for properties, causing damages that far exceed security deposits. There’s also the risk of noise complaints from neighbors, potential violations of local laws, and even the possibility of personal liabilities if anything were to go wrong, such as injuries.

Steps for Hosts

Clear House Rules: Ensure your listing explicitly states your policy on parties and events. This way, guests are aware from the outset what is and isn’t allowed.

Communication: A direct line of communication with your guests can be invaluable. Sometimes guests might not understand the implications or may mistakenly think a “small get-together” doesn’t count as a party.

Security Measures: Consider implementing security measures like noise monitors, which can alert you if the noise levels in your property exceed a certain threshold. Some hosts also invest in exterior security cameras (always respect privacy laws) to monitor the comings and goings without intruding on guests’ privacy.

Local Partnerships: Building relationships with your neighbors can be a boon. They can alert you if they notice unusually large gatherings or disturbances.

Deposit and Fees: Ensure you have a substantial security deposit in place, and clarify the conditions under which part or all of it might be withheld. Some hosts also implement an additional fee structure for authorized parties to cover the extra wear and tear on the property.

Vrbo Insurance

Vrbo offers two distinct insurance policies aimed at safeguarding hosts against potential losses: the Vrbo Property Damage Protection and the Vrbo Liability Insurance. The Property Damage Protection is designed to cover accidental damages by guests to the rented property, be it broken furniture or stained carpets. Depending on the plan chosen by the host, this can offer coverage from a few hundred to a few thousand dollars.

On the other hand, the Vrbo Liability Insurance provides hosts with protection in case a guest files a claim for injuries sustained during their stay. While these insurance options can give hosts an added peace of mind, it’s crucial to delve into the specifics of each policy to understand the coverage extent and any limitations. Leveraging Vrbo’s insurance alongside other proactive measures can help hosts create a comprehensive risk management strategy for their rental business.

Is VRBO Better Than Airbnb For Hosts?

Deciding between VRBO and Airbnb can feel like a toss-up. Both platforms offer incredible opportunities to monetize your property, and they’re both popular among travelers. However, depending on your priorities as a host, you might find one better suited to your needs than the other.

VRBO tends to attract a more mature audience, typically families or older couples who often book longer stays. This can translate to steadier income and less turnover, which could be beneficial for hosts who prefer less frequent changeovers. Furthermore, VRBO operates on an annual subscription model for hosts, which means there are no booking commissions deducted from your earnings. This contrasts with Airbnb, which charges a percentage per booking. If you’re a high-volume host, this could mean more money in your pocket.

On the flip side, Airbnb boasts a larger user base, which could lead to increased visibility for your listing. Airbnb’s review system, which allows both hosts and guests to leave reviews, also fosters a sense of community and trust. However, Airbnb’s fee structure can take a larger chunk out of your profits compared to VRBO, as they charge hosts a service fee for each booking.

That being said, it’s not a case of one platform being universally better than the other. It largely depends on your individual hosting style, property type, location, and personal preference. It might be worth listing on both platforms to maximize your property’s exposure and compare your experiences with each. Then, you can make an informed decision about which platform aligns best with your hosting needs and goals.

In conclusion, while VRBO might provide better value in terms of fee structures and attract guests looking for longer stays, Airbnb can offer increased visibility and community engagement. As a host, consider what matters most to you, and make your decision accordingly. Regardless, diversifying your online presence across platforms might be the most effective way to ensure your property’s success in the booming short-term rental market.

How to combat the limitations of Vrbo background checks

We recommend property managers use guest screening services rather than simple background checks. Autohost offers automated, comprehensive guest screenings. We fill in the gaps of Vrbo’s background checks. Optimize profitable transactions and remove the risk of harmful bookings. To know your customer (KYC), apply the Autohost difference.

What is guest screening? We examine each reservation’s risk level through unbiased data points. For example, we confirm guests’ IDs and note credit card chargebacks. We also screen social media content to look for warning signs of fraud.

Next, we contact the guests to confirm their information and intent. This step is similar to the way an Airbnb host asks guests questions. You can require the guests to sign a legally-binding rental agreement and pay a security deposit.

The couple in the above scenario would have thought twice about inviting people over. These guests would’ve also agreed not to allow smoking in the rental, so they’d be more careful to avoid serious consequences for violating their rental agreement.

Finally, the security deposit offers coverage for fees incurred by difficult guests. In fact, you can determine the amount for the security deposit based on a transaction’s risk level.

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Limit liability and accept bookings with confidence

Vrbo’s shallow background checks can lead to problems for property owners. Without data-driven guest screenings, you won’t know which risky bookings to turn down. For example, party-related damages can cost more than a guest’s deposit. Or neighbors can submit noise complaints caused by guests’ unidentified friends.

Worse, a felon could steal a minor’s ID and use the identity to create a booking. These disruptions influence your reputation and profit. Not to mention, these issues waste your valuable time. Autohost’s automatic services reduce these disruptions and allow you to accept even last-minute bookings with confidence so you can maximize the potential of your properties.

Frequently asked questions about Vrbo background checks

How does vrbo work for check-in?

VRBO offers a flexible check-in process, which can vary based on the host’s preference. Some hosts provide a key or a key code for a lockbox, allowing for self check-in. Others may arrange to meet guests in person. Details for check-in, including the time and process, will be clearly communicated to guests in their booking confirmation or through direct communication with the host. Always refer to your booking details or contact the host directly for specific check-in instructions.

How strict is Vrbo?

Vrbo isn’t very strict in terms of enforcing ID verification checks for its guests. They don’t complete background checks outside the personal information a guest provides. A host can request a government ID to stay at their vacation rental site but this is completely optional.

Does Vrbo check credit?

Vrbo doesn’t check a guest’s credit or history of credit card chargebacks. So, if a property owner doesn’t screen a guest for credit card history, they can lose money to fraudulent credit cards.

Does Vrbo check age?

Vrbo checks age by verifying the birthday provided on a guest’s ID. However, ID verification is not required to submit a booking request and it’s far from foolproof even when a guest does provide ID because most sophisticated criminals will use false or stolen ID to avoid detection.

Does Vrbo require an ID?

Vrbo doesn’t require an ID for booking, except in Spain. The website only encourages a traveler to confirm their identity to build trust with a host. When a guest opts into the ID verification process, Vrbo verifies their identity for accuracy and authenticity, though this doesn’t do anything to protect against people who would use a fake or stolen ID.

Automate Your Way to Safer Rentals

With Autohost, get AI-powered background checks, digital contracts, and security deposits, reducing time spent on manual processes and increasing security. 

Product Updates for March

At Autohost we are constantly innovating and looking for ways to make our customers successful. Here are some highlights of the many recent features we released:

  • OFAC Sanctions – Every transaction and reservation are searched against the sanctions and embargo list. Previously this was only available via our Background Check product. We decided to enable this at no charge for all customer throughout 2022 in light of the recent tensions in Ukraine. :flag-ua:
  • Device Fingerprints – Autohost will highlight reservations that belong to people who have been previously implicated with fraud or other issues within customers’ properties. :raised_hand_with_fingers_splayed:
  • Zapier Integration – Connect your reservations and guest data to 4000+ apps, including SalesForce, Mailchimp, Asana and more. :magic_wand:
  • Upsells – Charge for early check-ins, pet fees, resort fees and taxes. :credit_card:
  • Messaging Webhooks – Send API calls whenever Stargate is supposed to send a message based on its rules. :outbox_tray:

Fake IDs are flooding hospitality: Here’s how to spot them

As an industry dependent on mutual trust between businesses and customers, hospitality is a prime target for fraudsters. According to the Association of Certified Fraud Examiners, 5-6% of the $3 trillion of revenue generated by the industry annually is lost to fraud. That amounts to $150 billion in direct losses.

Identity fraud, especially, is rising year over year. And with an increase in COVID-19 related phishing scams, it’s getting worse. In fact, from January to Sept. 1, 2020, according to the FTC, consumers reported losing more than $130 million to COVID-19-related fraud.

In hospitality, particularly the short-term rental industry, fake and stolen IDs have become a prevalent form of fraud, used to book accommodations online. If you’re a property manager in the space, consider yourself vulnerable to identity fraud.

Where do fake IDs come from?

Fake IDs first appeared in the U.S. around 1970. Rare and unsophisticated, they were primarily used to sneak into nightclubs. Since bouncers and bartenders were unaccustomed to dealing with fakes, it was easy for minors to slip through the front door. At the time, there was also the added bonus that few states required IDs to have pictures.

fake IDs hotels

But in 1984, things took a turn. New Jersey Senator Frank Lautenberg initiated a campaign with Mothers Against Drunk Driving (MADD), passing the National Minimum Drinking Age Act, which forced states to push their legal drinking age to 21. As a result, fake IDs flooded the U.S. market.

The challenge of spotting fake IDs requires an understanding of modern hotel security systems.

Fake IDs in hospitality

Fake IDs are now being used for more than just under-age drinking. They’re being employed to bypass hospitality security, allowing fraudsters to book stays in top hotels and rentals without sounding any alarms for operators. As a result, these major companies have no idea who they’re hosting, exposing them to increased risks.

Considering the growing number of identity fraud cases and the evolving savviness of fake IDs, many hospitality operators are at a loss for what to do. Insurance around identity fraud is murky with plans designed to cover those who’ve had their identities stolen, rather than peripheral victims. At best you might receive coverage on property damage inflicted by the fraudster. Ultimately, you’re left operating with a degree of vulnerability.

But identity fraud is preventable. You just need to be proactive. Stop fraudsters before they enter your property to save your business money and improve your reputation.

The issue of fake IDs in the hospitality industry highlights why robust ID verification is essential.

FIND OUT WHY ID VERIFICATION ISN’T ENOUGH

To help protect your business against identity fraud:

How to check for fake ids?

As a property manager or hotel booking staff member, your role in verifying IDs is crucial to ensuring the safety and security of your establishment. To identify a fake ID, you’ll need to pay close attention to various elements of the document:

Quality and Material:

Genuine IDs are made with specific materials and technologies that are difficult for fraudsters to replicate. A fake ID might feel flimsy, the lamination might be peeling, or it might just not feel right. The use of embossed text, microprinting, or holographic overlays are common security features that are challenging to counterfeit accurately.

Photo and Information Consistency:

hotel scan ID

Check the photo and personal details carefully. The person standing in front of you should closely resemble the photo, and the height, eye color, and other personal details listed should be consistent with the individual. Any discrepancy could be a sign of a fake ID.

Spelling Errors:

Counterfeiters often make mistakes in the spelling of place names or use incorrect fonts. Any typos or font inconsistencies are red flags that you’re dealing with a fake ID.

Holograms and UV features:

Most modern IDs have built-in holograms that become visible under certain light conditions or UV features that can only be seen with a UV light. If these are missing or poorly executed, the ID might be fake.

However, remember that fake IDs are becoming increasingly sophisticated, so staff training and the use of ID verification technology can be vital assets in the battle against identity fraud. These technologies can quickly scan IDs for all the security features, cross-check information with global databases, and flag any potential issues within seconds.

Remember, if you have any doubts about an ID, it’s better to err on the side of caution. Reach out to local law enforcement for further verification if necessary. Being vigilant about ID verification can help protect your property, your guests, and your reputation in the long run.

Know Your Guest

It’s important to catch fraudsters at the gate, before they do any damage. The first step is identity verification. In the finance industry, this is a requirement for Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance. By noting data mismatches in the transaction, businesses can reduce fraud. That’s why in hospitality, it’s important to Know Your Guest. Do your due diligence by learning about the guest and the potential threat they pose.

How to spot a doctored ID

Depending on your business model, you may provide in-person check-ins for each guest. Rather than handing over the keys right away, take this as an opportunity to verify their ID. When presented with the physical copy, feel for thickness around the photo and the edge of the lamination. If it feels uncommonly thick, it may be an indication that a second photo has been placed on top of the original and re-laminated.

If you’re performing the ID verification online, it can be trickier. Applications like photoshop have made it easier to produce fakes. Make sure the piece of ID submitted by the guest includes a photo, is government issued, is valid (not expired), and includes the guest’s date of birth. When scanning these features, also watch for any spelling mistakes and inconsistencies in the numbers and letters. Depending on the state and country, different IDs use different fonts. Compare the ID to a verified version on the state’s Department of Motor Vehicles to make sure they match.

Finally, take a close look at the ID’s photo. Many ID photos are taken in a way that is difficult to replicate, including the backdrop and how the photo is cropped. Some newer IDs will include a cross-hatching design across the face of the card and may also include a small hologram version of the photo in one of the corners—which is difficult to replicate on photoshop.

If something about the ID doesn’t add up, don’t be afraid to cancel the reservation. Stolen or damaged property will cost you a lot more than a missed night.

How to spot a stolen ID

Stolen IDs are becoming more prevalent as online travel agencies (OTAs) and property managers add age restrictions on their listings. To secure bookings, young people are using borrowed or stolen IDs, leaving them unaccountable in the cases of parties or property damage. Worse yet, criminals commit identity fraud to sneak into rental properties, using the space for illicit activities.

And while there are ways to check if you have been a victim of identity theft, it’s much harder to catch the perpetrator. With self check-ins especially, stolen IDs can be difficult to spot. The ID is technically authentic, so if your team analyzes a photo of it online, it likely won’t raise any red flags.

To monitor for stolen IDs, your team needs to thoroughly screen every reservation. Check the ID against the name of the guest who made the reservation and against the credit card they provide. If the two don’t match, reach out to the guest to inquire about the discrepancy. Try getting the guest on the phone. Guests using a stolen ID are likely to dodge your calls or give evasive answers.

Do hotels scan ids?

In an effort to combat identity fraud, an increasing number of hotels are now implementing ID scanning as a mandatory part of their check-in procedures. These scans provide a more accurate and efficient method of verifying guest identities and are a significant step towards enhancing the security and safety of both the establishment and its guests.

ID scanning in hotels often involves using specialized equipment or software to digitally capture and store the information presented on a guest’s identification document. This process allows hotel staff to swiftly spot any discrepancies or irregularities that may indicate a fraudulent ID. In many cases, the software can cross-verify the information against global databases or use advanced features such as facial recognition to compare the ID photo with a live image of the guest.

This procedure doesn’t only fortify the hotel’s defenses against identity fraud; it also aids in streamlining the check-in process, ensuring that accurate guest data is collected and stored for future reference. As such, ID scanning is becoming a standard in the hotel industry as it seeks to meet the growing challenges of identity fraud head-on.

Analyze the reservation details

When it comes to pinpointing stolen IDs, it’s important to analyze all details surrounding the guest and their reservation. If your property was booked by a high-risk guest, it’s likely the reservation will show other suspicious characteristics beyond the ID upload. Keep an eye out for specific techniques that are commonly used by identity fraudsters.

For example, many fraudsters use prepaid credit cards and phone numbers when booking accommodations. With these as a shield, they can mask their identity. To counteract this, have the guest submit a selfie and compare that with the photo on the ID.

Pay extra attention to the conditions of the reservation. For instance, fraudsters using stolen cards are more likely to book last-minute, giving you as little time as possible to look over their reservation. Do not accept a last-minute booking without thoroughly investigating the guest.

If a single person booked a three-bedroom condo in the middle of downtown, that might also be cause for concern. Embrace your apprehension and reach out to the guest for more information. It’s particularly useful to find out why they’re travelling and where they’re travelling from. Vague answers like sightseeing are a red flag, especially if they’re local. Ask them to elaborate. If they refuse, it’s not worth the risk.

What to do if you spot a fake ID

If you encounter a guest using a doctored or stolen ID, flag them immediately and report the guest to the associated OTA—they could be scamming others. Keep a record of the guest’s ID in your database. You may need to submit it as evidence to the OTA to secure a refund for the canceled reservation. Plus, it’s always wise to have all information pertaining to the reservation accessible in case you require documentation down the line.

If you’re uncertain whether the ID is a fake, reach out to the guest over the phone to collect more information or to confirm their booking. The act of phoning can be illuminating, allowing you to check the number’s area code against the address on the ID and whether the number actually belongs to the guest.

If you’re still unsure, you can ask the guest to submit to a police-verified background check, confirming that the ID does in fact belong to them. A guest using a stolen ID likely won’t consent and will instead cancel the reservation.

Automate your screening process

To keep your business safe, it’s imperative you screen every reservation. But even with a well-trained support team, this takes time and resources. Instead, consider automating the process for a cohesive and efficient check-in flow.

With a tool like Autohost, you can verify every reservation, using a global database of IDs to spot fakes and flag risky guests. The whole process takes seconds, keeping your operations smooth and efficient.

 

REACH OUT TO AUTOMATE YOUR GUEST SCREENING

How to switch from short-term rentals to mid-term rentals

The COVID-19 pandemic has flipped the vacation rental industry upside down, forcing many property managers to rethink their business models. One of the biggest changes has been a shift from short-term rentals to mid-term rentals as property managers navigate rental bans and capitalize on the current need for long-term accommodation.

Switching to medium term rentals, however, isn’t always easy. While both types of rentals bring in rental income, there are differences you need to consider.

Here are some tips on how to convert to a mid-term rental:

The differences between short-term and medium term rentals:

Rental Bans

The most notable difference between the two types of rentals is their length of stay. In most jurisdictions, short-term stays last 1-30 days, and mid-term stays last 1-12 months. Based on these terms, many cities have banned short-term rentals, but permitted mid-term rentals. In some cities this ban is a temporary response to the spread of COVID-19, while other cities have banned short-term rentals permanently, seeing them as disruptive to the community. Make sure you understand how your area differentiates the two.

Tenants’ rights

Another legal difference between these two types of rentals is whether or not the occupants are covered by tenants’ rights. In several states, occupants staying 30 days or less are not covered by these rights. But if your guests are covered by these rights, it’s important to clarify the intended length of stay so that you don’t have to deal with a difficult eviction process. Before switching to the mid-term rental model, familiarize yourself with your area’s tenants’ rights.

Types of guests

Each type of rental attracts different guests. Mid-term rentals tend to play host to people traveling for essential purposes, such as work, while short-term rentals attract people traveling for non-essential purposes, such as vacations or events. As a result, short-term rentals come with a higher risk of parties and a greater need for damage protection.

Understanding the mid term rental lease agreement:

An integral part of transitioning to mid-term rentals is understanding the mid-term rental lease agreement.

This agreement is a legally binding contract that delineates the terms and conditions of the rental, including the duration of the stay, monthly rent, security deposit, rules, and termination clauses. Unlike short-term rentals, where agreements are often less formal, mid-term rentals require a more comprehensive lease agreement due to the length of the stay and the tenant’s legal rights.

Having a clear and comprehensive lease agreement not only provides security for both the renter and the landlord, but it also sets clear expectations for both parties and can help to prevent disputes later on. While drafting a lease agreement, ensure it’s customized to your property, jurisdiction, and specific circumstances. For example, you may wish to include rules about pets, maintenance responsibilities, and procedures for resolving any potential disputes. You can also specify penalties for early termination or for failing to comply with the terms of the agreement.
Remember, it’s important to consult with a legal expert to ensure your mid-term rental lease agreement is compliant with local and state laws. Legal advice is crucial as regulations can vary widely, and non-compliance can lead to serious consequences. By understanding and implementing a robust mid-term rental lease agreement, you’re protecting your property, your business, and ensuring a positive and straightforward experience for your tenants.

Pros of switching from short-term to mid-term rentals

While they may not bring in sky-high rates, there are advantages to switching from short-term to mid-term rentals, especially as property managers fight to recover from the pandemic:

  • People looking for mid-term rentals are more likely to be traveling for essential purposes.
  • You don’t have to worry about hotel taxes or short-term rental bans.
  • With fewer check-ins, turnovers are more manageable.
  • You can reduce the frequency of cleaning, cutting costs.
  • By dealing with fewer guests, you’ll be able to simplify your process.

Switching rental models can involve comparing background checks versus guest screening effectiveness.

Determine if your property is the right fit for mid-term stays

If you’re interested in listing your property for mid-term stays, the first step is determining whether it’s a good fit. People in the market for a mid-term rental aren’t on vacation; they’re looking for a place they can call home for a few months. This includes people in transition with work, students taking part in a co-op placement, frontline workers and so on.

These guests aren’t looking for the kind of amenities offered with short-term rentals, like a hot tub or ocean view. They want practical features, like larger square footage, a fully-operational kitchen, a laundry machine, separate bedrooms and friendly neighbours. To determine whether your property is an adequate mid-term rental, you need to be able to picture it as someone’s home.

Navigating Airbnb for Mid-Term Rentals:

For many property managers, Airbnb has become an essential platform for managing and advertising rentals. While traditionally known for short-term vacation stays, Airbnb also accommodates mid-term rentals or monthly rentals, providing an expansive marketplace for hosts and guests alike.

Airbnb’s platform is designed to make mid-term rentals seamless. You can easily set minimum and maximum stay durations, customizing your listing to attract the right kind of renters. Moreover, Airbnb provides a range of tools and resources for hosts transitioning to the mid-term rental model. These include features like the price setting tool, which helps you competitively price your property for mid-term rentals, and the availability settings, allowing you to block off dates for extended periods.

Remember, it’s essential to accurately represent your property in your Airbnb listing, ensuring guests know exactly what to expect. For mid-term rentals, guests are often looking for a comfortable, home-like environment, so highlight the practical features of your property, such as a fully-equipped kitchen, workspace, or laundry facilities.

And while Airbnb can be an excellent avenue for mid-term rentals, it’s just one of many platforms available. Be sure to explore all your options to find the best fit for your rental property and business model.

Steps to set up your mid-term rental:

1. Market your property

Once your properties are set up for long-term guests, start marketing them by listing on the right booking channels. Sites like Airbnb and Vrbo can be effective, but they tend to cater to vacation rentals and shorter stays. If you want to specifically target long-term guests, you should list on platforms like Kopa, which specializes in listing mid-term rentals. Craigslist, Facebook Marketplace, and local Facebook groups are other good places to list. Be creative with your marketing strategy. Think outside the box to get the word out.

2. Tailor your listing

To get the most money for your property, it’s important to make it stand out to potential guests. An easy way to do this is to create a description that’s tailored for a mid-term rental. While a short-term rental description might highlight its skyline view or nearby attractions, a mid-term rental description should be more practical. Include the distance to the nearest grocery store and the closest bus stop.

Also, think about what type of guest might be attracted to your property’s neighborhood. Is your property located within walking distance of a hospital or across the street from a subway station? Does it include a private entrance to limit encounters with other individuals? These are all marketable qualities a potential guest may be looking for.

3. Calculate your rental income

When deciding on a price for your property, make sure to list it within the local market range. Be aware that mid-term rentals typically earn less per night than short-term rentals. You should discount your mid-term rental rate by at least 25% of what it would cost for a month at your short-term rate.

For example, if your nightly short-term rate is $150, here’s how to calculate your maximum mid-term rate:

  • One month’s rent at short-term rate: $150 x 30 nights = $4,500
  • Twenty-five percent of one month’s rent at the short-term rate: $4,500 x 0.25 = $1,125
  • Maximum monthly rent at the mid-term rate: $4,500 – $1,125 = $3,375 (but don’t forget to account for tax and service fees!)

While it may seem like a decrease in revenue, remember that your property will be fully booked for multiple months.

4. Choose the best guest for you

With mid-term rentals, it’s just as important as short-term rentals—if not more important—to screen your guests. After all, these renters will be staying at your property for months, not days. Collect personal information and contact details to paint a better picture of your guest. To ensure payment, request first and last month’s rent. And for ultimate peace of mind, consider running a credit check or asking for a letter of employment.

5. Have the guest sign a rental agreement

Once you’ve found a suitable renter, have them sign a legally-binding rental agreement. This should outline house rules, the price of rent, when rent is due, and other important factors. Security deposits for mid-term rentals are standard—usually the equivalent of one month’s rent. Having this agreement can also prevent guests from overstaying their welcome.

As with any rental home, it’s important to follow up with renters to see if they have any questions or concerns with the agreement.

Weighing the differences

While mid-term rentals aren’t necessarily the most lucrative type of rental, they’re often easier to manage, especially when compared to the break-neck pace of short-term rentals. If you’re looking to carve out a bit more time in your operations, consider converting some of your properties to mid-term rentals. You can focus your time and resources on streamlining your business and perfecting the guest experience.

4 proven ways to protect yourself if you offer direct bookings

Hosts learned the value of switching to direct bookings the hard way.

After losing control of their business through OTAs’ aggressive cancelation policies and reactions to the crisis, hosts realized there’s more at stake than the commission they pay.Having your own website allows guests to book with you directly, instead of through an online travel agency (OTA). Benefits of direct booking are:

  • You don’t have to pay commissions
  • You have full control over your short-term rental business
  • You won’t be at risk if something happens to your listing on the OTA

Operators are afraid that direct booking sites will put them more at risk of hosting bad guests without the protection that some OTAs offer. Airbnb’s Host Guarantee covers up to $1 million USD of property damage. Without the OTA safety net, how can a host mitigate risk?

Hosts around the world have complained about the difficulty of getting OTAs to reimburse property damages. A South Carolina host claimed that Airbnb didn’t fully cover the damages he faced after guests threw a 100-person party. Even if it had reimbursed him the full amount, he still would’ve been responsible for cleaning and fixing his property. It’s risky to leave your property’s security in the hands of a third party.

The best security is proactive and done by the host and not an OTA. Fortunately, for hosts who allow direct bookings, there are ways for you to protect yourself more effectively than any OTA could.

Direct Bookings for Short Term Rentals

In the era of the shared economy, short-term rentals or vacation rentals have emerged as a popular alternative to traditional accommodations. Many hosts are now exploring the option of direct bookings, which allows them to regain control, eliminate commissions, and manage their businesses more efficiently. However, establishing a secure and safe direct booking process is crucial for both the guests and hosts. Here’s how you can set up a direct booking process that ensures your business’s security while providing a seamless experience for your guests.

Step 1: Design a Professional Website for Direct Bookings

Before you can set up a direct booking process, you need a professional website to showcase your property. Use high-quality photos and clear descriptions to provide potential guests with a vivid idea of what they can expect. Integrating a secure payment gateway is a crucial step in establishing trust with your guests. Implement SSL encryption and choose a trusted payment processor to ensure secure transactions.

Step 2: Install a Reliable Booking Engine

A booking engine allows guests to check the availability of your property for their preferred dates and make a reservation directly. There are many third-party booking engines available, offering features like calendar management, automatic confirmations, and integrated payments. Choose one that is mobile-friendly, easy to integrate with your website, and offers robust security features.

Step 3: Set Clear Booking Policies

Outline clear booking policies including your cancellation policy, check-in and check-out times, pet policy, smoking rules, etc. Make sure these policies are easily accessible on your website to ensure guests are fully aware of them before making a booking. Clear, transparent policies help set expectations, reduce potential disputes, and provide a framework for handling any issues that may arise.

As a vacation rental owner, establishing a secure and reliable direct booking process can be advantageous. It allows you to save on commissions, exercise greater control over your business, and build direct relationships with your guests. However, safety and security should never be compromised in the pursuit of independence. By following the steps outlined above, you can ensure a safe and secure booking process, protecting both you and your guests.

1. Implement a guest-screening process

With the increase in vacation rental scams, you need to have a structured way of screening and verifying guests. At a basic level, this can include:

  • Emailing guests and verifying that they reply from the same email address
  • Calling guests and asking them questions about their upcoming travel plans
  • Checking the area code of guests’ phone numbers
  • Asking guests for a copy of their ID
  • Running a background check*

*You should be careful with a background check. It’s not directly indicative of whether somebody will commit a crime on your property, and may leave you liable with the FCRA (Fair Credit Reporting Act).

If you’re still on the fence about someone after you’ve screened them, you can choose to meet them in person as a final check.

Manual guest screening can be a lengthy and tedious process, involving many different elements—but it can pay off. To paint a better picture of the guest-screening flow, here’s an example:

Phone verification

Let’s say that someone reserves through your direct booking website. A first step could be entering the provided phone number into a validator tool to see if it’s a real phone number. (There are plenty of free tools available online.)

Then, check the area code of the phone number. Local reservations tend to be riskier since there’s almost no reason for someone to book a property when they live 20 minutes away.

While having a local number doesn’t mean a guest is a fraudster, it does raise some red flags.

Finally, you should call the guest. Fraudulent guests almost never answer the phone, preferring to text instead.

When they answer the phone, you can ask the guest a series of screening questions to verify their story.

For instance, if a guest is coming in by plane, consider asking for their flight number. You can phrase the question as you wanting to monitor their flight in case anything changes. The purpose of this is to check for inconsistencies. A guest who’s unable to give you their flight number or gives you a different one is probably fraudulent.

Benefits of Screening Guests

Screening guests may seem like a hassle since you’ll have to verify the identity and story of each guest. However, the benefits of doing so are long-lasting and can skyrocket your vacation rental business. Some benefits include:

  • Improving your hosting reputation
  • Removing unnecessary booking restrictions
  • Cutting property damage and maintenance costs
  • Avoiding situations like squatters

For instance, hosting on NYE can be extremely lucrative. This upside potential, however, does come with the increased likelihood of parties.

While many hosts may refuse all one-night NYE bookings, doing so means losing out on significant revenue. Having a guest-screening process allows you to remove these restrictions while securing your ideal guests.

If you don’t want to screen each reservation manually, you can always automate it. Tools like Autohost streamline the process, removing the grunt work for operators. (They also remove the possibility of human error.)

 

GET STARTED WITH GUEST SCREENING

2. Get Short-Term Rental Insurance

While screening guests is a great way to proactively protect yourself, some bad guests may still sneak through. That’s why it’s advisable to get your own insurance policy to protect yourself in case anything happens.

Depending on your insurance carrier, your homeowners policy may provide limited coverage. Most insurance carriers, however, don’t cover short-term rentals, and those that do, don’t usually provide sufficient coverage. That’s why many hosts and operators end up getting additional insurance for their vacation rental properties.

There are many insurance policies available, and choosing one might be overwhelming. Take the time to research your options and figure out which one is best for your specific situation. If you struggle with legalese, it may be helpful to speak with a real estate lawyer to figure out the best plan for you.

3. Draft and Enforce a Host-Guest Contract

Beyond a screening process and insurance policy, you also want to have a host-guest contract that guests sign upon booking. This document should mention:

  • Guests: Outline the registered guests. Any unauthorized people will be considered trespassing, which is a crime.
  • Property: Describe your property and the amenities included. For instance, if you have a room that’s off-limits to guests, mention that in the contract.
  • Check-In/Checkout: Include check-in/checkout dates and times. Mention any fees related to early check-ins or late checkouts. This will help you prevent squatters, especially if you offer mid-term rentals.
  • House Rules: Explain your house rules. Having a clear list of what’s allowed/forbidden will help you to set expectations with guests. You’ll also be able to punish guests for any violations.
  • Costs: Break down the total costs, including rental costs, cleaning fees, and security deposits. That way, guests won’t be able to claim you overcharged or had hidden fees.
  • Deposits & Damages: Outline what the security deposit covers. You should explain what constitutes damage vs. reasonable wear and tear. This will allow you to enforce your security deposit policy, even if guests complain.

These are only some of the items you should include in your rental agreement. To make sure that you’ve covered all your bases and that the contract is legally binding, you should work with an attorney.

4. Use Smart Devices for Security

For additional protection, you may want to install smart devices to unobtrusively monitor your guests. Some ideas include:

Smart Locks

Smart locks are installed on doors and are opened by punching in a code. Most smart locks can be managed remotely, allowing you to create and delete lock codes from your mobile device or computer. Some can even integrate with your channel manager. You’ll also be able to keep track of who uses what code to enter, so you know exactly who’s entering your property.

Doorbell Cameras

Combined with smart locks, doorbell cameras provide a great final layer of security. You can see who’s coming into your property at all times. So, if a guest makes a reservation for two, but five people show up, you can change the door code to prevent entry. Then, you can call your guest and inquire about the extra people.

Noise Sensors

With noise sensors, you can monitor noise levels within your property. Many noise sensors will notify you if the noise levels exceed a pre-set threshold, so you’ll know right away if a guest throws a party.

Protect yourself while maximizing revenue

With the right security measures in place, direct bookings can be safe and profitable. You’ll be able to host without fear of letting bad guests in.

Airbnb ID verification: What does it mean?

Online Travel Agencies (OTAs) like Airbnb are great for adventure, but it’s hard to establish trust when users are strangers. Without ID verification, guests and hosts are left defenseless in the sharing economy. Each party has to trust that the person on the other end of the reservation is who they say they are. But there’s no certainty. That’s where Airbnb ID verification comes in.

What is Airbnb ID verification?

In an effort to make our community as safe and secure as possible, Airbnb requires guests and hosts to verify their identity. In other words, you may be asked to provide a government-issued ID or confirm your legal name and add your address. This information protects hosts and guests from fraud and other industry-related risks.

Understanding what Airbnb ID verification entails is crucial for managers considering criminal background checks.

How does Airbnb ID verification work?

ID verification is Airbnb’s way of fighting back against security threats. By identifying incoming guests, Airbnb can better protect our community from fraudulent bookings.

Airbnb ID verification isn’t strictly linked to account creation. Before booking a place to stay or an experience, or becoming a host, you might be asked to upload your ID (passport, driver’s license, etc.) or provide additional personal information. Sometimes users are even asked to take a photo of themselves to match with the picture in the ID provided. This is Airbnb’s way of being sure you’re really you.

There are various requirements across the platform. Airbnb itself requires users to be 18 years of age or older and some hosts require guests to provide valid ID before booking. If your ID doesn’t appear to be valid, you won’t be able to book a listing with this prerequisite.

Once you’ve uploaded your ID, you likely won’t be asked to do it again. But you may be asked for additional verification in order to confirm it is really you who is logging into the account, especially if you’re signing in from a different device.

Explaining Airbnb ID verification can clarify aspects of property management agreements.

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Privacy

Airbnb assures us that all information provided during the process of adding your ID is governed by the company’s Privacy Policy. The information is sent to Airbnb and its third-party databases using the same secure encryption that websites use to transmit credit card numbers.

What does Airbnb ID verification mean for you as a host?

On its website, Airbnb reminds users that “this process isn’t an endorsement of any host or guest, a guarantee of someone’s identity, or an assurance that interacting with them will be safe.” That is, to ensure your business is safe, you need backup security.

As a property manager, use your own best judgment and develop concrete security practices that make sense for your business. While Airbnb may ask for a government ID, there’s no guarantee. If you really want to get to know your guest, screen them.

Hosting over 2 million people every night, Airbnb is a hospitality powerhouse. With more than 150 million users on the platform, it becomes difficult to monitor every listing and every booking that comes in. As a property manager, you have to understand that by using Airbnb, you’re accepting a certain degree of liability. For the best protection, you need to do your due diligence. Get the Airbnb guest verification you want by doing it yourself.

Learn about the threats you face and how to combat them. By properly educating yourself, you can build an effective security process and take matters into your own hands. Streamline your efforts and reduce the risks to your operations with Autohost.

Unlock the power of Autohost for your business. Schedule a demo now!

Top 10 Questions to Ask When Screening Your Guests

In the short-term rental industry, property managers need to find the balance between booking as many guests as possible and protecting their properties from misuse. That’s what makes screening guests so complicated. While you want guests to book with you, you need to be mindful of who’s entering your property. One wrong guest can result in a suite littered with red solo cups and thousands of dollars worth of property damage. So, how do you differentiate between a good guest and a bad one based on their reservation details?

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A great way to differentiate between the two is by following up with the guest during the booking process. Sometimes the decision will be obvious, but other times, you need to do a little digging. Start a rapport with the guest. Ask them questions. Get to know them. All it takes is a quick email or short phone call. But if you’re stumped as to what kind of questions you should ask, don’t worry, we’ve got you covered. Here are 10 simple questions to ask that will illuminate what kind of guest you’re renting to.

hotel guests questions

1. Tell me about yourself.

Why it’s important: While our first suggestion on the list is more of a statement than a question, it is imperative to get as much information about the guest as you can. This includes everything from where they live to what their travel plans are. Ideally, you can hop on the phone and chat with the guest, but email works too. Not only will this help you get a better sense of who is booking your property but it will make the guest feel reassured in their booking and show how excited you are to host them.

2. What is the purpose of your visit?

Why it’s important: Whether it’s visiting family, shopping, business, or tourism, guests have all kinds of reasons for travelling. But some of these reasons don’t coincide with your property’s house rules. In order to protect your property, you need to figure out the guest’s intentions before they arrive. If the guest is coming to the city with a bunch of friends to throw a wild bachelor party, or to live it up during a city-wide festival, then you need to be on your guard. If things get too out of control, you could have thousands of dollars worth of property damage on your hands. To prevent this, ask your guest about their travel plans. If something sounds suspicious, question them on it. You want the guest to be fully aware of your expectations and not lie about the number of guests.

3. Have you stayed in the city before?

Why it’s important: As a host, the guest’s safety is a number one priority. When they’re out wandering around the city, you want them to be smart and safe. If the guest is unfamiliar with the area, this is your chance to help them navigate (or even offer some of your Airbnb Add on services), ensuring they don’t get lost or wander into rougher areas. It’s also a kind gesture to offer restaurant and tourism recommendations. Not only will this keep you from being roped into a search party for a lost guest, but it will help secure that 5-star rating.

4. What attracted you to my listing?

Why it’s important: Some guests will be totally honest and tell you it’s because it was the cheapest option, while others might comment on the convenient location or appealing look of the property. Either way, this is a good question to figure out the guest’s priorities. Not only does it reveal the guest’s expectations for their stay but also tells you what about your listing is attracting (or deterring) guests. This type of feedback is invaluable.

5. Have you stayed in a short-term rental before?

Why it’s important: It’s amazing how many guests don’t understand the difference between a short-term rental, mid term rental, and a hotel, or are under the impression that they are booking a hotel rather than a fully-furnished property. This is your chance to inquire about the guest’s experience with short-term rentals, clarifying any aspects that might be unclear, such as how the guest enters the property and how to access the suite’s amenities. It’s also incredibly important to give context to the rental’s location. If it’s in a quiet, suburban neighbourhood, explain that guests need to be courteous to the neighbours and keep noise to an acceptable level.

6. How many additional guests are there?

Why it’s important: Additional guests are one of the great unknowns in the short-term rental industry. Typically, booking platforms only require guests to state how many people will be staying at the property, which certainly doesn’t include whether outside guests will be dropping in to visit. Even if they’re not staying over night, make it clear to the guest that you require contact information for anyone entering your property.

Whether you allow additional guests should be determined on a case-by-case basis. If a couple is in town to visit their daughter at university, they can’t be faulted for inviting her over. But if a 20-something-year-old is throwing a predrink with 10 of her closest friends, you may want to step in. By asking about additional guests and whether there will be any visitors, you are able to clarify your rules around who enters the property.

7. For registration purposes, can you provide the names and contact details of all additional guests?

Why it’s important: Sites like Airbnb only require the main guest to provide their contact information and personal details. But this means there’s no accountability for additional guests. You have no information about who they are or how to contact them. The leadup to the reservation is your chance to get more information. Make it a requirement for all guests staying on your property to provide their personal and contact information. This is also your chance to make sure each guest reads and accepts your house rules, making them legally accountable if anything happens.

8. Have you read the house rules and do you have any questions about them?

Why it’s important: The house rules are your opportunity to lay out your expectations for guest behaviour. Whether it’s no parties, no pets or no extra guests, hot tub rules, you want to make sure that the guests booking your property agree to and understand your rules. By asking whether they have any questions about the rules, you’re able to reiterate their importance and highlight your zero-tolerance policy for rule breaking, and prevent Airbnb accidents.

9. What time do you expect to arrive?

Why it’s important: Always set a check-in/checkout time for your properties. This way, you can ensure the property is thoroughly cleaned before and after each guest arrives, and it gives a buffer time between guests. But this doesn’t mean guests will always arrive exactly on time. Flight delays and traffic can cause guests to show up at all hours. Asking about their travel plans helps you prepare for their arrival and ensure they don’t show up too early. Or, if some of the guest’s information seemed a little suspicious, this gives you the chance to meet the guest in person and vet them before granting access to your property.

10. What’s the best way to contact you?

Why it’s important: Maybe a couple books with you and the husband never answers his phone. Or a guest from another country makes a reservation but their phone plan doesn’t work here. Clarifying the best way to contact a guest may seem redundant, especially if you already have the guest’s email or phone number from the booking channel, but it can save you a lot of headaches in the case of an emergency. Explain to the guest that they need to be reachable during their stay. That way, if something comes up, you can easily get in touch with them.

The top questions for guest screening can unlock the potential of Airbnb add-on services.

Questions to ask airbnb guests

When dealing with Airbnb, it’s essential to tailor your questions based on the unique characteristics of the platform and its community. On Airbnb, guests are looking for a home-away-from-home experience, and hosts can enhance this by making sure their guest’s needs align with what their listing offers.

Here are a few more questions that you, as a host, can ask to ensure you’re providing the best possible experience while also safeguarding your property.

How familiar are you with Airbnb?

Why it’s important: Just like with short-term rentals in general, it’s important to gauge your guest’s familiarity with Airbnb. This can give you a sense of their expectations and whether they understand the platform’s unique nature and standards. If they are first-time Airbnb users, you may need to spend a bit more time explaining the system, house rules, and their responsibilities as guests.

Do you need any special accommodations or facilities?

Why it’s important: As a host, you’ll want to ensure that your property can cater to your guests’ specific needs. This question will help you understand if they require any special facilities such as wheelchair access, pet-friendly spaces, or allergy-proof environments. If you’re unable to meet their needs, it’s better to discuss this upfront.

Is this a special occasion?

Why it’s important: Guests often choose Airbnb for special occasions like birthdays, anniversaries, or even a honeymoon. By asking this question, you’ll be able to provide those little touches that can make their stay extra special – whether that’s leaving a bottle of champagne for an anniversary or providing local recommendations for birthday celebrations.

Open-ended questions to ask hotel guests

  • Could you tell us a bit about yourself and the nature of your visit?
  • Have you stayed at our hotel or similar establishments before?
  • Can you share more about your typical travel experiences and preferences?
  • How would you describe your lifestyle during a typical hotel stay?
  • What are some of your personal expectations when you stay at a hotel like ours?
  • Can you recall an instance where you had to deal with unexpected circumstances during a hotel stay, and how you handled it?
  • Could you share any personal standards or rules you adhere to while staying in a hotel?
  • What attracted you to our hotel in particular?
  • Is there anything you think we should know about your travel companions, if any?
  • Would you like to share any unique aspects of your travel habits or routines with us?

Understanding your guests is crucial to maintaining the standards and security of your establishment, whether it’s a hotel, an Airbnb, or another short-term rental. Asking open-ended, yet thoughtful questions can provide valuable insights about your guests, enhancing their experience while also protecting your property. However, for a more efficient, reliable, and comprehensive guest screening process, we recommend leveraging the power of AI-based solutions such as Autohost. By utilizing AI, you can automate your guest screening, saving time, reducing risk, and providing a seamless experience for your guests.

REACH OUT TO AUTOMATE YOUR GUEST SCREENING

Fraud Trends in the Hospitality Industry and How to Combat Them

As the hospitality industry grows more complex, so does its susceptibility to fraud. Globally, the hospitality industry generates an estimated $3 trillion of revenue per year. According to the Association of Certified Fraud Examiners, between 5-6% of this annual revenue is lost to fraud. That amounts to $150 billion in direct loss of revenue.

Property managers in the short-term rental industry are particularly vulnerable. With thousands of guests cycling through your properties every year, there’s a lot that can go wrong. High turnover rates make it nearly impossible to thoroughly screen each guest, and by not having a firm grasp on who you’re booking, you leave yourself open to issues like identity fraud, stolen credit cards, property damage, and more.

Falling victim to fraud will not only damage your company’s reputation but can cause major losses in revenue, whether it be from booking scams or turning away genuine reservations through over-screening. To maintain your company’s reputation, it’s imperative to strike a balance between protecting your properties and maintaining that 5-star guest experience.

Protect yourself against fraud by staying up to date on current trends in the hospitality industry. To help you out, we’ve created a list of the three most common types of fraud in the short-term rental industry and how to combat them.

Common Types of Hotel Frauds:

Bad Guests

While this is the most benign type of fraud (or, more accurately, “social engineering”), it’s also the most common. To a guest staying in one of your properties, it might not seem like a big deal to go behind your back and invite a couple of people over for a party. The resulting noise complaints and property damage, however, can have a severe impact on your company’s reputation and revenue stream going forward.

By violating your house rules (no parties, no extra guests, etc.) guests are defrauding you. Excessive noise, consumption of drugs and alcohol, and inappropriate behaviour can get you in trouble with your neighbours, your building, and even the police. Not to mention irritating your cleaning staff who have to spend the next day collecting red solo cups and scrubbing vomit out of the carpet.

Worst of all, parties are prime situations for accidents—furniture breaks and guests get injured.

How to combat it

To ensure only the best guests book your properties, you need a thorough and comprehensive screening process to avoid scammers. This involves collecting the personal and contact information for all guests who are staying in your property, and requesting their trip details. If anything seems suspicious, like the guest is a local or has only booked for one night on a weekend, your next step should be getting in touch with the guest over the phone to confirm details.

Each guest who books with you should also sign a legally binding rental agreement. This way you have the guest’s written confirmation that they agree to all of your house rules. To ensure your house rules are followed, install noise sensors in your property. If there’s an unwarranted spike in volume, you’ll be immediately alerted. To deescalate the situation, call the guest and give them a warning. It’s up to you how many warnings you give, but If the guest ignores you and the noise persists, send in a trained security team to evict the offending parties. Better safe than sorry!

Keeping up with fraud trends in the hospitality industry is critical for preventing Airbnb credit card fraud.

Criminal activity

Although less common, fraud via criminal activity reveals the darker more frightening side of the short-term rental industry. These are the incidents you see plastered on the front page of the morning newspaper: properties rented to gangs with automatic weapons, drug dealings, sex trafficking, properties falling victim to break-ins and theft.

Incidents like these should always be left to law enforcement. If there’s criminal activity going on in your property, contact your local police immediately. These kinds of activities threaten the safety of your property, the building, other guests, and society.

How to combat it

Once again, this is when it’s imperative to have a thorough screening process so that you know exactly who’s booking your property. By not investigating each reservation, you leave yourself vulnerable to ill-intentioned guests. It is your responsibility to keep your property and the community safe by screening bookings.

To deter these types of bookings, collect the guest’s personal information then cross reference it with the credit card they are using to pay. If the two don’t match, it’s likely that the guest is using a skimmed or stolen credit card. You also want to get in touch with the guest over the phone to find out exactly why they’re travelling and who will be staying in the suite.

To gather more information on the guest, google their name and phone number to see if anything comes up. Then, look at their social media profiles to figure out where they’re from and what they do—any information pertinent to their identity and character. If the reservation is really questionable, your team should meet the guest and vet them in person, making sure all the information matches their credentials.

HOW MUCH A FRAUDULENT BOOKING COULD COST YOU

Hospitality Payment Frauds

One common form of fraud in the hotel industry is payment fraud. This can be anything from credit card chargebacks, identity theft, using stolen cards, to even making false disputes about the quality of service to demand a refund. These types of fraud can result in substantial losses, as you may end up giving away services for free and even paying additional fines or charges for disputed transactions.

How to combat it

Implement a secure payment gateway to mitigate potential fraud. Using a system that verifies credit card details can help identify and prevent potential fraud before the transaction takes place. Furthermore, maintain detailed records of each transaction, including the guest’s stay, their interactions with staff, and any complaints they make. This can help provide evidence in case of a dispute.

Fraudulent Bookings

Whether it leads to bad guests, criminal activity or both, a fraudulent booking is guaranteed to rob you of your hard-earned revenue. A guest may try to scam their way into a free stay by committing identity theft or credit card fraud. The guest could lie about who they are and use a stolen credit card to avoid having to pay for the stay themselves.

If the guest does use a stolen credit card, it’s likely you’ll be hit by a chargeback when the card is reported missing. This means that the money you received for the stay will suddenly be reclaimed by the credit card issuer.

And if the guest is willing to lie about their identity or steal a credit card, they probably won’t feel obligated to follow your house rules. Bad guests, as mentioned above, can lead to major issues during the stay.

How to combat it

The number one way to avoid fraudulent bookings is to confirm the guest’s identity. This involves cross referencing their personal information with their credit card, as well as performing an internet search into their background and verifying their social media information. If you want to be absolutely certain, you could run a full background check, involving criminal records and credit scores, but this is time consuming and will cost you extra money.

If the guest’s credit card doesn’t match their ID, it’s likely they’re using a stolen credit card. Keep an eye out for same-day bookings—they’re a major red flag. Criminals using a stolen credit card try to use the card as soon as possible before it gets cancelled. If you do process a stolen credit card, the guest will not only get a free stay, but the revenue accrued will be reclaimed by the credit card issuer, leaving you with nothing but a potential mess and a PR headache.

Assuming the credit card and ID do check out, you should immediately process the guest’s payment after accepting their reservation. Ideally, use a global payment fraud prevention system while processing the payment. All payments should be made online by credit card with guests required to pay 100% of the booking fee upfront. This way, you guarantee payment for every reservation. As an added layer of security, keep the guest’s credit card information for incidentals and charge them a damage deposit.

If it seems like the guest is using a fake ID or stolen credit card, cancel the reservation immediately to free up the calendar. You should take no chances with risky reservations.

Disputing Hotel Room Damage Charges

Another common fraud tactic is disputing hotel room damage charges. In this situation, a guest may cause damage to the hotel room and then deny responsibility, leading to the hotel having to absorb the cost of repairs. Worse still, the guest may dispute the damage charges on their credit card, leading to a drawn-out dispute process.

How to combat it?

Firstly, having a clear and detailed deposit policy that is communicated to the guest at the time of booking can discourage this type of behavior. Regular room inspections, before and after each guest’s stay, are also crucial in identifying and documenting any damage caused by the guest. CCTV footage in communal areas can also serve as evidence, should a dispute arise.

Reselling Hotel Rooms

Some enterprising guests have been known to book rooms, particularly during peak periods or special events, only to resell them at a higher price. This creates a secondary market that is out of the control of the hotel, often leading to confusion and dissatisfaction among guests who may have paid inflated prices.

How to combat it?

Instituting a strict policy that rooms are non-transferrable, and ID must be shown at check-in, is a good way to combat this. Also, a limit on the number of rooms one individual can book during high-demand periods can prevent the mass booking of rooms for resale.

Try Autohost

The only surefire way to protect yourself against fraud in the short-term rental industry is to use Autohost, an intelligent, guest-screening assistant for vacation and short-term rental operators. It scans all reservations, using hundreds of tests and data points to collect and validate guests’ IDs, determining their level of risk. Based on the flagged risks, the software provides users with a list of action items to handle potential issues proactively. Autohost ensures property managers handle all bookings responsibly, keeping their business safe, their revenues rising, and their guests happy.

REACH OUT TO AUTOMATE YOUR GUEST SCREENING

What is Guest Screening?

We often describe Autohost as an intelligent guest-screening assistant, but what exactly does guest screening involve? Guest screening is the process by which property managers assess a reservation’s risk level in the short-term rental sector by thoroughly, legally, and impartially investigating each guest.

There’s more to tenant screening than identifying potentially problematic guests; it’s about finding the right balance. This ensures everyone is treated with respect and that potential issues are addressed quickly. Ultimately, guest management must make all guests feel welcome and appreciated.
For example, property management needs to ask these questions:

  • What does effective screening entail?
  • How does one differentiate between a ‘good’ and a ‘bad’ guest?

This differentiation is about implementing appropriate measures, ranging from security deposits to outright reservation cancellations when necessary.

What is the guest screening process?

The core objective is to book guests who comply with your rules and respect your property. This plays a crucial role in the ongoing debate of Direct Booking vs. Third-party platforms, as the effectiveness of screening processes can vary significantly between these options.

To achieve this, Autohost uses strategic principles to conduct effective tenant screening. This includes:

  • Guest verification:Direct communication with the guest for verification of personal and contact details
  • Understanding their travel intent
  • Ensuring each guest acknowledges and agrees to your house rules through a binding rental agreement
  • Guest identification: Validation of guest IDs to detect potential fraud
  • The collection of a security deposit as a precautionary measure

Our guest screening is both an art and a science. It requires a delicate balance: being thorough enough to deter bad tenants yet tactful enough to avoid alienating the genuine ones. This involves asking the right questions without being intrusive and assessing the risk level of a reservation without an extensive guest background check.

Why Property Managers Need Guest Screening

Guest screening services provide property managers with an in-depth evaluation of potential guests. Managers can decide who to accept as tenants by vetting individuals or groups.

Mitigating Risks: Tenant screening enables property managers to identify and avoid potentially problematic or high-risk individuals. This reduces the risk of property damage, noise complaints, illegal activities, or other disruptive behavior.

guest screening

Protecting Reputation: Property owners can safeguard the reputation of their rental properties and create a positive experience for visitors by maintaining a high-quality tenant profile.

fraud and incident prevention

Ensuring Compliance: Guest screening can empower real estate managers to comply with local regulations and industry standards. And this minimizes the risk of legal issues or fines.

regulatory compliance

Improving Occupancy Rates: Property owners can maintain high occupancy rates and lower vacancies by selecting reliable and trustworthy guests.

Enhancing Guest Satisfaction: A well-executed guest screening process can improve the overall guest experience, increasing customer loyalty and positive reviews.

Streamlining Operations: Efficient guest screening can streamline the booking and check-in processes. This lets property managers focus on other essential aspects of their business, such as managing finances.

online check-in

How does Autohost screen guests?

autohost

At Autohost, we streamline this intricate process for you. Acting as your primary line of defense, Autohost intelligently differentiates when to be vigilant and when to allow more flexibility. This enables clients to relax their booking restrictions, focusing instead on maximizing profits.

 

With our vigilant system, you gain confidence in your operational decisions. And you’re safe knowing that we can identify and manage all potential risks. This peace of mind allows you to concentrate on expanding your business.

GET STARTED WITH GUEST SCREENING

Evolving Trends in Guest Screening Services

In recent years, the industry’s professionalization has changed the guest screening process significantly. What used to be a labor-intensive task is now more streamlined, thanks to technology. Modern verification software can conduct robust checks using automated systems that integrate smoothly into the booking process.

  • These technologies:
  • Verify personal information
  • Carry out risk assessment
  • Analyze guest behavior and history
  • Handle biometric checks and background scans against criminal databases and terrorism watchlists
  • Protect property owners from potential damages and legal issues
  • Ultimately, they contribute significantly to business growth

Property managers can focus more on enhancing their properties and expanding their business ventures by using guest screening tools. And this advanced approach shows the importance of tenant screening in the vacation and short-term rental markets.

Automating the Screening Process

Artificial intelligence integration and machine learning in guest screening represent a significant leap forward. These innovations automatically analyze vast amounts of guest data, including past rental histories, public records, and even online behavior patterns. By leveraging algorithms, the screening process becomes faster and more accurate. And this reduces human error and bias.
Also, automation allows real-time decision-making as property managers can respond quickly to booking requests without compromising safety or security.

Enhanced Guest Identity Verification

Advanced guest screening now often involves sophisticated identity verification processes. Biometric analysis techniques, such as facial recognition and fingerprint scanning, ensure that the person booking the property is indeed who they claim to be. Additionally, document verification technologies authenticate government-issued IDs, passports, and driving licenses. Guest authentication enables property managers to validate documents.

Deep Background Checks

Beyond basic identity verification, deep background checks have become a cornerstone of effective guest screening. These checks uncover criminal records, credit histories, and even international watchlists.

The goal is to build a comprehensive guest profile, assessing their reliability and risk level. Property owners can make informed decisions to safeguard their properties and those of other guests by understanding a guest’s background in depth.

Predictive Risk Assessment

One of the most exciting developments in guest screening platforms is predictive analytics. These tools can predict future incidents or non-compliance with house rules by analyzing patterns and trends in guest behavior.
Predictive capability enables managers to proactively manage risks and ensure a safe, secure environment for guests and property owners.

The Future of Guest Screening in Hospitality

As the hospitality industry continues to evolve, guest screening remains a critical element. The future points towards even more integrated systems that can seamlessly connect with property management software. And this promises to offer a holistic approach to managing guest interactions.
The emphasis will likely continue to be on enhancing the guest experience while promoting the highest levels of security and compliance.

Balancing Privacy and Security

In advancing guest screening technologies, users need to strike a balance between privacy and security. While service providers should thoroughly evaluate guest information for safety purposes, they should also respect the guests’ privacy rights. This means adhering to data protection regulations and ensuring transparent communication with tenants about the use of their data.

Embrace Technology with Autohost for Safer Rentals

In conclusion, guest screening technology advancements represent a major shift in the short-term rental market. Real estate managers can protect their assets, streamline operations, and enhance guest satisfaction by embracing these technologies.

Autohost remains at the forefront of this change by offering effective, intelligent screening solutions that respect guest privacy. As we move forward, adopting these emerging innovations will continue to redefine our safety standards and security in the hospitality industry. Why not try Autohost guest screening software to streamline your booking processes? Book a demo to get started!
Posted in Autohost AI

FAQ

What is the guest screening process?

Autohost guest screening software automates verifying guest identities and backgrounds to ensure they are safe to stay. It helps to identify potential risks such as stolen identities, fraud, and criminal activity. And it encourages tenants to be compliant with local laws and regulations.

How do you screen short-term rental guests?

Autohost uses a series of automated checks to ensure short-term rental guests are legitimate and compliant with local laws and regulations. These include verifying their identity, criminal records, address, and payment history.

Does Airbnb Do Background Checks?

On average, Airbnb hosts over 2 million guests per night spread across 191 countries and regions, 100,000 cities, and 6 million listings. With so many guests cycling through short-term rentals, hosts are facing increased risks to their properties and operations. The more you rent out your space, the more likely you are to come across ill-intentioned guests.

Everyday, hosts place their faith in Airbnb, trusting that the platform will adequately screen their guests. But in reality, Airbnb has few processes in place to do so.

Risky guests, though sometimes easy to identify, often slip through the cracks. They come in all forms, from the stereotypical criminal with stolen credit cards and traceable records to the high school student booking your property for a prom afterparty. Some of the guests may appear reputable on paper, like the latter, but can still cause issues including property damage, noise complaints, and even theft.

Airbnb Vetting Process:

Airbnb claims to prioritize safety and security for its hosts and guests, but the platform’s vetting process leaves much to be desired.

While Airbnb performs background checks, these checks are limited in scope and accuracy. The company only checks public state databases, county criminal records, and state and national sex offender registries for criminal convictions and sex offender registrations. Airbnb runs guests and hosts’ names against regulatory, terrorist, and sanctions watchlists for guests booking from outside the U.S. But the platform does not provide any guarantees that it will perform background checks on such users, and if it does, the scope and accuracy of coverage may vary. With Airbnb’s vetting process, the onus is on hosts to ensure their guests are safe and reliable.

When it comes to screening, Airbnb, according to its website, only performs background checks on United States-based guests and hosts. These background checks are performed by combing through public state databases and county criminal records, as well as state and national sex offender registries for criminal convictions and sex offender registrations.

Little to no screening measures are put in place for guests booking from outside the U.S. Globally, Airbnb runs guests and hosts’ names against regulatory, terrorist, and sanctions watchlists but says, “We may not run background checks on users located outside the United States, and even if we do, the scope and accuracy of coverage may vary.”

FIND OUT ABOUT AIRBNB’S NEW POLICY

The website goes on to state that the platform is only able to perform background checks on guests and hosts who provide accurate first and last names, plus date of birth—leaving a huge margin for error.

Airbnb Criminal Record:

Airbnb’s criminal record policy has also faced criticism from hosts and guests. The company’s policy states that it will remove a user from the platform if they have been convicted of a felony or certain misdemeanors, such as sexual assault or terrorism-related offenses. However, hosts and guests have reported instances where they were uncomfortable with a user’s criminal record but were unable to get Airbnb to take action.

Overall, Airbnb’s policies and procedures for vetting guests are insufficient and leave hosts vulnerable to a range of risks. The hosts or property managers should take precautions to protect themselves, such as thoroughly screening each guest and using tools like Autohost to detect potential risks.

The kind of rigorous background checks short-term rental companies like Airbnb should be performing involve different types of information searches, including verifying a guest’s identity, their credit card information, and even credit scores, bank statements, and criminal record checks.

Questions about Airbnb’s background checks relate to the peace of mind that such checks can provide.

Does airbnb do credit checks?

Airbnb’s background checks do little to protect hosts from fraud. While the platform uses predictive analytics and machine learning to flag suspicious activity, it has few processes in place to confirm whether the personal information provided by a guest is accurate. Identity fraud is a massive problem in the short-term rental industry, but guests using a stolen ID won’t be flagged by Airbnb’s system. The platform also only performs its version of a background check on the person who books the property. Extra guests are not screened.

Airbnb does require guests to provide payment information, such as a credit card or PayPal account, to complete a booking. However, this payment information is used solely for payment processing and is not used to check the guest’s credit history or financial background.

This can be concerning for hosts who want to ensure that their guests have the financial means to pay for their stay and will not cause issues with payment processing. While a credit check may not be feasible for short-term rentals, hosts can take other steps to verify a guest’s financial background. For example, hosts can require a security deposit or ask guests to provide proof of income or employment. These measures can help hosts feel more secure about their guests’ ability to pay for their stay and reduce the risk of payment issues down the line.

Questions about Airbnb’s background checks can lead to a discussion on the specifics of Airbnb ID verification.

Limitations of Airbnb background checks:

Here’s what Airbnb has to say about its background checks:

Because our background checks are limited, we can’t guarantee that they’ll identify all past criminal convictions or sex offender registrations by a guest or Host. Therefore, you shouldn’t rely on them as a guarantee that the user has no criminal background or other red flags.

But Airbnb’s background checks do little to protect hosts from fraud. While the platform uses predictive analytics and machine learning to flag suspicious activity, it has few processes in place to confirm whether the personal information provided by a guest is accurate. Identity fraud is a massive problem in the short-term rental industry, but guests using a stolen ID won’t be flagged by Airbnb’s system. The platform also only performs its version of a background check on the person who books the property. Extra guests are not screened.

Additionally, these background checks are typically performed once when the guest first signs up for Airbnb. This means that the company doesn’t continually monitor each guest’s activity. If a guest is criminally charged after signing up, hosts won’t be notified.

While a robust background check would protect you against ill-intentioned guests, the process isn’t realistic. It’s expensive and time consuming to look into every guest’s credit score, employment history, and bank statements—not to mention it requires consent from the guest. The fast-paced nature of the short-term rental industry won’t allow it, and even if it did, how do you flag for potential parties and property damage?

To learn how to thoroughly screen each guest and protect yourself against these risks, check out our Ultimate Guide to Guest Screening blog.

Or try Autohost

Guest screening is a lot of work, and when done manually, bad guests can sneak through the cracks. Instead of taking the risk, try Autohost, an intelligent guest-screening assistant for vacation and short-term rental operators. It’s the only surefire way to thoroughly screen your guests.

Autohost scans all reservations, using hundreds of tests and data points to collect and validate guests’ IDs, determining their level of risk. Based on the flagged risks, the software provides users with a list of action items to handle potential issues proactively. Autohost ensures property managers handle all bookings responsibly, keeping their business safe, their revenues rising, and their guests happy.

 

REACH OUT TO AUTOMATE YOUR GUEST SCREENING

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