I have stated many times that if the numbers on a potential real estate investment do not work using numbers for long term rentals, the numbers don’t work. Vacancy rates are estimates and can change drastically from year to year. Fees from booking services like AirBnB can increase. Utility expenses can increase and are borne by the owner in short term rental situations. More wear and tear may occur than with long term rentals.
In this low cap rate environment, some sellers are using calculations assuming that you will use a property for short term rentals. While short term rentals can seem attractive, particularly in vacation areas, as they can allow you to use the property between renters, these are not always good investments. More and more cities are putting restrictions on short term rentals. Some HOAs are putting restrictions on or banning short term rentals.
A few years ago, Airbnb felt like a dream. It gave everyday people the chance to monetize their homes, create memorable travel experiences, and enjoy a flexible lifestyle. But for many hosts today—especially those who rely on it as a business model—the dream has soured. And the platform’s latest changes are pushing some to exit altogether.
Take, for example, a couple who spent a year living in Airbnbs around the world. They fell in love with the flexibility, the culture of hosting, and the financial opportunity. Eventually, they purchased two luxury homes in Hawaii with the sole intention of operating them as vacation rentals. Their operation was thoughtful and community-conscious: the homes had been vacant prior to purchase, and they employed full-time local host families on-site.
For a while, everything worked. The properties were well-maintained, guests left glowing reviews, and the income allowed the owners to live comfortably.
But that era is ending.
Airbnb’s Shift Toward Corporate Control
Recent changes to Airbnb’s policies and platform design have made it increasingly difficult for even experienced, well-reviewed hosts to thrive. The company has transformed from a peer-to-peer hospitality marketplace into a tightly controlled corporate ecosystem—one where hosts carry more risk, earn less control, and receive fewer protections.
Airbnb now resembles gig-economy platforms like Uber or Amazon. Hosts are no longer treated like partners—they’re treated like interchangeable service providers who must follow opaque rules or risk losing visibility, income, and status.
The Review System Now Punishes Hosts
A major turning point for many hosts has been the shift in how Airbnb handles reviews. Maintaining “Superhost” or “Guest Favorite” status is critical if you want your listing to show up in search results. But the threshold for staying in Airbnb’s good graces has become unrealistic.
Some guests are exploiting this. Multiple hosts report being extorted by guests who find minor or subjective issues—like a dark country road or the sound of frogs at night—and threaten poor reviews or complaints unless they receive a partial refund. Airbnb, often siding with the guest without verifying the claim, allows these refund requests to go through.
One host recounted a guest who filed a complaint after nearly getting into a car accident—due to a dark mountain road—and Airbnb called the host at 3 a.m., demanding a response within an hour or risk a forced refund. That’s not how partners treat each other. That’s how a boss treats a disposable contractor.
New Payment Terms Increase Host Risk
On top of this, Airbnb has recently updated its Payment Terms, effective September 8, which transfer even more financial risk to hosts. Here’s what’s changing:
1. Guests Can Reserve Without Full Payment
Airbnb now promotes flexible financing options, like “buy now, pay later” through Klarna. While great for guests, this exposes hosts to more last-minute cancellations. A guest can partially pay, hold your calendar for weeks, then cancel days before check-in—and you might receive nothing depending on Airbnb’s processing and your cancellation terms.
2. Chargebacks Are Now the Host’s Problem
Perhaps the most alarming update: Airbnb reserves the right to reverse your payout if a guest disputes a charge—even weeks or months after a completed stay. There’s no guarantee of support, no time limit, and no obligation for Airbnb to investigate thoroughly. Meanwhile, the platform keeps its service fee.
In essence, you can provide a flawless stay and still have thousands pulled from your account long after the guest has gone.
3. Payouts Can Be Delayed Without Explanation
Airbnb can also now hold or delay your payments based on vague “risk indicators,” such as a sudden increase in bookings or a guest complaint. They’re not required to disclose why the funds are held or when you’ll get them—and they won’t pay interest while your money is tied up.
If you’re operating a business and relying on steady cash flow to pay for cleaners, repairs, or your mortgage, this can be disastrous.
Advertising May Soon Decide Who Gets Bookings
A concerning trend is also emerging: Airbnb plans to introduce paid search placement, meaning hosts may need to “boost” their listings to appear in search results—regardless of quality or reviews.
This is exactly what Amazon did with third-party sellers. Instead of surfacing the best product for the customer, Amazon shows the products from sellers willing to spend the most on ads. Airbnb appears to be following the same playbook.
The takeaway? You might be an excellent host offering a premium experience, but if you’re not willing to give Airbnb a larger cut through advertising, your listing might never get seen.
The Final Straw for Some Hosts
For the couple in Hawaii, these shifts were enough. After five years, they’ve decided to shut down operations and sell. Between property appreciation and investment income, they’ll likely make more by doing less—and they won’t have to deal with late-night refund demands, unfair chargebacks, or a platform that treats them like expendable labor.
Their advice? Think carefully before jumping into Airbnb today. Despite paying the company up to 14% of your revenue, you are not their customer. Guests are. Airbnb will always side with the party that keeps their business afloat.
So, What Can You Do If You’re Still Hosting?
If you’re not ready to walk away but want to protect yourself, here are a few steps you can take:
- Screen guests carefully – Avoid last-minute bookings. Require verified IDs. Set clear house rules.
- Build financial buffers – Don’t operate paycheck-to-paycheck. Reserve cash in case of delayed payouts or chargebacks.
- Diversify your booking channels – Build your own booking website. Even 10–20% of bookings outside Airbnb can give you leverage.
- Invest in real insurance – Airbnb’s AirCover isn’t enough. Use specialized providers like Proper or Steadily.
- Document everything – Save all guest communication, take photos, and log every stay. You may need it months later.
The Bottom Line
Airbnb is still a powerful tool—but it’s no longer a host-centric platform. The company is clearly shifting its priorities: more flexibility for guests, more control for itself, and less security for the people actually providing the homes.
Whether you’re a full-time operator or just dipping your toes into short-term rentals, understand that the game has changed. You’re not just a host anymore. You’re a contractor in a gig economy.
If that doesn’t sit right with you, it might be time to explore new strategies, new booking platforms like VRBO, a switch to long term rentals—or walk away before you get burned. As inventory numbers are increasing across the country, real estate values may head down for a while anyway.