Guidance on Host Charges: Cancellation and Compensation, US
1. Background
1.1 This guidance is issued by Lifealike Limited (trading as “onefinestay”) and all companies in the onefinestay group to assist hosts of properties listed on the onefinestay website (Hosts) to understand the charges that may be applicable to them if:
- they cancel a booking; or
- their property is unfit for a stay.
1.2 If this guidance conflicts with the terms and conditions for any of the jurisdictions where onefinestay or a onefinestay group company trades, then those terms and conditions will prevail.
1.3 This guidance will be used by onefinestay in any negotiation or mediation between Hosts and Guests arising from a cancelled booking or for an issue arising relating to a property during a stay.
1.4 For the purposes of this guidance the following words shall have the following meanings:
“Booking” means a confirmed booking for a stay made by a Guest at a property listed on the onefinestay website;
“Host Rates” means the net fee a Host receives from a booking; and
“Maintenance Charges” means any charge payable by a Host to onefinestay relating to the maintenance of their property (pursuant to the relevant onefinestay terms and conditions for the Host, the Damages and Maintenance Policy as adopted by onefinestay or otherwise).
2. Cancellations up to the start of a Booking
2.1 In accordance with our standard terms and conditions for Hosts in each city, if a Host cancels (a Host Cancellation) a Booking, the Host is liable for all of the costs of the cancellation.
2.2 These costs may include, but are not limited to:
- the cost of relocating a Guest at an alternative onefinestay property;
- the cost for relocating a Guest at a hotel if there is no alternative onefinestay property available; and
- any administrative costs associated with the cancellation.
2.3 onefinestay will take such steps as are possible or necessary to mitigate the costs of managing a Host Cancellation and all costs and charges made to a Host will be a reasonable assessment of the costs to onefinestay of managing a cancellation.
2.4 Inevitably, the earlier onefinestay is notified of a Host Cancellation, the easier it is to find alternative accommodation for a Guest and to mitigate the costs of a Host Cancellation and, based on our experience so far, we have found that the costs and charges arising for a Host Cancellation are approximately:
Cancellation notice period | Cancellation charge | |
More than 2 weeks of a Stay starting | 30% of the total booking value for the stay (the Host Rate) for the cancelled stay or $500, whichever is greater | plus an administration fee of $80 |
Between 3-14 days of a Stay starting | 50% of the Host Rate for the cancelled stay or $750, whichever is greater | plus an administration fee of $80 |
Less than 72 hours of a Stay start | 100% of the Host Rate for the cancelled stay or $1,250, whichever is greater | plus an administration fee of $80 |
2.5 The costs and charges in paragraph 3.4 are illustrative and are not legally binding; ultimately and in accordance with the terms and conditions for each jurisdiction, Hosts remain responsible for any costs arising from a Host Cancellation.
3. Charges relating to Property Issues
3.1 In accordance with our terms and conditions for Hosts in each city and the accommodation agreement used by Hosts and Guests, it is a Host’s responsibility to make sure that the property is ready for a booked stay.
3.2 If there is an issue with a Property that will affect a Booking (a “Property Issue”) including, but not limited to:
- a boiler breakdown;
- a bathroom or kitchen not functioning;
- a pest infestation; or
- construction work at the property or an adjacent property affecting the quality of the stay,
it may be necessary to cancel a Booking and relocate a Guest (an “Involuntary Host Cancellation”) or reduce the cost of a Booking or pay compensation to the Guest for the Property Issue.
3.3 onefinestay will determine if a Property Issue has arisen and:
- the severity of the Property Issue;
- if an Involuntary Host Cancellation is necessary;
- if a reduction in the Booking Fee or compensation payable to the Guest is necessary; and
- the Host’s respective liability for part or all of the compensation payable to the Guest,
using the table below as guidance for such decision as to the cause, remedy, level of compensation due and amount of compensation recoverable from the relevant Host:
Severity | Definition | Description | Examples of Causes | Host Charge for Compensation |
1 | Unresolvable Property Issue: Involuntary Host Cancellation and relocation of Guest required | Core functions of the home are compromised to the extent that relocation is required | ● No hot water ● No heating in winter ● No functioning bathroom or WC ● Vermin/Pests (serious e.g. infestation) ● Construction in immediate vicinity causing intolerable intrusion into enjoyment of the Property | Host will lose entitlement to up to 100% of the Host Rate (together with any Maintenance Charges arising). |
2 | Significant Property Issue: No relocation of guest required and significant compensation due | Core functions of the home are compromised but relocation is not required as: - the issue(s) is repaired/resolved quickly - the home continues to function - the Guest accepts a discount | ● No hot water (fixed <24h) ● Vermin/Pests (moderately serious, e.g. ants) ● Key appliance doesn’t function (oven, only TV) ● Pool heater not functioning ● A/C not functioning ● WC/bathroom not functioning, but 2nd bathroom available ● Construction in immediate vicinity affecting enjoyment of the Property | Host is liable for 50% of the Host Rate for affected nights in home (together with any Maintenance Charges arising). |
3 | Moderate Property Issue: No relocation of Guest required and moderate compensation due | Guest enjoyment of the home is significantly compromised | ● A room featured online is unavailable ● Vermin/Pests (not serious e.g. occasional mouse) ● Single key ● “Home Truths” inaccurate which affect the Property such as the presence of pets ● Inadequate storage for Guests ● Wifi or TV do not work | Host is liable for 30% of the Host Rate for affected nights in home (together with any Maintenance Charges arising). |
4 | Low level Property Issue: No relocation of Guest required and minimal compensation due | Guest enjoyment of the home is somewhat compromised | ● Street noise ● Neighbour noise ● Insufficient crockery, cutlery or glassware | The Host is liable only for Maintenance Charges arising. |