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to think "I'll pay cash" benefits only the customer in this instance rather than the host

(20 Posts)
Skrewt Thu 19-May-16 15:58:54

I have a small property I let through Airbnb. This is my only source of income and it has been great so far. I have had quite a few customers tell me that they've taken my number so they can book directly with me "next time". That bit is usually delivered at the end of communications (after they've left a review) so not really an open discussion. I haven't bothered so much about it before but now I have had a contact from someone who has heard about the property through mutual friends, looked it up, read the reviews and so on and want to book it for 3 weeks next year but pay cash - what deal will I give them?
If customers book through Airbnb they pay to Airbnb immediately and they do pay a chunk of commission to Airbnb (I pay a smaller amount) but if they cancel within 5 days of their arrival I still get paid so I have a certain amount of security. So AIBU to think there's no advantage in it for me (apart from the length of their stay) to take a gamble that a) they'll turn up and b) they'll pay. If I go ahead and take their booking I don't think they deserve a discount (more than I would normally give for a stay of a week) just because they're paying cash.

Earbudbitter Thu 19-May-16 16:01:56

I don't understand why you would be giving them a discount. I'd ask for a deposit tbh.

liptolinford Thu 19-May-16 16:11:44

I'd just tell them you only deal through the website.

Arfarfanarf Thu 19-May-16 16:13:14

Are there any risks to you insurance wise or anything? I dont know abour airb&b or what it gives you.

If there is no risk to you then what about the discount being whatever air b&b takes.

But full amount paid in advance or they dont go. With maybe a percentage non refundable?

nobilityobliges Thu 19-May-16 16:16:32

Obviously, if it's not worth the risk then say no. Or ask for payment in full up front (I bet then they'll start to see the advantages of dealing through the website after all).

FlyingElbows Thu 19-May-16 16:30:54

No discounts for paying in money! Chances, you get them everywhere. She wants to do it so she can cancel without losing any money. You don't gain anything. Only deal with them directly if you have a contract written up, don't agree to a way of cash when they turn up.

MyLocal Thu 19-May-16 16:43:00

Are they thinking you wouldn't have to declare the income and therefore they are saving you paying income tax on a cash payment?

I wouldn't do it.

IpreferToblerone Thu 19-May-16 16:46:00

If you normally get business most weeks then why take the risk.

Hissy Thu 19-May-16 16:51:16

Trust me, the vibe is there, they'll fuck you around.

Either through Airbnb, or a 50% up front deposit in advance.

Whitney168 Thu 19-May-16 16:52:44

No insurance if you don't go through Airbnb, so I'd tell them no.

WreckingBallsInsideMyHead Thu 19-May-16 16:53:02

Refuse, deal through the website that gives you the safety net

pambeesley Thu 19-May-16 16:54:25

Yep not worth it. Go through website and keep it all above board.

Skrewt Thu 19-May-16 17:15:35

Fine, I am happier to go through Airbnb. I just wonder what goes through people's heads when they make an "offer" like this. I suppose they think it'll be good for me in that I don't have to declare the income.

FishWithABicycle Thu 19-May-16 17:21:02

You might get some of the benefit if they paid by bank transfer at the time of making the booking, but they are proposing cash in hand at the end of the stay then there is no advantage at all.

Would your insurance position be affected in the event that they cause some major damage to your property (i.e. would you be covered if booked through the website but not covered otherwise?)

notagiraffe Thu 19-May-16 17:28:43

I'd just tell them you let exclusively through Airbnb and for them to book through the website. Airbnb will get hacked off if they discover people are using their site to choose places and then negotiating them out of the deal in private.

AndTakeYourPenguinWithYou Thu 19-May-16 17:32:20

They ask, you say no. What's the fuss about?

MothershipG Thu 19-May-16 17:36:03

They are thinking that both parties will get to avoid paying AirBnB commission and you could choose not to declare the income and therefore they want a deal.

However they obviously have no idea of the protections you receive so just say no.

superwormissuperstrong Thu 19-May-16 17:38:34

We did a few different places earlier this year and was happy to do what was easier for the host and it worked out about 50/50. Although we never asked for further discount for cash - just that we saved on the air bnb booking fee.
I wish it was a bit more flat fee - so if we stayed more than a couple of nights the fee felt too high for what they were doing in providing the service.

unlucky83 Thu 19-May-16 17:38:43

Paying businesses cash isn't necessarily about income tax/VAT avoidance! Businesses pay charges on card payments, they pay money on every bank transaction - putting money in or taking money out... cash is the most expensive thing to pay in.
But if you don't take much cash normally it can be useful for paying your living expenses it doesn't need to go in the bank and incur charges.
When DP had a business we took more or less 50:50 cash/card. We kept the cash and tried to use it for everything we could - staff wages, small purchases etc - we used it to pay DP's 'wages' - so it went into his personal account /went on our food shopping. We used the card payments to pay for things that had to paid through the bank - like rates, some suppliers etc. So at times we would prefer cash - other times card/cheque. I will ask for instance the small local garage which they would prefer and also which card - in general debit cards are fixed charges - 20-30p per transaction and credit cards are a % - so you can usually work it out but it might depend on the deal that company has with the card handling company - so I ask.

KP86 Thu 19-May-16 17:39:09

They can pay cash but need to transfer 75% of the money to you now via bank deposit.

Otherwise too big a risk on your part.

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