AirCover Denied or Paid a Fraction? How Australian Hosts Actually Recover Guest Damage

The guest checked out on Sunday. On Monday the cleaner sent photos: a cracked stone benchtop, a wine-stained rug, a bedroom door off its hinges, cigarette burns on the deck. You did everything Airbnb says to do: photos, quotes, the Resolution Centre request within 14 days, then the escalation to AirCover when the guest ignored it. Six weeks later: “We’ve reviewed your request and are able to offer $180.” Or: “Unfortunately, we’re unable to reimburse this request.”

AirCover for Hosts is a discretionary reimbursement program run under Airbnb’s own terms. It is not insurance, it is not a court, and its decision is not the end of your claim. The guest agreed to your listing’s House Rules and to Airbnb’s Terms when they booked, and those terms make the guest responsible for damage they or their party caused. That’s a contract you can enforce directly, in your state’s court or tribunal, for the full amount.

Your rights

• The booking is a contract between you and the guest. Airbnb’s Terms of Service, which every guest accepts, state that guests are responsible for leaving the accommodation in the condition it was in on arrival and for damage caused by them, their invitees or pets. Your House Rules, accepted at booking, form part of that contract, including any no-party, no-smoking, maximum-occupancy and cleaning terms.
• Negligence and trespass to goods apply independently of contract: a guest who damages your property through carelessness or deliberate act is liable for the loss.
• Recoverable loss includes repair or replacement (less any betterment), cleaning beyond normal turnover, lost bookings you had to cancel while repairs were done (with proof of the cancelled reservations), and fines or costs imposed on you by council or strata because of the guest’s conduct.
• AirCover’s 14-day window (submit a reimbursement request within 14 days of checkout or before the next guest checks in, whichever is earlier) governs AirCover, not your legal claim. Missing it weakens the platform route but doesn’t extinguish the claim against the guest. Don’t miss it if you still can.
• Airbnb’s arbitration clause applies to disputes between you and Airbnb, not to your claim against the guest.

By state

A host’s claim against a guest is an ordinary civil claim. Where you file depends on the state the property is in and the amount:

• New South Wales. Local Court, Small Claims Division, for claims up to $20,000 (General Division above that). NCAT’s consumer claims jurisdiction is for consumers against suppliers, so a host-against-guest claim usually belongs in the Local Court.
• Victoria. VCAT hears consumer and trader disputes under the Australian Consumer Law and Fair Trading Act 2012 (s 182), which include a trader’s claim against a consumer arising from the supply; a host operating as a business can apply there. Otherwise the Magistrates’ Court (up to $100,000).
• Queensland. QCAT minor civil disputes up to $25,000, including claims arising out of a contract between a trader and a consumer; Magistrates Court above that.
• Western Australia. Magistrates Court: minor cases up to $10,000; general claims up to $75,000.
• South Australia. Magistrates Court: minor civil claims up to $12,000; general up to $100,000.
• Tasmania. Magistrates Court: minor civil claims up to $5,000; civil claims up to $50,000.
• Australian Capital Territory. ACAT civil disputes up to $25,000; Magistrates Court above that.
• Northern Territory. NTCAT small claims up to $25,000; Local Court above that.

The Claim Done document asks your state first and drafts the demand with the correct court or tribunal named as the escalation.

What to do right now

1. Lock the evidence. Pre-stay photos or the last inspection record, post-checkout photos with timestamps, the cleaner’s written report, and the guest’s booking confirmation showing the House Rules accepted.
2. Get itemised quotes or invoices for each item, from real tradespeople. Separate repair from replacement and note the age of anything replaced.
3. Get the guest’s details. Airbnb shows the guest’s verified name; the booking messages and any ID they provided help. If you don’t have an address, the demand can be sent through the platform’s messaging and you can ask Airbnb for the guest’s contact details for the purpose of legal proceedings.
4. Send a formal written demand to the guest. Set out the booking, the House Rules and Terms they accepted, each item of damage with the quote, the total, the AirCover outcome (so they know the platform hasn’t covered it), a 14-day deadline, and the specific court or tribunal you’ll file in.
5. File on day 15. Filing fees are modest. Attach the demand letter and the evidence pack.

Why AirCover said no, and why it doesn’t matter

AirCover declines are usually for process reasons: the 14-day window, insufficient before-and-after photos, “normal wear and tear”, quotes that weren’t itemised, or the guest disputing and Airbnb declining to adjudicate. Partial payments typically reflect depreciation and Airbnb’s own view of reasonable cost. None of that binds a court. A magistrate or tribunal member looks at whether the guest caused the damage and what it reasonably costs to fix, on the balance of probabilities, and the evidence Airbnb found “insufficient” is often perfectly adequate for that. What does matter is that your own claim is credible: a $4,000 claim for a $600 rug will be cut down, and a claim that includes a full repaint for one scuff will damage the rest. Claim what you can prove.

Who to complain to

The guest, by written demand. The court or tribunal for your state (above). Airbnb for a review of the AirCover decision, in parallel; it can be worth a second request with better-organised evidence, and in New South Wales you can report the guest for the short-term rental accommodation exclusion register under the STRA Code of Conduct. Your landlord insurance or short-stay policy, if you have one, may cover guest damage with an excess; a claim there doesn’t stop you pursuing the guest for the excess and uninsured items.

Get the demand drafted — $49

Claim Done drafts your Airbnb Host Damage Claim: a formal demand to the guest citing the booking contract, House Rules and Terms, an itemised loss schedule with quotes, the AirCover history, a 14-day deadline, and the court or tribunal for your state named as the next step.

Demand Payment From the Guest — $49 →

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