air BnB for apartments---safety and reliability

I just used AirBnb for an apartment rental in Berlin, and it worked beautifully. You must inquire about the apartment first, and your daughter will likely be responded to quickly because the owners like long-term stays a lot! The owner will then personally respond and if your daughter is accepted, yes, the payment will be on a credit card up front. The owner provides their phone number and e-mail address so you can discuss arrival and departure times and where the keys will be left.

Look on the fine print on the website itself. Allegedly they do not allow the residual on the credit card (you'll have to pay a deposit to hold the place)to be charged until after a day or so, which gives the renter time to contest any issues. Also Air BnB has the clout and scale to carry insurance, primarily to protect the owner of the house from any bad actions from the renter. You don't deal with the owner directly and that is intentional - Air BnB as the middleman (who provides the infrastructure to link people together and the insurance to cover them) needs to earn its built in fee for acting as the broker. If people could deal with each other directly, they would be bypassing Air BnB (and, as a result, you wouldn't have any protections except a stranger's promise). Even thought the prices are low, Air BnB is making money in the process through volume of bookings. Hope that makes sense.

Thank you both. What you say does make sense, Agnes. It was my understanding that everything went through the website and I think you have confirmed that. It seems safer to me than sending off money to a private party as we do with VRBO. I assume that Air BnB charges the owner, not the renter, for its services? What about VAT?

Lola, with regard to your Q about whether Air BnB charges the owner or renter for its services, it might as well not matter because owners will probably set their prices accordingly to cover that cost (I don't know what's "in the contract" - whether Air BnB charges them a flat fee they can spread across everyone, or a per rental fee). I have noticed that some places have the renter pay an additional or rolled-in cleaning fee, or something to that effect...I interpreted that as either a wear-and-tear charge or an Air BnB surcharge (although I'm not sure which). Concerning VAT...you've hit upon why different localities, like NYC, have found Air BnB to be controversial - they don't collect taxes like a regular hotel would. But they're also not regulated like a regular hotel and they're much cheaper than a hotel for that reason. Do Vrbo owners collect taxes from the renters? I'm guessing if they are honest or if that's the law in a particular country. It's such a new model of doing things (i.e. the sharing economy), laws and regulators haven't caught up.

We stayed at an apartment in Washington DC through airbnb last year and the owner collected the DC lodging tax directly from us when we left. He seemed honest enough that we were pretty confident he paid it, anyway it wasn't our problem if he didn't. I think VAT is paid by the owner ("seller") in Europe and passed along in the price of lodging or goods or whatever. Like the other poster, my understanding is that airbnb collects a deposit and then charges your credit card a day after your arrival so you have time to raise any issues you find when you get there. This is better protection than other sites, in my experience, where you just pay the owner however he/she prefers, usually in advance. If you think about the nature of the transaction, the owner is generally at more risk than the renter, since the renter could skip without paying if the owner waited to collect. You can't repossess lodging after the fact. While the renter could be at risk for a nonexistent property or major misrepresentation, the owner couldn't survive many complaints to the website. Like any transaction, a measure of trust is involved and the website, if reputable (vrbo, homeaway, airbnb, and others), has a stake in everyone's satisfaction. Sounds like a great experience for your daughter, all 88 days.

Thanks, Dick. She is so excited, I am sure it will be a great experience. We have taken her to Switzerland, Italy, Paris, and London, but this will be her first time on her own. And actually it is only 87 days on the ground, considering the day she loses flying over. ( Got a great price on the flight with Air Berlin). So we don't need to worry about the VAT? One agency she inquired of quoted a price for konthly rent and then said there would be an extra charge of 792 € to cover the VAT and their commission. I hadn't even thought about VAT until then. I guess I am wondering if the Air BnB owners are actually including it in the stated price, or maybe evading it. I guess that is their risk not ours. We'd like to get this nailed down while she is home on spring break. It is a bit complicated as there are 3 of them for sure, and maybe a fourth. So theyncould either pick a 2-bedroom Apartment with ample room for four, and end up getting stuck with higher rent if the fourth person doesn't join, or pick a smaller place that is adequate for four but not really room. She has looked at " sleeps four" apartments that have one bedroom and a pullout sofa in the living room. For college kids used to dorms that doesn't sound too crowded, but I think it would be tough for 4 for a whole summer.

Wikipedia's entry makes interesting reading http://en.wikipedia.org/wiki/AirBnB
Note the presence of a certain bozo actor among the investors.

Thanks, Southam, that made for very interesting ( and reassuring) reading.

Yeah, I just read the Wikipedia entry, very interesting. As I'd thought, the risks, discussed at the end, seem to be more on the host than the guest. As for VAT, Lola, it would be something to clarify with the property owner when you or your daughter sets up the rental. You have ample chance to exchange e-mails before you part with any money. Our experience with European rentals has been that the owner pays VAT out of the rate quoted to the renter, but check to make sure if it isn't clear in the listing.

Will do! If I read the article correctly, her credit card won't actually be charged for the rental until 24 hours after they check in. Or is that 24 hours after she makes the booking? It would be good if it is the former, as that will give her time to collect contribution from her roommates. She is set on handling this all on her own, but also nervous because she has never rented an apartment on her own. So I am trying to advise her, but not interfere.

I just reserved with Air bnb for a stay next month in TX and my credit card was charged immediately for the full 3 day stay.

Hmmmm. I will read more carefully. Maybe the payment is held by AirBnB and not passed on to the owner until arrival? Edit: OK, I found it. "We hold guest payment until at least 24 hours after check-in to make sure guests are satisfied."

Exactly right...airbnb charged my card straight away, but the apartment owner doesn't receive his payment from airbnb until 24 hours after check-in. It's protection for the renter.

We love airbnb! Have used it multiple times in multiple countries and have family members who have as well. Always great experiences from a travel standpoint as well as a payment standpoint since it's all through the website. No problems with payment or surprises at the end. They seem to have thought through all of the possible issues as a company and have ironed out any problems. Your daughter will have a fantastic time!
Cheers...