Denver Airbnb Property Damage: A Guide
When it comes to Denver Airbnb property damage, it’s similar to many damaged property scenarios that short-term rental landlords experience, with some unique caveats. Denver is the capital of Colorado, and Colorado is known for its outdoor activities, which can result in ruined carpet and sketchy sofas. Denver is also famous for some other unique characteristics, which we will delineate later on. If you are a landlord or even a guest curious about property damage in Airbnb properties or short-term rentals and how they interact with the legal framework in Denver and Colorado, look no further. We break it all down for you below.
Why is property damage rising in Denver?
As Denver’s short-term rental market has boomed, so has the general wear and tear on properties. With more guests cycling through homes every week, especially during busy tourism seasons, hosts are seeing a noticeable uptick in accidental and preventable damage. Whether it’s a holiday party gone wrong or the long-term impact of muddy boots during ski season, property damage has become an increasingly common cost of doing business in Denver’s rental market. STR and Airbnb property damage in Denver is a real concern.
Common types of Airbnb damage in Denver rentals
Based on scraping data from consumer reports, reviews, and landlord forums, here are the most frequently reported types of damage for short-term rentals in Denver:
- Furniture damage: Broken chairs, scratched wood surfaces, ruined upholstery
- Appliance misuse: Burned stovetops, broken dishwashers, flooded washers
- Smoking indoors: Persistent odors that require deep cleaning
- Parties and gatherings: Damage to flooring, walls, and outdoor furniture
- Pet-related issues: Scratches, accidents, chewed items (especially in pet-friendly listings)
- Seasonal wear and tear: Mud, snow, and salt in the winter months damage entryways
What’s covered by Airbnb when it comes to damage?
AirCover is the main source of damage protection for Airbnb landlords around the world. AirCover is Airbnb’s built-in protection program for hosts, and it’s one of the platform’s biggest selling points. It offers up to $3 million in Host Damage Protection and $1 million in Host Liability Insurance. That means if a guest trips and falls on a jagged edge of a table that pierces their spleen, you have up to $1 million in liability insurance in case they sue you! That also means if a guest damages your property or injures themselves during a stay, you could be covered up to a whopping $3 million.
AirCover covers things like damage to furniture, theft, and even vandalism, and it now extends to valuables, parked vehicles, and income loss if you need to cancel bookings due to guest-related damage. Airbnb has also added other measures like guest identity verification and reservation screening technology to reduce the risk of incidents happening in the first place.
With all that said, although AirCover provides protection, it can’t really substitute for insurance that is specific to short-term rentals. Remember, even if you do have a claim that’s legitimate, Airbnb is both publicly traded and a behemoth of a company, meaning you might get lost in customer service or with claims’ underwriters.
What does Airbnb’s AirCover actually include?
| Coverage Category | Included in AirCover? | Notes |
|---|---|---|
| Accidental damage to furniture | Yes | Must be reported within 14 days |
| Theft (by guest) | Yes | Must show proof and file a police report |
| Pet damage | Yes | Only if your listing allows pets |
| Smoke damage | Yes | Requires cleaning documentation |
| Loss of income due to damage | Not covered | Hosts must absorb the vacancy |
| Long-term repair work | Not covered | Consider landlord insurance for structural issues |
| Damage by unauthorized guests | Case-by-case | Airbnb may deny if guest rules weren’t clearly posted |
Hosts can’t just end an email saying, “I have this damage and have been a great client, pretty please can you cover it? ” Instead, they are expected to submit detailed documentation, including photos, receipts, and proof of value, and Airbnb’s decision is final.
How to submit a damage complaint on Airbnb
So you have some damage on your property that a guest is responsible for, and something needs to be done about it. Acting fast and following Airbnb’s process is key to getting reimbursed through the proper channels. Submitting a claim through the Resolution Center isn’t complicated, but you’ll need the right documentation and timing. Below are step-by-step instructions on how to submit a claim through AirCover resolutions.
Step 1: Document the damage immediately
As soon as you discover the issue, take clear photos from multiple angles. Include wide shots and close-ups, and make sure the images are timestamped if possible. If a cat scratches on the sofa, and you didn’t allow pets, make sure you document these, as that’s an obvious flouting of the rules on the guest’s part.
Step 2: Gather supporting evidence
You’ll need:
- Receipts or screenshots showing the original purchase value of damaged items
- Any previous photos proving the item’s condition before the guest’s stay
- Guest communication logs related to the incident (if available)
Step 3: Report the incident to Airbnb within 14 days
Damage must be reported no later than 14 days after the guest checks out, or before the next guest checks in, whichever comes first.
Step 4: Open a resolution request
Go to the Airbnb app or website → Navigate to the “Resolution Center” → Select the reservation in question → Click “Request money.”
Provide a detailed description of what happened and upload your documentation.
Step 5: Wait for a response from the guest
Airbnb will first prompt the guest to respond. If they don’t reply within 72 hours or deny the claim, the case escalates to Airbnb support.
Step 6: Airbnb evaluates the claim
Airbnb’s team will review your submission. If they determine the damage qualifies under AirCover, they’ll offer reimbursement, often accounting for depreciation.
Step 7: Receive reimbursement (if approved)
If approved, Airbnb will send the payment directly to your connected payout method. This process may take several days to a couple of weeks.
| Tip: Keep all communication within the Airbnb platform. Outside chats (e.g., via WhatsApp or email) may not be accepted as valid documentation. |
We spoke to Zach L of Pineapple Money about his Airbnb advice, other than damage
The top thing to consider is local laws and regulations. Many cities have strict rules on short-term rentals, and violating them can lead to fines or legal trouble. Make sure to check zoning laws, HOA rules, and tax requirements before listing. A great listing won’t matter if you’re shut down for noncompliance.
Cost breakdown: What’s the true impact of damage
When something in your rental gets damaged, it’s easy to focus only on the repair or replacement cost. But as many Denver hosts have learned the hard way, the true cost of damage includes far more, lost revenue from blocked bookings, extra cleaning or hauling fees, and even the value of your time managing the issue.
Let’s start with a real example from a short-term rental in Capitol Hill.
The scenario: $2,700 in wine damage
A guest celebrating an anniversary spilled an Argentinian Malbec (red wine) on a cream-colored, custom-upholstered sectional. The liquid soaked into both cushions and a decorative rug underneath. Despite professional cleaning, the items had to be replaced.
Costs involved:
- Couch: $2,200 (custom-built from a local designer)
- Rug: $500 (West Elm)
- Airbnb reimbursement: $1,600 for the couch and $350 for the rug
- Remaining unreimbursed loss: $750 due to depreciation applied by Airbnb
- Time spent on claim, cleaning coordination, and blocked calendar: ~5 hours
Now let’s look at a simplified cost breakdown from another (fictionalized but realistic) case that includes the hidden costs hosts often overlook:
These kinds of costs add up quickly. And when you factor in guest satisfaction, like a future guest canceling due to lingering odors or furniture damage, the indirect impacts can stretch even further.
Preventative strategies to minimize Denver STR damage
Managing an Airbnb is similar to managing any other property, but with more guests. Every guest is different, and thus every booking results in a different guest experience for the landlord. You can’t control every guest’s behavior, but you can set smart boundaries and implement systems that dramatically reduce the likelihood of major damage. Prevention starts long before a guest checks in, through your listing language, your screening process, and your home setup.
In a high-demand, high-turnover market like Denver, especially with seasonal spikes in tourism and events, hosts need to think proactively. That means using technology, clear communication, and intentional design choices to limit risk without sacrificing guest experience.
Here’s a table of Denver-specific strategies hosts can implement to reduce damage while keeping their property competitive and guest-friendly:
| Prevention Strategy | Why It Works |
|---|---|
| Use noise monitoring tools (Minut, NoiseAware) | Helps detect unauthorized parties early, reducing the risk of large-scale damage |
| Install security cameras on entrances (Airbnb-compliant) | Discourages large groups or unregistered guests from entering the property |
| Provide clear check-in instructions | Prevents guests from forcing locks, damaging keypads, or calling with confusion |
| Stock darker linens and stain-resistant furniture | Minimizes visible wear and reduces replacement costs from spills or misuse |
| Set higher security deposits during peak party seasons | Deters risky bookings around New Year’s, concerts, and summer festivals |
| Create house manuals with appliance guides | Prevents guest misuse, especially in Denver’s high-altitude environment where cooking and HVAC settings may differ |
Integrating damage risks into your tax strategy
If you’re operating a short-term rental in Denver, Colorado, you’re running a business, and like any business, your expenses matter. Property damage isn’t just a hassle; it’s also a line item that can directly impact your tax position. If you don’t factor damage into your overall tax and depreciation strategy, you could be leaving thousands of dollars on the table each year.
Most hosts know they can write off basic repairs, but many overlook how damage-related expenses tie into cost segregation, asset depreciation, and even insurance claims. Structuring your records properly can improve your deductions, reduce your audit risk, and create cleaner books come tax season.
Here are some key deductible categories that apply when handling Airbnb property damage:
- Repair costs: Claimed in the same tax year; includes fixes like drywall patching, furniture repair, or appliance servicing
- Cleaning expenses: Specialized cleaning needed after damage (e.g., carpet extraction, odor treatment, deep cleans)
- Depreciation of replaced items: High-value items like furniture or electronics can be depreciated over time under IRS guidelines
- Insurance premiums: Costs for STR insurance or Airbnb-specific liability coverage are fully deductible
- Legal/professional fees: Attorney or accountant fees related to damage disputes or claim preparation
Example:
Let’s say a guest breaks your $1,200 dining table. You replace it with a similar one and decide to depreciate it over 7 years.
You could deduct approximately $171 per year over the useful life of the new table.
If the damaged table had already been written off, that loss may also be expensed in the current year.
| Tip: Even if Airbnb reimburses you for part of the damage, you may still be eligible to write off any unreimbursed portion. Just make sure you track the exact amounts received and only deduct what wasn’t covered. |
This is also where a cost segregation study can work to your advantage. If your property has been segmented into short-life components (like furniture, flooring, or appliances), damage-related replacements become part of your accelerated depreciation schedule. That means faster tax savings and improved cash flow in the years following the damage.
Why additional STR insurance is a smart move in Denver
While Airbnb’s AirCover offers a safety net, it shouldn’t be your only line of defense. In a city like Denver, where guest turnover is high, winter weather adds property risk, and STR regulations can shift quickly, dedicated short-term rental insurance adds a layer of financial protection that most hosts can’t afford to skip.
These specialized insurance policies go beyond what AirCover provides. They can cover loss of income, liability claims, guest injuries, damage from unapproved guests or events, and even legal costs.
Here are some of the most trusted short-term rental insurance providers for Colorado hosts:
| Insurance Provider | Coverage Includes | Avg. Monthly Premium |
|---|---|---|
| Proper Insurance | STR-specific damage, liability, and loss of income due to property damage | $75–$150 |
| Slice Insurance | On-demand, pay-per-night coverage with protection for guest-caused damage | $7–$10 per night |
| CBIZ Vacation Rental Insurance | Fire, vandalism, pet damage, liability, and guest injury claims | $90–$120 |
| Allstate HostAdvantage | Optional add-on to homeowners insurance, covering guest-caused damage | Varies by state and policy |
| Safely Insurance | Liability coverage and guest screening with identity verification | $15–$30 per reservation |
| American Modern | Coverage tailored to vacation and seasonal rental homes | $80–$130 |
Damage happens, but you don’t have to absorb the full cost
Let’s face it, if you are a host in the STR or Airbnb market, damage is going to happen. Either way you slice it, you have no control over whether the guests are going to be a super tidy family with borderline obsessive-compulsive disorder, or a bunch of CU students coming to party during the weekend in Denver with an assortment of pets that aren’t allowed in your Airbnb in the first place.
If you have the right systems in place, preventative strategies, documentation habits, and smart insurance coverage, you can turn what might be a nightmare into a manageable line item on your profit and loss sheet. Denver STR ownership is still one of the strongest real estate plays in Colorado. If you treat it like a business, prepare like a pro, and factor in the true costs of damage, you’ll stay profitable even when the occasional broken faucet or red wine spill comes your way.
FAQ
What should I do if a guest refuses to admit they caused the damage?
If a guest denies causing the damage, document everything thoroughly, including before and after photos, time-stamped evidence, and any guest messages related to the incident. Submit your claim to Airbnb with all supporting materials. Airbnb will make a determination even without guest admission, as long as your documentation is strong.
Can I charge guests a security deposit on Airbnb?
Airbnb does not allow hosts to directly charge a security deposit outside of its platform, but it may pre-authorize a hold on the guest’s payment method in specific cases. If you want greater control over deposits, consider using a third-party platform like Guesty or StayFi that integrates with Airbnb and allows for additional fees and deposits.
How can I screen guests better to avoid damage?
You can reduce risk by enabling Airbnb’s identity verification features, setting booking restrictions (such as no one-night stays for new users), and requiring positive reviews from other hosts. Additionally, communicate with guests before check-in to gauge their tone and clarify your house rules. Using software like Autohost or Superhog can also provide deeper screening tools.