Murphy’s unfortunate stay in an AirBNB apartment

January 23, 2012

You know Murphy’s Law — “anything that can go wrong, will go wrong”? Well, Eric Schwartzman had one of those experiences when he rented an apartment from AirBNB recently.

Before I get into his story, I should mention that Schwartzman is a fellow journalist who was referred to me by another colleague. I help a lot of journalists off the record, but it rarely gets to this level.

And what level is this? Schwartzman is unhappy with the way AirBNB handled a difficult stay in Paris with his family, and is disappointed by the reaction from the company’s management when he questioned its policies.

Schwartzman and his family had found a “too good to be true” rate of $178 for an apartment that included a kitchen, more space than a hotel room, and a great location. But, he says, he “paid dearly” in other ways.

When he arrived early in the morning, he tried to take a hot shower.

There was no water at all in the apartment. I searched around for a water main but couldn’t find it. I contacted the host, and he responded quickly, saying he’d arrange to have it switched on and did so within the hour.

Next came a problem with the Internet. He just couldn’t connect to the wireless network, which was necessary because he conducted most of his business online.

When [the owner] arrived, he tested the broadband with his PC — he was an antiMac guy — and it worked, so he blamed it on my Mac. He said he didn’t use Macs and said it must an incorrect proxy setting on my computer. He couldn’t resolve the issue. We had to go to Starbucks for the duration of our stay just to get online.

Finally, the lock on the apartment failed. It took six hours for the owner to help him get into the building.

If you get locked out of a hotel room, you go down to the front desk and get a new key. But when a lock to a private residence fails and you’re stuck.

Be prepared to spend the night in a dark hallway with no where to sit, no bathroom and no where to charge your phone while you wait for your host to show up so. And they might even berate you for breaking their lock and charge you for a locksmith to fix it.

All the while, emails requesting help from AirBNB went unanswered.

At one point near the end of the stay, their host asked the family to leave — a demand he quickly withdrew — and eventually, he credited Schwartzman one-night’s stay for all of the inconveniences.

But it’s not enough. He thinks there are bigger problems AirBNB needs to address.

By removing the cost of operating a hotel, AirBNB lowers costs and makes it possible for travelers to rent directly from owners.

But by eliminating those costs, you also forfeit any on-demand customer support you might need. A front-desk clerk, lobby with seating, stable wi-fi and a bathroom are easy to take for granted when you have them. But we found out first hand just how vital they are when you’re locked out.

Another area of concern are AirBNBs cancellation policies. If guests cancels a reservation, they’re out half the booking fee for all of their nights. But if the host asks the guest to leave without cause, the guest is only entitled to a refund for the lost nights, he says.

“Which means if you’re a guest, your vacation is predicated on your host’s goodwill,” he says.

Schwartzman contacted AirBNB, which refunded another $200 of his stay, which was more than enough for him. But it declined his invitation to have a “civil, constructive conversation about my experience” for his social media podcast.

I was disappointed that they weren’t confident enough in their own service to go on the record online about what they do to protect guests. Asking hosts to be transparent about their listing is great, but I’d like to se AirBNB stand by their own business practices as well.

In the end, I think my experience illustrates some serious flaws in AirBNB’s business model. The concept of a community marketplace for rentals seems like a good idea at first, but with no real protection for hosts or guests, and with both sides having such a low tolerance for pain, I’m not sure the business has long term viability.

These are interesting questions. Is AirBNB’s business model flawed? Did the company’s execs owe Schwartzman an answer on the record? And should I get involved, and ask AirBNB to comment on this case and to clarify its policies?

  • http://bit.ly/bceuf ericschwartzman

    Patience thresholds are shorter than ever in today’s status update world. The problem with AirBNB, as I see it, is that if something goes wrong by no fault of anyone and you need help, each time you ask for something it counts as a strike against you. And you know how it works in baseball…  So as long as you can help yourself, you’re okay.  But if you need to reach out, you get two chances. Then you’re branded a complainer and you’re on your own.

  • http://bit.ly/bceuf ericschwartzman

    Read it again, I took my family and combined my business trip with a tour of Paris. And regardless of the all the ballyho, we had a great time. I love Paris!

  • http://bit.ly/bceuf ericschwartzman

    The lock failed. I told the owner is was sticking, but after the water and wi-fi incidents, he (as you did) labeled me a compaliner and did not respond. The next day, it just wouldn’t open, and I even got a guy off the street to try and help mne. But no luck. It was jammed shut. 

  • http://bit.ly/bceuf ericschwartzman

    We’ve rented apartments all over the world too and this was the first time we had problems.  But I think there’s a lot a service like AirBNB could do about it. Why not qualify listings that have taken steps to support renters and add a special star to the9r profiles so people can know which ones they can be confident in?  Right now, their are almost no protections for renters. 

  • http://bit.ly/bceuf ericschwartzman

    I never asked for a refund. Both the owner and AirBNB offer them to me on their own accord.  Would they have done that if I had been in the wrong?  Chris did a good job simplifying what really happened, but if you want to whole story, here it is:

    http://ontherecordpodcast.com/pr/otro/AirBNB-FAIL.aspx

  • http://bit.ly/bceuf ericschwartzman

    The lock failed. Jammed shut. It wouldn’t open.  We didn’t lock ourselves out.  It took 6 hours to get back in and the owner threatened to throw us out for breaking the lock.  I don’t need to save money that bad.

  • http://bit.ly/bceuf ericschwartzman

    The lock failed. It took 6 hours to get back in and the owner threatened to throw us out for breaking the lock.  He later apologized and let us stay, refunded us one night minus the cost of locksmith and refunded our security deposit in full.  No we didn’t lose the key. Yes it was cheap. But frankly, I don’t need to save money that bad.

  • http://bit.ly/bceuf ericschwartzman

    If the wi-fi at the hotel fails, there’s usually a number to call and someone who speaks your language to help you troubleshoot. I don’t expect an owner to do that. It’s nice that he even tried. But I do think it’s something someone should consider before the rent an apartment directly from an owner.  But my computer worked fine at Starbucks, fine at Le Web and fine everywhere else I’ve taken it so far. My iPad didn’t work either.  

    In terms of the owner tiring, I think that much IS true. But you’re assuming that I called and complained, rather than ask politely, and on that account, I think the later is a more accurate descriptions.

    My wife and son and I have rented apartments all over the world but this is the first time we had issues. Mind you, I don’t blame anyone for what happened. I don’t think anyone’s at fault. Mishaps are part of life. 

  • http://bit.ly/bceuf ericschwartzman

    On the Record…Online is entirely unedited. That’s the hallmark of the show. I endeavor to put unedited conversations On the Record…Online and let the chips fall where they may.

  • http://bit.ly/bceuf ericschwartzman

    Agreed. Disastrous is an overstatement. Bummer is more accurate.

  • http://bit.ly/bceuf ericschwartzman

    I’m sorry this has turned into a slug fest. Not my intention. I was hoping to spark a constructive debate about collaborative consumption in the service industry.

    http://www.forimmediaterelease.biz/index.php?/weblog/comments/fir_video_interview_with_eric_schwartzman_on_collaborative_consumption/

  • Anonymous

    I had guests (cousin and her husband) at my home last summer. He could not log onto my wifi from his Apple laptop. (We have several PC’s and Apple devices that all work fine.)

    He was obviously getting frustrated, as was I at the prospect of calling my ISP’s tech support line. His wife told him to try HER Apple laptop and, yep…it worked fine. 

    He went on and on about how he has never had this problem anywhere and we have not had the same problem with other guests prior to their visit or since.

    I am not trying to turn this into a tech support forum, my wifi works fine for my use…just relaying a similar problem.

  • http://bit.ly/bceuf ericschwartzman

    Hmmmm. My iPad couldn’t sustain a connection either.

  • Anonymous

    I agree, Christopher didn’t do a great job of explaining that one.  It would have been just as easy to say “the lock failed” rather than the mealy-mouthed “He found himself locked out.”

    It doesn’t change my opinion one bit, though.  Let’s say you were staying at someone’s house while they were away and you put their key in the hole and the lock broke.  It’s going to take a while for them to ascertain that to be the case, and call a locksmith, and for the locksmith to come out and fix it.  Last time I needed a locksmith at my house it was almost 7 hours before he got there. Bad luck, bummer, whatever.  But you’re at an apartment and not a hotel with a front desk and instantly reprogrammable locks.  It comes with the territory.

    And as far as the property owner ‘unfairly’ labeling the OP a complainer..I’d have to say that I would have too! 

    What gets me is not only does he put this on his “show,” but he gets Christopher involved as well, recounting his personal story each time and not, as he contends, to simply discuss ways to help renters avoid problems.  This, after he got a night free and $200 refunded.  And then to point out that this company didn’t want to come on his “show” to talk about it.  Would any company voluntarily appear on some unknown dude’s podcast when the dude himself feels he was wronged?  Seems like almost a conflict of interest.   I sure wouldn’t waste my time. 

  • Anonymous

    With all due respect, did you really expect AirBNB to allow itself to be “interviewed” by a hostile interviewer who has editorial control over the final publication? Is there any conceivable way that agreeing to do this would be in AirBNB’s interests?

    AirBNB’s PR department, if they have such a department, would be correct in saying, “No way, Jose.”

  • http://bit.ly/bceuf ericschwartzman

    Who said I was hostile? That’s your characterization, not mine. If anyone was hostile, it was the owner of the apartment, who threatened to throw a family of 3 with a 7-year old kid out on the street for “breaking” his lock. Please. Why would anyone break a lock? That doesn’t strike you as ridiculous? 

    By the way, I don’t believe anyone as at fault for what happened to us. I don’t blame AirBNB.  They are experimenting with a new business model in an industry that has traditionally relied on strong customer service to win customer loyalty. 

    But let me ask you a question…What would you do if you rented in an apartment and the owner locked you out or threw your stuff on the street?  That did *NOT” happen to us, but the thought crossed my mind when the owner threatened to throw us out. Wouldn’t you want to know what your rights were?

    Why wait until something like this happens to find out what AirBNB does to support renters if something like this were to happen? Aren’t you at least interested in their policy?

    That’s all this about. Why squash healthy civil discourse before it even happens. After all, sunlight is the best disinfectant.

  • Anonymous

    The owner probably had a “hidden password” set on his router. That’s not the technical term, of course, but a lot of folks set a password, set their machines to auto-select and remember, and don’t realize that anyone else who wants to connect to their network will need that information.

    As a Mac-head, I can sympathize with the OP hearing “it’s a Mac, that’s what the problem is” as an excuse. Which, in fact, is never true. Especially when I can easily pull up a Windows partition via Paralells.

  • Anonymous

    Ebay is king to the travel industry?  Really?  According to whom?

    You were looking for cheap and you got it.   

  • Anonymous

    It goes without saying that if you rent an apartment the owner is tacitly agreeing to provide you with the basic necessities, i.e. hot and cold running water, a lock that works, as well as WiFi, if that was part of the agreement. If the owner wants to simply collect the rent check and not hear any complaints whatsoever, he should employ a management company to act as intermediary between himself and the customer. When you’re dealing with the public you have to actually deal with PEOPLE.

  • Anonymous

    Eric, how or what do you propose to keep this peer-to-peer apartment (finder) rental service on the up and up? I agree that AirBnB is not as “reliable” as one is expecting it to be. Are you saying that the model does not work, period? Or, can it work with modifications? Is that the reason why you wanted seek some dialogue with their CEO?

  • http://bit.ly/bceuf ericschwartzman

    Ebay is the king of collaborative consumption, which is the basic business premise behind companies that create community marketplaces to connect buyers with sellers:

    http://en.wikipedia.org/wiki/Collaborative_consumption

    AirBNB is applying the same model to short-term apartment rentals.  Got it, faceless anonymous user?

  • http://bit.ly/bceuf ericschwartzman

    What about some sort of standards to qualify renters?  If they met certain resolution criteria, verified by AirBNB, why not let them earn special credentials on their listings? And if a host slams a renter’s profile with in accurate info, why not at least try and verify the accuracy of such statements? AirBNB pretty much ignored my attempt to set the record straight.  Refunds are great, but that doesn’t solve the problem for the next person. I’ve invested a ton of time documenting, exposing and debating this issue. Others may not be so persistent. I’ll bet there’s a bunch of renters like me who had similar experiences but didn’t take the time to flag the issues. My efforts are as much for them as for me at this point, since I have nothing to gain for participating in this discussion. By the likes of the faceless users flaming away on this grist, I’d say I have much more to lose than gain here.

  • http://bit.ly/bceuf ericschwartzman

    Thanks for your level-headedness. For a minute there, I almost lost faith in mankind. wink

  • Anonymous

    Is it too much to expect running water, working internet and a working door lock for $178 a day? He attended LeWeb in Paris during the first week of December. That’s not exactly peak travel season in Paris and where he stayed on the 2nd Arrondissement is not known for extravagance either. He said he made multiple calls to AirBnb by Skype from a Starbucks cafe and got cut off after waiting more than 15 minutes each time. Looks to me Eric is a pretty patient fellow just wanting to get what he paid for.

  • http://www.24pagebooks.com MartinEdic

    Frankly the whole thing sounds like one big long hipster whine. Did the keys actually not work suddenly out of the blue? Would you not have paid 10euros per day for crappy wifi in a hotel? And no place in hallway to plug in your phone- horrors! And on top of it, a $200 refund…this is a total load of spoiled whining especially considering you were paying less than half what any comparable hotel would cost.
    And this ‘article’ doesn’t even say where in Paris this apartment was.
    Pitiful.

  • http://bit.ly/bceuf ericschwartzman

    BTW, what’s an OP?

  • http://bit.ly/bceuf ericschwartzman

    What DO you do?

  • http://bit.ly/bceuf ericschwartzman

    Yes, we’ve rented in many other countries before, but always through an agency. This was the first time we rented directly from an owner. And I think that’s the big take away. If you rent from an agency and something goes wrong, there’s someone prepared to help. If you rent from an owner, they’ve probably got a day job, limited availability and an even shorter patience threshold if mishaps occur.

  • http://bit.ly/bceuf ericschwartzman

    Excellent idea, Karla. That’s my plan. Though I would consider renting from an agency rather than an owner. We rented through an agency in Rome and they made sure everything worked in the apartment.

  • Anonymous

    Based on what we know now, you should not be cast as an Airbnb pariah. At a minimum, Chris Elliott should be able to work that out and strip you record clean.

    As far as vetting rentors and renters, I’m not sure how Airbnb can do that. They essentially have a similar problem as TripAdvisor or Oyster (even with their pictures). They all rely on the “honesty” of people, and some or most have an ax to grind or a financial incentive.After travelling for decades now, here is what I have noticed:
    (1) we spend some time during the trip looking for the hotel we wish to use the next time
    (2) we go back to the same place again and again if we like it
    (3) we trust referrals from fellow travelers more than the internet or travel agents.

    DISCLOSURE: I sell travel but I don’t let it get on the way of my traveling.

  • Joe Farrell

    Then I stand corrected on the lock – the rest of it – no. 

    But once again – you did not rent a hotel room – you cannot expect a landlord to be at your beck and call for every little thing.  Even with not being able to get in because of a jammed or jimmied lock – what if your landlord was out of the country?  He is not a hotel and I do not expect that level of service when I rent an apt. 

  • http://bit.ly/bceuf ericschwartzman

    So what’s the procedure if a lock does jam? What do you do?  Because I’m not so sure I would have had the legal right to hire a locksmith to open the door.  And AirBNB has no staff in Paris to help.  Do You just sacrifice your stuff and go to a hotel?  If you rent from an agency, they handle you on behalf of the owner. But in my view, it’s unacceptable to rent an apartment to someone and not have some plan for how to handle them if something goes wrong.  If you deal with the public, you have to actually deal with them. You can’t expect to just sit back and collect a check if you can’t deliver what you promised.

  • Anonymous

    31 Rue Poissonniere, 75002 Paris.
    2° arrondissement

  • Anonymous

    That is quite different. 

  • Anonymous

    You are right, but then you don’t have to use them again.  You went for cheap in a foreign country.  You should expect some quirks.    

  • Anonymous

    Original Poster. It’s kind of misused on this board since the original poster is someone who writes to Chris. In this case, you…since the story is about you.

  • http://pop-pr.blogspot.com Jeremy Pepper

    This isn’t the first and it won’t be the last customer problem that AirBNB runs into – and their lack of customer service savvy and problem solving is imminently clear.

    But they’re social and Web 2.0 so the customers love them … just don’t expect them to really address customer issues, because, well, that’s not what Web 2.0 companies do, that’s just old stodgy companies that (ironically) seem to embrace Web 2.0 mentality more than the companies. 
    Is Eric 100% right here? Of course not. Did AirBNB handle it well? Of course not. Is this the end of the story for AirBNB? Not yet, but I can’t believe that the forces won’t align to smack them down if they get too big.

  • http://bit.ly/bceuf ericschwartzman

    I did and I won’t, but what about others? Why should everyone have to learn this lesson firsthand, the hard way?  Isn’t that the promise of social media. That you can inform yourself using the wisdom of the crowd?

  • http://bit.ly/bceuf ericschwartzman

    Thanks.

  • http://bit.ly/bceuf ericschwartzman

    What, if anything, do you think this incident says about the wisdom of collaborative consumption service businesses? It’s easier to connect buyers and sellers over trinkets on Ebay and Craigslist, but services are a much different story, because relationship management and response times are so much more important to the outcome of the customer experience. 

    The VCs are smitten with the concept of collaborative consumption, but I wonder it if really hold up in the case of global services.  

    AirBNB is just one of a flock of start-ups putting the collaborative consumption business model to the services test. Others are Uber and TaskRabbit.  

    Will the economics of operating these businesses with a level of support that customers may ultimately demand wind up being their downfall?  The jury’s still out, but if I was an investor, It’s be something I’d be thinking very seriously about. 

    Everyone can handle getting burned and blown off once. But I’m not convinced travelers have the tolerance for pain to put up with this kind of thing a second time. And in order for these businesses to prosper, you have to trust them.  But how can you trust a company that isn’t willing to talk about their policies on the record?

  • http://twitter.com/debmcalister Deb McAlister

    I have always found Eric to be more than fair and honest in his dealings with vendors of all kinds, and have no reason to doubt his version of the story.  My experience has been that people who won’t go “on the record” have good reasons for preferring to stay off the record.  I’m glad this was posted — I was looking for a rental in Europe, but now I know to look elsewhere. 

  • Anonymous

    I’m a usability consultant by trade, and I’ve always been a little mystified by the collaborative consumption model.  But my views are definitively flavored by growing up under street-savvy NYC denizens (though I admit to growing up suburban).  The concept of renting an apartment without being able to research the person behind it I find counterintuitive.  I haven’t had bad experiences on Craigslist and eBay, but combined, I have bought things from both sites under 10 times.

    As for vacation housing – the few times we rented vacation houses when I was a kid, they were properties specifically recommended to my parents by trusted friends who had used them before.  The Internet community?  I don’t fully trust them, even for restaurant recommendations, since so much depends upon the type of community member that is willing to comment.  (Where I live, any restaurant that charges more than $10/head for a meal is automatically given 1 star because it’s too “fancy” or “pricey” – this does not help me one bit when looking at user reviews.)

    There’s also the issue that many of these sites will force you to rate the seller/item.  Unless you had a horrid time, the psychology of that kind of interaction usually results in a cursory response of some sort that isn’t necessarily helpful.

    I think these sites will survive – not necessarily thrive, but survive – because someone is always looking to spend as little as possible.  But that doesn’t mean that it’s going to be a bargain or a good investment of your vacation funds.

  • Anonymous

    Oh please. Those who don’t waste their time appearing on a nearly-unknown person’s podcast when that very person felt he was wronged somehow have something to hide?   How much time would be wasted on such ridiculous endeavors if businesses were to attempt to prove themselves at every entitled customer’s whim.

    The more I read of this sniveling guy, the more disappointed I am in Chris for taking this one…after the sniveler gets refunds, gripes about it on his “show” then has the gall to complain to a more well-known author!

  • Anonymous

    1) Let the record show that I didn’t assume the lockout was your fault!
    2) I kind of like how you’re responding to individual comments. You’re taking a beating here and you’ve obviously brought on your own supporters.
    3) The nature of this type of rental (same with house swapping, rental from classifieds, etc.) is that it CAN’T be regulated. You can choose good agents who do their homework and vet their clients, but when you start dealing directly with the owner, there is the possibility that either the client or the owner (or both) are jerks.
    4) It sucks that you got a lemon of an apartment, however…

    Lessons for you:
    1) When you first arrive, make a check of everything so you can “complain” just once (!)
    2) If you’ve successfully resolved a problem yourself, next time, think twice about trying to gain publicity out of it. People here obviously don’t like attention hos…
    3) You might consider googling terms you don’t know (like “OP”) because otherwise, it makes you look like an inept journalist.
    4) Namecalling on a public forum is never a good idea – makes you look small.

    All in all, I do feel for you in some ways. However, it might be a good idea to think long and hard whether 1) you want to EVER rent an apartment again and 2) whether this is the right forum for you…

  • Anonymous

    I don’t trust social media, so I am not the person to pose this question to.  What you don’t like, someone else will.  Everyone has an opinion and have a bias based on their experience.  I also wouldn’t have booked with an unknown company, paying a too good to be true rate and then tick the owner off with many complaints.  You are not at home, so the one thing you may have forgotten to pack was your sense of humor.  It may not warm up the water, but it might help take the edge off the anger.  Parisians are known to not like Americans.  You probably came across as an ugly American to the landlord with the complaints.  If you are going to travel, maybe you should get some help with your arrangement from a TA who you can then call to take care of you.  There are thousands of places to book travel, but a good TA uses those that will take care of you.

  • http://bit.ly/bceuf ericschwartzman

    FYI, I’m not angry. Just curious and inquisitive. The escapade has already made for a hilarious story at many a dinner party.  And It’s a story I enjoy telling. If you’d like a good laugh, listen to the podcast. What’s a TA?

  • Anonymous

    Travel Agent

  • Anonymous

    Travel Agent

  • Anonymous

    Travel Agent

  • Anonymous

    Eric, try slowtravel.com and their forum slowtalk.com

    Lots of folks there use apartments all the time and they are happy.There is an excellent source for France/Paris there. Look for the posts of Americana in Parigi.

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