Along with the house rules, you’ll also want to select a cancellation policy that works for you. Airbnb offers three cancellation policies including Flexible, Moderate, and Strict. Depending on your attitude, rental prospects, and history with Airbnb, you can choose a policy that allows for effortless changes or one that charges the guest a cancellation fee (often) If your room is constantly booked solid, then you may wish to opt for a Moderate or Strict policy since a last-minute change could equal a week’s worth of profit.
If it’s an off-season and your property is free, you could always change to a more Flexible policy. A Flexible policy may also get you more bookings. Even if bookers don’t plan on cancelling, it’s often difficult for them to commit to a Strict policy so far in advance. Bookers will feel more at ease knowing they have the option to cancel, and in general, it’s likely that the majority of them will stick to their booking.
For reservations lasting over 28 days, there will be an automatic Long Term Cancellation Policy added into the contract. For a full understanding of the cancellation policy visit Airbnb policy page
Flexible Cancellation Policy