Does anyone know where the liability falls for Airbnb rentals? Is it on the owner or the rental agency (Airbnb)? If it falls on the owner, Airbnb should make this clear, and owners should be sure to have insurance in order to protect themselves.
AirBnb has an insurance policy on each rental made to through the site. I believe it is up to $1 million.
However, they obviously don't want to use the insurance regularly, as that will likely mean an increase in the rates they pay.
Both sides of this story could very well be true. He could have been a bad host AND a guest may have done a lot of damage to his apartment. BUT, if he's had problems with 15 guests, I'm sure that each time their is an issue, AirBnb tracks what owners are most problematic, and after this incident, they decided to sever ties.
It is possible AirBnb has an unspoken rule that if they spend x amount on a host with a specified period of time, they cancel the hosts account.
17% of guests doing damage to your apartment seems like quite a lot to me.