I had to cancel a reservation 7 days before arrival of a guest after informing airbnb and the guest the reasons thereof. We were informed in December 2016 of a new regulation that compels all airbnb hosts to apply for licences to operate. I already had a reservation by that time we received that notification. I promptly applied for the license in December 2016 but due to the huge demand it took long for the licences to be issued as fast as they could. I then informed my prospective guest that I would be severely punished if I hosted them for a payment without a license and that I would cancel the reservation and offer them free accommodation since they had a confirmed reservation. The guests replied and accepted my offer but airbnb kept mum on the issue. I presumed that since I offered free accommodation and I did not inconvenienced the guests I would not be penalised by airbnb, but no, they did by giving me a negative review. I am very very hurt by that because I was in a catch 22 situation and I opted to forfeit the payment in order to have a clean review on my listing but alas, airbnb did not think so. I am hurtened to see that playing honest does not help!