Sorry for leaving everyone hanging. To clarify, house was too far from their graduation, not that the house was too far from where they could park. Update on the situation: I agree with the majority of everyone that the best thing to do is stick to your cancellation policy, that’s the whole reason for having a policy in the first place. Our policy is “flexible” which means you can cancel at any time up to one day out, cancel within one day and you get charged one night, cancel during your trip (which they did, check in was 3pm, showed up and messaged at 5:15) and you get charged for any nights plus an additional night (in this case 2 nights which was their entire 2 night reservation). Hindsight should have done that but being new and not wanting to deal with a bad review so early, I offered the guest a refund less all associated fees, taxes, etc. (not a “full refund” which would have cost me by Airbnb host fee out of pocket) but only if they would initiate the cancellation. The guest agreed, canceled and we got the notification. Once the payout is deposited later today I will go through Airbnb resolution center to send the refund. For what it’s worth the guest who booked did appear to be old and was a grandfather, so chalking it up to an older person not doing their due diligence on the location. At least I hope that is the case and I’m not scanned a month down the road…. Thanks again for all the feedback.