Only confirmed reservations trigger Smart Calendar Rules (including Owner stays).

Also, a rule should be set directly between the "blocking" listing and any "blocked" listing.

For example, let's say that Listing A is set to block Listing B, and Listing B is set to block Listing C. If a confirmed reservation is received for listing A, listing B gets blocked. But a blocked listing B won't activate the rule to block listing C (because a block don't trigger Smart Calendar Rules). Therefore, to ensure that listing C gets blocked, listing A should have a rule to block listing C, as well.

Beta & Lite users:

When creating a Smart Calendar Rule, you can decide whether to apply it for manual blocks as well. 

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