When renting out your vacation rental home, you can utilize most major platforms like Vrbo to maximize your bookings. However, understanding the associated costs and fees is important if you want to navigate different platforms successfully. This guide will walk you through Vrbo host fees, their structure, and how to maximize your rental income effectively.
Vrbo host fees: quick overview
Vrbo charges fees based on two main models: subscription fees or pay-per-booking fees. Here’s a quick explanation of all the different costs:
- Subscription fees: A yearly flat rate for those with frequent bookings.
- Pay-per-booking fees: A per-reservation charge suitable for occasional rentals.
- Commission fees: 5% of the total booking amount, including any additional charges like cleaning fees.
- Payment processing fees: 3% of the total payment, including taxes and refundable deposits.
These fees ensure smooth transactions and access to Vrbo’s platform, but they impact your earnings. Let’s delve deeper into the specifics.
What are Vrbo host fees?
Vrbo host fees cover the operational and marketing costs of listing on the platform. Vrbo offers vacation rental hosts different payment structures when it comes to fees so that there’s some flexibility based on how often you rent out your property.
Let’s go over each type of payment model in more detail.
Subscription model
This fee structure costs $499 annually, functioning as an annual fee that offers unlimited bookings with no additional per-booking charges. It basically functions as a yearly subscription plan to Vrbo.
This is a good option for properties that are constantly open for short-term rentals. It covers all service fees for all bookings and all properties under your account for a year.
Pay-per-booking model
The pay-per-booking host fee model is more flexible because you don’t have to pay any fee upfront. However, this payment plan has a 5% commission fee per each confirmed reservation. The 5% charge is applied to the total guest stay amount plus any additional fees you choose to add (cleaning fee, pet fee, etc.)
On top of that, the platform adds a 3% payment processing fee to ensure safe payment transactions and process refundable deposits and taxes.
Here is a breakdown of the fees:
Breakdown of fees
| Fee type | Cost |
| Subscription fee | $499/year |
| Pay-per-booking fee | 5% per reservation |
| Payment processing | 3% of total payment |
In addition to these, hosts should also be aware that local regulations may impose additional mandatory fees on properties. Understanding these costs helps you select the best structure based on your rental activity.
Key differences between subscription vs. pay-per-booking
Choosing the right model depends on your property’s booking frequency and income potential. Here’s how the two fee structures differ:
Subscription fee
- Best for: High-volume rentals.
- Cost breakdown: $499/year, offering predictable expenses.
- Example: Renting 80 times a year at $150 per night would still cost $499, saving significant fees compared to pay-per-booking.
Pay-per-booking fee
- Best for: Occasional rentals.
- Cost breakdown: 5% per booking.
- Example: Renting 10 times a year at $150 per night incurs $75 in fees, cheaper than the subscription fee.
Pros and cons
| Model | Pros | Cons |
| Subscription | Fixed cost, better for frequent rentals. Utilizing Vrbo’s payment system eliminates the need for hosts to rely on their own payment provider, simplifying the transaction process. | High upfront cost |
| Pay-per-booking | Flexible, no upfront cost | Higher fees for frequent bookings |
How to choose the right fee structure
Selecting the best fee model requires evaluating your rental frequency, income potential, and property type.
For high booking volumes, the $499 annual subscription fee often proves more cost-effective by eliminating per-booking commissions.
However, for less frequent bookings, the pay-per-booking model with an 8% total fee (5% commission + 3% processing) may be more economical.
To optimize your earnings, incorporate Vrbo’s fees into your pricing strategy to ensure profitability while staying competitive, and clearly list additional fees, like cleaning or pet charges, to maintain transparency and trust.
Consider these factors when making a decision:
- Rental volume: High bookings favor subscriptions.
- Total income: Projects with steady revenue streams benefit from fixed costs.
- Property type: Unique or seasonal properties may suit pay-per-booking.
Decision-making table
| Factor | Subscription fee | Pay-per-booking |
| Frequent bookings | ✓ | |
| Occasional rentals | ✓ | |
| Predictable costs | ✓ |
Vrbo vs Airbnb fees
Let’s break down how Vrbo and Airbnb host fees differ and compare the two. On the Airbnb platform, there are also two host fee payment models.
Split-fee model
This is the most common option. In this setup, hosts pay part of Airbnb’s service fee while the rest is charged to guests.
Typically, hosts pay around 3% of the booking subtotal (excluding taxes), although this rate can be higher for certain types of listings, like those with strict cancellation policies.
Host-only fee model
Less common, this model requires hosts to cover the entire Airbnb service fee. The rate is usually between 14-16% of the booking subtotal. Some types of properties, such as hotel rooms, are required to use this option.
So, is it cheaper to list on Airbnb or Vrbo? The answer depends on several factors, including your nightly rates, cancellation policies, and location.
Location plays a big role since some cities and regions impose taxes or fees on short-term rentals. Platforms like Airbnb and Vrbo often collect these taxes for hosts and submit them to the authorities.
Additionally, in some countries, taxes like VAT (Value Added Tax) or GST (Goods and Services Tax) may apply to the platform’s service fees, adding extra costs.
Although both platforms provide convenient options for listing rentals, their fee structures differ, so hosts should compare the fees and earnings from each platform to decide if listing on one or both is the right choice financially.
Understanding Vrbo’s fees is easier with a comparison to Airbnb’s structure.
Here’s a quick look in table format:
| Fee type | Vrbo | Airbnb |
| Host fee | 5% commission + 3% processing | 3% (or 14-16% for simplified pricing) |
| Guest fee | None | 14-16% |
When Vrbo may be better
- Lower guest fees: Attracts price-sensitive travelers.
- Control over pricing: Transparent fee structures make earnings predictable.
Tips to increase profitability as a Vrbo host
Whether you’re a seasoned host or new to the rental market, optimizing your approach can significantly boost your income. These strategies can help you attract more bookings, enhance guest satisfaction and improve your overall revenue.
Price strategically: use dynamic pricing tools
Undervaluing your property leaves money on the table while overpricing turns potential guests away. Dynamic pricing tools on third-party platforms, like PriceLabs, can help you find the sweet spot. Or, if you prefer to take the stress-free route, you can partner with a full-service vacation rental management company such as One Fine BnB. We use our own proprietary software to constantly monitor and adjust pricing and listings for our customers on over 50 top booking platforms.
Leverage reviews: encourage positive guest feedback
Guest reviews are the backbone of successful rental listings. They establish trust and can significantly impact your property’s visibility in search results.
- Encourage reviews: At the end of a guest’s stay, send a polite, personalized message thanking them and subtly requesting feedback. For example, “We hope you enjoyed your stay! We’d love to hear about your experience if you have a moment to leave a review.”
- Deliver great experiences: Ensure cleanliness, provide clear instructions, and offer thoughtful extras like welcome kits or local recommendations. Positive experiences naturally lead to glowing reviews.
- Respond to reviews: Thank guests for their feedback—positive or negative—and address any concerns professionally to show potential guests you care.
Optimize listings: use high-quality photos and detailed descriptions
Your listing is your property’s first impression and it needs to count when there are so many properties available.
- Photos: Invest in professional photography or, at the very least, use a high-quality camera. Highlight key features like natural light, cozy interiors, or stunning views.
- Descriptions: Write clear, engaging descriptions highlighting what makes your property unique. Avoid generic statements like “nice apartment” and instead describe specific amenities (“Enjoy your morning coffee on our sunny balcony looking at the city skyline”).
- Transparency: Clearly list any additional costs, such as cleaning or pet fees to maintain transparency and build trust with potential guests.
- Keywords: Include phrases travelers might search for, such as “pet-friendly,” “close to downtown,” or “family-friendly.” This helps improve your listing’s discoverability.
Sync calendars: avoid double bookings and increase efficiency
Managing bookings across multiple platforms like Airbnb, Vrbo, or Booking.com can quickly become chaotic. Syncing your calendars ensures accuracy and saves you from awkward situations like double bookings.
- How to sync: Most platforms offer tools to sync calendars automatically using iCal or integration software.
- Benefits: Syncing helps you keep track of reservations in real time, prevents scheduling conflicts, and simplifies your workflow so you can focus on enhancing the guest experience.
Refine cancellation policies: balance flexibility with security
Cancellation policies play a crucial role in attracting bookings while protecting your bottom line.
- Flexible policies: These appeal to guests looking for risk-free bookings, especially during uncertain times. A relaxed policy can increase your booking rate but may lead to last-minute cancellations.
- Strict policies: These provide hosts with financial security but might deter some guests.
- Find the balance: Consider a moderate policy that allows cancellations up to a specific time frame for a partial refund. This strikes a balance between offering flexibility and minimizing lost revenue.
Cancellations and security deposits on Vrbo
Vrbo offers flexibility with its five cancellation policies, ranging from no refund to full refunds within specific periods. Flexible policies usually attract more bookings but pose a risk of revenue loss due to cancellations, while stricter policies safeguard income but may make some guests turn away.
Understanding Vrbo service fees is important for setting appropriate cancellation policies and security deposits.
Hosts can also set security deposits, choosing between refundable damage deposits, which require post-stay refunds, and non-refundable waivers, which involve a smaller upfront fee but provide less coverage.
The right choice depends on your property type, guest profile, and risk tolerance. Regularly assessing your property’s performance and adapting to market trends, such as switching to a subscription model when bookings increase, can further increase your profitability.
Vrbo fees: how to add or edit fees for guests?
If you’re a host and want to add or edit guest fees to your Vrbo listing, here are step-by-step instructions:
- Log in to your Vrbo account and choose the listing you want to adjust fees for.
- Click ‘Calendar.’
- Click ‘Settings,’ then ‘Fees.’
- Under the Standard Fees, choose up to three.
- Select the Fee type, and enter the amount you want to charge.
- Add any custom fee details if needed.
- Click ‘Save.’
You can adjust various types of fees, including the Vrbo host fee, to better align with your pricing strategy.
Ready to maximize your rental income?
To maximize rental income and maintain guest satisfaction, carefully look at your fee model, pricing, and policies. Optimize your listings with high-quality images and transparent descriptions to attract more guests, and regularly adjust rates based on market trends and seasonality.
Listing your property on Vrbo can unlock significant income potential—but managing it efficiently is key. That’s where One Fine BnB comes in. We combine advanced technology with expert property management to ensure you get the best returns. From advertising and guest communication to maintenance, we’ve got it covered.
Vrbo host fees FAQs
What are host fees on Vrbo?
Vrbo charges a 5% commission fee and a 3% payment processing fee for each booking.
What is the commission rate for Vrbo?
Vrbo’s commission rate is 5% of the booking amount.
What is a host fee?
A host fee includes charges for listing on a platform, covering marketing and operational expenses.
How does a host get paid on Vrbo?
Hosts receive payments via Vrbo after the guest’s payment is processed, minus the host fees.
