With over 2 million listings worldwide, Vrbo attracts millions of vacation rental guests searching for the perfect stay. So, if you’re serious about turning your side hustle into a real business, Vrbo should be one of the first channels you get listed on. As the Expedia Group’s vacation rental brand, it can help you attract valuable bookings from a highly relevant audience.
That being said, it’s important to know how much it costs to list your property on Vrbo. First of all, you need to factor commission fees into your pricing strategy. Secondly, you may want to compare Vrbo’s commission fees to those of other listing sites to make sure that it’s worth it. And thirdly, once you know how much it really costs to list on Vrbo, consider finding other ways to get bookings - with lower commissions or no commissions at all.
In this blog post, we’ll cover everything you need to know about Vrbo owner fees: how much they cost and how Vrbo calculates them. Additionally, we’ll give you tips on how to establish multiple sources of bookings.
Want to list on another channel, like Vrbo, Airbnb or Booking.com? Host Tools can unify your calendars so you’ll never get double bookings. Try it for free today.
How do Vrbo fees work?
Vrbo has two different listing models: pay-per-booking and subscription.
Most hosts opt for the pay-per-booking listing model. Instead of paying an annual fee upfront, it gives you the option to pay only for the bookings you receive. This listing model is more flexible. It works best for property owners who:
Get their bookings from more than one channel.
Want to have the option to block dates on Vrbo as they wish, without having paid the entire year’s commission fees in advance.
On the other hand, the annual subscription model is a good choice if Vrbo is your main source of bookings and you expect to make more than $10,000 a year through the platform. The subscription costs a one-time flat fee of $499 paid in advance.
How much are Vrbo fees for owners?
The commission that Vrbo charges for pay-per-booking listings starts at 8% per booking.
This is how the overall Vrbo host fees are made up:
5% Vrbo service fee. This is calculated from the total amount of the reservation, including additional fees (like pet fees or cleaning fees), and excluding taxes and refundable deposits paid by the guest. The Vrbo service fee contributes to the cost of the secure transactions, product development, and 24/7 customer service that Vrbo provides.
3% Vrbo credit card processing fee. This is calculated from the total payment amount you receive from the guest, including extra fees, taxes and security deposits. When you refund the deposit, you get back the portion of the payment processing fee charged for the deposit.
If VAT is applicable in your country, it’s charged on the 5% commission fee.
Why do Vrbo fees vary?
Vrbo owner fees vary because they depend on the amount paid for the reservation. In general, the higher the total amount of the reservation, the lower the percentage of the Vrbo listing fee.
Why do you need to pay Vrbo payment processing fees?
If you list your vacation home on Vrbo, you need to pay Vrbo credit card fees. This is because Vrbo charges the guest for you. The benefit is that you don’t need to have your own payment provider: Vrbo takes the payment and you get the money in your payout, which is disbursed one business day after your guest checks in.
How to become less dependent on Vrbo
Is Vrbo your go-to listing site? Do you rely on it for your vacation rental bookings? While Vrbo works extremely well for a large number of rental owners, putting all your eggs in one basket is never a good idea. What if Vrbo suddenly decides to raise its commission fees, or change its algorithm? This could seriously affect your rankings.
So, here are three ways to become less dependent on Vrbo and protect your rental business against potential losses.
1. Get listed on other channels
If you get the majority of your bookings from Vrbo, you may want to consider diversifying your strategy. While Vrbo is a great platform that gives you lots of visibility, it charges higher commissions than some other websites. So, if you want more money in your pockets, it’s worth getting listed on other channels. For example, Airbnb currently charges most property managers a 3% commission fee to homeowners, which is slightly lower than Vrbo’s.
2. Build a direct booking website and avoid Vrbo fees
An even better alternative is to start accepting direct bookings on your own website. Plus, it’s a great tip on how to avoid Vrbo fees. Direct bookings are commission-free, meaning that you can charge your guest directly without having to pay service fees to any third parties. You’re in total control of your listing and independent from other channels. If you’d like to learn more, check out our complete guide to getting direct bookings and building your vacation rental website.
3. Use a channel manager to avoid double bookings
Once you’ve listed your rental on multiple booking channels and/or built your own vacation rental website, you’ll have a calendar on each booking site where renters can see your availability. Now it’s really important to find a way to keep those calendars up-to-date and in sync. Otherwise, a guest making a reservation on Vrbo won’t see that your rental is already booked for the same dates on Airbnb, and you’ll get a dreaded double booking.
Double bookings are expensive and a hassle to deal with, so preventing them in the first place is vital. And the best way to do that is by using a vacation rental channel manager.
Channel managers like Host Tools allow you to unify your calendars across all the channels you advertise on. This way, there’s no need to export your Airbnb calendar and import it into Vrbo, and vice versa. All you need to do is add both your Airbnb and your Vrbo account to Host Tools and sync them. Since Host Tools has direct API connections with both platforms, your availability and calendars will be updated instantly when you block a date or get a new booking.
But what if you have other sources of bookings, too? Using an iCal link, you can add any calendar to Host Tools – whether it’s from Expedia, Tripadvisor, Agoda, or other booking sites. You can even add the calendar from your own vacation rental website. This way, synchronizing your availability across all your channels is easy.
What’s more, Host Tools has a handy multi-calendar where you can see all your reservations in one place. No need to log into your accounts separately!
Check out our list of the best Airbnb channel managers to find the best solution for your business.
Vrbo owner fees: Frequently asked questions
Want to list on another channel, like Airbnb or Booking.com? Host Tools can unify your calendars so you’ll never get double bookings. Start your free trial today:
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FAQs
A 5% commission fee is charged on the rental amount and any additional fees you charge the traveler (such as cleaning, pet, and boat fees). Bookings that originate from our expanded distribution partners may have higher fees.
How much are Vrbo service fees? ›
This fee ranges from 7% to 10% of the total rental amount, including pet fee, owner fee, and cleaning fee. However, it excludes taxes and refundable fees that the guest pays.
Why are Vrbo service fees so high? ›
The service fee is a percentage of the total amount of the reservation, excluding taxes and refundable fees paid by the guest. This fee helps cover the cost of secure transactions, product development, and 24/7 customer service.
How do Vrbo owners get paid? ›
You get paid through our secure payment platform which allows you to take advantage of Visa, Mastercard, and American Express processing.
How much does Vrbo charge owners 2022? ›
Whichever option you choose, Vrbo also charges a 3% processing fee on total payment and taxes for their owners.
Does Vrbo report income to IRS? ›
Don't panic if you get an IRS letter
However, because of reporting laws, companies like Airbnb, HomeAway and VRBO may report to the IRS all income you receive from short-term rentals, even if you rent for less than two weeks. If reported, this income will likely be reflected on a Form 1099-K.
Does Vrbo have any hidden fees? ›
Vrbo Owner Fees
Expect a 5% commission charged for the rental amount and any fees, including the cleaning or pet fees and any additional payments. There will be a 3% payment processing fee charged on the total payment amount you receive from your traveler, including taxes and refundable damage deposits.
Is Vrbo worth the money? ›
If you're only looking to rent out a room in your home, VRBO isn't the place for you. Give Airbnb a try instead. Homeowners who offer short-term rentals through VRBO earn an average of $33,000 per year. Of course, those earnings aren't guaranteed.
Is the Vrbo fee worth it? ›
Is it worth paying all of these fees for hosts to have your home listed on Vrbo? The answer is resoundingly yes; it's a no-brainer! If you really want to make money from your vacation rental business, your focus should be on getting the highest amount of bookings possible, not on the costs.
What percentage does Airbnb and Vrbo take? ›
You can list your property on both Airbnb and Vrbo. Host commission rates are 3% for Airbnb and 5% with Vrbo plus a 3% credit card processing fee. If you're registered on another travel rental site then you need to contact Vrbo's listing team to register your property.
Vrbo is often cheaper than Airbnb because its service fee is typically lower.
Does Vrbo charge an annual fee? ›
How much does Vrbo take on commissions? Vrbo offers two fee models: the annual subscription fee of $499 that covers the whole year, or the pay-per-booking model. In the case of the pay-per-booking option, hosts are charged a 5% commission per booking, plus a 3% payment processing fee.
Can a VRBO pay for itself? ›
As you can see, finding a vacation rental property that can generate positive cash flow is very feasible. Whether you're intending to use it strictly as an income property or as an occasional second home, a vacation rental property can definitely pay for itself if you abide by the guidelines in this blog.
How quickly does VRBO pay owners? ›
Your payouts will typically be disbursed one business day after your guest checks in. The money should be available in your bank account 5–7 business days later. If you're a new partner, the payout for your first booking should be disbursed to your bank account 30 days after the guest's payment.
How much does VRBO charge up front? ›
In most circ*mstances the rental agreement will require a deposit of 10% - 50% to confirm the reservation, with full payment received 8 weeks prior to arrival. It is important that all payments be submitted as specified in the rental agreement in order to avoid losing your reservation and/or your booking deposit.
Who pays the credit card fee on Vrbo? ›
3. Why Do You Have To Pay The VRBO Payment Processing Fee? Well, it's a rule of thumb that you have to pay the VRBO credit card fee if you wish to list your vacation rental on the platform. It's because VRBO charges each booking or guest for you.
Do Vrbo owners get discounts on rentals? ›
7. Book new rentals. To build up reviews, Vrbo hosts often offer discounts for stays on newly listed properties. Hosts are permitted to offer a 20% discount on a listing for the first 90 days or until it gets three bookings — whichever comes first.
What is the average income from a Vrbo? ›
As such, they estimate an average annual revenue of about $39,200 (in using last year's revenue number for their projection). Property manager fees can vary widely. The Motley Fool estimates them at 25% to 30% for the average vacation rental.
How does the IRS know if you have a rental property? ›
Ways the IRS can find out about rental income include routing tax audits, real estate paperwork and public records, and information from a whistleblower. Investors who don't report rental income may be subject to accuracy-related penalties, civil fraud penalties, and possible criminal charges.
Will I receive a 1099 from Vrbo? ›
You will receive IRS Form 1099-K to report the gross value of transactions processed on your behalf. Vrbo mails Form 1099-K in late January of each year.
VRBO allows for cameras and other surveillance devices only outside a property. The one exception: Smart devices that cannot be activated remotely. Guests must be informed and given the option to deactivate them.
Which is safer Airbnb or Vrbo? ›
Airbnb offers a specialized safety feature for solo travelers. It allows them to share their reservation itinerary with family and friends. The feature also offers safety tips and provides questions to ask hosts. Vrbo has fewer complications regarding guest safety since they only offer private rentals.
Why do people use Vrbo instead of Airbnb? ›
Like Airbnb, anyone can become post a listing on Vrbo, and the site offers a range of rental types including houses, apartments, castles, tree houses, and more. However, unlike Airbnb, you can only rent entire homes on Vrbo,(opens in a new tab) which means it has fewer rentals than Airbnb.
What are host fees? ›
Hosting Fees means the amounts invoiced by Service Provider to Customer and payable by Customer to Service Provider for Hosting Services included in the Hosted Solution.
Should I get travel insurance for Vrbo? ›
Insurance is always a must-have for all property types, including Vrbo and vacation rental owners. This is due to the fact that pretty much anything can happen and you are entrusting others to stay comfortably within your rental. You need to have them treat it as if it was their own, but this is not always the case.
Should I list on both Airbnb and Vrbo? ›
Making your listings available on Airbnb and Vrbo and other vacation rental sites simultaneously is the best way to maximize your bookings and increase your profits from your business.
When did Vrbo start charging a service fee? ›
Vrbo began charging guests a variable service fee in 2016. The percentage of that fee depends on the cost of the rental and is levied on top of cleaning, hot tub or other fees charged and set by property owners.
What makes you a premier host on Vrbo? ›
To achieve Premier Host status, hosts must achieve the following: An average review rating of 4.3 stars or higher. A booking acceptance rate of 90% or higher. An owner-initiated cancellation rate of 5% or lower.
Does Vrbo charge monthly? ›
The subscription model costs a one-time, flat fee of $499 per year paid in advance. It covers all the bookings you make on the platform and all the service fees that would otherwise be charged to your account when a guest is making a booking.
How do I pay my annual fee on Vrbo? ›
Pay for your listing subscription
- Log in to your account.
- Select the listing you want to renew if you have more than one rental property.
- Select Property.
- Select Property Details.
- Select Review plan.
- Select plan in the Annual subscription column.
- Select payment type and enter billing information.
100% refunds
Regardless of who cancels the reservation, if the traveler is within the 100% refund window and the host refunds the full amount, we'll automatically refund the service fee. Whenever the traveler receives a 100% refund, we'll return the commission and payment processing fees on the booking.
Is Vrbo a good way to make money? ›
Yes, listing your vacation home on Vrbo is a good way to make money. Not only is it one of the most popular vacation rental sites in the world (attracting 15.9 million visitors each month), Vrbo also cross posts its properties to fellow Expedia-owned sites.
How do I make my vacation rental pay for itself? ›
6 Tips To Make Your Vacation Home Pay For Itself
- Rent your property short term. ...
- Handle your rentals yourself. ...
- Tax deductions. ...
- Buy your vacation home with your IRA or retirement account. ...
- Rent seasonally or long term instead of short term. ...
- Trade for services.
Your payouts will typically be disbursed one business day after your guest checks in. The money should be available in your bank account 5–7 business days later. If you're a new partner, the payout for your first booking should be disbursed to your bank account 30 days after the guest's payment.
Is buying a house to Vrbo profitable? ›
Vacation rental platforms (like Airbnb or VRBO) are a great way to generate income from a short-term lease, and if your property is in high demand, you will see even greater profits. The tax benefits associated with vacation rentals are also available to take advantage of.
Can a vacation home pay for itself? ›
As you can see, finding a vacation rental property that can generate positive cash flow is very feasible. Whether you're intending to use it strictly as an income property or as an occasional second home, a vacation rental property can definitely pay for itself if you abide by the guidelines in this blog.
Is listing on Vrbo worth it? ›
Vrbo is excellent for owners who want to rent their entire home. Although many other vacation rental sites include renting suites or single rooms, if you intend to rent the property as a whole, Vrbo is a great way to find potential guests who are looking for a place they will have all to themselves.
What is a good profit margin for vacation rentals? ›
Vacation rental owners should look to make no less than a 10% return on their investment. That means your income minus expenses (net operating costs including any mortgage payment) should be no less than 10% of your initial investment per year.
Are vacation rentals considered passive income? ›
Vacation rental properties have been booming over recent years, and short-term rentals are bringing in passive income to those who own them.
Is vacation rental income taxable? ›
Rental income in general is taxable. But the IRS gives you a small break if you rent your vacation home for 14 days or fewer in a year. In this case, your rental income is tax-free. You don't even have to report it on your tax return—no matter how much it is.
Build a direct booking website and avoid Vrbo fees
Plus, it's a great tip on how to avoid Vrbo fees. Direct bookings are commission-free, meaning that you can charge your guest directly without having to pay service fees to any third parties. You're in total control of your listing and independent from other channels.
How much do you tip housekeeping at Vrbo? ›
A suggested gratuity of 20%-25% of the villa rental cost is split among the staff.
How do I make my Vrbo stand out? ›
How to Make Your Vacation Rental Stand Out
- Leave Visitors with Helpful Instructions. ...
- Go Above And Beyond for Your Guests. ...
- Don't Forget To Decorate Your VRBO. ...
- Stock the Kitchen with Everything Guests Need To Cook. ...
- Set Clear Expectations for Your VRBO Guests.
How do I get my listing to the top of Vrbo?
- Include all amenities. Don't leave anything out when you're adding amenities and features to your listing. ...
- Apply location tags. ...
- Promote your safety practices. ...
- Property specifications. ...
- Upload attractive photos. ...
- Write a catchy headline. ...
- Add a detailed description. ...
- Avoid cancellations.
Airbnb and Vrbo safety
Vrbo has fewer complications regarding guest safety since they only offer private rentals. Still, Vrbo provides assistance to guests who feel unsafe in their rental unit by helping them rebook. They then investigate the claim to determine if the host is in violation of any policies.
