What Fees Does Airbnb Charge Hosts?

BY MIKEL HUBBARD

FORMER HGTV PRODUCER | CO-FOUNDER, THE HOST CO |
OWNER, TIMES EIGHT PROPERTY & DESIGN


Airbnb hosting is an exciting venture full of new possibilities for your life, career and future. But when you’re looking into your monthly and yearly finances, it’s important to know: how much exactly does Airbnb keep in fees? We thought we’d give you a comprehensive look into what pieces Airbnb keep, as well as break down what kinds of fees they are.

What Fees Does Airbnb Charge Hosts?

Split-Fee Structure vs. Host-Only Fee

It’s important to understand Airbnb’s business model and how they make their money. Depending on the location of your listing, Airbnb may use a model called a “Split Fee” where the fee is mostly taken up by the guest, or a “Host-Only Fee” where the majority of the fee is taken from the host. In some locations, you are able to choose which you’d prefer.

Split Fees

In the split-fee model, a good majority of Airbnb’s money comes off fees charged to Airbnb guests, who pay around a 14% service fee of the booking subtotal. This is where a lot of their profits come from as a company. Keep in mind this will come up in your guest’s total costs at the end of booking.

Additionally, some local regulations require hosts to charge guests an additional occupancy (or hotel) tax, so check with your local regulations.

In a split fee structure, hosts end up paying a flat service fee of 3% of the booking total, which is reflected in the calculations leading up to your payout on the app.

The majority of STR hosts will end up in this pay structure, with a few hosts paying more: specifically, hosts in Italy, or with Airbnb Plus and strict cancellation policies.

So, if you have a $100 booking, after the split fee of 3% (which generally covers credit card fees), what you as a host actually take home is around $97 per every $100 a guest pays.

READ: HOTTEST MARKETS TO PURCHASE AN AIRBNB IN RIGHT NOW

Host-Only Fees

For some hosts, they will take on the majority of the fees for the stay — sometimes up to 14-16%.

According to Airbnb.com, this pay structure is required for hotels and serviced apartments, as well as hosts who use other software platforms to book their listings (unless the majority of your listings are in the United States, Canada, the Bahamas, Mexico, Argentina, Taiwan, or Uruguay).

READ: FIVE MOST IMPORTANT PEOPLE TO HELP MANAGE YOUR AIRBNB

Airbnb Luxe and Airbnb Experience Fees

If you have an Airbnb Experience, the host service fee is 20%. For Airbnb Luxe, the fee can be 3-5% depending on location.

Other potential fees

While not through the Airbnb app, there are other fees you will need to keep in mind when determining how much income you are bringing in through your rental property.

Insurance

If you are listed on Airbnb, you are most likely covered by AirCover, which has up to $1M of liability insurance, $1M of damage protection, and more.

However, there are still some who would prefer a more hands-on insurance company, or one that covers something specific that AirCover does not. For instance, some hosts have complained it is incredibly difficult to get AirCover / Airbnb customer service on the phone to talk about a claim they filed.

It’s worth noting that AirCover says that it is not a replacement for other insurance, so STR hosts should still have a regular homeowners insurance policy beneath its coverage.

All that to say, it’s worth considering. Click below to read more:

INSURANCE: ARE YOU REALLY COVERED IF SOMEONE DAMAGES YOUR RENTAL?

VAT Taxes

Some countries require a Value Added Tax, or a goods and services tax, that is required to be added to your vacation rental. Check and see if you have one in your country.


Do you have any additional fees on your rental - VAT taxes, host-only fee structures, etc? Let us know in the comments!

And share this article with someone looking into starting an STR!

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