Venturing into the world of vacation rentals? Vrbo stands out as a popular choice. But what’s the real cost of listing on Vrbo?
This guide dives into Vrbo’s pricing to give you a clear picture on how much does it cost to list on Vrbo.
Discover the ins and outs of Vrbo fees. From annual subscriptions to pay-per-booking models, we’ve got you covered.
So How Much Does It Cost to List on Vrbo?
Vrbo has two ways to handle fees: the annual subscription and pay-per-booking models.
✅ Annual Subscription – With the annual subscription, you pay $499 per year upfront, and you can get unlimited bookings throughout the year. This can be great for owners with higher-value properties, offering a potentially cheaper option. You can cancel within 14 days if you want to switch to pay-per-booking.
✅ Pay-Per-Booking – Here, you don’t pay an annual fee. Instead, you pay when you get bookings. This gives you flexibility: only pay for the bookings you receive. This is a great option if you’ve listed your property on other platforms and if you don’t want to pay a fee upfront. To get started, you’ll need to start accepting payments online regularly.
These options give you choices based on how often you rent and your property’s value.
Pay-Per-Booking Vrbo Fees Structure
Vrbo offers a pay-per-booking option, where fees start at 8% for each reservation. This fee is split into two parts:
✅ Vrbo Service Fee: This is 5% of the total reservation cost. It’s calculated on the full amount the traveler pays, including any extra charges you might add (like fees for pets or cleaning), but it doesn’t include taxes or any refundable deposits the guest might pay.
✅ Credit Card Processing Fee: This amounts to 3% and is based on the total payment you receive from the guest. This includes all additional fees, taxes, and security deposits. If you end up refunding the deposit, you’ll also get back the corresponding part of this processing fee.
It’s important to note that these fees don’t cover costs related to property damage protection or cancellation protection.
Also, if Value-Added Tax (VAT) is relevant in your country, it will be applied to the 5% commission fee.
The percentage of the Vrbo listing fee can vary depending on the total amount of the reservation. Generally, the higher the reservation amount, the lower the percentage of the Vrbo listing fee.
Note: If you are using vacation rental property management software, there’s an important distinction: you’ll be subject to a reduced booking fee of just 5%. This fee is determined by the rental price and any compulsory charges, but it doesn’t include taxes or any refundable security deposits.
Annual Subscription Option on Vrbo
Vrbo’s annual subscription model offers a straightforward approach. By choosing this option, you pay a flat rate of $499 for the entire year, covering all service fees. This means there are no additional fees to worry about.
One key advantage of the annual subscription over the pay-per-booking model is that it doesn’t require you to accept online payments. This can simplify the payment process for some hosts.
Another benefit is the ease of financial planning. Since you’re not dealing with variable fee percentages for each booking, calculating your earnings from each stay becomes much simpler.
The annual subscription also comes with exclusive features to enhance your listing and management capabilities. These include:
- The ability to list your property on international Vrbo sites.
- Access to the Reservation Manager tool.
- The option to upload up to 50 high-definition photos of your property.
- An interactive map feature for your listing.
Additionally, you’ll have access to a reservation calendar. This tool is particularly useful for keeping track of bookings and ensuring you’re always aware of when guests will be staying at your property.
Vrbo Host Insurance
When you process stays through Vrbo’s checkout, you get $1 million in Liability Insurance at no extra cost. This covers liability for any claims made against you. If you don’t have insurance, this policy acts as your primary coverage.
If you already have a policy, this is additional coverage that works alongside your existing one if a claim is made. Both policies can contribute to cover the claim if needed.
Comparing Vrbo Costs to Other Platforms
When it comes to fees, Airbnb charges hosts 3% of the booking total while guests might pay up to 14%, excluding taxes and extras.
On Vrbo, hosts have more flexibility: an 8% pay-per-booking fee for hosts with yearly rental income less than $10,000, or an annual fee starting at $499 for year-round rentals with no extra charges. Guests on Vrbo pay between 6% to 12% of the booking total.
For a deeper dive into these differences, check out our comparison of Vrbo vs Airbnb. This comparison can help you see if another platform might suit your hosting needs better based on their fee systems.
Can You List on Both Vrbo and Airbnb?
Absolutely, you can list your vacation rental on both Vrbo and Airbnb. Doing so broadens your exposure and can lead to an increase in bookings.
However, it’s important to be mindful of potential challenges, such as the risk of double bookings and the complexity of managing listings across multiple platforms.
To streamline this process, you might want to consider using a channel manager. Think of a channel manager as your personal booking superhero. It synchronizes your calendars across different platforms, helping you avoid the headache of double bookings.
Plus, it consolidates all your messages into one central inbox. This tool can significantly simplify your life as a host, bringing more organization and efficiency to your rental management.
Even if you decide not to use a channel manager, it’s still possible to manually synchronize your calendars between Airbnb and Vrbo. This requires a bit more effort but can be a viable solution for managing your listings on both platforms.
Frequently Asked Questions
Does Vrbo Cost Money to List?
Yes, listing your property on Vrbo involves certain costs. You have two main options: a pay-per-booking fee model, where you pay a percentage for each booking, or an annual subscription model, where you pay a flat fee for unlimited bookings throughout the year.
Is It Worth It to List on Vrbo?
Deciding whether to list on Vrbo depends on various factors like your property type, location, and rental goals.
Vrbo can be particularly beneficial for properties in popular vacation destinations and for hosts looking to reach a specific audience that prefers Vrbo over other platforms.
What is the $500 Fee on Vrbo?
The $500 fee on Vrbo typically refers to the annual subscription cost, which is around $499.
This fee covers unlimited bookings for a year without additional per-booking charges, making it a cost-effective option for hosts expecting frequent guests.
Does Vrbo Have More Fees Than Airbnb?
The fee structure of Vrbo and Airbnb differs. Vrbo offers a pay-per-booking or an annual subscription model, while Airbnb primarily operates on a pay-per-booking model with a host service fee and a guest service fee.
The choice between Vrbo and Airbnb should be based on your specific needs and rental frequency, as the overall cost-effectiveness can vary depending on these factors.
We’ve reviewed the platform Vrbo, exploring its fees, insurance, and how it compares to other platforms like Airbnb. Understanding Vrbo’s annual subscription and pay-per-booking models provides clarity on the costs associated with hosting.
For hosts seeking flexibility, Vrbo’s options cater to a variety of needs. If you prefer a straightforward approach with no upfront costs, the pay-per-booking model might be your go-to.
On the other hand, the annual subscription, starting at $499, ensures unlimited bookings throughout the year. Depending on your property and rental strategy, Vrbo offers choices that can align with your hosting preferences.
To further tailor your decision, don’t forget to check out our guide through the best listing sites. It delves into the specifics of various platforms, helping you find the best fit for your unique hosting requirements. Happy hosting!
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