Vrbo host fees
Vrbo host fees explained: the 5% commission and the 3% processing fee
By the VacayDirect team · · 2 min read
The short answer
On Vrbo's pay-per-booking model, hosts pay a 5% commission on the rental amount and any additional fees charged to the traveller, plus a 3% payment processing fee on the total payment including taxes and refundable deposits. Vrbo says the payment processing fee doesn't apply if you use property management software.
Vrbo's host fees are lower than Airbnb's single fee, but they're two fees, calculated on two different amounts, and that's where owners get confused.
The two parts
A 5% commission. Vrbo's help centre describes it as charged on the rental amount and any additional fees you charge the traveller, such as cleaning or pet fees.
A 3% payment processing fee. This one is charged on the total payment you receive from your guest, and Vrbo is explicit that this includes taxes and refundable damage deposits.
So the two percentages have different bases. Taxes and deposits are subject to the 3% but not the 5%.
A worked example
| Amount | |
|---|---|
| 5 nights at $320 | $1,600 |
| Cleaning fee | $200 |
| Rental amount plus fees | $1,800 |
| Lodging tax collected (example: 10%) | $180 |
| Total guest payment | $1,980 |
| Commission: 5% of $1,800 | $90.00 |
| Processing: 3% of $1,980 | $59.40 |
| Total Vrbo host fees | $149.40 |
That's about 8.3% of the rental amount in this example, a little more than the headline "8%", because the processing fee also applies to the tax. The higher your local lodging tax, the bigger that gap.
When the processing fee doesn't apply
Vrbo says that if you use property management software, the payment processing fee doesn't apply. In that case you're processing the card through your own system, so you'll pay your own processor instead. The 5% commission still applies.
What guests pay
Vrbo also charges travellers a service fee on top of your price. That's between the guest and Vrbo and doesn't come out of your payout, but it does make your stay more expensive to the guest than the price you set, which matters when you compare it with a direct booking.
Compared with booking direct
On your own website there is no commission. You pay card processing, typically around 3%, and whatever your booking software costs. Against Vrbo's pay-per-booking model that's a saving of roughly the 5% commission on every stay you move.
Put your own figures into the host fee calculator to see it over a year, or read how Airbnb's fees compare.