Airbnb hosting seems like a dream. You rent out your property for a fixed rate plus a few cleaning fees, and all of the money goes right into your pocket, right? Kind of, but not exactly. Airbnb actually takes a number of fees from the costs that you get from your guests. They’re not overwhelming, but they do add up over the long term. We’re going to take a look at some of the Airbnb host fees that you’ll encounter if you start hosting. Hopefully, the ideas below give you a clear understanding of Airbnb host fee structure and how to account for them. Let’s get started.
Understanding Airbnb Host Fees
Generally speaking, Airbnb host fees are service fees taken from your account when your guest ends their stay. These fees pay for everything that Airbnb does such as customer support, web management, marketing, and more. It’s what you’d expect from a site that gives you such broad exposure to potential guests.
That said, there are a couple of different fee structures you can select. Depending on your situation, one might prove to be more useful than the other. Your first option is a “split fee.” This structure takes a deduction from both you and the customer. Your end typically takes a three percent hit.
Airbnb takes three percent of the booking cost. That includes things like the cleaning fee or other additional factors you offer your guests. You won’t have to pay a percentage of your other Airbnb costs or the taxes included in your rate, though. The guest typically takes a larger hit in this fee structure. Depending on where the guest and the unit are, they will pay some figure under 14.2 percent of the booking cost. Various factors determine how much a guest will have to pay, and that cost comes out under the name “service fee.”
Host-Only Fee Structure
The second option is the host-only fee structure which puts all of the costs onto the host. You’ll pay anywhere from 14-16 percent of the booking cost. In most cases, you’re able to choose between this fee structure and the split fee structure. If you’re a software-connected host or a hotel, however, you need to choose this option under Airbnb’s rules. If you choose this option, Airbnb gives your ad listing a little boost by alerting guests that the host is covering their service fee. This is a significant benefit, too, considering that guests will make decisions based on price differences like that.
Depending on the cost of your booking, that difference could be more than $100 and that’s not insignificant to guests. You might find that you get a lot more business when you cover the Airbnb hosting fee, totally making up for the costs on your end.
Want to Learn More About Airbnb Hosting?
Hopefully, the ideas above gave you a baseline understanding of Airbnb host fees and how they operate. If you’re curious about more Airbnb charges for hosts, there’s a lot more to learn. We’re here to help. Explore our site for more ideas on how to host well, places to stay, and general insights into the Airbnb lifestyle.