If you're considering listing your rental property on VRBO, understanding the platform's fee structure is essential for calculating your actual revenue. VRBO fees for hosts have evolved significantly over the years, and knowing exactly what you'll pay can help you price competitively while maintaining healthy profit margins on your short term rentals.
This guide breaks down every fee VRBO charges hosts, how they compare to competitors such as Airbnb, and strategies for maximizing your earnings on the platform.
What is VRBO and how does it work for hosts?
VRBO (which stands for Vacation Rentals By Owner) is one of the largest vacation rental marketplaces, connecting property owners with travelers seeking short term rentals. Originally founded in 1995 in Colorado and now part of the Expedia Group, VRBO focuses primarily on whole-home rentals rather than shared spaces, making it particularly attractive for hosts with dedicated rental properties.
The platform allows you to list everything from beach condos to mountain cabins, urban apartments to rural estates. Unlike traditional long-term rentals, VRBO specializes in vacation properties that guests book for days or weeks at a time. An overwhelming majority of listings on VRBO qualify as short-term rentals.
Understanding VRBO's fee structure for hosts
VRBO offers two primary commission models for hosts, and the fee structure you'll encounter depends on which model you choose. Let's break down both options.
What is a host fee on VRBO?
When you list on VRBO, the platform takes a commission on each booking to cover the services they provide. This host fee pays for your property's exposure to millions of travelers, the booking management system, secure payment processing, and support for both you and your guests.
VRBO deducts this fee automatically before sending your payout, which typically arrives in your account 24 hours after guests check in.
The annual subscription model
Under this model, hosts pay an annual subscription fee to list their property on VRBO. The typical cost is around $499 per year for one property listing, though VRBO occasionally offers promotional pricing for new hosts.
With the subscription model, you avoid paying commission on each booking. This means you keep more of your nightly rate, making it potentially more cost-effective for properties with high booking volume. However, you're committing to the annual fee regardless of how many reservations you actually receive. So, if you decide to choose this method, you should be confident that you'll have enough bookings throughout the year to make the price worth it.
The pay-per-booking model
Most VRBO hosts today operate under the pay-per-booking commission structure. With this model, there's no upfront annual fee. Instead, VRBO charges a service fee of approximately 8% on each booking.
This VRBO host fee is calculated based on the rental amount plus any additional fees you charge (such as cleaning fees or pet fees), but excludes taxes. The 8% commission is deducted from your payout, meaning if a guest books your property for $1,000, you'll receive approximately $920 after VRBO takes its cut.
The pay-per-booking model offers more flexibility, especially for new hosts, those with seasonal properties that may not generate bookings year-round, or those who live in their property for part of the year. You only pay when you earn.
Additional fees hosts should know about
Beyond the primary commission or subscription, there are other costs associated with hosting on VRBO that can impact your bottom line.
Processing fees for credit card payments
If you choose to process payments outside of VRBO's system (which is generally not recommended), you may encounter additional credit card processing fees. However, most hosts use VRBO's integrated payment system, which includes processing within the standard commission structure.
Listing fees for premium placement
While basic listings are included in your subscription or covered by your per-booking commission, VRBO offers premium placement opportunities that can increase your property's visibility. These promotional options come with additional costs and function similarly to advertising spend; you pay extra to appear higher in search results or in featured sections.
Optional service upgrades
VRBO provides optional services like professional photography, which can significantly improve your listing's appeal but comes at an additional cost. While not mandatory, professional photos have been shown to increase booking rates substantially, potentially justifying the investment.
What fees do guests pay on VRBO?
In addition to knowing how host fees work, understanding guest fees helps landlords price their property competitively while accounting for the total cost travelers will see.
VRBO typically charges guests a service fee ranging from 6% to 12% of the booking subtotal. This guest service fee is separate from what hosts pay and helps VRBO maintain the platform. Guests also see any fees you set as the host, including cleaning fees, pet fees, or extra guest charges.
The total amount a guest pays includes your nightly rate, your host-set fees, VRBO's guest service fee, and applicable taxes. This distinction matters because while you control your nightly rate and cleaning fee, guests may compare the total cost across platforms before booking.
VRBO fees vs Airbnb: How do they compare?
When deciding between platforms for your short term rentals, fee comparison is crucial. VRBO and Airbnb have distinct approaches to their fee structures.
Airbnb typically charges hosts a 3% service fee per booking, which is notably lower than VRBO's 8%. However, Airbnb transfers more of the total service fee burden to guests, charging them up to 14.2% in some cases. This means the total fees paid (by both host and guest combined) can be similar across platforms, but the distribution differs.
VRBO's higher host commission but lower guest fees can make your property appear more competitively priced to travelers browsing listings. Some hosts find that VRBO attracts guests booking longer stays or whole-home rentals, while Airbnb serves a broader range of accommodation types.
The best platform for your property depends on your target market, property type, and booking patterns. Many successful short-term rental operators list on both platforms to maximize exposure.
How to calculate your actual earnings on VRBO
Let's walk through a practical example to understand what you'll actually pocket from a VRBO booking under the pay-per-booking model.
Imagine you list your property at $200 per night, with a $100 cleaning fee. A guest books for five nights, creating a booking subtotal of $1,100 (5 nights × $200 + $100 cleaning fee).
Under the 8% host fee structure:
- Booking subtotal: $1,100
- VRBO commission (8%): $88
- Your payout: $1,012
If you're comparing this to the annual subscription model at $499, you'd need to calculate how many bookings per year make the subscription more cost-effective. Using our example, you'd break even after approximately six bookings of this size.
Remember when calculating cash flow that this is all pre-tax. All rental income is subject to city and state taxes, with some very rare exceptions – including the short-term rental loophole which stipulates rental income is tax free if a home is rented for 14 days or less throughout a year.
Strategies to maximize earnings despite platform fees
While you can't avoid VRBO fees entirely, you can optimize your approach to maximize net earnings:
- Price strategically: Factor VRBO's commission into your nightly rates when setting prices. Your rates should account for all costs including platform fees, property expenses, and insurance.
- Optimize your cleaning fee: While VRBO charges commission on cleaning fees, setting an appropriate cleaning fee can improve your competitiveness. Travelers often filter by nightly rate but understand cleaning fees are standard.
- Encourage direct bookings for return guests: While first-time guests will find you through VRBO, consider encouraging repeat visitors to book directly with you for future stays, eliminating platform fees entirely. Just ensure this complies with VRBO's terms of service.
- Maintain excellent reviews: Higher ratings improve your search ranking on VRBO, potentially reducing the need for paid promotional placements while increasing organic bookings. Positive reviews are king when marketing any product – especially a rental property, where a guest is almost guaranteed to look at reviews before booking.
- Understand the cancellation policy impact: VRBO's cancellation policies affect both guest confidence and your income stability. Following the platform's October 2025 changes to host cancellation policies, understanding these rules is more important than ever for protecting your earnings.
The hidden costs of short term rental hosting
Beyond VRBO fees for hosts, remember that platform commissions are just one piece of your operational expenses. Successful short-term rental operators account for:
- Property maintenance and turnover costs: Cleaning, restocking supplies, repairs between guests, and regular maintenance add up quickly with high turnover.
- Utilities and amenities: Unlike long-term rentals, you typically cover all utilities for short-term rentals, including WiFi, streaming services, and higher usage patterns from vacationing guests.
- Insurance: Standard homeowners or landlord insurance policies typically don't cover short-term rental activities. Specialized short-term rental insurance protects your property and income against risks unique to vacation rentals, including guest damage, liability claims, and loss of rental income.
- Property management: If you hire a property manager, expect to pay 20-30% of booking revenue, which stacks on top of VRBO's commission.
- Local taxes and licensing: Many cities require short-term rental permits and charge occupancy taxes that you're responsible for collecting and remitting.
Is VRBO worth the fees for hosts?
Despite the commission structure, VRBO remains valuable for most short-term rental hosts due to the platform's extensive reach and trusted brand. VRBO attracts millions of travelers actively searching for vacation rentals, providing exposure that's difficult to replicate independently.
The platform's integrated booking system, payment processing, calendar management, and messaging tools streamline operations considerably. For hosts without existing marketing channels or booking websites, VRBO's fees are often justified by the bookings they facilitate.
According to VRBO's official host resources, the platform serves over 2 million properties worldwide, demonstrating its sustained relevance in the vacation rental market.
Final thoughts on VRBO host fees
Understanding what fees VRBO charges hosts helps you make informed decisions about your short-term rental strategy. The VRBO service fee of approximately 8% per booking (or the alternative annual subscription of around $499) should be factored into your financial planning from the start.
While these fees reduce your per-booking revenue, they provide access to a massive marketplace of potential guests. Success on VRBO comes from pricing appropriately, maintaining excellent property standards, and treating platform fees as a marketing expense rather than lost profit.
Whether you're launching your first short-term rental or expanding an existing portfolio, building your business on a solid foundation includes proper insurance coverage. At Steadily, we specialize in insurance solutions designed specifically for rental property owners, including short-term rental coverage that protects your investment while you grow your hosting business.
Ready to protect your short-term rental investment? Explore landlord insurance coverage options designed for modern rental property owners.
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