What percentage does Airbnb take?
Getting the Lowdown on Airbnb Fees
Thinking about turning that investment property for sale into a cash cow on Airbnb? Before you dive in, let’s break down the fees you’ll encounter as both a host and a guest.
Host Service Fee Rundown
Airbnb charges hosts a service fee for using their platform. Most hosts fork over around 3% of the booking subtotal. This subtotal includes the nightly rate plus any cleaning fees you charge your guests. But hold up, there are exceptions. Some hosts might see this fee jump to 15% plus VAT, depending on the property type and location. For instance, hosts in Italy might face higher fees.
| Host Fee Type | Percentage |
|---|---|
| Standard Host Service Fee | 3% |
| Higher Host Service Fee | 15% + VAT |
For certain property types, like hotels or hosts using software to connect to Airbnb, a Simplified Pricing model is mandatory. In this setup, the entire fee, typically around 14%, is deducted from the host’s payout, and guests aren’t charged a separate service fee (Welcome Compass).
Guest Service Fee Breakdown
Guests also pay a service fee when booking a property on Airbnb. This fee is usually around 14% of the booking subtotal, but it can vary depending on factors like the length of the stay and special offers. For cross-currency bookings, the service fee can go up to 16.5% of the booking subtotal.
| Guest Fee Type | Percentage |
|---|---|
| Standard Guest Service Fee | 14% |
| Cross-Currency Booking Fee | Up to 16.5% |
In a Split Fee model, the host pays about 3% of the service fee, while the guest pays a larger portion, usually ranging from 14-20%. This model ensures that the total service fee is shared between both parties.
Knowing these fees can help you better calculate your potential earnings and expenses, making sure your Airbnb investment is worth it. For more insights on the profit margin for Airbnb hosts and to see if starting an Airbnb business is worth it, check out our other articles.
If you’re curious about the financial side of Airbnb investing, our resources on calculate Airbnb profit and average income of Airbnb host offer valuable info on making the most of your property.
What Affects Airbnb Fees?
Jumping into short-term rentals? You gotta know what makes Airbnb charge what it does. This knowledge can help you get the most bang for your buck.
Where You Are and What You've Got
Where your property is located plays a big role in the fees Airbnb charges. High-demand spots like New York City will cost you more because of the competition and higher running costs. On the flip side, if your place is in the middle of nowhere, you might catch a break with lower fees.
Here's a quick look at how location affects what Airbnb takes:
| Location Type | Example | Host Service Fee |
|---|---|---|
| Big City | New York City | 4% |
| Tourist Hotspot | Orlando | 3.5% |
| Suburb | Raleigh, NC | 3% |
| Countryside | Upstate New York | 2.5% |
The type of property also matters. Hotels or places using special software to connect to Airbnb might have a different fee setup. Instead of the usual split, they might pay a flat fee around 14%, and guests don't get charged separately.
Want to know more about picking the right property? Check out our guide on investment property for sale.
How Long They Stay and Special Deals
How long guests stay can change the fees too. Airbnb sometimes cuts a break on fees for longer stays (like over 28 days) to keep guests around longer. This can help you by reducing the hassle of frequent turnovers and keeping your place booked.
| Stay Duration | Example | Guest Service Fee |
|---|---|---|
| 1-7 Days | Short Vacation | 14% |
| 8-27 Days | Medium Stay | 12% |
| 28+ Days | Monthly Rental | 10% |
Running special offers or discounts can also mess with the fees. Deals can bring in more guests, which can balance out higher fees and keep your income steady.
For more tips on making the most money, check out our article on make the most money on Airbnb.
Wrapping It Up
Knowing what affects Airbnb fees can help you set the right prices and boost your profits. Whether you're new to this or a seasoned host, understanding how location, property type, and stay length impact fees can make a big difference. For more insights, visit our articles on airbnb good investment and profit margin for airbnb hosts.
