Many vacation rental owners are curious about what is VRBO host fee and how it affects their earnings. VRBO, which stands for Vacation Rentals by Owner, is a popular platform in the U.S. that connects property owners with travelers looking for short-term rentals. Like any marketplace, VRBO charges hosts a fee for its services, such as marketing, booking management, and customer support. Understanding these fees can help you plan your finances and decide if VRBO is the right platform for your rental business. This guide breaks it all down for you.
Vrbo Host Fee
What Is VRBO Host Fee?
So, what is VRBO host fee exactly? It’s the cost that property owners pay to list and manage their rentals on the VRBO platform. VRBO offers two main pricing models: a pay-per-booking option, where you’re charged a percentage of each reservation, and an annual subscription, where you pay a flat fee upfront. Both come with their own pros and cons, depending on how often you rent out your property. Let’s explore each one.
VRBO’s Pricing Models Explained
VRBO gives hosts flexibility with two fee structures. Knowing what is VRBO host fee in each model can help you pick the best fit for your rental goals. One model charges per booking, while the other is a yearly flat rate—here’s how they work.
Pay-Per-Booking Model: How It Works
In the pay-per-booking model, VRBO takes a cut from each reservation. As of 2025, this includes a 5% service fee on the rental subtotal (base rent, cleaning fees, and extra guest charges, excluding taxes and refundable deposits) plus a 3% payment processing fee on the total amount (including taxes). Together, this adds up to about 8% per booking. For example, if your rental is $1,000 with a $100 cleaning fee, the subtotal is $1,100. You’d pay $55 in service fees and $33 in processing fees (assuming no extra taxes), totaling $88. This model suits hosts with fewer bookings who want to avoid upfront costs.
Annual Subscription Model: What You Need to Know
The annual subscription model is simpler: you pay a flat $699 per year, and there’s no per-booking service fee. However, the 3% payment processing fee still applies. Using the same $1,100 booking example, you’d only pay $33 in processing fees per reservation. If you have more than 10-12 bookings a year, this can save you money compared to the pay-per-booking option. It’s a popular choice for hosts with high booking volumes who want predictable costs in their VRBO rental business.
How to Choose the Right Model
Deciding between these models depends on your rental activity. To figure out what is VRBO host fee best for you, calculate your expected bookings. If you rent out your property less than 10 times a year, the pay-per-booking model might keep costs lower since you only pay when you earn. But if you’re booking 15 or more stays, the $699 annual fee could cut your expenses significantly. For instance, at $88 per booking, 10 reservations cost $880 in the pay-per-booking model—already more than the subscription. Consider your rental’s location, demand, and pricing strategy when choosing.
Additional Fees to Watch For
Beyond the main host fee, there are a few extras to keep in mind. VRBO doesn’t charge listing fees, but if you cancel a booking, you might face a $50 penalty. Travelers also pay a 6-12% service fee, which doesn’t affect you directly but can influence booking rates if guests find it too high. Some hosts add their own fees—like cleaning or pet charges—which VRBO includes in the subtotal for the 5% cut in the pay-per-booking model. Knowing these details helps you see the full picture of what is VRBO host fee entails.
Why VRBO Charges These Fees
VRBO uses host fees to fund its platform—think global marketing, a user-friendly booking system, and 24/7 support for you and your guests. In 2025, with travel booming in the U.S., VRBO’s visibility on sites like Expedia boosts your rental’s exposure. While the fees might seem steep, they’re an investment in reaching millions of potential guests. Comparing what is VRBO host fee to competitors like Airbnb (3% + guest fees) shows VRBO’s structure is competitive, especially for frequent renters.
VRBO’s host fees are straightforward once you break them down: pay per booking or pay yearly, with a small processing fee either way. Whether you’re a part-time host or running a busy vacation rental, understanding what is VRBO host fee means for your bottom line is key. Look at your booking patterns and crunch the numbers to pick the model that works for you. With the right approach, VRBO can be a solid way to grow your rental income.
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