11/04/2026
🏡 THINKING ABOUT BUYING A SECOND HOME AND RENTING IT OUT TO HELP COVER THE COSTS? PART 2: UNDERSTANDING VRBO'S HOST & TRAVELER FEES!
In my last post, I took a closer look at Airbnb's changing fee structure and how those changes can affect the income a vacation rental owner actually receives.
Today, I'm turning the attention to VRBO, another major platform used by vacation rental owners to market their properties and attract guests.
If you're considering purchasing a second home with the intention of renting it out when you're not using it, understanding Vrbo's fee structure is another important piece of the financial picture.
đź“Ł WHAT'S CHANGING WITH VRBO'S HOST FEES?
VRBO has recently introduced a new host commission structure that increases the fees for many property owners.
Let's look at how it works.
PREVIOUSLY:
Under VRBO's traditional pay-per-booking structure, most U.S. owners paid:
5% commission to VRBO.
3% payment processing fee.
That meant approximately 8% in combined platform fees for many owners using VRBO's standard payment processing.
Some owners using property management software had different fee arrangements, so the actual costs could vary.
UNDER THE NEW 12% COMMISSION STRUCTURE:
VRBO charges a 12% commission on the rental amount, including applicable cleaning, pet, management, rental, or other host fees.
When VRBO handles payment processing, a separate processing fee on those amounts is no longer charged.
If an owner uses their own payment processor, additional processing fees may still apply.
The new structure is being rolled out across host accounts, so owners should check their VRBO dashboard for the commission rate and transition applicable to their property.
IMPORTANT: Unlike Airbnb's move to a host-only service fee, VRBO still charges travelers a separate service fee at checkout.
That means both the owner and the traveler continue to have platform-related costs.
đź’ˇ LET'S PUT THAT INTO PERSPECTIVE:
Imagine your vacation property rents for $100 per night.
Under the new 12% host commission structure:
Rental price: $100
VRBO host commission: $12.00
Your payout: $88.00
This example assumes VRBO handles payment processing and excludes other applicable charges, taxes, and expenses.
Now consider that the traveler also pays a separate VRBO service fee, which is calculated as a percentage of the reservation total. The percentage varies depending on the reservation.
This is an important distinction: The 12% host commission does not eliminate the traveler's service fee. It is an additional cost the traveler sees when booking.
🏠WHAT DOES THIS MEAN FOR VACATION RENTAL OWNERS?
There are two sides to consider:
The owner's bottom line: The increase from the traditional 8% combined fee structure to 12% means owners need to account for a larger commission expense when calculating their expected rental income.
The traveler's total cost: Even though the owner receives their rental payout after the applicable host commission, travelers still see a separate VRBO service fee. This can affect how competitive your property's total booking price looks compared with other available rentals.
And remember, your nightly rental rate isn't necessarily what you take home!
🏡 WHAT SHOULD POTENTIAL SECOND-HOME BUYERS TAKE AWAY FROM THIS?
When evaluating a property as a potential vacation rental, it's important to understand which booking platforms you plan to use and what each one costs.
Don't simply look at what similar properties are charging per night and multiply that by the number of nights you think you can rent.
Make sure your financial projections account for:
✔️ VRBO or other booking platform commissions
✔️ Traveler service fees and their impact on booking competitiveness
✔️ Property management expenses
✔️ Cleaning and turnover costs
✔️ Property taxes and insurance
✔️ Utilities, maintenance, and repairs
✔️ Seasonal occupancy and vacancy periods
✔️ Local short-term rental regulations
COMING UP NEXT IN THIS SERIES:
I'll be bringing Airbnb and VRBO together for a closer comparison, looking at how their fee structures differ and what those differences can mean for vacation rental owners and prospective second-home buyers.
My goal is to help you look beyond the purchase price and projected rental income and understand the expenses, changes, and considerations that come with owning a vacation rental.
🏡 Whether you're already hosting or thinking about purchasing your first vacation rental, understanding these numbers matters!
REAL ESTATE IS ABOUT MORE THAN FINDING THE RIGHT PROPERTY. IT'S ABOUT UNDERSTANDING THE INVESTMENT.
Feel free to share this post with anyone considering a vacation home purchase or with fellow real estate professionals who may find it helpful!
