Profit margins in a short-term rental business are thinner than most travelers realize – of course, we’re preaching to the choir!
From cleaning costs to broken wine glasses, there’s no shortage of expenses eating away at your bottom line. But one of the biggest – and most misunderstood – costs is the cut Airbnb takes.
Airbnb host fees aren’t super straightforward for new STR hosts, so let’s break them down. This guide covers everything you need to know about Airbnb fees, what percentage the platform takes (and why), and effective ways to reduce the fees you owe without sacrificing bookings.
What are Airbnb host fees?
Airbnb host fees are the fees you pay to list your property on the Airbnb platform.
Think of them as the cost of doing business on the platform. These fees help Airbnb cover credit card processing, customer support, liability insurance, and all the other things that make it possible for you to rent out your space.
How much does Airbnb charge hosts?
In most cases, Airbnb takes between 3% to 15% of each booking subtotal (before taxes and cleaning fees). The exact percentage depends on the type of fee structure you choose (more on that below).
Before you can calculate the exact Airbnb owner fee you’ll be charged, you’ll need to figure out which fee structure applies to you.
Primary Airbnb host fees
Airbnb currently offers two main fee models for hosts: the split fee and the host-only fee. Which one you’re on depends on how you manage your property, and what settings you’ve chosen.
Split fee
The split fee structure is Airbnb’s default pricing model for individual hosts. This structure splits the platform’s cut between the host and the guest.
- Hosts pay 3%* of the subtotal (nightly rate + cleaning fee, minus taxes).
- Guests pay a service fee that’s typically up to 14.2%.
This model is the most common for Airbnb hosts in the U.S. and is designed to make hosting more affordable by sharing the load. The guest sees the full price upfront, including their Airbnb service fee, while hosts only see the payout amount after Airbnb’s 3% cut.
Pro:
- Hosts retain more of their booking income.
Con:
- Guests may be turned off by the extra fee, even if you price your property accordingly.
*Some hosts pay more than 3%, including many hosts based in Italy.
Host-only fee
Airbnb’s host-only fee structure is a less common alternative to the split fee structure. Under this structure, hosts shoulder the entire fee — typically 14% to 16% — but the guest sees no added service fee on their end.
Though optional for certain hosts, the host-only fee model is required for:
- Traditional hospitality listings (hotels, serviced apartments, etc.)
- Hosts who connect property management software to Airbnb (except those in the US, Canada, Mexico, the Bahamas, Argentina, Uruguay, or Taiwan)
This structure provides more pricing transparency for guests (the nightly rate they see is the one they pay), but it can also mean higher costs on your side. Some hosts prefer this model because it makes their listings appear more competitive in search results, especially when guests are sorting by price.
Pro:
- Guests aren’t charged a service fee, which may make them perceive your listing as a better deal.
Con:
- Hosts have to fork over a larger share of their booking income.
Other types of Airbnb host service fees
As a host, you can’t avoid paying to list your property on the platform. On top of that, there are a few additional fees you might encounter depending on your listing type, location, and setup.
VAT fees
In some countries, hosts get hit with value-added tax (VAT). If you're hosting in a country where VAT is required, Airbnb may automatically deduct VAT from your earnings.
Check Airbnb’s Help Center for region-specific rules or consult your tax professional if you’re not sure.
Co-hosting fees
Work alongside a co-host? They’ll typically take a percentage of your earnings, often between 10% and 20%. This isn’t paid to Airbnb – it’s negotiated privately between you and your co-host – but it still takes away from your total payout.
Host cancellation fee
Cancelling a confirmed booking is a big Airbnb no-no. If you cancel on a guest without a valid reason, expect to pay a host cancellation fee ranging from $50 to $100, depending on how close the cancellation is to the guest’s check-in date.
Be aware that repeated cancellations can prevent your listing from ranking high in Airbnb’s search engine, or even get your listing suspended.
How to reduce Airbnb host fees
No one wants to hand any of their hard-earned booking revenue over, but that’s the reality if you list your vacation rental on Airbnb.
That said, there are a few ways to minimize the impact of Airbnb host fees and keep more of your revenue:
- Raise your nightly rate slightly to absorb fees (just don’t outpace comparable listings in your area).
- Use the split-fee model to keep costs down. Just know your guest sees a higher total price.
- Encourage direct bookings from repeat guests using your own website or a direct booking tool. Airbnb’s reach is unmatched, but nothing beats cutting out the middleman once you’ve built trust with travelers.
- Leverage Minoan to save up to 60% on furniture and replenishables for your rental. The less you spend on furnishings and amenities, the more breathing room you’ll have in your budget to offset host fees without slashing profits.
FAQ
How much does it cost to list on Airbnb?
Technically, it’s free to create a listing on Airbnb. But once a guest books your place, Airbnb takes their cut in the form of host fees. You’ll pay 3% to 16%, depending on your fee model. Additional costs like cleaning services, restocking supplies, and taxes aren’t included in this percentage.
Who has lower fees, Airbnb or Vrbo?
Generally speaking, Vrbo host fees range from 5% to 8%, which can be lower than Airbnb’s host-only fee but higher than the split fee model. Vrbo also charges guests a service fee, so it’s important to compare apples to apples – including what your guests will pay and how visible your listing will be.
What does the average Airbnb host make?
Airbnb host profits vary wildly based on location, property size, and seasonality. Some hosts earn a few hundred dollars a month, while others clear six figures annually. The real question is: how much do you keep after expenses?
Understanding your Airbnb host fees, cleaning costs, repair and renovation costs, and taxes helps you calculate true profit rather than just gross income.