How to Make Money on Vrbo | Vacasa (2024)

FAQs

How to Make Money on Vrbo | Vacasa? ›

On the other hand, the data collected by Airbnb and Vrbo suggests that vacation rental owners can make anything from about $11,000 to as much as $33,000 per year.

On the other hand, the data collected by Airbnb and Vrbo suggests that vacation rental owners can make anything from about $11,000 to as much as $33,000 per year.

Vrbo is excellent for owners who want to rent their entire home. Although many other vacation rental sites include renting suites or single rooms, if you intend to rent the property as a whole, Vrbo is a great way to find potential guests who are looking for a place they will have all to themselves.

A 5% commission fee is charged on the rental amount and any additional fees you charge the traveler (such as cleaning, pet, and boat fees). Bookings that originate from our expanded distribution partners may have higher fees.

Conclusions. Vacation rental investment is a great way to get some passive income if you do in-depth market research and come prepared. A vacation rental property that can generate enough rental income to pay for itself is a good place to start if you are interested in real estate investing.

As we've mentioned, Airbnb and Vrbo target different audiences and reach different traveler demographics. One guest who's searching on Airbnb may not be searching on Vrbo, and vice versa. So, if you want to maximize your occupancy and increase your bookings, you should get listed on both channels.

Your payouts are sent approximately one business day after your guest checks in. Depending on your bank's policies, the money will be available in your bank account approximately five to seven business days later.

Vrbo's map looks a bit outdated by comparison. However, aesthetics aside, Vrbo offers far better filter and sort functionality than Airbnb. For example, Vrbo lets you filter by user reviews, including properties rated highly for cleanliness and properties rated 4 stars and above. Vrbo's filters are also more intuitive.

The customer care costs for Airbnb are often more costly than those for VRBO. On Airbnb, customer service charges range from 14.2% to 16%. Meanwhile, VRBO charges a reservation fee of 3% for handling payments and 5% for commission on the overall rental price. Taxes are not a part of these costs.

Does Vrbo report to IRS? ›

Vrbo is required by the IRS to send Form 1099-K if you are a U.S. person, and we processed more than 200 payment transactions with a gross amount exceeding $20,000 USD during the calendar year 2022.

As an owner, every time a guest books your property, you pay a small fee to Vrbo. Let us see what that is: 5% commission on the rental amount, cleaning fee, pet fee, or any additional payment. 3% payment processing fee on the total amount you receive from the guest, including taxes and refundable damage deposits.

What percentage does Vrbo charge owners? Vrbo fees to owners are typically 8% per booking. This is made up of a 5% Vrbo manager fee and a 3% Vrbo payment processing fee.

Vacation rental platforms (like Airbnb or VRBO) are a great way to generate income from a short-term lease, and if your property is in high demand, you will see even greater profits. The tax benefits associated with vacation rentals are also available to take advantage of.

Vacation rental owners should look to make no less than a 10% return on their investment. That means your income minus expenses (net operating costs including any mortgage payment) should be no less than 10% of your initial investment per year. This is expressed at the Capitalization (or Cap) Rate.

The rule is simple: you don't have to report rental income if you stay within the 14-day rule. However, because of reporting laws, companies like Airbnb, HomeAway and VRBO may report to the IRS all income you receive from short-term rentals, even if you rent for less than two weeks.

Your payouts are sent approximately one business day after your guest checks in. Depending on your bank's policies, the money will be available in your bank account approximately five to seven business days later.