Airbnb vs. VRBO | BiggerPockets Weblog


There are many platforms that short-term rental actual property buyers can use to market their house, however two of them make up the lion’s share of the business: Airbnb and VRBO (Trip Leases By Proprietor). Whereas their main capabilities are related, Airbnb and VRBO have many key variations within the sorts of properties out there, goal audiences, charges and commissions, and rather more. 

Let’s match Airbnb vs. VRBO to find out which platform most accurately fits your funding technique.

What’s Airbnb?

Airbnb’s mission is “to lock the ability of sharing house, sources, and help in instances of want.” The platform began in 2007 when two hosts welcomed three company to remain of their San Francisco residence. Sixteen years later, the platform has grown to greater than 4 million hosts and over 220 nations and areas throughout the globe.

As of December 31, 2022:

  • Over 100,000 cities and cities have lively Airbnb listings
  • There are 6.6 million lively listings worldwide
  • Hosts have accommodated greater than 1.4 billion visitor arrivals

What’s VRBO?

VRBO’s mission is to “discover each household the house they should calm down, reconnect, and revel in treasured time away collectively.” They’ve been pairing owners and households looking for locations to remain since 1995 and have grown into a worldwide trip model with greater than 2 million complete properties actively out there on their platform. VRBOs are at the moment out there in almost 200 nations.

Airbnb vs. VRBO: Property Sorts

Essentially the most distinct distinction between Airbnb and VRBO is the sorts of properties out there on every platform. 

Airbnb affords almost each house conceivable. You’ll be able to keep in mansions, treehouses, houseboats, tiny properties, personal islands, caves, containers, windmills, and all the things in between. 

These areas are damaged up into 4 distinct classes:

  • Whole house: Friends have the entire place to themselves, which generally features a bed room, rest room, kitchen, and a devoted, separate entrance.
  • Conventional hospitality areas: These rooms point out that the host offers the identical customer support and hospitality that company would expertise at a lodge. Hostels, mattress and breakfasts, and comparable properties are additionally included on this class. Lodge rooms usually have a typical space for company to work together with each other.
  • Non-public rooms: As an alternative of getting a whole house to your self, you’re renting a room in a property others might occupy. They’re nice for company who need slightly privateness however don’t thoughts sharing widespread areas. 
  • Shared rooms: Shared rooms are nice for vacationers who need to socialize with others and don’t thoughts a scarcity of privateness. You’ll sleep in shared areas when reserving a shared room. 

VRBO solely affords complete areas, similar to condos and trip properties. This is likely one of the the reason why VRBO has round 2 million listings, whereas Airbnb affords greater than thrice that quantity.

Associated: Final Information to Prime-Notch Airbnb and VRBO Listings

Goal Audiences

Airbnb markets to a variety of individuals in search of a substitute for inns. VRBO’s goal market is extra particular. It markets to households who’re vacationing collectively and need to spend extra high quality time with each other.

Right here’s a breakdown of who stays at every:

Airbnb VRBO
Friends aged 18-24 15% 13%
Friends aged 25-34 36% 22%
Friends aged 35-54 36% 37%
Friends aged 55+ 13% 28%
Male company 46% 54%
Feminine company 47% 53%

Charges and Commissions

Airbnb and VRBO allow you to arrange and checklist your property without spending a dime and supply legal responsibility protection at no further price. Each platforms require you to pay host service charges when monetizing your property however supply completely different choices so that you can contemplate. 

Airbnb host charges

Airbnb affords two charge constructions: a break up charge and a host-only charge. 

Break up charges allow you to break up the prices between the host and the visitor, with the visitor paying the lion’s share of them. Right here, the host pays a 3% charge (or extra in case you have “tremendous strict” cancellation insurance policies or are itemizing in Italy) that’s decided by the reserving subtotal and will get mechanically deducted out of your payout. The subtotal calculates:

  • Nightly price
  • Cleansing charge
  • Further visitor charge (if relevant)

The visitor service charges often come to lower than 14.2% of the reserving subtotal, together with the abovementioned charges.

Right here’s what this appears to be like like if a visitor books your Airbnb for 4 nights at $200 per evening:

  • $200 x 4 = $800 + $100 cleansing charge = $900 subtotal
  • $900 x 3% = $27 host service charge
  • $900 – $27 = $873 complete revenue for the host
  • $900 x 14% = $126 visitor service charge (together with taxes and occupancy)
  • $900 + $126 = $1,026 complete price for visitor

Host-only charges imply that you simply, because the host, cowl the entire added prices, often between 14-16% of the reserving subtotal. This charge construction is necessary should you supply a conventional hospitality house (i.e., lodge rooms, hostels, mattress and breakfasts, and many others.). 

Right here’s what this appears to be like like if a visitor books your Airbnb for 4 nights at $200 per evening:

  • $200 x 4 = $800 + $100 cleansing charge = $900 subtotal
  • $900 x 15% = $135 host service charge (together with taxes and occupancy charges)
  • $900 – $135 = $765 complete revenue for the host
  • $900 = complete price for visitor

VRBO host charges

VRBO additionally affords two charge constructions: subscription and pay-per-booking strategies.

The subscription mannequin covers limitless bookings for a whole yr for $499, paid a yr upfront. This plan is the best way to go should you make greater than $6,250 in bookings yearly. 

The pay-per-booking mannequin fees you 5% of the reserving subtotal and a further 3% cost processing charge for the overall quantity. Like Airbnb, the subtotal consists of: 

  • Nightly price
  • Cleansing charge
  • Further visitor charge (if relevant)

Right here’s what this appears to be like like if a visitor books your VRBO for 4 nights at $200 per evening:

  • $200 x 4 = $800 + $100 cleansing charge = $900 subtotal
  • $900 x 5% = $45 host service charge

Let’s assume the taxes and additional charges come to $150:

  • $900 + $150 = $1,050 complete cost quantity
  • $1,050 x 3% = $31.50 cost processing charge
  • $45 + $31.50 = $76.50 complete host charges
  • $900 – $76.50 = $823.50 complete revenue for the host

Airbnb vs. VRBO: Property Injury Safety

In comparison with different leases, trip properties usually tend to incur property harm as a result of extra folks use them. Understanding this threat, Airbnb’s Aircover for Hosts and VRBO Host Insurance coverage supply host harm safety.

Aircover for Hosts offers “top-to-bottom safety for hosts,” together with: 

  • Reservation screening
  • Visitor ID verification
  • $3 million for host harm safety
  • $1 million for host legal responsibility insurance coverage
  • $1 million for experiences legal responsibility insurance coverage
  • 24-hour security line

Aircover for Hosts protects your property when you’re internet hosting company. Nonetheless, you’ll nonetheless want private insurance coverage if one thing occurs to your property whenever you don’t have company. 

VRBO Host Insurance coverage affords $1 million in main legal responsibility protection at no extra price, which protects you in opposition to any property harm or journey damage claims made in opposition to you. In the event you file a declare, it’s really useful that you simply achieve this as rapidly as potential. VRBO’s insurance coverage companies can be found 24/7. 

Airbnb vs. VRBO: Cancellation Insurance policies

Airbnb and VRBO every have a number of cancellation insurance policies. Listed below are your choices for every:

Airbnb cancellation insurance policies

  • Versatile: Friends are totally refunded till 24 hours earlier than check-in. In the event that they cancel inside that window, you’ll be compensated for every evening they keep + one extra evening.
  • Average: Friends are totally refunded till 5 days earlier than check-in. In the event that they cancel inside that window, you’ll be compensated for every evening they keep + one extra evening + 50% for all unspent nights.
  • Agency: Friends are totally refunded till 30 days earlier than check-in. If company cancel between seven and 30 days earlier than check-in, you’ll be compensated 50% for all nights booked. You’ll be totally compensated in the event that they cancel inside seven days of check-in. Additionally, if a visitor cancels inside 48 hours of reserving, they will obtain a full refund in the event that they cancel not less than 14 days earlier than check-in. 
  • Strict: If company cancel inside 48 hours of reserving, they will obtain a full refund in the event that they cancel not less than 14 days earlier than check-in. If a visitor cancels between seven and 14 days earlier than check-in, you’ll be compensated 50% for all nights booked. You’ll be totally compensated in the event that they cancel inside seven days of check-in. 

Airbnb hosts can even set long-term “agency” and “strict” insurance policies, “tremendous strict” insurance policies, and a non-refundable choice. 

VRBO cancellation insurance policies

  • No refund: All bookings are non-refundable.
  • 60-day coverage: Friends are totally refunded till 60 days earlier than check-in. Bookings are non-refundable inside 60 days of check-in time.
  • 60/30-day coverage: Friends are totally refunded till 60 days earlier than check-in and obtain a 50% refund (minus service charges) in the event that they cancel between 30 and 60 days of check-in time. Bookings are non-refundable inside 30 days of check-in time.
  • 30/14-day coverage: Friends are totally refunded till 30 days earlier than check-in and obtain a 50% refund (minus service charges) in the event that they cancel between 14 and 30 days of check-in time. Bookings are non-refundable inside 14 days of check-in time.
  • 14/7-day coverage: Friends are totally refunded till 14 days earlier than check-in and obtain a 50% refund (minus service charges) in the event that they cancel between seven and 14 days of check-in time. Bookings are non-refundable inside seven days of check-in time.
  • Customized coverage: Hosts can set their cancellation coverage phrases.

Which Platform is Greatest for Me?

Airbnb is extra versatile just because you may supply all types of areas, whereas VRBO requires renting out a whole house. Nonetheless, Airbnb and VRBO are nice platforms for starting buyers and owners enthusiastic about getting into the short-term rental house. 

Many actual property buyers have turned internet hosting into full-time jobs by working a number of trip leases unexpectedly, and with sufficient expertise and know-how, you may too! 

Construct long-term wealth with short-term leases

Trip leases could be an especially profitable method to enhance your month-to-month revenue—however provided that you purchase and handle your properties accurately. This final information to analyzing, shopping for, and managing trip rental properties will set you up for instant success and long-term wealth.

Word By BiggerPockets: These are opinions written by the creator and don’t essentially symbolize the opinions of BiggerPockets.



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