How Much Does Airbnb Charge Hosts?

Having an Airbnb can be a fantastic way to earn extra cash and meet new people. Airbnb provides hosts with a convenient way to earn extra income by opening their homes to travellers. 

But wait, before you start visualizing how you will decorate your Airbnb or verbally practice foreign languages to greet your guests, you need to know one important thing: How much does Airbnb take for hosts?

Airbnb’s fee structure for hosts can seem complicated for some, but with some guidance, you’ll clearly understand what you’ll pay to list your property. So, let’s get ready to crunch some numbers!

What is a Host Service Fee for Airbnb? 

The Airbnb fee for host service is a commission that Airbnb charges for connecting you with guests. It covers the platform’s costs, including customer support and secure payment processing.

The Airbnb fee host cost can vary based on different fee structures. Here are the two types of structure fees for stays.

Split Fee

  • Host Fee: Most Airbnb charges host a 3% fee, calculated from the booking subtotal, which includes the nightly price and additional fees charged by the host. This fee is deducted from the host payout.
  • Guest Fee: The guest service fee varies but is typically under 14.2% of the booking subtotal. For cross-currency bookings, it can be up to 16.5% of the booking subtotal. Starting April 1, 2024, the guest service fee will include an additional amount for cross-currency bookings.

Host-Only Fee 

The Airbnb host-only fee is typically deducted 14-16% from the host payout. Hosts with super strict cancellation policies may pay more, while fees for stays of 28 nights or more may be less deducted.

Canadian hosts are not automatically charged a higher fee than hosts in other regions. They can choose the structure that best suits their needs.

How much does Airbnb charge for Canadian hosts?

The Airbnb fee for hosts in Canada involves a combination of fees, including a flat fee percentage, Goods and Services Tax (GST), and other taxes based on province. 

Flat Fee Percentage

The flat service fee percentage for Canadian Airbnb hosts is typically 3% of the booking subtotal. This fee is calculated based on the nightly price plus any optional fees charged by the host, such as cleaning fees. It is important to note that this fee is deducted from the host payout. 

Payment Processing Fee

Airbnb does not charge Canadian hosts a separate payment processing fee.  The service fee you choose (3% split fee or 14-16% host-only fee) covers the cost of processing guest payments. This means you receive the full amount guests pay minus the chosen service fee.

Value Added Tax (VAT) 

Airbnb fee hosts in Canada do not apply VAT (Value Added Tax). Instead, Airbnb charges host service fees charged by Airbnb to hosts in Canada are subject to 5% GST. This means that hosts in Canada are charged GST on the service fees rather than VAT. 

However, depending on the province where the listing is located, there may be a Harmonized Sales Tax (HST) or Quebec Sales Tax (QST) deduction.

Hosts need to provide the GST, HST, and/or QST ID to Airbnb so that they won’t collect and remit these taxes on top of your accommodation price. If you self-collect GST, HST, and/or QST, you should provide this information to Airbnb to avoid changes to your pricing.

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Airbnb Guest Fee: The Additional Necessary Fees

The Airbnb guest fee covers platform costs, ensuring smooth bookings for guests and supporting operational aspects for both hosts and guests. 

Here are some of the most common additional Airbnb guest fees:

Cleaning Fee

The cleaning fee helps offset the cost of cleaning your rental property between stays. It can be a fixed amount or vary depending on the length of the stay. Clearly outline the cleaning fee (basic clean vs. deep clean).

Extra Guest Fee

An extra guest fee applies when there are more guests than your base occupancy rate. This fee helps ensure fair pricing and discourages overcrowding. Consider factors like wear and tear or additional utility usage.

Cancellation Fee

The cancellation fee discourages last-minute cancellations, leaving you scrambling. Choose a policy that balances flexibility for guests with protecting your income.

It’s important to clearly communicate these fees in your listing to avoid misunderstandings and ensure a positive guest experience.

Now that you understand the different types of fees learn how to build a fee for your costs. 

How to Build a Fee in Your Costs

Consider various factors to ensure transparency and competitiveness in your pricing. Here are some steps to effectively incorporate Airbnb fees for hosts into your costs:

1. Identify Direct Costs: Identify all direct costs associated with hosting. These costs directly relate to hosting guests and should be factored into your pricing strategy.

2. Calculate Indirect Costs: Indirect costs can be your time, marketing expenses, Airbnb service fees, and other overhead expenses. These costs may not be directly tied to each booking but are essential for running your hosting business.

3. Set Profit Margin: Determine the profit margin you aim to achieve with each booking. It should account for your desired income from hosting and provide a buffer for unexpected expenses or fluctuations in demand.

4. Research Competitor Pricing: Understand market rates and competitive pricing to help you position your fees effectively while remaining attractive to potential guests.

5. Transparent Communication: Clearly outline all fees in your listing description to provide transparency to guests. 

6. Review: Regularly review your pricing strategy to ensure it remains competitive and aligned with your financial goals. Adjust fees based on market trends, seasonality, and guest feedback.

With these steps, you can effectively build fees into your pricing structure, attract guests, and run a successful Airbnb business. 

Conclusion

Now that you know (how much does Airbnb take for hosts), you can begin setting competitive nightly rates and choose the service fee option that best suits your hosting goals. This ensures you maximize your profit potential while attracting guests. Have questions? Contact us for further clarification on the fee structure.