Remote Cost Seg

Airbnb Fees: Breaking Down The Costs Of Hosting And Booking

Benjamin Locke

Author

SUMMARY

Airbnb's convenience comes with hidden costs — and if you're not tracking them, you're losing money. From guest service fees to host commissions, cleaning charges, and resolution penalties, the real cost of listing on Airbnb adds up fast. This guide breaks down every type of Airbnb fee, shows how they compare to other platforms, and reveals how strategies like cost segregation can help you offset these costs and reclaim your profits, especially if you own multiple short-term rental properties.

With service comes fees, and Airbnb is no different, particularly for those who are staying and those who are hosting. So what exactly is an Airbnb fee? Is it the fee that Airbnb charges both the guests and landlords for the pleasure of its service? Is it the cleaning fee or the fee needed to repair the damage from all the cigarette burns on the kitchen table? Below we go through all the Airbnb fees for guests and hosts, and how to avoid them; whichever side you of that equation you might be on!

What are the fees that Airbnb charges?

Airbnb charges a variety of fees to both hosts and guests to cover the costs of using the platform. These include service fees, cleaning charges, and optional extras like security deposits. The exact amounts vary depending on the booking model, location, and whether you’re using Airbnb as a guest or a host.

What are the Airbnb fees for guests?

Guests typically pay a service fee between 5% and 15% of the subtotal (nightly rate + cleaning + extra guest fees). This fee is automatically added at checkout and is visible before booking. The exact percentage depends on factors such as the length of stay, the subtotal, and regional pricing. Here’s a typical breakdown of what a guest might pay:

What are the Airbnb fees for Hosts?

Airbnb uses two different models when charging hosts, and understanding which one applies to you is essential for pricing your rental correctly and projecting cash flow.

Split-fee model (default for most hosts)

Airbnb charges the host a 3% fee on the booking subtotal (excluding taxes and cleaning fees). The guest is charged a separate service fee on their end, typically around 14%. This model is most common among individual hosts and small property owners who manage their listings directly through Airbnb.

Host-only fee model

In this setup, the host absorbs the entire Airbnb service fee, which usually ranges from 14% to 16% of the booking subtotal. Guests don’t pay a separate fee to Airbnb, which can make listings appear cheaper and more attractive at checkout. This model is often required for hotels, software-connected hosts, or those using property management systems (PMS) that integrate with Airbnb.

The split-fee model remains the default for most new hosts, but Airbnb has increasingly encouraged the host-only model, especially for professional or high-volume accounts; to streamline the guest experience and reduce checkout friction. While the host-only model can boost conversion rates, it also requires hosts to carefully adjust their nightly pricing to account for the higher platform fee.

Fee Model Who Pays the Fee? Total Fee % Common Use
Split-Fee Guest + Host Guest: ~14%, Host: 3% Most individual hosts
Host-Only Host 14–16% Hotels, pro managers

Other Airbnb fees and costs for hosts

Now that we know Airbnb collects fees from both the hosts nd guests for its services (Big Surprise), we should also warn our readers that these are by no means ALL the fees that go into an Airbnb. Beyond Airbnb’s base service fee, several other charges and expenses can significantly impact a host’s bottom line. Some of these are optional or customizable, while Airbnb’s policies or guest behavior dictate others. Below is a breakdown:

Cleaning fees

This is one of the most visible fees and often a source of guest frustration. Hosts set their own cleaning fees, and they can range from $25 to $200+, depending on property size and service level. Over the last year, Airbnb reported an average cleaning fee of $85 per listing, per stay in the US. High fees can discourage bookings, so hosts now build fees into the nightly rates and account for it that way.

  • In 2024, Airbnb reported an average cleaning fee of $85 per stay across U.S. listings.
  • Excessive fees can discourage bookings, so many hosts now roll some cleaning costs into nightly rates.

Extra guest fees

Hosts can charge additional fees per guest beyond a specified count. This typically applies to larger groups. For example, a listing for 4 guests may charge $20–$50 per night per additional guest beyond that number.

Security deposits

Optional for most, but recommended. Airbnb allows hosts to request a security deposit (often $100 to $500) to cover potential damage. Note: Airbnb doesn’t collect this upfront unless there’s a claim.

Resolution fees and penalties

Airbnb may charge fees or withhold payouts for:

  • Late cancellations by hosts
  • Guest refunds due to complaints
  • Damage disputes
  • Violations of platform rules

These vary case-by-case but can significantly reduce your earnings if policies are unclear or customer service issues arise.

How Airbnb fees compare to other platforms

If you’re choosing where to list your property, knowing how Airbnb stacks up against other major rental platforms is important. While Airbnb is the most recognized name in the short-term rental space, it isn’t always the most cost-effective, especially when you factor in service fees, visibility, and flexibility.

VRBO caters heavily to traditional vacation rentals, especially entire homes. It offers a pay-per-booking model or an annual subscription, and tends to attract families and longer-stay travelers. Hosts typically pay higher fees unless they opt into a yearly plan.

Booking.com has a massive global reach and high booking volume, but its host commission is also higher, often around 15–20%. There are no guest fees, which can increase conversions, but hosts must factor in the larger cut.

Furnished Finder focuses on mid-term stays (30+ days), often targeting travel nurses, remote workers, or relocating professionals. It doesn’t charge guest or host commissions; instead, hosts pay a low annual flat fee, making it cost-effective for long-term occupancy.

Each platform has a different fee structure; below, we break it down with some particulars.

While all of these platforms offer access to different guest types, the true cost of hosting varies widely depending on your business model. Airbnb’s flexible fee structure can work well for casual hosts or those leveraging multiple listings, but platforms like Furnished Finder or VRBO may offer better value for long-term or family-focused stays. The key is understanding not just who pays the fee, but how those costs affect your margins, booking appeal, and long-term tax strategy.

How Airbnb fees impact your rental income and taxes

Airbnb’s fee structure doesn’t just affect your payout, it also plays a major role in how you track income, manage deductions, and file taxes. While many hosts focus only on what hits their bank account, the IRS expects a full accounting of all earnings before platform fees are deducted. That difference can seriously affect your bookkeeping, write-offs, and long-term profitability.

Effect on gross vs. net income

When Airbnb sends your payout, it reflects net income, which is the amount left after the platform deducts service fees and any other applicable charges. However, for tax purposes, you’re required to report your gross rental income, which includes the full amount the guest paid, even if a portion of that never reaches you directly.

This distinction is critical. Many first-time hosts mistakenly assume they only owe taxes on their final payout. In reality, the IRS views Airbnb as a third-party payment processor and expects you to report what the guest paid, not what you received.

To make sure you’re reporting correctly, Airbnb provides a Transaction History CSV under your account settings. This downloadable spreadsheet includes every booking, with breakdowns of gross earnings, Airbnb fees, cleaning charges, and tax withholdings. Keeping a clean record of these figures ensures:

  • You don’t underreport income (and risk penalties)
  • You claim every eligible deduction, including service fees
  • You properly calculate depreciation for cost segregation purposes

 

How to reduce the impact of Airbnb fees

Fees are inevitable, but they can be minimized through smart hosting practices that improve margins without sacrificing guest experience.

Smart pricing strategies

Your pricing structure greatly affects how much of your income gets eaten up by Airbnb’s fees. You can protect your margins with a few adjustments without scaring away potential guests. To make up for Airbnb’s cut, raise your nightly rate just enough to cover fees without scaring guests off. Use smart pricing tools to adjust rates automatically, and consider offering weekly or monthly discounts to keep your place booked and profitable.

Optimizing stay length and occupancy

Another effective way to reduce the weight of Airbnb fees is by adjusting the length of stays you accept and targeting occupancy more strategically. One-night stays often bring high cleaning costs and platform fees that eat into profits, so it’s smart to set minimum stays of two nights or more. You can also attract mid-term guests by offering weekly or monthly discounts, which reduce churn and result in fewer booking-related fees. And by blocking off weekdays that historically underperform, you can focus guest demand on weekends, maximizing revenue from your highest-value booking windows.

 

Investors need to understand Airbnb fees and prevent them!

Any services you’ve ever used in your life, chances are there is some type of fee attached to it. If you’ve ever seen a cell phone bill with calls that are outside of the plan, those fees can add up. The same goes for landlords running Airbnbs; fees can add up, which affects their profit margins. Service charges, cleaning fees, and commissions can add up fast if you don’t build them into your pricing from the very beginning. And beyond the operating impact, these fees influence how your rental income is reported, taxed, and reinvested.

The good news? You can read an article like this to start, and help reduce your fees. Just like cutting down a monthly budget is a manner of smart planning in strategy, Airbnb fees can also be cut down with smart planning and strategy.

FAQ

How do Airbnb fees affect refund policies for guests and hosts?

Airbnb’s refund policies are tied closely to its fee structure. If a guest cancels within the refund window, Airbnb typically returns the service fee, but hosts may still lose money depending on their cancellation policy. If the host cancels, Airbnb may issue a full refund to the guest and penalize the host by withholding payouts or imposing fees. Understanding the cancellation terms is key to protecting your revenue.

Can hosts pass Airbnb fees directly to guests?

Not explicitly. Airbnb’s terms prohibit charging guests extra outside the platform for fees like service or host commission costs. That said, many hosts build these costs into their nightly rate or adjust their minimum stay requirements to cover platform losses. Transparency is key, and attempting to bypass Airbnb’s fee structure can lead to listing penalties.

 

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