How much does Airbnb take from hosts?
One of the most common questions I get about hosting has to do with how much I pay Airbnb in fees. I answer by saying that Airbnb pays me the nightly price and cleaning fee, but that Airbnb deducts a service fee from my payout.
With that said, I can say that didn’t know exactly how much Airbnb takes from hosts. Since Airbnb automatically deducts a service fee from my payout and I don’t make any payments directly to Airbnb, I haven’t taken a very close look at the details. Here, I’ll share what I’ve learned after researching how much of my earnings go toward Airbnb fees.
What is the Airbnb service fee?
The service fee is a cost determined by Airbnb and goes towards the Airbnb platform so it runs smoothly. The fee also helps Airbnb offer 24/7 customer support.
For hosts, Airbnb charges a service fee of 3% of the booking subtotal, which includes the nightly right plus cleaning fee and additional guest fee, if applicable, but excludes Airbnb fees and taxes. As a host, you’ll see this deduction in the transaction details for each booking.
For guests, Airbnb also charges a service fee between 0% and 20% of the booking subtotal. Airbnb calculates this guest service fee using factors including the reservation subtotal, length of stay and characteristics of the listing. Guests see this fee on the checkout page before booking the reservation.
When do Airbnb hosts get paid?
As a host, it’s helpful to know that Airbnb collect’s the guest’s payment information when the guest submits a payment request. Airbnb then charges the guest the entire amount once I accept the guest’s reservation request. Airbnb holds the payment until 24 hours after check-in before I receive the payment to make sure everything is as expected for both myself and the guest.
I receive my payout after this 24-hour hold. I get an email confirming that Airbnb issued me a payment and gives the date by when the payment should arrive in my account, taking into consideration weekend and holidays. If Airbnb completes the payout between Friday and Sunday, banks might not process the payment until the next week.
Once Airbnb sends my payout, I can see a line item in my reservation called “Payout”. I’m able to view the status of my payouts in my transaction history by clicking a link in the payout confirmation email, or I can view my transaction history on the Airbnb website and app.
How does Airbnb pay hosts?
According to the Airbnb website, here are the averaging processing times for each method that Airbnb can use to release your payout:
- ACH / Direct deposit: Up to 3 business days
- Bank transfer or international wire: 3–7 business days
- PayPal: Within 1 business day
- Western Union: 1 business day (US Pacific Time)
- Payoneer Prepaid Debit Card: Within 1 business day
I chose to receive my payout using direct deposit into my business checking account with my bank, which should take up to three business days. I’ve received my payouts without much delay.
Conclusion: Is the fee Airbnb fee worth it?
As a host, I think the 3% host service fee is fair and beneficial, especially since the fee goes towards making sure that the Airbnb platform runs smoothly and that I have 24/7 customer service available to me.
I use the online and app platforms all the time to communicate with my guests and to view reservation information. The Airbnb review based model is also a great way to keep both parties accountable. It’s nice to know that Airbnb will use the fee to improve my hosting experience which, in turn, improves the experience for my guests as well. I also appreciate that I’ve been able to connect with customer service for general questions and urgent situations.
The fee is a small price to pay to use Airbnb as a trusted method to make my home available to guests from all over the world. With such a small fee, you can now spend on enhancing your unit’s kitchen, bathroom or any other area.