Does VRBO Charge Right Away?

Here we will see about the Does VRBO Charge Right Away?

For those who do not know what Vrbo is; it was previously an acronym that stood for Vacation Rental By Owner, which is a company that provides services to people who would like to rent a property for a vacation. However, with Expedia Group acting as an umbrella to Vrbo it is not an acronym anymore but just a name. There has been an on-going debate amongst a lot of Americans about whether or not Vrbo charges right away for their services. This article will answer all of the questions regarding how Vrbo charges for their services for both renters and property owners.

Payment arrangements are all dependent on the property owner. Some owners may want the full amount settled or in instalments after paying the initial deposit, at the time of booking. Property owners are charged in two different ways, the first one is charged in advance and the second one all depends on the reservations made. In a nutshell; Vrbo does charge a specific amount right away.

How Does Vrbo Charge Renters?

Vrbo charges its renters a service fee which is dependent on the total amount of the booking, this fee ranges between 6% and 15% of the total amount. At the time of booking, depending on the property owner; the renter could be charged a 10% to 50% deposit fee of the total amount of the reservation. As in all cases this amount should be settled immediately, and the rest can be paid over a period of 60 days prior to the renters’ stay on the property. In a case where a reservation is made 59 days prior to the renters’ stay, the full amount has to be settled immediately.

A Breakdown of What Renters are Charged

In most cases property owners do not have a breakdown of all the charges which are in the rental for the mere reason that renters are more likely not to choose their property because of a list of charges, renters are more likely to go with a property that has only one amount which is the total for the rental. Below is a table of some of the costs which are involved when making a reservation.

Note: These amounts vary from one property to another

No	Service	Cost
1	Cleaning Fee	$30 – $200
2	Pet Fee (This is for when a renter decides to bring a pet with to the property)	$30 – $150
3	Service Fee	Between 6% and 15% of the subtotal of the reservation
4	Extra Guest Fee	$75 – 100$
5	Refundable Damage Deposit	$200 – $500
6	Parking Fee (This is for a property that has paid parking)	$50
7	Owner Fee (This is when the owner has totalled all the fees and put it as one fee for the rental)	$60 – $1000

How Does Vrbo Charge Property Owners?

Property owners have two options on how they would like to be charged by Vrbo. The first one which works best if you own only one property, is the annual subscription which costs $499, however, this is for owners who expect to make more than $10 000 annually. The second option is ideal for owners who have more than one property and make less than $10 000, it works on a pay-per-booking basis, that is for every renter who makes a reservation of your property through Vrbo, as the owner you have to pay a commission of 8% which consists of a service fee of 5% and credit card processing fee of 3%.

What Are The Benefits of The Annual Subscription For Owners?

The Vrbo annual subscription fee has more benefits than paying for every booking that the renter makes. Below is a list of all the benefits that the annual owners’ subscription has to offer:

The fee is a once off payment which is paid in advance.
It includes all the service fees that would otherwise be charged on the pay-per-booking model.
It gives the owners access to international listings for their property which increases the chances of getting reservations.
It has a calendar feature which assists the owner with managing reservations.
Owners get direct access to the reservation managers they are assigned to.
The owner can upload up to 50 high definition (HD) pictures of their property for the renters’ perusal.

Conclusion

From the information given above, we can conclude that Vrbo charges renters right away depending on how the property owners would like the amount to be settled. As for property owners, an annual subscription proved to have more benefits than paying a commission for every reservation made. Whether or not Vrbo charges right away, it depends who you are, a renter or a property owner, and as an owner which model of service you choose.

Frequently Asked Questions

1) Is the service fee refundable when cancelling a reservation?

Yes! It is refundable, however, it all depends on the policy that the property owner has in place for cancellations.

2) Is it possible to decline a reservation as a property owner?

Yes! It is possible, however, you would have to select a reason for declining a reservation from the list that Vrbo has.

3) Can you get a discount for a reservation as a renter?

Of course you can! The process is very easy, however, it is dependent on the property owner. As renter you would have to contact the owner either on the Vrbo platform or via email and request a discount.