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Understanding Airbnb Service Fees: A Comprehensive Guide

Lately, you want to start seasonal rental on Airbnb. A particularly prolific market, as long as you do it the right way. But very quickly, you will notice that there are service fees and it is impossible to ignore them. Indeed, these are important elements that will have a direct impact on the profitability of your property. So if you want to know how service fees work, don't hesitate to continue reading this article.

 Discover the ins and outs of service fees that can impact your property's profitability
Learn about the important factors that can impact your property's profitability, including service fees.

Airbnb : service fees, explanations and functioning

You have made sure that your property is properly equipped so that the tenant can feel at ease. But you must apply exactly the same vigilance to the service fees that will be directly charged by the platform.

Indeed, for each reservation made by the tenant, an amount will be directly deducted. It is the traveler who will have to pay the Airbnb commission with an amount that will vary between 6 and 12%.

But beware, even if the traveler pays the majority of the fees, as a landlord you can not escape the Airbnb and the amount of the commission. It amounts to 3%, but be aware that there are also variations depending on the geographical location of the property and in relation to the type of booking.

In any case, you will be able to find the total management fee on your invoice, more precisely on the subtotal of the reservation.

By applying this principle, you should know that the total price of the night will not arrive directly in your pocket. You will have to calculate the Airbnb price and its commission by also determining the additional costs. A particularity to take into consideration, because as a host, you do not have total control over the price of the reservation. You cannot override the various fees and commission.

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Why is there an Airbnb service fee?

Even if the platform remains totally free to use, there are significant costs involved in its operation. In fact, putting ads online 24 hours a day, seven days a week, maintaining the website and of course the advertising work that is done around it to get maximum visibility. This is how the platform gets paid according to the number of bookings that have been made.

First of all, you find the shared costs, which as its name indicates are divided for both the guest and the host. As you have seen before, it will be the renter who will pay the majority of the fees. This is a very advantageous pricing structure for you as the owner. This allows you to set the nightly rate lower when the commission fee is lower.

Also, don't forget to consider the guest fee, which covers the service charge. As an owner, you have more control over pricing and it saves travelers from having a bunch of extra fees from having the unpleasant surprise of discovering them at the time of booking.

When the owner pays between 14 and 16 percent of the reservation, travelers will have the satisfaction of not paying a service charge.

How do I calculate the service charge on Airbnb?

Regarding the traveler service fee, it will automatically be calculated on the amount excluding taxes of the booking at 12 percent.

A breakdown of Airbnb service fees for travelers and hosts with a specific booking example
Learn how the fees are calculated for both travelers and hosts with this illustrative example.

On the traveler's side, he will have to pay the amount of the planned reservation plus 12% of the amount of the reservation as well as 20% of the service fee.

For the owner, he will pay 3% of the total amount of the reservation and 20% of the owner service fee.

To better illustrate the above, here is a demonstration of the calculation. This will allow you to better understand the accounting of the different fees with a concrete case.

A tenant wishes to reserve your accommodation for a period of one week. For this, the tenant will have to pay 420 € corresponding to the amount of the nights for the week. An additional 30 € will be charged for cleaning.

Then, the traveler service fee will be calculated according to the following method: 450 X 12% + 20% X 450 X 12% = 54 euros. Therefore, the client will have to pay 504 euros.

The host service charge will be : 450 X 3% + 20% X 450 X 3% = 16 euros.

In any case, you will be able to find the details of the additional costs in the invoice available on the Airbnb platform.

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How to integrate the cleaning costs on the Airbnb platform?

Despite the additional costs, it is particularly interesting to invest in seasonal rentals. You have the choice of not including the cleaning costs in the price of the night or of doing so. In the latter case, it's a way to encourage renters to have a longer stay. This is an essential component of the platform and if you charge €50 for cleaning, the price will be largely amortized for a one-week rental. Obviously, for a single night's stay, the pricing can be prohibitive.

As soon as a reservation is made by the tenant, he will immediately be informed of the cleaning costs. It is therefore important to be reasonable in order to avoid that the invoicing on the tenant's side is too imposing. If unfortunately you abuse it, there is a strong chance that the tenant will be discouraged and in the end your property will not be rented, because there will be a real disconnection with the reality of the market.

To be sure to make the right choice, do not hesitate to examine similar ads in your area. This way, you will be able to define an average rate and a totally reasonable cleaning fee.

Consider whether to include cleaning fees in your nightly rate to encourage longer stays
Investing in seasonal rentals can be rewarding despite additional costs.

How will UpperKey help you with your vacation rental?

Haven't you heard of the UpperKey rental agency yet? Managing a property, whether it's traditional or seasonal, requires time and a thorough knowledge of the market. On your side, you don't necessarily have the time or the desire to invest yourself fully, you simply wish to obtain a certain profitability.

This is why it is in your best interest to approach a vacation rental agency in Paris or in another French city. The solution is called UpperKey. Do not hesitate to contact the specialists immediately to receive additional information that will be of great help. You will quickly realize how professional they are and, above all, the excellent value for money that you will get in rental management. So make an appointment right away.


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