The Essentials You Need To Know About Vrbo
- What Is Vrbo?
- How Does Vrbo Work?
- Terms and Rules of Listing on Vrbo
- How to List your Rental Property on Vrbo?
- What are the Fee Schemes of Vrbo?
- Vrbo vs. Airbnb: Critical Distinctions
- Conclusion
Having some vacant space can become a stream of passive income. Whether it is a comfortable apartment in a heart of a bustling metropolis, a cozy hunter’s lodge in thick woods, or a fashionable bungalow placed among the pristine sands of a popular beach resort, you can turn it into a short-stay vacation rental and gain profits by providing it as temporary accommodation.
If this business idea appeals to you and you seriously consider implementing it into life, you should know that there are many travel booking marketplaces where you can advertise your rental property and get bookings. While the Airbnb rental booking website is on everyone’s lips as the best middleman between a guest and a host, there is another popular rental broker platform that helps to match travelers with lodging providers – Vrbo.
This blog post explores the main aspects of the Vrbo travel marketplaces as well as draws a comparison between Vrbo and its primary competitor – Airbnb.
Discover more about vacation rental sites like Airbnb.
What Is Vrbo?
Vrbo is an American vacation rental online marketplace originally launched under the name Vacation Rentals by Owner. It was founded in 1995 by David Clouse in Aurora, Colorado, initially to rent out his condo in the Breckenridge ski resort. The website later evolved into a full-fledged service enabling homeowners to advertise their vacation rentals.
In 2006, HomeAway acquired Vrbo, expanding its portfolio of vacation rental platforms. Later, in December 2015, Expedia Group purchased HomeAway, including Vrbo, for $3.9 billion. This acquisition integrated Vrbo into one of the world’s leading travel companies.
In 2019, Expedia Group decided to consolidate its vacation rental brands by merging HomeAway and Vrbo into a single platform under the Vrbo name. Along with this rebranding:
- Name Styling: The company standardized the name to Vrbo, with only the first letter capitalized.
- Pronunciation Change: The pronunciation shifted from spelling out each letter (V-R-B-O) to saying it as a word (“Ver-bo”).
- Logo Redesign: A new logo was introduced to reflect the brand’s updated identity.
Evolution of Vrbo’s Business Model
Initially, Vrbo operated on a subscription-based business model, where hosts paid an annual fee to list their properties on the website. This model allowed property owners to promote their vacation rentals to a broad audience without incurring per-booking fees.
Over time, and especially after becoming part of Expedia Group, Vrbo introduced a per-booking fee structure as an alternative to the annual subscription. This gave hosts flexibility to choose between:
- Annual Subscription: Paying a yearly fee (around $499) with no additional commission on bookings.
- Pay-Per-Booking: Paying a commission fee of 5% per booking, plus a 3% payment processing fee, without an upfront subscription cost.
This shift accommodated hosts who preferred not to commit to an annual fee, particularly those with fewer bookings.
Growth and Current Status
Before the internet era, vacation rental services were typically advertised through newspapers, property management agencies, and rental catalogs for various destinations. Vrbo revolutionized this by bringing vacation rentals online, making it easier for homeowners and travelers to connect.
In the first 10 years of its existence, Vrbo expanded significantly, listing nearly 70,000 rental properties. Today, the platform boasts over 2 million rental units across the globe, offering a wide range of accommodations, from cozy cottages to luxury villas.
How Does Vrbo Work?

Vrbo is an online accommodation brokerage platform that connects people looking for vacation rentals with property hosts or managers who have suitable offerings. The user base of Vrbo includes vacationers seeking unique accommodations, individual homeowners looking to rent out their properties, and property rental agencies or management companies.
Setting Your Own Rates
When you decide to market your rental home on Vrbo, you have the freedom to establish your own rates that you deem appropriate for your property. It’s up to you to decide whether to charge your guests per night, per week, or even per month. This flexibility allows you to tailor your pricing strategy to market demand and your personal preferences.
Enhanced Exposure Through Expedia Group
Listing your property on Vrbo comes with significant perks. Once you’ve posted your accommodation on Vrbo, your listing may automatically appear on other affiliated websites within the Expedia Group, such as Expedia.com, Hotels.com, Travelocity, and Orbitz. This significantly enhances your exposure to a broader audience, helping you receive booking requests from multiple sales channels. By leveraging the extensive network of the Expedia Group, your property gains increased visibility to potential guests worldwide.
How Travelers Find Your Listing
Users search for accommodations on Vrbo by specifying the desired location, travel dates, and other preferences such as property type and amenities. They might enter a city name, a region, or even a ZIP code to narrow down their search. Your listing will pop up in the Vrbo search results if it meets the criteria indicated by the potential guest. To increase visibility, ensure your listing is complete with accurate information and high-quality photos.
Simplified Reservation Process
Making a reservation on Vrbo is an extremely straightforward process. A prospective tenant needs to enter their information and make the required payment — often an initial deposit or full payment, depending on your settings. Vrbo provides a secure messaging system where guests can communicate with hosts to inquire about properties they are interested in. This system keeps all communication within the platform, ensuring privacy and security for both parties.
Traveler Protections and Service Fees
The platform also grants certain protections to travelers when they book through Vrbo. For instance, Vrbo offers a “Book with Confidence Guarantee,” which includes:
- Payment Protection: Safeguards against fraudulent listings and misrepresentation.
- 24/7 Customer Support: Assistance with booking issues or property access.
- Emergency Rebooking Assistance: Help finding alternative accommodations if necessary.
These guaranteed protections come at a cost to the traveler in the form of a service fee, which typically ranges from 6% to 12% of the booking subtotal. The fee varies depending on the cost of the booking and is clearly displayed to the guest during the reservation process.
Terms and Rules of Listing on Vrbo
Understanding the terms and rules of listing on Vrbo is crucial for hosts to ensure compliance, provide a positive guest experience, and maintain a successful rental business. Below are the key terms and guidelines you need to be aware of when listing your property on Vrbo.
Eligibility and Compliance
- Entire Property Rentals Only: Vrbo exclusively accepts listings for entire homes or property units. Shared properties or individual rooms within a home are not permitted on the platform.
- Legal Compliance: Hosts must comply with all local, state, and federal laws governing short-term rentals. This includes obtaining necessary permits, licenses, and adhering to zoning regulations.
- Age Requirement: Hosts must be at least 18 years old to create an account and list a property on Vrbo.
Listing Requirements
- Accurate Information: Provide truthful and accurate details about your property, including its location, amenities, pricing, and availability. Misrepresenting your property is strictly prohibited.
- High-Quality Photos: Upload clear, high-resolution images that accurately depict your property. Photos should showcase all areas accessible to guests.
- Detailed Descriptions: Write comprehensive and honest descriptions to set appropriate expectations for guests. Highlight unique features and nearby attractions.
- Prohibited Content: Listings must not include offensive, discriminatory, or illegal content. This includes hate speech, harassment, or any material violating Vrbo’s content policies.
Pricing and Fees
- Transparent Pricing: All fees, including nightly rates, cleaning fees, additional guest fees, and any other charges, must be clearly disclosed in your listing.
- No Hidden Fees: Charging undisclosed or surprise fees after booking is not allowed.
- Cancellation Policies: Select a cancellation policy that suits your needs, ranging from flexible to strict. Ensure this policy is clearly communicated to guests within your listing.
Host Responsibilities
- Prompt Communication: Respond to booking inquiries and guest messages in a timely manner, ideally within 24 hours.
- Honoring Bookings: Once a reservation is confirmed, you are expected to honor it. Canceling bookings can lead to penalties, including lower search rankings or suspension.
- Property Maintenance: Ensure your property is clean, safe, and well-maintained for each guest’s arrival.
- House Rules: Clearly state any rules guests must follow during their stay, such as no smoking, pet policies, quiet hours, and occupancy limits.
Safety and Security
- Safety Equipment: Equip your property with essential safety devices like smoke detectors, carbon monoxide detectors, fire extinguishers, and first-aid kits.
- Insurance Coverage: While Vrbo provides liability insurance for eligible bookings up to $1 million, it’s advisable to maintain your own homeowners or rental insurance policy.
- Emergency Information: Provide guests with emergency contact numbers and instructions in case of emergencies.
Legal and Tax Obligations
- Tax Compliance: Collect and remit all applicable taxes, such as occupancy or lodging taxes, as required by your local jurisdiction.
- Permits and Licenses: Obtain any necessary permits or licenses required for short-term rentals in your area.
- Zoning Laws: Ensure your property is zoned for short-term rental activity to avoid legal issues.
Prohibited Activities
- Discrimination: Discrimination against guests based on race, color, ethnicity, national origin, religion, sexual orientation, gender identity, or other protected characteristics is strictly prohibited.
- Illegal Use: The property must not be used for any illegal activities, including drug use, human trafficking, or unauthorized events.
- Unauthorized Parties: Hosting large parties or events without explicit permission is not allowed and may violate local ordinances.
- Privacy Violations: Surveillance devices are prohibited in private areas. If cameras or other devices are used in public spaces, their presence must be disclosed in the listing.
Guest Privacy and Data Protection
- Confidentiality: Protect guest information and use it only for legitimate booking purposes.
- Data Security: Implement appropriate measures to safeguard personal data against unauthorized access or disclosure.
Reviews and Feedback
- Honest Reviews: Do not manipulate or falsify reviews. Encouraging guests to leave honest feedback is acceptable, but incentivizing positive reviews is not.
- Professional Responses: Address guest reviews professionally, even if they are negative. Use feedback to improve your services.
Account Management
- One Account Policy: Hosts should maintain a single account for all their listings unless otherwise authorized by Vrbo.
- Account Security: Keep your account information secure and do not share login credentials with unauthorized individuals.
Compliance with Vrbo Policies
- Adherence to Terms of Service: Hosts must comply with Vrbo’s Terms of Service and all other policies, which may be updated periodically.
- Policy Updates: Stay informed about changes to policies by regularly reviewing Vrbo’s communications and policy pages.
Enforcement Actions
- Penalties for Violations: Non-compliance with Vrbo’s terms and policies can result in actions such as:
- Removal of listings
- Fines or fees
- Lower placement in search results
- Suspension or termination of your account
- Dispute Resolution: In the event of disputes with guests, Vrbo encourages resolution through its support channels, following the outlined procedures.
Host Support and Resources
- Education Materials: Utilize Vrbo’s host resources, tutorials, and webinars to stay informed and improve your hosting experience.
- Customer Support: Reach out to Vrbo’s support team for assistance with account issues, bookings, or platform features.
How to List your Rental Property on Vrbo?
Listing your vacation rental home on Vrbo is a simple and quick process, but there are a few key steps to follow to maximize your success. First, note that Vrbo only accepts listings for entire homes or property units — shared rooms or spaces are not allowed.
1. Set Up Your Property Listing
- Provide Accurate Information: When creating your listing, be thorough with property details. Include the number of bedrooms, bathrooms, maximum occupancy, and unique features such as proximity to attractions, pool, or pet-friendliness.
- Upload High-Quality Photos: Photos are one of the most important aspects of your listing. Use professional, high-resolution photos that showcase all areas of the property, including living spaces, bedrooms, bathrooms, and outdoor spaces.
- Set Competitive Pricing: Research similar properties in your area to set a competitive price. You can offer discounts for weekly or monthly stays and adjust prices for peak seasons or local events.
- Establish House Rules: Clearly define the house rules, such as check-in/check-out times, pet policies, noise restrictions, smoking policies, and any other important guidelines.
2. Optimize Your Listing for Visibility
- Use Keywords: In your listing title and description, include relevant keywords that guests may search for, such as “beachfront condo” or “mountain cabin near hiking trails.”
- Maintain an Updated Calendar: Keep your calendar updated to reflect your property’s availability. This will help avoid double bookings and improve your chances of being shown in search results.
- Instant Booking: Consider enabling instant booking, which allows guests to confirm their stay without waiting for host approval. This can increase your booking rate.
3. Start Earning
- Payment Process: Vrbo collects payment from guests at the time of booking. After deducting the applicable commission fee (5%) and payment processing fee (3%), Vrbo will transfer your earnings directly to your designated payout method after the guest checks in.
- Payout Timing: Payouts are typically disbursed within one business day after check-in, depending on your payout method (direct deposit, PayPal, etc.).
4. Get the Ideal Match
- Search Optimization: Vrbo shows your listing to travelers based on their search criteria, such as location, travel dates, and property type. To increase visibility, make sure your listing has accurate information, a competitive price, and positive reviews from previous guests.
- Respond Quickly: Respond to inquiries and booking requests promptly. Fast response times improve your search ranking and increase the likelihood of securing bookings.
5. Property Manager Account for Multiple Listings
If you’re managing 10 or more properties, consider setting up a Property Manager Account. This allows you to:
- Integrate Property Management Software (PMS): By connecting your PMS with Vrbo, you can automate the process of updating rates, availability, and bookings across multiple platforms.
- Streamlined Operations: Manage multiple properties from a single dashboard and take advantage of tools like reservation management, reporting, and guest communication.

What are the Fee Schemes of Vrbo?
Understanding Vrbo’s fee structures is essential for both guests and hosts to make informed decisions and manage costs effectively. Here’s a detailed overview of the fees charged by Vrbo to both parties.
Guest Service Fee
- Purpose of the Fee: The guest service fee is a percentage charged to travelers when they book a property through Vrbo. This fee supports the platform’s operational costs, including secure payment processing, customer support, and platform development. It also provides guests with Vrbo’s “Book with Confidence Guarantee,” offering payment protection and assistance in case of issues with the booking.
- Fee Structure:
- Percentage Range: The service fee typically ranges from 6% to 12% of the total booking amount, excluding taxes and refundable fees.
- Sliding Scale: The fee percentage decreases as the booking amount increases. Higher reservation costs result in a lower percentage fee.
- Taxes on Fees: Value Added Tax (VAT) or Goods and Services Tax (GST) may be applied to the service fee where required by local laws.
- Refund Policy:
- If a booking is canceled and qualifies for a 100% refund under the host’s cancellation policy, the guest service fee is also fully refunded.
- The refund is automatically processed when the cancellation is completed through the platform.
Host Fees
Vrbo offers two primary fee models for hosts, allowing flexibility based on individual needs and booking frequency.
1. Annual Subscription Model
- Subscription Fee: Hosts pay an annual fee of approximately $499.
- Benefits:
- No Commission Fees: Keep all rental income without per-booking commissions.
- Access to Tools: Utilize Vrbo’s reservation management and calendar software to manage availability and bookings more efficiently.
- Ideal For:
- Hosts with frequent bookings (typically more than six bookings per year).
- Property managers overseeing multiple listings.
2. Pay-Per-Booking Model
- Commission Fee:
- 5% Commission: Charged on the rental amount, including any additional fees you charge the traveler (e.g., cleaning fees, pet fees).
- 3% Payment Processing Fee: Covers the cost of processing credit card payments.
- International Surcharge:
- Additional 2% Fee: Applied if you accept bookings from travelers who pay with a credit card issued outside your payout country.
- Ideal For:
- Hosts who rent their property less frequently.
- Those who prefer not to commit to an upfront annual subscription fee.
- Additional Notes:
- Applicable to All Charges: The 5% commission applies to the total rental amount plus any extra fees (e.g., cleaning, pet fees).
- Payment Disbursement: After fees are deducted, earnings are transferred directly to your bank account or preferred payout method, typically after the guest’s check-in date.
Choosing the Right Fee Model
- Evaluate Your Rental Activity:
- Estimate your expected annual rental income and number of bookings.
- Calculate potential fees under both models to determine the most cost-effective option.
- Flexibility:
- Vrbo allows hosts to switch between fee models if their rental activity changes.
- Starting with the pay-per-booking model is advisable if you’re new to hosting; you can switch to the subscription model as bookings increase.
Summary of Fees
Fee Type | Pay-Per-Booking Model | Annual Subscription Model |
---|---|---|
Host Commission | 5% per booking | None |
Payment Processing Fee | 3% per booking | 3% per booking |
Annual Subscription Fee | None | $499 per year |
International Surcharge | Additional 2% if guest uses an international credit card | Additional 2% if guest uses an international credit card |
Additional Considerations
- Taxes:
- Hosts are responsible for complying with all tax obligations, including income tax and any applicable lodging or occupancy taxes.
- Vrbo may collect and remit certain taxes on your behalf in jurisdictions where required.
- Optional Services and Fees:
- Property Damage Protection: Offer guests insurance to cover potential damages, which can be added as an additional fee.
- Cancellation Policy Impact: Your chosen cancellation policy can affect booking attractiveness and the refundability of fees.
Vrbo vs. Airbnb: Critical Distinctions
Property Types and Listing Policies
Airbnb allows hosts to advertise a wide variety of accommodations, from entire homes and private rooms to shared spaces like a bed in a shared room or unique structures such as treehouses and yurts. This inclusivity results in a diverse range of listings catering to different traveler preferences and budgets.
In contrast, Vrbo exclusively accepts entire property rentals. Shared spaces or individual rooms cannot be listed on Vrbo. This policy ensures that guests booking through Vrbo will have complete privacy and full access to the entire property, which is particularly appealing to families and groups seeking a home-like experience during their travels.
Cancellation Policies
Both platforms offer predefined cancellation policies, but the specifics differ.
- Airbnb’s Cancellation Policies:
- Flexible: Full refund up to 24 hours before check-in.
- Moderate: Full refund up to 5 days before check-in.
- Firm: Full refund up to 30 days before check-in.
- Strict: Limited refund options; full refund within 48 hours of booking if at least 14 days before check-in.
- Long Term: Specific policies for stays longer than 28 days.
- Vrbo’s Cancellation Policies:
- Relaxed: Full refund if canceled at least 14 days before check-in; 50% refund if canceled between 7-14 days before check-in.
- Moderate: Full refund if canceled at least 30 days before check-in; 50% refund if canceled between 14-30 days before check-in.
- Firm: Full refund if canceled at least 60 days before check-in; 50% refund if canceled between 30-60 days before check-in.
- Strict: Full refund if canceled at least 60 days before check-in; no refund if canceled less than 60 days before.
- No Refund: No refund offered once the booking is made.
These policies provide varying degrees of flexibility, allowing hosts to choose the one that best fits their needs while offering guests clear expectations regarding refunds.
Unique Features
- Airbnb Experiences: Airbnb offers guests the option to book “Experiences,” which are activities designed and led by local hosts. These can range from cooking classes and guided tours to unique adventures, providing an immersive way to explore a destination beyond traditional sightseeing.
- Vrbo’s Trip Boards: Vrbo features “Trip Boards,” a collaborative tool that allows travelers to save, organize, and share favorite properties with friends and family. This is particularly useful for groups planning a trip together, facilitating communication and collective decision-making.
Pricing Models and Service Fees
Comparing pricing models between Airbnb and Vrbo can be complex due to the uniqueness of each property and varying additional fees. Both platforms charge service fees to guests and hosts to monetize their services.
- Airbnb Fees:
- Guest Service Fee: Typically ranges from 5% to 15% of the booking subtotal.
- Host Service Fee:
- Split-Fee Model: Hosts pay around 3% of the booking subtotal.
- Host-Only Fee Model: Hosts pay 14% to 16%, and guests pay no service fee.
- Vrbo Fees:
- Guest Service Fee: Typically ranges from 6% to 12% of the booking subtotal.
- Host Fees:
- Pay-Per-Booking Model: Hosts pay a 5% commission and a 3% payment processing fee per booking.
- Annual Subscription Model: Hosts pay an annual fee of $499 with no per-booking commission fees.
Impact of Fee Structures
Airbnb’s host-only fee model can lead to higher nightly rates, as hosts may increase prices to offset the higher fees they incur. This could potentially make listings less competitive if guests compare total costs across platforms.
Conclusion
In summary, Vrbo offers a robust platform for homeowners and property managers to tap into the lucrative vacation rental market by listing entire properties for short-term stays. Understanding its evolution, from its inception in 1995 to becoming part of the Expedia Group, provides valuable context for its current operations. By familiarizing yourself with Vrbo’s fee structures, listing requirements, and the distinctions between Vrbo and competitors like Airbnb, you can make informed decisions to maximize your property’s earning potential. Whether you’re considering the annual subscription model or the pay-per-booking option, adhering to Vrbo’s guidelines and leveraging its extensive reach can transform your vacant space into a profitable source of passive income.
Which one is better for you: Airbnb or VRBO read here.
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