Vrbo's New 12% Commission: What Property Managers Need to Decide Now
Vrbo is moving hosts to a single 12% commission. Its notices say the change starts October 29, 2026, though Vrbo's FAQ says it will roll out in early November, with each host told their own switch-over date. For most short-term rental property managers, that's more than double the 5% host fee they've been paying.
The rate change itself is out of your hands. How that cost lands on your owner statements is not. Before the new fee starts showing up in your November numbers, you'll want a clear answer to one question: who pays for the increase?
Here's what's changing, what it means for your payouts, and how to think through the decision.
What's changing with Vrbo's fees
The rate. Vrbo's host fee goes from 5% to 12%. Some international markets run between 12% and 15%, so confirm your rate in your Vrbo Partner Dashboard. If you collect Vrbo guest payments through Stripe or Guesty Pay, those processing fees are separate and aren't changing.
The timing. Vrbo indicates the new rate is based on the booking date, not the stay date. Reservations booked before your switch-over date (e.g. October 29) keep the old 5% rate, even if the guest checks in weeks or months later.
What it applies to. The 12% covers rent plus any fees you charge guests on Vrbo, such as cleaning, pet, and damage waiver fees. Taxes remain excluded.
The guest fee. Airbnb moved software-connected hosts to a host-only fee, shifting the full cost to hosts. Vrbo is keeping its guest service fee for now. Some reports suggest Vrbo may lower it, but nothing has been announced.
Subscriptions. Vrbo is phasing out annual subscriptions. Subscribers move to 12% per booking when their current term ends. If you're on a subscription, note your renewal date for each property, since the switch may not happen at the same time across your portfolio.
What it means for your payouts and your owners
If your prices stay the same, Vrbo's cut of a $1,000 booking jumps from $50 to $120. That's roughly a 7% drop in what you and your owners take home from each Vrbo reservation. And if your management fee is calculated after channel fees, the increase cuts into your commission too, not just the owner's share.
Raising rates to cover the difference isn't a simple fix. Guests still pay a Vrbo service fee on top of your nightly price, so higher rates could cost you occupancy. Vrbo's host terms also require your Vrbo price to be at least as good as what you offer on other channels, so raising rates only on Vrbo may not be allowed. There are reports Vrbo may relax that rule, but nothing has been published.
There's also a less obvious cost hiding in your guest charges. If you collect cleaning fees, damage waivers, or other guest fees through Vrbo, your owners are likely paying the Vrbo fee on that revenue too, even though it doesn't go to them. At 5%, few owners noticed. At 12%, it becomes a visible line on owner statements, and a likely source of owner questions.
Three ways to handle the fee on owner statements
Most property managers will land on one of three approaches. Each has a different impact on your margin and your owner relationships.
| Option | How it works | Who absorbs the increase |
|---|---|---|
| Pass it through | No change to your setup. Owners keep paying the full Vrbo fee, now 12%. | Owners |
| Charge owners on their revenue only | Owners pay the Vrbo fee only on revenue that goes to them (accommodation, pet fees, etc.). You cover the fee on revenue you keep (cleaning, damage waivers, etc.). | Shared, based on who earns the revenue |
| Split the increase | Owners pay a lower rate, such as 10%, and you cover the rest. | Shared, at a rate you set |
Passing it through is the simplest, but it puts the full increase on owners right when they'll notice it most. Charging owners only on their own revenue is often the easiest to defend, since each side pays the fee on what it earns. Splitting on the increase can be a goodwill gesture, but make sure your margins can carry it before you commit.
Whichever option you choose, it needs to be set up correctly in your trust accounting before the new rate hits your statements.
What to do before November statements go out
October statements will barely feel this change, since only reservations booked on or after your switch-over date with an October check-in are affected. November is the first month most property managers will see the new rate show up in a meaningful way.
Between now and then:
- Confirm your Vrbo rate and switch-over date in your Partner Dashboard, especially if you operate in a 12% to 15% international market
- Check whether your system calculates the Vrbo fee for you or pulls it from each reservation
- Note subscription renewal dates for any properties still on an annual Vrbo plan
- Choose how you'll handle the fee on owner statements
- Update your fee setup so bookings made before your switch-over date stay at 5% and bookings on or after it move to 12%
- Give owners a heads-up before they see the change on their statements
Need help getting it right?
Keystone Bookkeepers specializes in trust accounting for short-term rental property managers. We work with 150+ property managers across 4,100+ listings, and we're already updating fee setups and owner statements for the Vrbo change.
If you'd like help modeling the options or making sure your owner statements are accurate from day one, get in touch with our team.