Save on your stay—reserve directly with us
Managing a vacation rental in the scenic Hill Country can be both rewarding and profitable—but understanding the cost of doing business on major platforms like Vrbo is essential to protecting your bottom line. Whether you’re new to short-term rentals or expanding your portfolio, knowing how Vrbo’s host fees work is key to setting smart pricing strategies and ensuring a healthy return on your investment.
This guide explains the two types of Vrbo host fee models, helps you decide which is right for your property, and offers practical tips to maximize your revenue while keeping operations efficient.
Vrbo offers two main pricing options for homeowners and property managers:
This model is ideal for owners who rent their homes occasionally or seasonally—common in Hill Country areas where many properties serve as second homes or weekend getaways.
Here’s how it breaks down:
5% commission fee on the rental amount, which includes your nightly rate plus any additional fees like cleaning or pet charges.
3% payment processing fee on the entire guest payment (including taxes and refundable deposits).
Example: If your guest pays $1,000 total, you can expect to pay around $80 in fees.
Best for:
Homes in Dripping Springs or Wimberley with occasional weekend or seasonal bookings.
Owners looking to test the waters without committing to an annual subscription.
This option gives you unlimited bookings with no commission fee on each reservation. You still pay the 3% processing fee, but no percentage is taken from your nightly rate or other host-charged fees.
Best for:
High-demand properties that book frequently (like homes with pools, waterfront views near Canyon Lake, or unique accommodations such as cabins or tiny homes).
Owners or managers earning more than $10,000/year in gross rental income.
Owners managing multiple vacation homes.
Pro Tip: If you expect consistent bookings year-round, the subscription model will usually save money over time.
The fee structure you choose directly affects your bottom line. Many first-time STR owners in Hill Country don’t realize how quickly platform fees can add up.
Here’s why it matters:
Net Income Impact – Each booking fee chips away at your profit. Understanding where your money goes helps ensure your nightly rates are set appropriately.
Transparency with Guests – Vrbo adds a separate “Service Fee” for guests, which can range from 6% to 15%. Being upfront with guests about total costs can reduce abandoned bookings and improve reviews.
Budgeting for Long-Term Growth – If you plan to scale your portfolio, choosing the right fee model early helps you accurately forecast earnings and operating costs.
Even though platform fees are part of the game, here are smart ways to optimize your earnings:
Offering discounts for 3+ night stays or weekly bookings reduces turnover and limits per-reservation fees.
Fees for cleaning, pets, and additional guests can help offset maintenance and operational costs.
Just be sure to clearly list them to avoid guest confusion.
While Vrbo helps generate traffic and visibility, you can reduce dependence on it over time by creating a direct booking website.
With tools like Google Ads, social media, and local SEO, you can drive bookings without paying platform fees.
Don’t “set it and forget it.” As your revenue grows, reassess whether a subscription model will save you money.
Consider offering value-adds like stocked kitchens, spa-style amenities, or flexible check-in/out for a slight premium.
| Feature | Pay‑Per‑Booking | Annual Subscription |
|---|---|---|
| Upfront Cost | $0 | ~$499–$699/year |
| Per-Booking Fees | 5% + 3% processing | Only 3% processing |
| Ideal For | Seasonal or casual rentals | High-volume rentals |
| Cost Predictability | Varies by booking | Fixed yearly expense |
| Flexibility | High | Lower (year commitment) |
Just starting out or only hosting occasionally?
The pay‑per‑booking model keeps things simple with no upfront cost.
Confident you’ll earn $10,000+ annually?
The subscription model can cut fees and boost profitability.
If you’re unsure, calculate your expected earnings over the next 12 months. That will help you decide if paying per booking or switching to an annual plan makes the most sense for your property.
As more travelers discover the charm of Dripping Springs, Wimberley, and the surrounding Hill Country, vacation rentals are becoming an increasingly competitive business. Choosing the right Vrbo fee model is just one piece of building a successful, sustainable rental.
By understanding your cost structure and making informed decisions early, you’ll be better positioned to grow your business—and enjoy the financial rewards that come with it.
Wondering what your home could make as a vacation rental? Whether you’re a homeowner exploring short-term rental income, an investor analyzing returns, or a real estate agent advising clients, our expert team is here to help.
Request a Free Rental Evaluation
Optimized by Seraphinite Accelerator