AirBNB Fees - Total Revenue VS Fees

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AirBNB Fees - Total Revenue VS Fees

Laura Sawicki
Investor · NJ · Member since 2023 · 13 posts · 6 votes

Hello BP Community!

I'm working with a client who's interested in a home that's currently used as an airbnb.  I was sent some docs as proof of rental income, but I'd like to know how accurate this is VS what airbnb fees are.  I've attached one of the docs I received for you to see.  

Does the Total Revenue include cleaning fee?

What other fees are taken out?

Is there a rough percentage that you use when analyzing?  For example, does airbnb take 15%, 20%, etc.?

Any help is appreciated.  Thank you so much!!!

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y

I would ask for the last few years of the Tax Return Schedule E for this property to see what their total expenses and net profit was.

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  • Karl DentonPro Member
    Rental Property Investor · Mansfield, CT · Member since 2021 · 225 posts · 131 votes
    2y

    Airbnb takes 3% of what your making. However the other fees they take are before you even see profit. The gross usually includes the cleaning fees. So i would figure out how many stays they had and what the cleaning fee is. Then see what they paid for cleanings, usually it’s a pass through expense. But yes always ask for more when getting numbers on a property. 

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  • Laura Sawicki
    OP
    Investor · NJ · Member since 2023 · 13 posts · 6 votes
    2y
    Quote from @Karl Denton:

    Airbnb takes 3% of what your making. However the other fees they take are before you even see profit. The gross usually includes the cleaning fees. So i would figure out how many stays they had and what the cleaning fee is. Then see what they paid for cleanings, usually it’s a pass through expense. But yes always ask for more when getting numbers on a property.

     THANK YOU for this!!!   What "other fees" do you take?  Is there a ballpark figure you can assume when trying to determine what you might net after all fees?

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    I would ask for the last few years of the Tax Return Schedule E for this property to see what their total expenses and net profit was.

    4Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    2y

    That data looks like it is coming from a PMS so you could need to know how that is being calculated inside PMS.  Different channels are also set up differently as they have different fees.  I see VRBO and Airbnb are on the screenshot.

    Essentially you will need more info but this does give you an idea of revenue.

    Also of note, just because the house did $30k last year does not mean it will do it again next year.  It would also be more accurate if you are keeping same PM as different managers can have much different results.

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  • Marie Thomas
    Real Estate Agent · Mystic, CT · Member since 2024 · 22 posts · 7 votes
    2y

    There are several types of fees on Airbnb specifically: 

    -Airbnb service fee, cleaning fee, extra guest fee, pet fee, security deposit, VAT (if applicable), and local taxes. 

    There are also 2 different types of fee structures - a split fee and a Host-only fee. 

    1. Split-fee: most common and split between the Host and guest. 

    Host fee= 3%, but some pay more depending on the location of rental. It's calculated from the booking subtotal but excludes the guest service fee and taxes but is automatically deducted from Host payout. For any cross-currency bookings, the guest service fee will include additional charges which could be as high as 16.5%. 

    2. Host-only fee - the entire fee is deducted from Host payout (~14-16%). Depending on the booking VAT fees may also be applicable. 

    Take a look at the screenshot below as an example to help you better understand, this is a listing in CT. 

    If you are worried about fees and occupancy rates, I would suggest flipping back and forth between traveling nurses. There's a great site called Furnished Finders.

    Hope this helps!! 

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  • Garrett BrownPro Member
    Rental Property Investor · Houston, TX · Member since 2024 · 517 posts · 554 votes
    2y

    Hey @Laura Sawicki welcome to the forums! 

    It is too tough to tell from that document, but the cleaning fee seems to be included in GR since I don't see it anywhere else. I would deduct the fee they charge x 60 reservations they have to see what it is of the gross.
    AirBNB usually takes 3% for 1 property, as others have mentioned. Airbnb will also deduct taxes automatically sent to the state, but the host has to set it that way. They can also get the taxes paid to them and are supposed to remit those taxes to the state. You also have to consider county or local taxes (my main area has a 7% hotel tax for STRs on top of my 6% state).

    BiggerPockets has a STR/Airbnb calculator that may help bring them some clarity on the numbers!

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    Hey @Laura Sawicki, I second @John Underwood's comment about getting the actual Schedule E from the owners to validate all revenue that was reported to the IRS.

    No way I would rely on just a report they provided. Get the actual IRS docs.

    1Reply
  • Krishnan Iyer
    Investor · Member since 2023 · 46 posts · 34 votes
    2y

    That screen shot is from Hospitable (that’s the PMS I use). $30,441.38 - Thats the “Gross” earnings and includes all taxes (local, city etc) and cleaning fees (if any) and pet fees (if any) etc etc. 

    Sorry I don’t have an answer for the percentage while doing the analysis. Way too many reasons and variables for that one.

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  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Vrbo charges hosts 8%.

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  • Trent Reeve
    Atlanta · Member since 2022 · 716 posts · 645 votes
    2y

    ensure taxes are calculated. My area has 13% in total taxes. if i had $30k in rent alone, I would be paying $3900 in taxes, so the net for that would be $26,100. That was something I wasnt prepared for when i first got started. 

    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    2y

    Agree with John. The only document I would rely on is the 1040.  

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y

    Taxes, utilities, maintenance, cleaning, marketing...

    Gross income doesn't mean squat to your wallet. You need to know what all the expenses are, not just AirBnB fees.

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  • Laura Sawicki
    OP
    Investor · NJ · Member since 2023 · 13 posts · 6 votes
    2y

    THANK YOU for all of your comments!  This helps so much.  :-)

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  • Karl DentonPro Member
    Rental Property Investor · Mansfield, CT · Member since 2021 · 225 posts · 131 votes
    2y
    Quote from @Laura Sawicki:
    Quote from @Karl Denton:

    Airbnb takes 3% of what your making. However the other fees they take are before you even see profit. The gross usually includes the cleaning fees. So i would figure out how many stays they had and what the cleaning fee is. Then see what they paid for cleanings, usually it’s a pass through expense. But yes always ask for more when getting numbers on a property.

     THANK YOU for this!!!   What "other fees" do you take?  Is there a ballpark figure you can assume when trying to determine what you might net after all fees?


     There's no good "ballpark" figure, you have to know the amount of stays, cleaning fees, some add in pet fees and other things that can increase revenue. Schedule E from taxes would show what they are claiming. But the more detailed expenses and income you can get the better. 

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  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 996 posts · 1k+ votes
    2y

    This is from Hospitable.  Same PMS I use.

    To clarify on one of the statements above, the revenue includes only pass-through taxes.  Taxes that Airbnb pays direct to the state/county are not included in the revenue there.  But if there are any additional taxes that the host has to collect and pass through to the county/state manually, they are included in the revenue there.

    Yes, cleaning fees are included in that revenue.

    Yes, that revenue is before Airbnb fees.  To clarify, that is before the 3% Airbnb host fee, NOT the 14% Airbnb guest fee.  However if the host elects to pay the entire fee then that would make the host fee 15%, which would need to be subtracted instead of 3%.

    On that screen there is a button to export the report via Excel.  The excel doc will give all of this info broken down.  That screen is just a summary.  If you can't get tax docs, at least get the excel statement which will break everything out (nightly rev, cleaning fee, taxes, host fee, etc).

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