VRBO collect taxes? Is it worth listing?

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VRBO collect taxes? Is it worth listing?

Member since 2024 · 48 posts · 23 votes

I have done well with Airbnb but thought I'd put my new STR on VRBO also since some of you seem to get a lot of bookings there. Do they not collect and remit taxes? It's asking me how taxes are collected and what the rate is. I have no idea. It's already proving to be a much more cumbersome process than Airbnb. Is this worth the headache?

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Travis TimmonsPro Member

Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes

VRBO does collect and remit taxes on our behalf, but they recently asked for us to submit the tax rate. I'm not sure why that would be, but I noticed that too.

I think that VRBO's tech is really clunky, the guest profile skews older and more high maintenance (they just ask more really basic questions - i.e. how does the TV work? Smart lock isn't working? Ask for directions to places, etc...stuff that is pretty intuitive).

VRBO also takes 8% of the booking revenue. We've landed on pricing our VRBO rates about 10-15% higher than airbnb. We still get about 40% of our bookings from VRBO...it's a worthwhile hassle as I see it.

Every market is different, though...there are some markets that are VRBO dominated and you have to be on there.

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
1y
We used VRBO exclusively, for a variety of reasons. Yes, they collect and remit taxes on your behalf.
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- Karina Busch
  OP
  Member since 2024 · 48 posts · 23 votes
  1y
  Quote from @Collin Hays:
  
  We used VRBO exclusively, for a variety of reasons. Yes, they collect and remit taxes on your behalf.
  
  But they don't know the tax rate? It is wanting me to tell them if it is collected on the total or per guest per night, when it is to be collected, and what the rate is? I have no idea. I listed this property on Airbnb already and didn't have to know any of that.
  0 Reply
- Collin HaysBusiness Member
  Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
  1y
  Quote from @Karina Busch:
  
  Quote from @Collin Hays:
  
  We used VRBO exclusively, for a variety of reasons. Yes, they collect and remit taxes on your behalf.
  
  But they don't know the tax rate? It is wanting me to tell them if it is collected on the total or per guest per night, when it is to be collected, and what the rate is? I have no idea. I listed this property on Airbnb already and didn't have to know any of that.
  I’m not a VRBO apologist. Sounds like you know the best answer for you.
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- Karina Busch
  OP
  Member since 2024 · 48 posts · 23 votes
  1y
  Quote from @Collin Hays:
  
  Quote from @Karina Busch:
  
  Quote from @Collin Hays:
  
  We used VRBO exclusively, for a variety of reasons. Yes, they collect and remit taxes on your behalf.
  
  But they don't know the tax rate? It is wanting me to tell them if it is collected on the total or per guest per night, when it is to be collected, and what the rate is? I have no idea. I listed this property on Airbnb already and didn't have to know any of that.
  I’m not a VRBO apologist. Sounds like you know the best answer for you.
  
  I'm genuinely trying to learn as I hope to scale my business and have some other properties that will be transitioning to STR. I am just finding it to be "clunky" like someone else mentioned. Airbnb made it so easy, so adding VRBO is proving to be a steeper curve so far.
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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
VRBO does collect and remit taxes on our behalf, but they recently asked for us to submit the tax rate. I'm not sure why that would be, but I noticed that too.
I think that VRBO's tech is really clunky, the guest profile skews older and more high maintenance (they just ask more really basic questions - i.e. how does the TV work? Smart lock isn't working? Ask for directions to places, etc...stuff that is pretty intuitive).
VRBO also takes 8% of the booking revenue. We've landed on pricing our VRBO rates about 10-15% higher than airbnb. We still get about 40% of our bookings from VRBO...it's a worthwhile hassle as I see it.
Every market is different, though...there are some markets that are VRBO dominated and you have to be on there.
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- Karina Busch
  OP
  Member since 2024 · 48 posts · 23 votes
  1y
  Quote from @Travis Timmons:
  
  VRBO does collect and remit taxes on our behalf, but they recently asked for us to submit the tax rate. I'm not sure why that would be, but I noticed that too.
  I think that VRBO's tech is really clunky, the guest profile skews older and more high maintenance (they just ask more really basic questions - i.e. how does the TV work? Smart lock isn't working? Ask for directions to places, etc...stuff that is pretty intuitive).
  VRBO also takes 8% of the booking revenue. We've landed on pricing our VRBO rates about 10-15% higher than airbnb. We still get about 40% of our bookings from VRBO...it's a worthwhile hassle as I see it.
  Every market is different, though...there are some markets that are VRBO dominated and you have to be on there.
  
  Thank you I appreciate that. So did you provide the TOTAL tax rate (which I believe I found online) to include city, county, state, etc? I'm assuming that's what I use but it doesn't give me the option to say how much each is, just one total. Property is in AZ if that matters.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
1y
VRBO is definitely worth it. They are the original STR company and in some areas are the main player. As @Travis Timmons said, they can be kinda 'clunky'....but you can;t ignore them if you want to have a successful operation.
Yes they want your total tax rate. Maybe call them if you still have questions....I always found them to have much better customer service than ABnB.
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- Karina Busch
  OP
  Member since 2024 · 48 posts · 23 votes
  1y
  Quote from @Bruce Woodruff:
  
  VRBO is definitely worth it. They are the original STR company and in some areas are the main player. As @Travis Timmons said, they can be kinda 'clunky'....but you can;t ignore them if you want to have a successful operation.
  Yes they want your total tax rate. Maybe call them if you still have questions....I always found them to have much better customer service than ABnB.
  
  Thank you. I made it through that part but now I'm trying to figure out how to give my cleaners access to that calendar? I have 2 STRs in different states currently, and just have the cleaners as a co-host with access to the calendar. Doesn't look like VRBO has that option. Would love to know how everyone integrates it all. Do I need to just go ahead and set up a PMS, would that be the easiest? I do hope to scale so I'm trying to learn all this while I'm still small and get the process figured out up front. Thanks for everyone's comments!
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
1y
I have an "integrated" VRBO account through my PMS so its a passthrough where we collect taxes and payment ourselves but I imagine 95% of the VRBO accounts are not set up like this so they will collect and remit everything on your behalf.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
1y
VRBO is absolutely worth it and in many areas the main player. Most of my neighbors don't even use Airbnb because VRBO does so well.
I only use Airbnb because it doesn't cost anything to have the listing and I pick up 3 or so bookings a year that I might not have gotten otherwise.
1 Reply
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
The argument for VRBO in an Airbnb dominated market like mine is that there is not as much competition there, and VRBO probably has the highest paying customer. If you look at all the fees they pay (and the fact that we have a higher list price there), it's insane what guests pay.
Most VRBO guests that book our place are grandma and grandpa paying for a multi-generation trip with their kids and grandkids. Great guest profile but you hear from them a lot more for simple questions...and VRBO makes things hard than they need to be.
1 Reply
Lauren Kormylo
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
1y
Yes VRBO is clunky. But you should research your taxes anyway because if you eventually do any direct bookings, you’ll need to know that. I don’t find VRBO guests to be any different than Airbnb’s, probably because I have a larger house that attracts extended families either way. They’re all pretty good guests so far. The best argument for using VRBO is that Airbnb can freeze your account at their whim without even telling you why. It’s happened to many many people on FB pages that I belong to. It’s usually because a guest thinks there’s a camera in the house. Whether it’s true, the guest is mistaken, or the guest is a scammer trying to get a free stay, Airbnb will shut your listing down for weeks with no way to contact them and straighten it out. You have to wait for them to get ahold of you. It’s good to be on more than one platform.
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Josh SedivyBusiness Member
St. Louis, MO · Member since 2024 · 134 posts · 55 votes
1y
It depends on whether your listing is integrated with third-party software or not. If it’s integrated, you’re responsible for collecting and remitting taxes. If it’s not, VRBO may handle tax collection and remittance for you in certain areas, but it varies by location. It can definitely be a bit more complex than Airbnb, but once you get the setup done and understand your local tax requirements, it becomes easier to manage. It’s worth the effort if you’re looking to expand your reach and bookings.
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
1y
Hey @Karina Busch, VRBO remits all our taxes and there hasn't been any issues.
This season we are about 2 to 1 on VRBO vs AirBNB. Totally worth being on the platform regardless of where you STR is.
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Shannon Strickland
Rental Property Investor · Northern Virginia · Member since 2022 · 127 posts · 123 votes
1y
Hello @Karina Busch,

Last summer, when I launched my only STR, I did not effectively navigate the tax scenario, but after calling VRBO, OwnerRez, and MyLodgeTax, it eventually got sorted out.

After securing my North Myrtle Beach license, I signed up for VRBO alone to simplify my learning curve. Then, because I was unaware of all the potential taxes, I hired MyLodgeTax to manage this for me. MLT discovered that I needed an additional license from the state, and there are seven different taxes totaling 12% that I must pay monthly. I thought VRBO was collecting taxes, so I didn’t pay them. What I didn’t realize until five months later is that VRBO does not collect and remit on my behalf due to my PMS integration. Needless to say, I ended up paying a summer’s worth of taxes. After I learned what I needed to do (the hard way), things have run smoothly. This was a classic case of “you don’t know what you don’t know.”

Although I was nervous to add another ball to juggle by bringing Airbnb on board in the fall, I am very glad I did, because while the summer was wonderful, VRBO bookings dwindled severely, and Airbnb bookings saved the year. This year, bookings are at a 3:1 ratio, Airbnb to VRBO. If I hadn’t added Airbnb, I think I would have sold it after owning it for one year.

Having said all that, it is my understanding that different markets can be stronger on certain OTA platforms, and it is wise to quickly discover which one dominates your market.

Hopefully, that helps in some way.
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Account Closed
Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
1y
Quote from @Karina Busch:

I have done well with Airbnb but thought I'd put my new STR on VRBO also since some of you seem to get a lot of bookings there. Do they not collect and remit taxes? It's asking me how taxes are collected and what the rate is. I have no idea. It's already proving to be a much more cumbersome process than Airbnb. Is this worth the headache?
In our county in central Texas VRBO collects state tax and remits it but not county hotel occupancy tax. I have to pay that tax monthly myself. AIRBNB pays both state and county taxes.

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Anja Schaer
Investor · Atlanta · Member since 2022 · 146 posts · 72 votes
1y
Yes, VRBO can feel clunky compared to Airbnb, but it’s definitely worth it in many markets. They usually collect and remit taxes, but sometimes you have to enter your total rate yourself. We have an integrated account with VRBO so we get the taxes paid out and have to report & pay those to the respective local agencies. And yes, giving your cleaner calendar access is tricky—many hosts end up using a PMS (like Hospitable or OwnerRez) to sync calendars and give team access. Once you set it up, it gets much easier, especially if you plan to scale.

0 Reply
- Karina Busch
  OP
  Member since 2024 · 48 posts · 23 votes
  1y
  Quote from @Anja Schaer:
  
  Yes, VRBO can feel clunky compared to Airbnb, but it’s definitely worth it in many markets. They usually collect and remit taxes, but sometimes you have to enter your total rate yourself. We have an integrated account with VRBO so we get the taxes paid out and have to report & pay those to the respective local agencies. And yes, giving your cleaner calendar access is tricky—many hosts end up using a PMS (like Hospitable or OwnerRez) to sync calendars and give team access. Once you set it up, it gets much easier, especially if you plan to scale.
  
  If you integrate with a PMS like Hospitable then do you have to collect and submit all the taxes on VRBO. I believe someone mentioned that. I am planning to call them tomorrow and ask some questions to be sure I will be in compliance. Thanks!
  0 Reply
Trent Reeve
Atlanta · Member since 2022 · 710 posts · 640 votes
1y
Quote from @Karina Busch:

I have done well with Airbnb but thought I'd put my new STR on VRBO also since some of you seem to get a lot of bookings there. Do they not collect and remit taxes? It's asking me how taxes are collected and what the rate is. I have no idea. It's already proving to be a much more cumbersome process than Airbnb. Is this worth the headache?

Airbnb does not collect and pay taxes everywhere. Where we are, they only collect and pay state taxes, we still have to do county and city. You could ask other owners in your area to find the tax rate. Is it worth the headache? depends. I probably get 60% of my bookings from VRBO, so for me it is definitely worth it.
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Myka Artis
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
1y
List everywhere! VRBO is well worth it due to the clientele that is on there. VRBO usually has an older clientele, and depending on where your rental is located, they are willing to pay significantly more than your typical Airbnb guest. I use PMP software, so I automatically set my VRBO pricing 25% higher than on Airbnb, so the extra costs from VRBO are minimal.
If you're using a PMP, you can set it up to factor in the tax; however, if you do it directly on the VRBO website, you'll have to factor in those charges manually.
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Sameul Ahsan
Real Estate Agent · Worcester, MA · Member since 2024 · 107 posts · 45 votes
1y
Yes, it’s definitely worth it—VRBO brings in about 30% of my bookings. As for taxes, it’s easier than it seems. Just use ChatGPT or a quick online search to figure out your local tax rate, then set it to collect automatically. Once it’s set up, it runs smoothly.
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