Air bnb/home away payments

13 Replies

Hi BP, I’m in the process of setting up my STR listing for my first VR in the Coachella Valley. Just curious, are the payments received from bookings instantaneous? Do you receive the funds when booked or is it held by air bnb/home away until the reservation date is reached? For example if I got a booking for a 2 night stay 3 months away, are the funds available now or do I have to wait until 3 months to receive it? I haven’t been able to get a clear answer online. Thank you.

@Mark Futalan , Airbnb pays out 24 hours after the guest checks in.  It typically arrives in your account 72hours later.  

VRBO allows you to set your policies. New accounts require a minimum 25% deposit which is paid out immediately. (Arrives in your bank within 72 hours). You can charge 50% if you’d like.  Then you set when the remaining balance is due and they pay it accordingly. 

I should note, VRBO default now copies the Airbnb model so you’ll need to call vacation rent payments (vrbo provider) and specifically request advanced payments.  They won’t make it easy and will make you wait for a while but if you keep calling they’ll eventually set it up.

@Mike V. is probably right although VRBOs policy used to be the other way around and I’d have to call once per year to get them to turn off advance payments. I prefer the AirBnB model where I get paid on check in.

@Mark Futalan might I suggest rather than posting here, which of course is a great thing to do, in this case you might be better off calling AirBnB and VRBO customer service and asking questions. It’s something you’ll need to do often once the guests start flowing.

Call me crazy but I feel calling them often gets me more bookings. It’s my theory that they put it into their matrix because it shows you care about your business.

Also get yourself a copy of the E Myth!

Good luck :)

I had my assistant investigate this awhile back because some of our clients were getting payments in advance and some weren't. She had seen that the status of premier partner or super host has an impact on whether you get payment up front or after check in. 

Does anyone else struggle with the fact that VRBO doesn't alert you that an incoming guest hasn't paid their final payment? It irritates me to no end that I have to manually check that guests have paid before granting access. I wish that I could get an email alert a couple days in advance if someone hasn't paid. But no, I have to go check each time which is aggravating. This should be part of the service that listing  companies provide <end rant>

Not sure why you why this would happened. I require all my guests to be paid in full, 60 days prior to their arrival. It’s in my rental agreement that if they fail to make their final payment by the deadline I keep any funds paid to date and resent the unit. I’ve never actually had to do it, but if someone just vanished I would. 

Also, I don’t know why you would prefer getting paid the day after checkin? I hate the Airbnb model with this and love seeing the money in my account early. I wish airbnb copied this model. 

I love the AirBNB model, I don't want money showing up in my bank account until the guest is staying - advance payments make bookkeeping really difficult (I don't want a bunch of $ coming in in Feb-March for summer reservations, then very little over summer months when the properties are actually making top dollar!), AND if a guest cancels prior to their reservation there's no reclamation of funds from my account.  I don't want to track all that.  Like @Lucas Carl I had VRBO's payment processor alter my payments so I received them right after check-in.

@Tim Schroeder I've never had the problem you describe.  I require all payments to be made prior to their reservation, I think at least 30 days in advance.

@Julie McCoy Yes but what if someone makes their first payment at booking, then never makes the final one, and shows up at your place? Unless you're watching, you wouldn't even know they haven't paid, right? That's what I'm worried about. I want it to all be automatic, I don't want to go check every guest's payment history.

@Tim Schroeder @Julie McCoy   Hello hello! This happened to me one time with VROB/HA. VRBO said I was on my own. So I called the guest and they paid the final payment and they were already out of the property and back home before I realized it. They were annoyed even though it was their fault. So I looked for a solution and found one. 

Change your payment preferences to One Single Payment and make it so the payment has to be made before the booking is complete. Instead of 2 or 3 payments. 1 payment. The same as the airbnb model. 

Problem solved. 

Originally posted by @Mike V. :

Also, I don’t know why you would prefer getting paid the day after checkin? I hate the Airbnb model with this and love seeing the money in my account early. I wish airbnb copied this model. 

From a basic accounting standpoint it makes some amount of sense. The money is not technically revenue until the service has been rendered completely.

Originally posted by @Jeffrey Lee :
Originally posted by @Mike Verna:

Also, I don’t know why you would prefer getting paid the day after checkin? I hate the Airbnb model with this and love seeing the money in my account early. I wish airbnb copied this model. 

From a basic accounting standpoint it makes some amount of sense. The money is not technically revenue until the service has been rendered completely.

Very true. However having 100% of the funds in my account 60 days before travel allows me to collect the interest, have access to the funds early thereby allowing me to use it if needed, prevents fraudulent credit card uses since people have 60 days to notice fraudulent activity, and prevents reasonable chargebacks. 

My VRBO policy also allows me to keep 100% of everything if cancelled within 60 days of travel. 

These all outweigh it in my opinion.