Airbnb vs Vrbo for Owners: Which Platform is Best for You?

According to Mashvisor, Arizona has roughly 50,000 active Airbnb and Vrbo. And when it comes to short-term rentals, owners are often faced with a key decision: Airbnb or Vrbo?

Both platforms offer unique opportunities, but understanding their differences is essential for maximizing rental income.

Today we're taking a closer look into Airbnb vs Vrbo for owners, comparing the benefits and challenges of each platform.

Airbnb Benefits for Owners

Airbnb has become one of the most popular platforms for short-term rental owners, and it offers several benefits. For many, its wide user base and flexible property types make it an attractive option.

Whether you're renting out a single room or an entire house, Airbnb gives you the chance to reach a broad audience. There are three primary advantages of Airbnb for owners:

• Wide guest audience

• Instant booking feature

• Strong review system

Wide Guest Audience

One of Airbnb's strongest points is the size and diversity of its user base. The platform attracts a variety of guests, from solo travelers to families. The flexibility in guest demographics means that even if you have a small studio or a large vacation home, you can find potential renters.

Airbnb also allows you to list different types of properties, whether it's a shared room, private room, or entire home. A broad range of options makes it easier to find a steady stream of guests throughout the year.

Instant Booking Feature

Another major benefit for owners is Airbnb's instant booking feature. Guests can book without needing approval, which simplifies the process and increases the likelihood of filling your calendar.

It can be particularly useful during peak travel seasons, when travelers are looking to book quickly. Instant booking gives you the ability to accept guests immediately without having to spend time reviewing every request. For owners who prefer a more hands-off approach, this can be a real time-saver.

Strong Review System

Airbnb's review system is a big asset for building trust with potential guests. After each stay, both the guest and the host leave reviews. The reviews give future guests confidence in the quality of your rental, which can lead to more bookings.

Positive reviews help build your reputation and increase your visibility on the platform. The feedback system not only benefits the guests, but also allows owners to better manage their listings based on guest input.

Vrbo Rental Strategies for Owners

Vrbo has carved out its place in the short-term rental market by focusing on vacation homes and entire property rentals. For property owners who cater to families or larger groups, Vrbo can be a great platform to maximize bookings.

There are three main strategies owners can use to succeed on Vrbo:

• Targeting families and groups

• Customizing pricing and payment terms

• Offering a unique vacation experience

Targeting Families and Groups

Vrbo is known for attracting guests who are looking for more than just a place to sleep. Many renters on Vrbo are families or groups of friends who need larger spaces and privacy.

By marketing your property as a family-friendly or group-friendly option, you can reach guests who may not consider smaller listings on platforms like Airbnb. Listing features such as multiple bedrooms, outdoor spaces, or entertainment amenities can appeal to these groups, making your property stand out in a competitive market.

Customizing Pricing and Payment Terms

One of the key benefits of Vrbo is the control it gives owners over pricing and payment terms. You can adjust nightly rates based on seasonality, set minimum stay requirements, and choose when and how guests are charged.

Flexibility allows you to create pricing strategies that work best for your property, ensuring a balance between competitive rates and higher income. Vrbo also allows for more control over security deposits, which can give owners added peace of mind when hosting guests for longer stays.

Offering a Unique Vacation Experience

Vrbo guests tend to be looking for memorable vacation experiences. Emphasizing the unique qualities of your property, such as its location, views, or access to local attractions, can help you stand out.

Properties that offer special features like hot tubs, game rooms, or proximity to popular vacation spots tend to perform better on Vrbo. If you can market your rental as more than just a place to stay, you can attract guests looking for a complete vacation experience.

Airbnb vs Vrbo for Owners: Key Differences

When deciding between Airbnb and Vrbo, it's important to understand the differences that matter most for property owners. Each platform has its strengths, but they serve slightly different markets and offer varying features.

Here are some of the biggest differences that set these platforms apart for owners:

• Booking and payment policies

• Target audience and property types

• Fee structures

Booking and Payment Policies

Airbnb is known for its ease of use, especially when it comes to booking. Guests can use the instant booking feature, which allows them to reserve a property without waiting for the owner's approval.

It speeds up the booking process and can help increase occupancy rates, especially during busy travel seasons. Airbnb also handles all payments, releasing the funds to the owner 24 hours after check-in, providing a smooth and reliable payment process for hosts.

Vrbo, in contrast, gives owners more control over the booking process. You can choose whether to accept or decline each booking request, which allows for more selective guest screening.

It can be a big advantage if you prefer to have more interaction and control over who stays in your property. Vrbo also offers flexibility in how you manage payments. For example, you can set your own terms for when guests are charged and whether you require security deposits.

Target Audience and Property Types

The type of guests that each platform attracts can also vary. Airbnb tends to cater to a broader range of travelers. Whether someone is looking for a private room, a shared space, or an entire home, Airbnb has options for all of these.

It means Airbnb works well for owners with properties of all sizes, from small apartments to large houses. Vrbo, on the other hand, focuses almost exclusively on entire homes. It makes it a better choice if your property is a vacation home or large space meant for families or groups.

Fee Structures

Another key difference between Airbnb and Vrbo is how they handle fees. Airbnb charges both guests and hosts a service fee, which can impact how much you earn from each booking. The fee is usually a percentage of the booking cost and is deducted from the payment you receive.

Vrbo gives owners the option to either pay an annual subscription fee or be charged per booking. This can offer more flexibility in terms of how you handle costs, depending on how often you rent out your property.

Income Potential: Which Platform Offers Better Returns?

For property owners, income potential is often the deciding factor when choosing between Airbnb and Vrbo.

Airbnb tends to generate more frequent bookings due to its wider audience and flexibility in property types. The platform is popular with a range of travelers, from business travelers staying for a few nights to families looking for a week-long vacation.

The variety means that hosts may have more opportunities to keep their calendar full, especially in high-demand areas. Vrbo, while still popular, focuses more on longer stays and is often used by families or groups looking for vacation rentals. This can result in fewer bookings, but longer stays.

Nightly Rates

Vrbo typically allows owners to charge higher nightly rates, especially for larger vacation homes. Since the platform caters more to families or larger groups, guests are often willing to pay more for spacious accommodations.

Airbnb, on the other hand, offers more flexibility in rates, with properties ranging from budget-friendly to luxury. While the nightly rate might be lower than Vrbo in some cases, Airbnb's booking frequency can help balance this out.

Managing Multiple Listings

For property owners with multiple listings, managing each one efficiently is key to maximizing bookings and minimizing stress. Both Airbnb and Vrbo offer tools that help streamline the process, but there are some differences in how they handle multiple properties.

Airbnb is well-known for its user-friendly interface. The platform offers an easy-to-use dashboard where owners can view and manage all their properties from one place. This simplicity is particularly helpful if you're juggling multiple listings at once.

Airbnb also provides built-in management tools, such as automated pricing suggestions and availability settings, which help take some of the manual work out of managing rentals.

Vrbo, while also offering tools to manage multiple listings, provides owners with more control over customization. You can set different rules and preferences for each property, allowing for greater flexibility.

However, this can require more hands-on involvement compared to Airbnb's more automated approach. Vrbo's more detailed customization options can be ideal if you prefer a higher level of control over each listing.

Regulations and Fees for Owners

When listing your property on Airbnb or Vrbo, it's important to understand the regulations and fees involved. Both platforms charge fees, but the structure and amount can vary, impacting how much of your rental income you take home.

Additionally, local regulations may affect how you can rent out your property, so being aware of these rules is crucial for avoiding fines or penalties.

Airbnb charges a service fee, which typically ranges between 3% and 5% for hosts. The fee is deducted from the payment you receive from guests. Airbnb also charges guests a service fee, which can range up to 14% of the booking total. The host fee is straightforward and deducted automatically from each payout, making it easy to manage.

Vrbo offers two different fee models for owners. The first is a pay-per-booking option, where owners are charged a fee for each reservation. The fee is usually around 8% of the booking total.

The second option is an annual subscription fee, which costs about $499 per year. This subscription allows owners to avoid the per-booking fees, which can be beneficial if you have a high volume of bookings.

Local regulations can also influence how you list your property on these platforms. In some areas, short-term rentals are subject to specific laws, such as licensing requirements or limits on how many days a property can be rented each year. It's essential to check the local rules in your area to make sure your property is in compliance.

Which Platform is Right for Your Property?

Choosing between Airbnb and Vrbo depends on the type of property you own and your goals as a rental owner. Both platforms have strengths, but they cater to different types of guests and property styles.

If you have a small apartment or shared space, Airbnb is likely the better fit. Its wide user base includes solo travelers and short-term renters looking for a variety of property types. Airbnb's instant booking and flexible property listings make it a strong choice for those wanting consistent bookings and an easy-to-manage system.

On the other hand, Vrbo is ideal for owners with larger properties like vacation homes or multi-bedroom rentals. The platform tends to attract families and groups looking for full-home rentals for longer stays.

Vrbo gives you more control over bookings and offers the option of setting stricter rental terms. This can be a significant advantage if you're renting out a higher-end property or want to tailor your rental to specific types of guests.

Ultimately, the decision comes down to your property type, guest preferences, and how hands-on you want to be.

Vacation Rental Platforms

In the end, choosing between Airbnb vs Vrbo for owners depends on your property type and rental goals. Both platforms offer unique benefits, from Airbnb's broad guest base to Vrbo's focus on vacation homes. Consider what suits your needs best to maximize your rental success.

Luxury Cashflow was founded in 2019 to help investors generate significant income from larger, overlooked properties. With a strong background in short-term rentals, we've helped clients acquire over $50 million in real estate assets, generating up to $450,000 in revenue annually. We now specialize in luxury properties throughout Scottsdale, Paradise Valley, and Phoenix.

Get in touch today to find out how we can help with your short-term rental!