Are you excited to know how Vrbo works for owners? The article covers everything you should know about hosting your property on Vrbo.
The truth is you can earn an insane amount of money with your vacation property. The vacation rental market is a hot place that is growing immensely. And many property owners are diving into the market as it has become an easy way to earn without much hassle. Moreover, with your property occupied, it will be more efficient in the long run than an unused property that will begin to rot.
So, if renting out a property is on your mind, explore how Vrbo can be your best bet. The main advantage of renting your property on Vrbo is that you get displayed on different websites, as Vrbo has a variety of affiliated sites. For instance, Homeaway, Expedia, Trivago, and much more.
So, explore how Vrbo offers you remarkable benefits and prices. Let's begin to know how Vrbo works for the host!
How Does Vrbo Work?
Launched in 1995, commonly pronounced as "ver-boh", and is known as a vacation rental by the owner. Owned by Expedia group, Vrbo has 2 million listings in over 190 countries. Also, it has surpassed the popularity of Airbnb.
Vrbo is similar to Airbnb, which acts as a third-party hosting platform that allows one to list their rental properties. In simpler terms, if you have a vacant property, you can register your property on Vrbo and have a good amount of money. The list of properties includes:-
- Yachts And much more!!!
One can control the rates of their property. For instance, you can charge different amounts for weekdays and higher during weekends. Vrbo offers you simple management through the dashboard, so even if you own 10 properties, you can easily manage through a Vrbo dashboard. The following vital question is how one can become a host on Vrbo; let's get into the exact details.
How to Become a Host on Vrbo?
Here I will take a quick ride on how to list your property on Vrbo and become a host. Jot down the vital information on the way. Later we will also talk about how you can become a primer host and avail more benefits.
- First and foremost, you have to log in/ sign up in Vrbo as a property owner.
- Select if it is a Bungalow, Apartment, or whatever you own.
- Next, you need to enter the number of bedrooms and bathrooms; your property owns and where precisely the location of your property is.
If your property is in Canada or the U.S, the Vrbo sites automatically push your rental to other websites like Expedia and other home rental sites.
- Add a headline and a description explaining your property. You can give attractive titles that seem catchy to someone looking to book the property.
- In the same description, you can market your property by describing your facilities. For instance, wash & dryer, Netflix subscription, parking for vehicles, etc.
- Now, you need to add photos of your property (a maximum of 50 images can be uploaded)
- The following section will be about pricing. You can add the price you want to charge for your property. Also, there is a dynamic pricing tool through which you can decide what should be the optimum price of your property. (I will talk about it in the latter part of the article)
- Vrbo would ask you questions regarding the cleaning fee, are pets allowed, or the tax rate. You can fill in the details according to your personal preference.
- Once filled with all the details, you can launch your site on Vrbo.
Once you launch your property on Vrbo, go again to the Dashboard and fill in all the information. Here, you need to provide all the detailed information regarding your property. For instance, does the bathroom have toilet paper? Add an emergency number and even an option to organize your uploaded photos systematically.
Make your profile appealing to the audience. The more information it has and enticing it looks, the more people would click on it.
- The host has to pay a partner fee of 8 % on each booking as per this model. It is the commission charged for your deal. You can select this model each time there is a booking for your property.
- One only has to pay a 3% commission on each booking in this plan. Moreover, you have to take an annual subscription for $499. So, if you choose to take the subscription plan, the commission is reduced to 3%.
Note: If hosting the property for the first time, you should go for the pay-per-booking plan. As it would initially be tough to attract people to your property.
Now, let us talk about the vital thing that is how to charge for your property. It can be challenging to identify the ideal cost to attract customers as a host.
How Does Vrbo Work for Hosts?- Pricing Model
Fill in the information while listing your property by selecting the options. But when it comes to pricing, you need to fill in after research.
Pricing can be the most tricky part of listing your property. Firstly, start researching what your competitors are charging and gather information.
Now, it's good to know the current rates in the market, but apart from that, there are other ways to determine your pricing. Simply understand that even if you research, you won't be able to decide on the future prices.
So, a more brilliant option would be to let the dynamic pricing tool determine the exact cost of your property. Now, what is a dynamic pricing tool?
Well, we can say that the dynamic pricing tool can be a thinking machine for setting up your price. The tool aggregates the data and determines the price. So, for instance, if the hotels and rentals in the area have hiked there for any reason, your fees would automatically go up.
Pricing tools aren't stupid; most are automated and determine the cost after analysis.
In many cases, we observed that in the analysis you find out, the prices are much lower than the tool suggests. In such cases, you have to know that the hiked fee is charged keeping in mind the forthcoming event in your area or any other celebrations in the town.
The tools determine the foreseeable events and then show you the price of your property. Moreover, it picks the past bookings and stay of the people and then brings up the desired cost of charging.
Downloading a dynamic pricing tool by paying some money would offer you more profit than any other way of deciding how to charge your customers.
How Can One Become a Prime Host on Vrbo?
You don't get to choose if you want to become the prime member on Vrbo. Primer host is a free, invite-only program that recognizes owners who offer excellent travel experiences. Once you meet the eligibility criteria, you are added to the program.
Premier Host benefits
Benefits apply to all properties in your account. The Boost program is still launching on the market by market basis.
The benefits of becoming a Premier Host are:
- A Premier Host badge
- A Premier Host filter
- Access to the Boost program (improves search position)
- Priority support with expedited 24/7 access
Your eligibility is based on all your listings in your account achieving the following:
- An average review rating of 4.3 or higher
- A booking acceptance rate of 90% or higher
- An owner-initiated cancellation rate of 5% or lower Three or more Vrbo reviews
- Five bookings or 60 booked nights
How Do Payments Work on Vrbo?
The owner decides on the payment schedule for the property. They allow multiple installment payments for booking. When you book a property, they will update you about the payment method.
How Much Commission Does Vrbo Take?
There are two ways Vrbo takes fees from the host. One is pay per booking, where the host has to pay an 8% commission per booking. Another way is the subscription model, where the host pays $499 per annum and a 3 % commission per booking.
How to manage the business with Vrbo?
The owner dashboard will provide you with all the information about your property. It would be the primary location for managing your reservations, updating rates, and keeping your listing up to date.
How do I communicate with guests staying at your property?
One can communicate with the guests by clicking on the reservation manager on the Dashboard. Also, you can contact the guest through the mobile number or email address provided by them.
Do you need software to manage your listings?
Yes, if you have multiple properties on multiple sites, it becomes easy to manage your property through software.