How Does Vrbo Work?

Updated : Mar 17, 2025

Key Takeaways:

• What is Vrbo? A vacation rental platform connecting property owners with travelers, offering over 1.3 million listings worldwide.
• How does Vrbo work for Owners? It provides tools to create detailed listings, set pricing (fixed or dynamic), manage bookings, and securely receive payments.
• For Guests: Allows easy property searches, direct communication with owners, secure upfront payments, and access to reviews for transparency.
• Payment System: Secure platform handling payments for both parties, with owners receiving earnings after the guest’s stay.
• Trust and Simplicity: Vrbo builds trust with transparent processes, making it an ideal choice for short-term rentals.

If you’ve ever considered diving into short-term rentals, you’ve probably heard of Vrbo. The platform, which stands for Vacation Rentals by Owner, has become one of the most popular sites for owners and guests looking to make the most of their vacation accommodations. 

Whether you’re an owner looking to list your property or a traveler searching for your next getaway, understanding the ins and outs of Vrbo is key to making the most of the experience. 

Let’s explore how Vrbo works for owners and guests and look at how the payment system functions within the platform.

What Is Vrbo?

Vrbo was the internet’s first major vacation rental platform. Launched in 1995, it was founded to simplify how travelers find vacation homes by connecting them directly with property owners—eliminating the need for intermediaries. In 2015, Vrbo became part of the Expedia Group, one of the largest travel companies in the world. Today, Vrbo stands as one of the top online marketplaces for vacation rental properties, offering over 1.3 million active listings across some of the world’s most sought-after destinations.

With its user-friendly interface and robust features, Vrbo makes it easy for property owners to showcase their listings to a global audience of travelers—particularly those seeking spacious homes for larger groups or family gatherings.

For Vrbo owners who consistently provide exceptional guest experiences, there’s an added perk: the opportunity to become a Premier Host. This status boosts their visibility on the platform, leading to increased bookings and greater success in the competitive world of vacation rentals.

How Does Vrbo Work for Owners?

For property owners, Vrbo offers a fantastic opportunity to earn extra income by renting out their homes or vacation properties. 

How does Vrbo work for you:

1. Listing Your Property on Vrbo

To start, you’ll need to create a listing on Vrbo that follows Vrbo listing requirements. 

The process is fairly simple: sign up for an account, enter your property details, upload high-quality photos, and provide a description that highlights the best features of your space. 

Remember that the more detailed and appealing your listing is, the more likely it is to attract potential guests. For example, if your property has a hot tub or a view of the mountains, mention that in your description.

2. Setting Rental Terms and Pricing

Once your listing is live, you must set your rental terms. This includes the nightly rate, minimum stay, and security deposit. Pricing on Vrbo is flexible. 

Some owners opt to set a fixed price, while others may use Dynamic Pricing (like PriceLabs) to adjust their rates based on demand, seasonality, and market trends. 

PriceLabs can help you optimize pricing and availability, ensuring they always get the best return on their property.

3. Managing Bookings and Guest Communication

Managing bookings on Vrbo goes beyond accepting reservations. You can communicate directly with guests to clarify details and ensure a smooth experience. Once a booking is confirmed, maintaining an up-to-date calendar is crucial to prevent double bookings. 

Vrbo offers tools for seamless calendar management, even across multiple platforms.

Cancellations can be tricky, but Vrbo allows you to set flexible cancellation policies to protect you and your guests. Payments are securely processed through the platform, ensuring timely and reliable transfers to owners once the guest’s stay is complete. 

By managing bookings, communication, and payments effectively, you can keep your vacation rental business running smoothly.

As guests inquire about your property, you or your co-host must manage those communications and decide whether or not to accept bookings. 

4. Cleaning and Preparing the Property

As an owner, you’re responsible for ensuring the property is clean and ready for guests. While Vrbo doesn’t provide cleaning services, they offer guidelines on preparing your space, including clean linens, towels, and essentials like soap and toilet paper. 

Some owners work with local cleaning services, while others handle it themselves.

5. Receiving Payments

So, how does Vrbo work in terms of payments for hosts? Once a guest books your property, Vrbo collects the payment upfront, typically due immediately after the booking is confirmed. 

Payments are made securely through the platform, and you won’t need to worry about chasing down payment after the guest has checked out. 

After the guest’s stay, you’ll receive the payment minus any service fees.

6. Handling Cancellations and Refunds

Unfortunately, cancellations are sometimes inevitable. Owners can choose from various cancellation policies, ranging from flexible to strict. The more flexible the policy, the easier it is for guests to cancel without losing money, but stricter policies provide more security for owners. If a guest cancels, Vrbo helps handle the refund process with your cancellation policy.

How Does Vrbo Work for Guests?

Guests looking for vacation rentals can find plenty of options on Vrbo. Here’s how the process works for travelers:

1. Searching for the Perfect Property

To find the right rental, guests must search for properties based on travel dates, destinations, and preferences. They can filter results by price, property type, amenities (like a pool or Wi-Fi), and more. Whether looking for a modern apartment in the city or a rustic cabin in the mountains, Vrbo has various options for all travelers.

Also read: The Best Airbnb Amenities to Boost Your Occupancy Rate, ADR, and RevPAR

For example, let’s say you’re planning a family reunion in Florida. You could filter the results to show large houses with multiple bedrooms, a pool, and easy beach access. This makes it much easier for guests to find what they want without sifting through irrelevant listings.

2. Booking a Property

Once a guest finds a property they like, they can either book instantly (if the owner allows it) or send an inquiry if they have questions or need to confirm availability. 

Vrbo’s messaging system allows guests to communicate with owners directly before booking, which helps to clarify any doubts or requests.

3. Payment Process

Now, how does Vrbo payment work for guests? Once the guest has selected their property and confirmed the booking, they’ll be asked to pay the full amount. Vrbo accepts various payment methods, including credit cards and PayPal, and guests pay upfront for the booking. This helps ensure the owner is paid before the stay begins and secures the guest’s reservation.

Guests also have the option to pay in installments for longer stays. Depending on the property’s cancellation policy, they may be entitled to a refund if they cancel within the allowed timeframe.

4. Checking in and Enjoying the Stay

Once the payment is processed, the guest can check in on the scheduled date. Owners typically provide check-out instructions, including access codes or key pick-up details. 

Guests can then enjoy their stay, knowing they’ve booked through a secure platform with protection for both parties.

5. Leaving Reviews

After the stay, guests can leave a review of the property and the host. These reviews are incredibly important for future guests as they provide valuable insights into the experience. 

Whether the property’s quality or the owner’s responsiveness, reviews help owners and guests improve their future experiences.

How Does Vrbo Payment Work?

Now that we’ve covered how Vrbo works for owners and guests, let’s focus on the platform’s payment system. Vrbo’s payment process is designed to be simple and secure for both parties.

When a guest books a property, the full amount is typically charged upfront, including rent, taxes, service fees, and any refundable security deposits. The platform uses a secure payment gateway to handle all transactions, protecting sensitive information. Payment is processed via Vrbo’s payment system, which supports credit card payments and PayPal.

Vrbo offers several payment options for owners, including direct deposit, wire transfer, or check. Payments are usually processed within a few days of a guest’s stay, ensuring owners receive their earnings promptly. However, it’s important to note that Vrbo charges a service fee for each booking, which can vary based on the type of listing and the payment method chosen.

Frequently Asked Questions

1. How much does Vrbo charge to use their site?

A 5% commission fee applies to the rental amount and any additional charges you set for travelers, such as cleaning, pet, or boat fees. Bookings through expanded distribution partners may incur higher fees.

2. Is Vrbo only in the US?

No, Vrbo operates internationally. While it is popular in the US, it offers vacation rental listings in various countries worldwide, providing travelers with options in numerous destinations.

3. Does Vrbo have lower fees?

Vrbo generally has a more straightforward fee structure. Guests typically pay a booking fee ranging from 6-12% of the total booking amount. Vrbo’s fees are noticeably lower compared to other platforms.