What is Vrbo: A Complete Guide for Hosts

Vrbo (Vacation Rental by Owner) is one of the oldest vacation rental platforms, started in 1995, almost 13 years before Airbnb. With over 2 million listings across 190 countries, it is a top choice among homeowners to rent out their properties as vacation homes. If you still haven’t explored the platform, you would wonder, ‘What is a Vrbo rental?’ This article explains how it works for both hosts and guests, including property listings, benefits, fees and how to make it into a profitable venture.

What is a Vrbo Rental?

Vrbo stands for Vacation Rental by Owner. It is a vacation rental platform from Colorado that began in 1995 as a website where homeowners could list their properties on rent for vacation goers. It offers a simple solution connecting travellers with rental owners directly, bypassing the traditional hotel booking system.

Earlier a HomeAway company, it became a part of the Expedia Group in 2015. Under their ownership, the platform has grown vastly as a global network for booking private holiday homes. Vrbo offers a variety of properties like condos, apartments, cabins, beach houses, lodges and more for solo and group travellers.

Benefits of Vrbo

1. More potential for longer stays: About 33% of Americans plan longer vacations during the peak holiday season. Vrbo’s distinct feature of listing entire family homes instead of shared spaces can attract people who prefer exclusivity. It prompts them to book a stay for longer durations.
2. Family-focused: Vrbo focuses more on targeting families or group travellers. This means you will get more stable bookings, especially during the holiday season. It appeals to a family crowd, that prefers more comfort and homely ambience.
3. Flexible: Vrbo hosts laud the flexibility offered by the platform. It is said to be more host-friendly, giving you the flexibility of how you want to rent the property.
4. Suited for larger homes: Since Vrbo only lists entire homes, it is best for hosts who own independent cabins or beach houses. Large homes also welcome more number of guests, giving you a fair chance to earn more even with fewer bookings.
5. Comparatively more earnings: 2023 OTA Trends reveal, Vrbo has a higher Average Daily Rate (average revenue earned per night) in short-term rentals compared to other popular platforms like Airbnb and Booking.com. If you further implement a dynamic pricing strategy, you can increase your occupancy rates and revenue.

Bonus: How to Become an Airbnb Host: The Complete Guide

How to Book a Stay on Vrbo (For Guests)

Planning your next getaway? Vrbo makes it easy to find private villas and vacation homes.

Each Vrbo listing typically includes:

• Property details (bedrooms, bathrooms, capacity, area)
• Description and photos
• Amenities and house rules
• Ratings, reviews, nearby attractions
• Total cost with taxes
• FAQs and cancellation policy

Here’s how to book:

1. Visit Vrbo.com and create an account
2. Enter key details – location, travel dates, and number of guests
3. Browse listings with photos, amenities, reviews, and pricing info
4. Pick your property, read reviews, and message the host if needed
5. Make a payment – Vrbo allows partial payments with a due date for the balance
6. Get confirmation with all booking details via email

For Hosts

Hosts, too, need to create a host profile to start listing and earn via short-term rentals on Vrbo. Once you go live with your listing, travelers can view it. Whenever there’s a query, you will get a booking request.

The different categories in Vrbo

Vrbo gives hosts full control over their rental schedules and pricing. Hosts can apply discounts or change their base rates as needed. You can add charges for extra cleaning if needed. The host has more control over accepting/declining a request and managing bookings. The Vrbo dashboard also lets you manage multiple properties, track your home’s performance, and get help from the service team whenever required.

How to List Your Property on Vrbo?

Thinking of registering your holiday home on Vrbo? First, let’s understand what you need to be a successful host.

Host Requirements for Vrbo Listing

Before Vrbo renting, first check with the local rules and regulations where your holiday home is based. Many districts in the US have zoning regulations that mandate homeowners to register their vacation rental business. You must meet the legal standards when you plan to list your property.

Other common Vrbo host requirements include:

1. Age: You must be at least 18 years old. To confirm this, you must submit a government-issued ID.
2. Ownership authorization: To list a property on Vrbo, you should be the legal owner of the rental property and have proof that you are the authorized owner of the vacation home.
3. Management authorization: If you manage the property on someone else’s behalf, you should have proof of the management agreement.
4. Business license/permit: Depending on the local regulations, you will need a business license to run the short-term rental. This is also important for complying with state tax rules.
5. Other regulations: HOA rules vary from state to state. In addition to these rules, you will also have to check regulations about safety, security, health codes, and parking.
6. Valid bank account: Vrbo has financial requirements, like a secure payment platform to process your payouts. You can select a preferred payment method, but if you’re a registered business, you will need to open a separate bank account for your business, too.

Steps to Create a Listing on Vrbo

To start Vrbo renting, you need to follow 3 basic steps. Go to the ‘List your property’ section on Vrbo. Fill in the following details:

1. Number of rooms and bathrooms in the home
2. Exact address of the property
3. Entire name and contact details

Once you finish these details, you must fill out additional information about the home. This includes:

Photos: Upload high-quality pictures of the rental home. These pictures should highlight the best features of the home to attract bookings. Vrbo photo guidelines state a minimum of 6 photos to be published with a listing:

• 1 exterior of the property
• 1 interior/lobby picture
• 3 bedroom photos
• 1 bathroom photo

Details and description: Write a concise yet detailed paragraph highlighting the property. This description should include information about the amenities, activities, and highlights of the location.

Here’s an example of a Vrbo home description:

Ensure you provide accurate details about the rental home. Do not copy-paste from any other listings. The information should be original and specific to the unit being advertised for renting.

Pricing: While this is subject to change seasonally, clearly mention the per-night rates. Setting the base price is essential to determine consistent revenue through short-term rentals.

Payment: Select your payment methods and enter the bank details where you’d like to receive your payments from Vrbo.

Review and go live: Once you fill out the crucial details, review them again to see if they are correct. Check for any spelling errors or mistakes in account details. Once carefully reviewed, go live with your listing on the platform.

Once your property is live, it will be accessible on the platform to potential guests for booking.

Vrbo Renting Cost for Hosts

To run the platform, Vrbo charges fees to its hosts. There are two types of fee structures for Vrbo hosts:

1. Pay-per-booking fee: This is a commission-based model where you pay per booking. Vrbo charges a total 8% commission on the total payment per booking. It includes 5% services and 3% credit card processing fee. You will only have to pay the amount when you receive a reservation.
2. Annual subscription fee: This fixed-cost model charges a host $699 annually. The subscription model has other benefits like listing on international platforms, more property management tools, and the ability to add about 50 photos to a listing.

Which Vrbo payment structure is better?

If you’re starting a vacation rental business, a pay-per-booking model is more effective since it might take some time to actively attract bookings. You only have to pay when you complete a reservation.

An annual subscription provides more value for those managing multiple properties with significant revenue and high occupancy. It makes management easier with more tools.

Ideally, draw a Vrbo revenue estimate of your total business earnings before choosing a fee structure. If you start with an annual subscription, you can still switch to pay-per-booking within 14 days.

Vrbo Premier Host Program

Once you become a Premier Host, it will show up as a badge in your listing like this.

This is a free, invite-only program offered to homeowners who deliver unique experiences to their guests. A ‘premier host’ badge is displayed on your listing once you fulfill the criteria. Your listing also gets more visibility as it comes up higher in the searches. Vrbo Premier hosts get instant support with priority on any queries.

To become a Vrbo Premier host, your listing must have:

• Average rating of 4.4 or higher
• 95% booking acceptance rate
• Less than 1% of owner-initiated cancellations
• At least 5 bookings or a total of 60 booked nights
• Have 3 or more reviews

What Is A Vrbo Rental Payment Structure?

Vrbo has its own payment platform, which makes payments to hosts very simple. It is a safe and trusted way to receive payments from travellers and then transfer them to the hosts. The platform accepts payments from all major credit cards, such as Visa, MasterCard, or AMEX.

Payouts are typically processed one business day after the guest arrives. Depending on your location and bank policies, the money will be reflected in your account within 5-7 days. For new hosts, if you secure your first booking within 30 days, the payout is usually disbursed to your account 30 days after the guest’s payment.

Payment to Hosts

When you create your host account for listing on Vrbo, you must add your banking account. When your banking details are saved, getting payments from Vrbo is very easy. You will need to provide the account number, country code/routing number and currency in which you’d like to receive the payouts.

Steps to check your payment disbursement

• Login to your account and go to Reservation Manager from the left side menu.
• Select Financial Reporting
• Select Bank Deposits
• Click on any deposit. It will display the disbursement date regarding a particular reservation.

You can check the complete payout summary to get an overview of your earnings, fees and commissions deducted from the rental sum.

Difference Between Airbnb and Vrbo

For short-term rentals, Airbnb is among the very first names that pop up. So, as hosts, you might draw comparisons between which platform works better for you, or should you list your property on both? We bring you some key differences between Airbnb and Vrbo.

How Can I Make Money from Vrbo Renting?

Learning “What is A Vrbo Rental” must also lead to a profitable business. Listing a property is just the first step; here are some strategies to boost revenue:

1. Optimize your listing for more visibility: Create a compelling headline and description to attract guests. Use high-quality images, keep your calendar updated, respond quickly to inquiries, and encourage reviews from past guests.
2. Conduct market research: Study local trends, peak seasons, and competitor pricing. Use PriceLabs Market Dashboard to create custom comp sets of your competitor listing to analyze your competition and your broader market accurately.
3. Offer unique or local experiences: Travelers love authentic, local adventures and Airbnb experiences. Partner with local vendors to offer tours or cultural experiences, giving your listing an edge and creating additional income.
4. Use Vrbo rate automation: Vrbo is introducing built-in pricing tools that adjust rates using historical data and demand trends—helping you stay competitive and increase earnings.
5. Try a Revenue Management Tool: Platforms like PriceLabs help manage your rates, minimum stays, and occupancy goals with real-time data. Sync calendars and monitor neighborhood trends to maximize profit without constant manual updates.

Wrapping Up

Vrbo is a trusted platform that connects travelers with private vacation rentals, offering a more personal and spacious alternative to hotels. Whether you’re a guest seeking a unique stay or a homeowner looking to earn income from your property, Vrbo makes the process simple and secure. With its user-friendly features, robust support, and wide range of listings, Vrbo continues to be a go-to choice for vacation rentals around the world.