vrbo

RedAngie

Sea Level Lady
Joined
Sep 10, 2015
Are some (many?) vrbo owners rip-off artists?

I rented a condo for two weeks in August at the beach in Delaware and booked thru a real estate agency.

Two weeks rent at $2900 each=$5800
Booking fee. $75
In lieu of a security deposit I purchased a damage waiver for $50
Total cost. $5925

I browsed vrbo before booking and a similar two bedroom two bath unit in the same building was listed.

Two weeks rent at $2850 each=$5700

Then a line called “Owner’s Fees”. Clicking on it revealed:
Damage Waiver $65
Onsite Payment Method $75.62 ????????
Administrative Fee $165 ??????
Cleaning Fee $195
Optional Linen Rental $163.50
Total Owner’s Fees. $664.12

I have no idea what those two fees that I questioned mean. No explanation given,

Cleaning Fee- Giddouttahere. The cleaning fee is your cost of doing business. Either bury the cost in the rent or drop it. And $195 is way too high. Maybe $125 tops.

I can skip the linen rental. I’m bringing my own anyway.

Then there is the ridiculously high vrbo fee of $416. It appears their fees vary based on a percentage of the rent,

AND!!!!! On top of that, there is a sales tax of $342. Delaware doesn’t have sales tax. There is a “document fee” when you register a car, and a “lodging tax” that applies to hotels, motels, etc. I looked it up and for some quirky reason renting thru a real estate agent isn’t subject to the lodging tax but vrbo is.

Total cost from real estate agent=$5925
From vrbo=$6958.62. (Doesn’t include optional linen fee)

This was a bit of an extreme example. Many other owners had lower cleaning fees and lower or no unexplained administrative fees.

But still, the vrbo service fee is a ripoff.
 
Wow - you lost me at $2,900/week to DIY in a 2 bedroom condo. That price is steep. We’re not vrbo’s by nature but I did have cause to be looking at some listing just this week on Air B&B. There was a looooong list of associated fees not included in the price and some seemed ridiculous like the $25/week “media” fee? For what? Using their wifi? :confused:
 
Well, the building is beachfront and the unit has an ocean view. There’s a pool, fitness center (not that’ll I’ll use it), game room and other amenities.

We skipped going last summer but before that a condo or small house a block or so from the beach cost in the $2000 range. No pool or other extras.

$5800 for 14 days is $414 per night. About the same or maybe even less than a beachfront hotel room in August.

Then again, if I’m paying $2900 per week, what’s another thousand in ridiculous fees, right?:duck:
 
I just sold my Ocean City, Md beach condo (owned and rented before the internet was a thing). We used a vacation rental company to handle bookings and they did tack on a few miscellaneous fees.

We only did weekly rental and the cleaning was built into the rent so guests never saw it. We did offer the damage waiver in lieu of a security deposit but that was a guest option. You had to bring your own linens and towels or rent them.

We just purchased a short term rental near Disney and it is operated by a management company. We are listed on all the booking sites plus the management company site and a local site for direct owner bookings. I can tell you that a lot of people pay the VRBO/AirBnB add on fees.

We charge a $110 cleaning fee regardless of length of stay. Linens and towels included and laundered by the cleaning crew. If I upped my rent in order to not charge a cleaning fee, I would have to increase my rate by $25 per night (four night minimum). If I do that, then longer stays would be penalized because they would pay more then they would have otherwise.

BTW, $110 cleaning is for a 3 bed/ 3 bath TH with linens so I would say that $195 for a condo with no laundry is crazy
 
Our vrbo (8 bedrooms) is $1700 a night, over $1000 in taxes alone. This same house was $1200 a night last year booked before covid, now the prices are super high and everywhere is booked solid (my friend waited until April to book and could only manage to get 3 nights).
 
Are some (many?) vrbo owners rip-off artists?

I rented a condo for two weeks in August at the beach in Delaware and booked thru a real estate agency.

Two weeks rent at $2900 each=$5800
Booking fee. $75
In lieu of a security deposit I purchased a damage waiver for $50
Total cost. $5925

I browsed vrbo before booking and a similar two bedroom two bath unit in the same building was listed.

Two weeks rent at $2850 each=$5700

Then a line called “Owner’s Fees”. Clicking on it revealed:
Damage Waiver $65
Onsite Payment Method $75.62 ????????
Administrative Fee $165 ??????
Cleaning Fee $195
Optional Linen Rental $163.50
Total Owner’s Fees. $664.12

I have no idea what those two fees that I questioned mean. No explanation given,

Cleaning Fee- Giddouttahere. The cleaning fee is your cost of doing business. Either bury the cost in the rent or drop it. And $195 is way too high. Maybe $125 tops.

I can skip the linen rental. I’m bringing my own anyway.

Then there is the ridiculously high vrbo fee of $416. It appears their fees vary based on a percentage of the rent,

AND!!!!! On top of that, there is a sales tax of $342. Delaware doesn’t have sales tax. There is a “document fee” when you register a car, and a “lodging tax” that applies to hotels, motels, etc. I looked it up and for some quirky reason renting thru a real estate agent isn’t subject to the lodging tax but vrbo is.

Total cost from real estate agent=$5925
From vrbo=$6958.62. (Doesn’t include optional linen fee)

This was a bit of an extreme example. Many other owners had lower cleaning fees and lower or no unexplained administrative fees.

But still, the vrbo service fee is a ripoff.
I don't understand the issue. The rental on VRBO is more expensive. OK, so? Don't like it? Don't rent it.

We've used VRBO once and I was satisfied with it. But yes, you need to do your due diligence and see what the total cost is.

ETA: Yes, I think some owners are trying to milk every last dollar they can, but doesn't every business? Either they get buyers at that price or they don't. If they don't, they'll lower it.
 
There was a thing on Twitter a couple of weeks ago where people were sharing similar AirBnB issues.

I've started looking at local property management companies where they still may charge fees but not the exorbitant fees VRBO and AirBnB charge.
 
BTW, $110 cleaning is for a 3 bed/ 3 bath TH with linens so I would say that $195 for a condo with no laundry is crazy

The condo unit itself has a stacked W/D.

I’m not adverse to bringing and washing my own linens. I’ve always done do before. None of the places I’ve ever rented included sheets, towels, dish towels, etc. About 10 years ago I rented linens from a third party vendor who dropped them off and picked them up. Nothing was wrong with that service but I’d rather bring my own.

Bedspreads and blankets are included.

I pay my cleaning service $115 per week for a 3 bed/ 2 1/2 bath house, so $195 seemed outrageous for a condo, even at beach prices.
 
I was just on the VRBO and AirBNB websites yesterday and also noticed these extra fees. My family has rented cabins in Pigeon Forge/Gatlinberg twice before using VRBO and I do not recall seeing all those extra fees on there in the past. I also thought the cleaning fee was pretty high.
 
VRBO was bought out a few years ago by Expedia. They added a lot of additional fees. Most of the fees you listed don't go to the owner. They go to VRBO. The owner doesn't have any control over it.

I used to list with VRBO. Luckily, I got out of the business just before those fees hit. It wasn't profitable then and it was certainly going to be unprofitable after the changes.
 
The condo unit itself has a stacked W/D.

I’m not adverse to bringing and washing my own linens. I’ve always done do before. None of the places I’ve ever rented included sheets, towels, dish towels, etc. About 10 years ago I rented linens from a third party vendor who dropped them off and picked them up. Nothing was wrong with that service but I’d rather bring my own.

Bedspreads and blankets are included.

I pay my cleaning service $115 per week for a 3 bed/ 2 1/2 bath house, so $195 seemed outrageous for a condo, even at beach prices.

Agreed. That's why I pointed out that my guests only pay $110 and that includes washing the bedding and towels. $195 for cleaning a condo and no linens is crazy.
 
I also don't understand what the problem is. Know someone who rents their place on VRBO and they have been very happy with the results. VRBO also coordinates billing and communications between the parties, so the owner stays anonymous. Have seen TV ads run by VRBO which helps to generate more traffic on their website and clearly there is a cost to do that. Part of the fees you pay are to have your place listed on their website and reach a larger potential audience. Before the internet days, your choices were either to list places in the newspaper or in a brochure from a local real estate agent. I think most people understand those things cost money and it isn't free to do that. If the owner lives hundreds of miles away, obviously they need someone locally to do cleaning and laundry between renters. Clearly, when renting any vacation property, you should check prices with other available places. What is/isn't included may vary and the age/condition of beach properties can vary widely.

If you feel someplace is overpriced on VRBO, you can simply look for other listings and rent elsewhere. Having hundreds of places on their site makes price comparison fairly simple. If one particular place is out of line with other similar properties, people won't rent there.
 
I also don't understand what the problem is. Know someone who rents their place on VRBO and they have been very happy with the results. VRBO also coordinates billing and communications between the parties, so the owner stays anonymous. Have seen TV ads run by VRBO which helps to generate more traffic on their website and clearly there is a cost to do that. Part of the fees you pay are to have your place listed on their website and reach a larger potential audience. Before the internet days, your choices were either to list places in the newspaper or in a brochure from a local real estate agent. I think most people understand those things cost money and it isn't free to do that. If the owner lives hundreds of miles away, obviously they need someone locally to do cleaning and laundry between renters. Clearly, when renting any vacation property, you should check prices with other available places. What is/isn't included may vary and the age/condition of beach properties can vary widely.

If you feel someplace is overpriced on VRBO, you can simply look for other listings and rent elsewhere. Having hundreds of places on their site makes price comparison fairly simple. If one particular place is out of line with other similar properties, people won't rent there.
We’ve always been able to contact the owners directly on vacation, like when the refrigerator freezer broke.
 
VRBO was bought out a few years ago by Expedia. They added a lot of additional fees. Most of the fees you listed don't go to the owner. They go to VRBO. The owner doesn't have any control over it.

I used to list with VRBO. Luckily, I got out of the business just before those fees hit. It wasn't profitable then and it was certainly going to be unprofitable after the changes.

This! ^^ VRBO collects a lot of fees and the owner doesn't see that money (except for the ones that the owner tacks on). I need to rent for a certain amount to break even. I can't figure VRBO fees into what I need to make so any fees that VRBO makes are on top of my best rate. But if someone rents directly from an owner (or management company) they will pay the nightly rate and a few booking fees but not all the VRBO fees.
 
I just sold my Ocean City, Md beach condo (owned and rented before the internet was a thing). We used a vacation rental company to handle bookings and they did tack on a few miscellaneous fees.

We only did weekly rental and the cleaning was built into the rent so guests never saw it. We did offer the damage waiver in lieu of a security deposit but that was a guest option. You had to bring your own linens and towels or rent them.

We just purchased a short term rental near Disney and it is operated by a management company. We are listed on all the booking sites plus the management company site and a local site for direct owner bookings. I can tell you that a lot of people pay the VRBO/AirBnB add on fees.

We charge a $110 cleaning fee regardless of length of stay. Linens and towels included and laundered by the cleaning crew. If I upped my rent in order to not charge a cleaning fee, I would have to increase my rate by $25 per night (four night minimum). If I do that, then longer stays would be penalized because they would pay more then they would have otherwise.

BTW, $110 cleaning is for a 3 bed/ 3 bath TH with linens so I would say that $195 for a condo with no laundry is crazy
My inlaws used to own a condo at Bradley on the Bay and another one up near the park where the Christmas display is every year. They got out of the business years ago because the costs for them could not be met with the price they had to charge to keep them filled. I was bummed because we stayed at Bradley a few times when a lot of family was visiting a couple times and we loved it.
 
















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