Real estate investment has been on the rise and property owners are exploring new ways to earn money from their investments. One of the options is to rent out your property as a vacation rental, either through Airbnb or VRBO. They are online platforms that enable property owners to list their properties for short term vacation rentals. While they offer similar services, there are notable differences between them. In this blog post, we will look at the pros and cons of both platforms and help you decide which one suits your needs best.
Airbnb
Airbnb is a popular platform that dominates the vacation rental industry. It has a user-friendly interface that makes it easy for property owners to list their properties. It offers a range of features that enhance the rental experience for guests and owners alike. One of the unique features of Airbnb is the personalized experience it offers guests. They can connect with the host before and during their stay, which enhances their rental experience. Also, Airbnb offers a robust review system which helps property owners to build a good reputation over time. However, the downside is that Airbnb charges a 3% commission on each booking.
VRBO
VRBO (Vacation Rental By Owner) is a product of the global giant Expedia. It is a platform that is more suited for established property managers and vacation rental companies. The interface is a bit more complex than Airbnb, but it has more advanced features that cater to the needs of professional property managers. One of the standout features of VRBO is that it only charges a flat fee for each listing, which offers property owners better margins. Unlike Airbnb, VRBO does not offer a review system, which could be a disadvantage for new rental property owners trying to build a reputation.
Revenue potential
Both platforms have high earning potential, but the actual revenue earned varies depending on the location, the type of property, the season, and the local market. According to industry reports, Airbnb generates higher revenue than VRBO. On average, property owners earn 35% more on Airbnb than on VRBO. However, it is important to note that VRBO is ideal for long-term rental, while Airbnb leans towards short term rentals.
Listing fees and commissions
Both platforms have different charges and commissions for property owners. Airbnb charges a 3% commission for each booking made, while VRBO offers a flat fee per listing. However, VRBO also charges a 5% commission per booking on their booking platform. As for the guests, Airbnb offers more transparency in their pricing, while VRBO has some hidden fees like cleaning fees and service fees that can add up to the total booking fee.
Customer support
Airbnb has a reputation for responding swiftly to client complaints and issues. They offer round-the-clock support through their online chat system and phone calls. However, VRBO’s customer support has room for improvement, as many users report slow response times and difficulty in getting issues resolved. This could be attributed to the fact that VRBO is a much larger platform, catering to professional property managers, hence the volume of support requests is larger.
Conclusion
In conclusion, both Airbnb and VRBO are excellent platforms for real estate investors seeking to earn passive income from vacation rentals. They offer different features, pricing structures, and benefits. Ultimately, the decision between the two depends on your needs and preference as a property owner. If you’re just starting, have a unique property, or would like to earn more, Airbnb would be ideal. However, if you already have an established property management system in place and are targeting long-term rentals, VRBO would be a better fit.
Finding the perfect tenant who treats your property like their own might be challenging. However, you do not need to worry about this matter becauseLamar G Property on Ushas your back. We will find the best tenants who will care for your property. We care for your property like our own. Let us manage your property and we assure you that you will never hear any complaints from your tenants. It will help you build your trust in the market among the potential tenants. Additionally, you can trust us with your financial matters because we keep record of every operation so that you can check them whenever you want. So, contact us today and leave all the property matters to us. We will take care of everything.
Property investing Real estate investing Short term rentals
