Airbnb shifts all fees to property owners

Photo: Mginjuryfirm.com

Starting in late October 2025, Airbnb introduced a new 15.5% host-only service fee, removing all guest charges and shifting the entire commission burden to property owners. Under this model, U.S. hosts’ net income could drop by around 13% unless they raise prices, reports Rental Scale-Up. Taxation rules, however, remain unchanged.

Previously, Airbnb used a split-fee model: about 3% charged to hosts and 14–16% to guests. Now, the full 15.5% fee is deducted solely from the host’s payout, while the guest sees a single final price without extra service charges. If rates stay the same, hosts will receive roughly 13% less per booking.



This structural change has raised concerns among U.S. landlords about possible tax implications. Although Airbnb statements now display the full booking amount (before fees), U.S. taxation is based on profit, not gross revenue. The Airbnb service fee qualifies as a deductible business expense, meaning actual tax liability remains unchanged.



Some effects may vary across individual states and cities. Certain jurisdictions in the U.S. apply gross receipts or commercial activity taxes rather than profit-based taxes, meaning total payable amounts may rise slightly. These include Nevada, Ohio, Washington, Delaware, and Oregon, as well as cities such as Los Angeles, San Francisco, and Philadelphia. Yet even in these cases, increases are minimal—fractions of a percent—and have little impact on overall rental profitability.



Lodging and occupancy taxes collected by Airbnb on behalf of hosts also remain unchanged. They are calculated from the total amount paid by the guest, not the host’s revenue. If hosts adjust their prices upward, the taxes collected rise proportionally, but this does not affect hosts’ profits or obligations since these sums bypass their income statements.

Analysts advise property owners and PMS managers to recalibrate their pricing systems to maintain income levels. Rates should increase from 3.06% to 18.34%, and additional fees (cleaning, pets, extra guests) should be multiplied by 1.1834 (equivalent to an 18.34% hike). Airbnb’s commission should continue to be recorded as an operating expense for tax purposes.

Under the 15.5% host-only model, guest prices rise by roughly 14.8% if hosts adjust to preserve previous earnings. Thus, bookings become about 15% more expensive for guests, but the increase replaces the now-removed separate Airbnb service fee. The total price paid by the guest remains almost unchanged—only the payment structure has shifted: previously, part of the fee went directly to Airbnb, now it’s embedded in the nightly rate.



According to Beyond Pricing, this adjustment will be most noticeable for hosts in the U.S. and Latin America, while European markets—where host-only fee models have long been standard—will see only minor differences. The switch changes not just payment flow but also host–platform dynamics. Removing guest fees makes prices more transparent: users now see a single total upfront, which analysts believe will improve booking conversion rates and simplify the selection process.

With this change, Airbnb aligns its business model with competitors like Booking.com and VRBO, which already charge hosts exclusively. This harmonization makes price comparisons across platforms easier and levels the playing field. However, for hosts and property managers, it means higher operational costs and the need to decide whether to pass them on to guests or absorb them as lower profit margins.

The unified fee model encourages hosts to reassess platform value, focus more on direct bookings, and optimize pricing strategies. While technical adjustments in PMS integrations may occur, tools like Beyond’s dynamic pricing algorithms will continue functioning normally.

Airbnb rentals in Podgorica: moderate returns and seasonal fluctuations

The portal Mashvisor writes that experienced multi-platform hosts were not surprised by the changes. Still, many express concerns about new refund and partial-payment policies, fearing further profit reduction. Some property owners may even reconsider participating in short-term rentals: for low-margin listings, this commission shift could be critical. As a result, the market may become less stable—some will raise prices, others may exit entirely. In this environment, data-driven decision-making will determine who succeeds.