News about the co-hosting split payout feature

[Airbnb]

We recently shared that as of August 1, 2018 we’ll no longer offer the co-hosting split payout feature. Many of you use and appreciate this feature, and we understand that this change has implications for the way that you do business as hosts. It’s always our intention to improve your experience in any way we can, and we’re sorry for the inconvenience this change will pose for you. We’d like to give you some background on why we’re making it and offer some alternatives for paying your co-hosts.

It’s important to note that we are not removing co-hosting. We’re invested in helping you succeed, and co-hosting overall has been a valuable tool for many of you. So why are we removing the split payout feature? When we added the ability to pay co-hosts through this special feature, the number of co-hosts was rather small and we built a system that handled the volume well. But in order for this feature to meet the needs of a much larger community of hosts and work seamlessly with Airbnb’s evolving platform, we would need to completely rebuild the feature so that it grows with your needs and meets our internal reliability standards. We’re not building a feature to replace this one yet, but we know it’s important to certain hosts and co-hosts and will continue to evaluate ways we can improve and grow the co-hosting program.

The good news is we’re exploring the best way to introduce a new and improved feature. We can’t give you a date yet, but will keep you informed. In the meantime, you can still pay co-hosts through the Airbnb platform by changing your Payout Preferences to split your payment with your co-host. To do this, with your co-host’s permission, enter their payout information in your Payout Preferences tab, and set the percentage you would like to share. If your co-host is not comfortable sharing their account details or ever withdraws their authorization, you can pay them outside of Airbnb through secure online payment apps, bank deposits, cash, or checks.

We sincerely apologize for the inconvenience, and we’re grateful for each and every one of you who host and co-host—and support local businesses while you’re at it! We look forward to building a feature that will be useful to you and better meet the needs of this growing community.

[Jeanette14]

I just received my 1099-K for the US, and the amount shown as Earnings from Airbnb is significantly higher than shown in my Transactions History.  Did the 1099-K Income include the amounts paid to my co-hosts that were funneled DIRECTLY AIRBNB TO THEM?  If so, thyey will be pulling their own Transactions History and doub;e-counting.  Also WHY should I be shown inclie on my 1099 that NEVER CAME TO ME?  That is, all the payouts to Co-hosts made directly by Airbnb to heir payout method should not be shown on my 1099.  Only the amounts paid to ME and then I paid to them.

I have been calling for over a week, and getting no where with Airbnb, despite this being escalated as a Problem with the 1099-K reporting by AIRBNB.  HELPP!!!!!

[Tivoli0]

Did they ever provide the reason they ended the Co Host program and payment feature?

[James1033]

 Not only have they not given an answer they are basically ignoring all the messages/complaints on this forum. 

Ive become very disappointed in AirBnB over this issue. They seem to think if they stonewall or ignore this it will go away. Wrong!

[Christopher657]

The link " split your payment" is not working. Where can I find this info?

If I as a host have two different accommodations, can I have a co-host on only one of these payments?

I dont want to be paying taxes on money that I dont get..

[Jeff158]

@Christopher657 

You add the co-hosts account details to payout preferences and then choose the option to split payments to them through routing rules

[Lisa723]

@Christopher657 the very point of this thread is that @Airbnb  discontinued support for direct payments to co-hosts, to the consternation of many. You can add their bank account information as suggested by @Jeff158 (if they are comfortable giving it to you) but the income is still attributed to you. I can't comment on Swedish tax policy. In the US we have to send the co-host a form 1099 at the end of the year reporting the income transferred from us to them.

[Cynthia-And-Joe1]

I am new at having a co-host for my property.  Do I pay them myself then?  Split payment does 'not' happen via airbnb?

[Matt291]

Depends on what your arrangement is. If you split payment through Airbnb it includes the cleaning fee. So if you pay them 20% for co-hosting and you have a $100/night reservation plus $50 cleaning fee, Airbnb payouts will pay them 20% on the $150 not the $100. 

I collect all the rents from all properties I manage, then at the end of the month I pay the owners out. 

Just depends, I have a few owners that just pay me out through Venmo per reservation. 

[Angie686]

Hi Matt I am new to Airbnb. I need to know for tax purposes if you usually collect all the rents from all the clients how do you pay the owners out? Is it from Airbnb platform? And does Airbnb split form 1099- 20/25% to you and 80% to the owner? I have paypal method Thanks

Angie

[Matt291]

All payments from airbnb are collected by me. I then will send the owners the payout at the end of the month minus any commissions or other fees (Spa, plow, handyman). At the end of the year I send them a 1099. Airbnb doesn’t split them so you have to keep your own records. 😕

[Carrie507]

You are extremely knowledgeable and helpful.  

To clarify, you count the net payout as rental income and then 1099 the owner for their 75% - so in your accounting software are you only inputting 25% of net as rental income?  Or inputting the entire net payout as rental income and the 75% as an expense?

[Liv1]

We too take in 100% payout and payout @ the end of the month.

Question - when you code your deposit - do you split your % @ the point

or

ALL the Reservation Accomodation Fare = Rental Income and you deduct your % as their Expense.

I miss the days when we had the option to split and choose where the clean fee went as well.

Thanks

[Matt291]

I take the CSV file from airbnb reporting and deduct the cleaning fees from the amount gross, then use that as the rental amount I use to charge my commission. I charge my commission on the net rent after airbnb takes their 3% out. Not on the gross. So if someone pays $100 rent then we get paid $97 for the rent by airbnb. We charge commission on the $97. 
Let me know if you have more questions. 

[Ed222]

Matt,

What are your fees for your different services you provide in Big Bear?

Ed

[Matt291]

Full management service is 25% of the nightly rate. I charge a cleaning fee based on the size of the house and that goes to the cleaning crew on top of the 25% but you don't pay me commission on that cleaning fee. 

I provide professional photography of the house

List the house on Airbnb and my website

Check in guest

Communicate with guest

Handle all complaints

Call outs

Look for damages and charge guest accordingly

Supply sheets, pillow cases, towels, wash clothes and hand towels

Provide all the essentials for guest like toilet paper, paper towels, trash bags, hand soap, shampoo

These are the main services but not all I do to assist you with making your vacation home a successful rental. 

Best,
Matt 

www.doormatvr.com