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.

[Stacy59]

Dear Norman 

How are you handling the cleaning fee problem. What is the solution?

As an owner, any tips on solutions you have found??

All information you have found fair and helpful, much appreciated.

Thanks, Maree and Stacy (New co-hosts) in AZ

[Juan116]

I'm just waiting for VRBO or Booking.com implement the co-host payment system. 
Will move my +30 properties (+30 on waitlist) when that happens.  And I know I'm not the only one.
Really bad decition Airbnb. 

[Shary1]

I am also extremely dissapointed in this rushed decision to back out of split payments. Being a host who is not involved in the day to day operations, I rely on my cohost to take care of everything- cleaning process/payments/communication/etc and I do not have the time to start over with how this payment process is going to work. The idea of a cohost was a very appealing hook by Airbnb to get me to list my home (despite my lack of time to run things) and now I'm stuck dealing with the consequences of reconfiguring how to handle paying my cohost their percentage and the cleaning fees. If this feature does not return, I'm 100% taking my home to a new platform.

[Stacy59]

Dear Shary, 

How are you handling the cleaning fee problem. What is the solution?

As an owner, any tips on solutions you have found??

Thanks, Maree and Stacy (New co-hosts) in AZ

[Tom530]

This is a seriously horrible decision on AirBnB's part. The co-hosting split payment system has made it easy for me to compensate my co-host without extra paperwork hassle. Now, I'll be having pay my bookkeeper to cut checks, do a bunch of extra paperwork and issue 1099's etc. 

In addition to complaining to airbnb support, I also sent a complaint directly to the COO of AirBnB using my LinkedIn account. Other who are members might want to do the same:

https://www.linkedin.com/in/johnsonbelinda/

Tom Sharples

Changes to your co-hosting payout system

Hello Belinda, In addition to running my surveillance biz I am an AirBnB host with one active property and about to add another. I've been quite happy with the results and in particular have valued your built-in ability to set up co-hosts with automated payout of net proceeds. Needless to say, I was quite upset to hear that you are cancelling your co-hosting payout system. It's working well for both my co-host and me, and it saves us the extra time and trouble of invoicing and my bookkeeper having to review the invoices, issue checks and 1099's, etc all of which costs us extra time and money. Since you already have a working system, why kill it off now? I just don't get it. I implore you - please don't fix what isn't broken! Regards, Tom Sharples

[Stacy59]

Dear Tom, 

How are you handling the cleaning fee problem. What is the solution?

As an owner, any tips on solutions you have found??

Thanks, Maree and Stacy (New co-hosts) in AZ

[Luca86]

The ¨find a co-host¨ marketplace was one of the best new features for Airbnb! I have used it and I was hoping it would get bigger and bigger.
It´s so hard sometimes to find someone who can help and within airbnb it´s much easier, cause people here are already host!

The payment splitting is also a big loss, I guess they are removing it because of the load of users calling airbnb to understand unclear payments, well, so make them more clear, but don´t remove the feature please.

[Stacy59]

Dear Luca, 

How are you handling the cleaning fee problem. What is the solution?

As an owner, any tips on solutions you have found??

Thanks, Maree and Stacy (New co-hosts) in AZ

[Pablo361]

Like Tom: I implore you - please don't fix what isn't broken! We don't like the decision.

[Matt291]

You give us the co-hosting option and even a marketplace for owners to find co-host. People work hard to keep up their co-hosted properties and maintain superhost status. You now take away the co-hosting payment splitting which kills the program. That’s what makes the program work. 

Noticed you are now charging $50 cancellation fees and automatically taking away superhost status when you cancel one guest who your system with “smart pricing” practically gave the property away. 

You give a new host with 10 reviews the ability and all the same benefits as a superhost with over 1200 reviews. 

Seems like you’re taking some giant steps backwards in how you’re proceeding. 

I urge you to reconsider taking away the split payment options we have all grown accustom to using. 

[Christa-and-Matt0]

I am in a very similar situation. I manage anywhere from 8 -12 homes on Airbnb, all as a co-host. I have found a workaround....you may add your banking info to the 'host' account (if they allow you) and add a 'routing option' below, to set your % commission rate. This will take care of the payments. This will NOT take care of the cleaning fee. Rather, you will now be compensated the % total that you set of the entire listing, with the cleaning fee NOT separated out. I plan on invoicing my clients at month end for all cleaning fees, OR have the host pay the cleaner directly. This is a big issue for me as I often have 3-5 big cleans per week costing $150 - $250 PER clean that I will now be out of pocket and chasing hosts for reimbursal. 

What I am confused about (and no one at airbnb can explain), is that we know this change is effective August 1. Is this only effective for new reservations? Meaning, will I still be paid as a co-host the old way for existing reservations? Or, now that I've set a routing option, will I be double paid for reservations after August 1? No one can tell me. 

If anyone has a workaround, or solution to this or ideas on what is actually happening as of August 1st, please let me know!!!!!!

[Stacy59]

Dear Christa & Matt, 

How are you handling the cleaning fee problem. What is the solution?

As an owner, any tips on solutions you have found??

Thanks, Maree and Stacy (New co-hosts) in AZ

[Matt291]

Hi Stacy,

So what I started doing is just sending all payouts to my business account. I am the admin on most of the listings, if I am added as a co-host, I’ll have that host put my bank account information in the payout. I will keep 100% of the money Airbnb pays out in my business account. I will then pay my cleaners every 1st for cleans from previous month 15th-31st and every 15th for cleans 1st-14th. This keeps me from going insane trying to pay for 20 properties cleanings after each clean. 

At the end of each month is when I payout owners their percentage of the rents. I built an excel spreadsheet and have to download the transaction history from Airbnb, then I can copy and paste into my excel, which will formulate the payouts to the owners. I normally use Zelle to auto deposit the funds into their accounts. It is a lot more work and frankly annoying to do but Airbnb left me no choice. 

Hope this helps. 

[Cindy232]

I am surprised that Airbnb Corporate has not thought this through. I have an Airbnb and manage 2 of my neighbors vacation homes who live out of state.  If not for Airbnb none of these would be available.  I not only manage the properties but I clean and maintain them. At the end of the month when the payment process no longer becomes seamless, Airbnb could easily loose business. If Airbnb is making so much money that they don’t care how this

effects their Co-Hosting customers, then they should have the money and resources to fix it.  Don’t make poor excuses. Your SuperHosts already feel like they are fighting a battle in their neighborhoods, where all short term rental fall under the heading of Airbnb have a bad stigma. We don’t have the time or energy to fight the negative neighbors and Airbnb, who has promises to support us but now will not. 

[Stay-Asheville0]

The reason they removed this feature (but they won't admit to it) is because there was a series of gltiches in their payout system that people were taking advantage of... when they did their recent payout update (you can tell because the transaction history looks totally different now) it's stopped splitting the co hosting payout or cleaning fees the same way as it did before, so for me it created an accounting nightmare.

Of course when I emailed my special support person at Airbnb they didn't understand the issue... despite me sending clear evidence.  I think they were aware of the payout issues with co hosts and just removed the feature instead of fixing the problem.