Occupancy Tax + Convention Fee

Ruth933
Level 2
San Diego, CA

Occupancy Tax + Convention Fee

Hi - I am a traveler and would appreciate someone helping me decipher this below before I go direct to my host - a private homeowner, not a hotel. These two points are stated in the listing:  

 

1) "[LISTING COUNTY, US] requires that we collect a $5 per night Convention Center fee which is billed when you book." I appreciate hotels charge this, but Airbnb can too? 

 

2) "If you instant Book airbnb will charge the occupancy tax at 14%."  I did not instant book (it's not an option), I only 'reserved'.  Also, this city is not in one of the Airbnb jurisdictions. So, am I still required to pay? Do I conclude the owner calculates this manually? If so, how does that work and how am I to know that this is really what I'm paying for - that these taxes are actually being paid from 100% of the money from my booking?

 

On top of that fee, I am being charged a 14% service fee and what I believe to be an exorbitant cleaning fee ($400). All told, my fees add 30% to the total spend - crazy!

 

Lastly, is it common to have to sign an extensive rental agreement  (7 pages) and include your drivers license information? This is a beautiful (and expensive) home, but I've never had to sign a separate agreement for any of my bookings. This is in addition to a $2000 security deposit. 

 

Appreciate the insight, thank you.

11 Replies 11
Mike-And-Jane0
Level 10
England, United Kingdom

@Ruth933 I can't answer most of your questions but the 14% service fee from Airbnb is pretty industry standard - some STR sites just blend it into the nightly rate. The $400 cleaning fee sounds a lot but it may just be that the host is wanting to make longer says more cost effective per night than shorter stays. 

 

At the end of the day it is the total price that needs to be compared to alternatives that you find in the area. If that is a good deal then who cares if its $1 per night and a $2000 cleaning fee. 

Kelly149
Level 10
Austin, TX

@Ruth933 if you came to my backyard Barn you would sign a separate agreement and show your ID, you would also pay a cleaning fee & yes, ABBs are subject to all the same taxes as hotels. The host also gets none of that service fee and they don't know or control what it will be. Either the stay is of worth to you in total or it isn't, but yes, all those fees sound very normal and in line with I would expect in many places.

Anna9170
Level 10
Lloret de Mar, Spain

@Mike-And-Jane0  I agree with you that if a good deal and the amount TOTAL suits me, then what difference does it make?😎
But it's not that simple )). In our city there are such amazing options, when the price per night is 15 euros, and cleaning 60 euros. And if I were a guest, I would not book such an option, because it is not normal. 😆
It's another thing that I'm in this business, and I understand the reason for such idiotic pricing, but this is another thing.

thank  you!

Thank you!

Emilia42
Level 10
Orono, ME

@Ruth933 

The occupancy tax should be worked into the billing. There should be a separate line item for Occupancy Tax which the host has no control over. Airbnb collects this and gives it to the State. (This is how it works in most US towns/cities at least.)

Instant book is the same thing as "reserve." It is a term used to describe an automatic confirmation without having to wait for the host to respond. 

Thank you @Emilia42 . So, even though my booking is not in the list of Airbnb jurisdictions, I am still required to pay an occupancy tax? Thanks for the additional clarification. All new fees since my last/2019 Airbnb booking, so just trying to understand it all.

 

https://www.airbnb.com/help/article/2315/occupancy-tax-collection-and-remittance-by-airbnb-in-nevada

 

@Ruth933 

Yes, you still have to pay taxes where applicable. 

Pat271
Level 10
Greenville, SC

All seems above-board to me.

1) Airbnb collects occupancy taxes for some states and countries, and not for others.  If taxes are not being collected and remitted by Airbnb, there is a way to add them using a host tools add-on. I do this for one of my properties. I see no problem with this, and you do owe occupancy taxes, just like in a hotel. Check the jurisdiction (or just check a hotel in the area) to see if the correct occupancy tax is being charged.  Instant Book vs. booking request should have nothing to do with this, it might just be an awkward sentence.

 

Here is a (hopefully up-to-date) list of taxes that Airbnb collects and remits directly to respective governments.  Note that there might be additional local taxes that the host needs to collect separately.

 

https://www.airbnb.com/help/article/2509/in-what-areas-is-occupancy-tax-collection-and-remittance-by...

 

2) A $400 cleaning fee seems reasonable if the place is big, beautiful, and expensive as you say, especially in these “new normal” days of Covid where extra disinfecting is required.  It also depends on the locale. If you think it seems excessive, you can compare with similar properties on Airbnb in your locale and price range.

 

3) The Airbnb fee is what it is.  Everyone pays 10-15%. No discrimination there.

 

4) I approve of a separate rental agreement being signed.  What guests can do and have done to Airbnb properties is truly shocking.  A rental agreement shows a very diligent host who loves and cares about his/her property. If the terms in the rental agreement seem reasonable, don’t take it personally.  If not...perhaps a property with looser rules would make you feel more comfortable.

 

To a certain extent, host/guest relationships are built on trust from both ends;  On the host’s end to be truthful about what they provide and what the guest should expect, and on the guest’s end to respect the property and abide by House Rules. IMO, you shouldn’t book this property if you are not feeling the trust.

@Pat271 Many thanks for this input - very helpful. I am booking the house and looking forward to my stay. 

Ruth933
Level 2
San Diego, CA

Many thanks everyone!