Fees

[Jenna509]

As a guest I feel I should not have to pay a very expensive host fee? Like prices fees and taxes aren't high enough? 

[Shelley159]

Hi @Jenna509 

Could you explain a bit more what you mean by a guest paying a host fee? Perhaps a screenshot so we can see what you're referring to.

[Jenna509]

The past few times have went to book a rental  i have had to decline and just stay in a hotel instead  because the host is adding an additional fivehundred dollar host fee . I don't feel that as a guest I should have to pay for a host fee because the homeowner doesn't want to.  In addition to the usual taxes and service fees this puts me over budget.  I'm a traveling contractor and I travel for work not so lately it's becoming more difficult to find affordable and clean rentals.

[Shelley159]

@Jenna509 

It sounds like the cleaning fee, which is a per-booking fee that hosts can add to recover the cost of changing guests.

The cleaning fee makes a lot of sense, as it is charged only at the end of a booking (when most costs are incurred) instead of every night. It makes longer stays more affordable and better matches the host's income and expenses. 

As a guest you're interested in the total cost for your chosen number of nights, so it's best to turn on the "total price" slider - it makes it quick & easy to compare total cost right on the search page:

[Jenna509]

Nope it's says host fee in addition to cleaning fee services fee and taxes taxes . I know that using the platform to list your rental  is not free of charge  but it's not fair that the guest should pay for those fees in addition.  I need to book a rental a few weeks from now and the next time I get hit with a host fee I'll screenshot it and post it .

[Helen3]

Hello @Jenna509 

you never have to pay to host fee that is paid by hosts ....

. It is likely you are seeing 

1) the guest fee you pay Airbnb 

2) there may also be a cleaning fee

3) there may be local area fees 

[Elaine701]

@Helen3 

This is a good example of why I switched to the "simplified" commission system.

In the past, I paid 3% and 15% was charged to the guest. In the "simplified" model, I pay 15% and the guest pays nothing.

I just raised prices by 15%, and now the guest doesn't get hit with what they perceive as a "hidden extra" (although they're paying nearly the same in the end anyway). 

[Helen3]

That doesn't work for me because it would increase my taxable income by 15%.

in the UK guests see the total price when they search so it's not really an issue as they can comparable the total price for listings in an area. @Elaine701 

[Elaine701]

@Helen3 

Well that doesn't seem fair. 

Here in Spain, we're taxed on actual earnings (gross income minus expenses and fees) rather than the the gross income. 

In our case, we also invest most of it back into the house, so there's also tax deductions for that -- mostly amortized, but it still keeps the tax bill low. Yet it also increases the value of the property at the same time. In my view, it's just good investment strategy. 

Anyway, I don't know if this is the "extra charge" that @Jenna509 is experiencing, but I can say that guests don't like what they perceive as "surprise" extra fees, especially if it's a large number.  

Although our "price" may be as high or higher than those who charge extra for this, that, and the other thing as separate "fees", we find most guests find our "single-price-no-extras" model rather refreshing, and seem to be happy to book it. 

Perhaps it's not the price itself, but the appearance of straightforward and uncomplicated (?). 

Anyway, sorry to hear about the tax thing. That's not really fair.

[Helen3]

It's because on the rent a room scheme you can earn up to £7500 before you get taxed on the income @Elaine701 so by paying the guest fee you will reach this limit more quickly .

[Elaine701]

@Helen3 

From what you describe , it appears you're not being taxed on yourearnings, but the full amount the guest is paying (which isn't what you earn).

Your earnings would be what the guest pays minus 15% commission that Airbnb takes off the top. That's what they actually pay you. It's what you earn.

You don't earn the commission, Airbnb does (and they pay tax on it!) You never get paid that commission. You can prove it in your bank statement.

Your earnings are the same either way. It's what you get paid, not what the guest pays. 

...minus any other expenses of course, like laundry, cleaning, supplies, repairs, et al. After all that, this is what you actually earn. And should be counted toward your tax threshold. 

So it shouldn't get you to the magic 7500 earnings any faster. Unless of course you're also paying tax on Airbnb commissions that you never receive... as they also pay tax on. Double taxation?

[Kia272]

@Helen3  How does it increase your taxable income by 15%? The fees are deductible, and would then reduce your taxable income by 15%. Net= the same. 

@Elaine701  I also switched to the simplified system and raised my rates. I think guests prefer this, as it's more straightforward as to total pricing. 

[Helen3]

Because as I said in my earlier response -it's about the tax free amount you can earn  through the UK rent a room scheme . You will reach the cap quicker if you cover the guest fee . @Kia272 

[Kia272]

@Helen3  I still don't get it. It comes off the top- you never see it in your deposits. 

Your net should be the same. I'd take a look at the wording and regulations surrounding the tax-free limit for room letting. Your deposits are your earnings. 

As @Elaine701 said it's likely based on your earnings. 

[Shelley159]

Yes @Elaine701 for a guest the total cost is the  important thing to compare - as you say it's sometimes just made up differently. This fee sounds like it's not the Airbmb service fee though, as @Jenna509 says it's another line item in addition to the service fee? Could be one of these:

Best to select "Display Total Price" to compare.