- 23 April, 2019
- Payouts and taxes, Short term rental
What are the basic short-term rental taxes in Bulgaria? Well, depending on whether you receive your income as a natural person or…
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Whether we are a guest or a host, we pay airbnb fees and commissions when we use theirs or any other paltform of that kind. The platforms meet the guest and the host. Basically, they guarantee the rights and obligations of both parties. They make sure the guest actually pays and that he treats the property well. And also guarantee that the guest will have a place to stay and that this place will fit the description.
The host pays 3% to Airbnb. It may vary depending on location, booking cancellation policies and other factors. Airbnb will deduct all fees automatically from the total of each booking. The host should not do anything to pay his fees to the platform.
When you are a guest you pay between 0% and 20% to Airbnb. Again the criteria are different – how many days is the stay, how much is the total amount of the reservation, the characteristics of the listing. In general, when the total amount grows the commission rate should decrease. The visitor sees how much he will pay to the platform before making the reservation.
Depending on the location of the rental property the Booking fee is different. In the most general case, it is 15%. When you become a well-recognized host by the platform you will get an offer to start paying 18% against becoming more visible to potential guests. Personally, I was unable to detect a difference in the number of reservations I get when I was paying 15% or 18% commission. Depending on how your payments are set Booking will deduct the commission automatically or you will have to pay it once a month by bank.
Booking.com promotes that they do not take a commission from the guest, as some of their competitors. This turns out to be a good marketing trick. Many guests are proud of their choice of a platform – they are protected, and they pay nothing for that!
In fact, things are as follows. Each host chooses their price per night. Then depending on the platform, he adds all the commissions to the price to form the price per night for that particular platform. In short, the guest always pays everything regardless of how the platform is presenting it.
The only thing the guest is interested in when booking is what the total says before making the payment. I do not think it matters, where and how every platform adds the charges. The only inconvenience is that you have to complete all the steps before you pay to be able to see what the total price is so you can compare. For additional questions, please contact me.
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