Vacation Rentals by Owner, better known as VRBO, is one of the most recognized platforms for booking and managing vacation rental properties worldwide. Founded in 1995 and now part of the Expedia Group, VRBO connects property owners with travelers seeking unique accommodations beyond the traditional hotel experience. Whether you’re a traveler looking for a dream vacation home or a property owner interested in listing your rental, understanding how VRBO works can help you maximize your experience.
What is VRBO?
VRBO is an online marketplace that specializes in short-term vacation rentals. It allows homeowners to list their properties—ranging from cozy cottages to luxury estates—so travelers can book them for vacations, business trips, or extended stays. Unlike Airbnb, which offers a variety of lodging options including private rooms, VRBO primarily focuses on entire homes, making it ideal for families and groups seeking more privacy.
How VRBO Works for Travelers
1. Searching for a Rental
Travelers can search VRBO by entering a destination, check-in and check-out dates, and the number of guests. Filters allow users to narrow down options by:
- Price range
- Property type (house, condo, villa, etc.)
- Amenities (pool, pet-friendly, beachfront, etc.)
- Guest reviews and ratings
The platform offers detailed property listings that include descriptions, photos, amenities, house rules, availability calendars, and pricing breakdowns.
2. Booking a Rental
Once travelers find a property they like, they have two options:
- Instant Booking: Book the property immediately without owner approval.
- Request to Book: Send a booking request that the property owner must approve.
Travelers typically pay a deposit or the full amount upfront, depending on the host’s policies. VRBO also charges a “service fee” (usually between 6% and 15%) to the traveler, covering customer support and platform operations.
3. Communicating with Hosts
VRBO provides a secure messaging system that allows travelers and hosts to communicate directly. This feature helps clarify details about the property, check-in instructions, and any special accommodations.
4. Check-In and Stay
Hosts often provide detailed check-in instructions via email or the VRBO platform. Some properties offer self-check-in options with keypads or lockboxes, while others may have personal meet-and-greet setups.
5. Leaving a Review
After their stay, travelers can leave a review based on their experience, which benefits future guests and helps maintain the platform’s reliability.
How VRBO Works for Property Owners
1. Creating a Listing
Homeowners or property managers can create a VRBO listing by providing:
- High-quality photos
- A detailed property description
- Pricing information
- Availability calendar
- House rules and policies
- Amenity lists
Creating an attractive, informative listing is crucial for standing out and securing bookings.
2. Pricing and Payment Options
Hosts can set their own nightly rates, cleaning fees, pet fees, and refundable security deposits. VRBO also offers dynamic pricing tools to help adjust rates based on market demand.
Owners have two payment model options:
- Subscription Model: Pay an annual fee (around $499) and keep 100% of rental income.
- Pay-Per-Booking Model: Pay a commission (around 8% per booking) without an upfront fee.
3. Managing Bookings
VRBO offers tools for:
- Managing calendars
- Sending booking confirmations
- Accepting payments securely
- Handling cancellations and refunds
- Communicating with guests
Many property owners integrate VRBO with channel managers if they list on multiple platforms.
4. Handling Guest Expectations
Delivering excellent guest experiences leads to positive reviews, better search rankings, and more bookings. VRBO encourages owners to maintain high standards for communication, cleanliness, and overall hospitality.
5. Payment Processing
VRBO handles payment processing for hosts, typically releasing funds about one business day after the guest’s check-in.
Fees and Costs Associated with VRBO
- Traveler Service Fee: 6% to 15% of the booking subtotal.
- Host Fees: Either an annual subscription or a pay-per-booking commission.
- Additional Fees: Credit card processing fees, optional add-ons (e.g., damage protection insurance).
VRBO’s Policies and Protections
1. Cancellation Policies
Hosts choose their own cancellation policies, ranging from “no refunds” to “flexible” (full refund up to a certain number of days before check-in). VRBO displays these policies clearly in each listing.
2. Book with Confidence Guarantee
VRBO offers a “Book with Confidence Guarantee,” providing protections for travelers in case of fraud, misrepresentation, or last-minute cancellations.
3. Liability Insurance
Eligible properties may be covered under VRBO’s $1 million liability insurance program, giving homeowners additional peace of mind.
Tips for Travelers on VRBO
- Book Early: Especially in high-demand areas and during peak seasons.
- Read Reviews Carefully: Learn from other travelers’ experiences.
- Clarify Details: Communicate directly with the host to confirm amenities and house rules.
- Purchase Travel Insurance: Protect against unexpected trip cancellations or interruptions.
Tips for Hosts on VRBO
- Professional Photography: High-quality images significantly boost bookings.
- Prompt Communication: Respond quickly to inquiries and booking requests.
- Flexible Policies: Offering flexible cancellation or pet-friendly options can attract more guests.
- Competitive Pricing: Regularly review competitors’ pricing to stay competitive.
- Continuous Updates: Keep your listing updated with new photos, descriptions, and amenities.
VRBO vs. Other Platforms
- Airbnb: Broader variety (private rooms to entire homes) and a younger, experience-driven audience.
- Booking.com: Focuses more on hotels but includes vacation rentals.
- Expedia: More integrated now that VRBO is part of the Expedia Group.
VRBO is ideal for whole-home rentals and tends to attract families, groups, and longer-stay travelers.
Conclusion
Whether you’re looking for the perfect vacation spot or you want to rent out your home, VRBO offers a robust platform designed to connect travelers with unique properties around the world. Understanding how VRBO works—from search and booking to listing management and guest communication—is essential for maximizing your success and satisfaction on the platform.
At Haustay, we ensure your property gets maximum exposure by distributing your listing across multiple vacation rental platforms and promoting it through targeted email campaigns that reach over 7,000 travelers. In addition to featuring all our properties on haustay.com, we list them on popular platforms like Airbnb, Hopper, Key.co, Lively, Booking.com, VRBO, and HomeAway.
With the right strategy, both travelers and hosts can enjoy smooth, rewarding experiences on VRBO, making it a go-to choice for vacation rentals worldwide.
