Airbnb takes a commission for every booking your listing has. However how much of a cut depends slightly.
What fee do Airbnb hosts Pay?
Airbnb says it takes 3% of the hosting fee plus VAT (in the UK 20%) so If you charge £100 per night then the hosting fee will be £3.30. See here for more details on Airbnb help section.
note – Airbnb will round up it’s figures so if your hosting fee is £6.60 this will be rounded up to £7.
Airbnb guest fees
The guest also pays a fee of 6-12% of the total price called the guest service fee. Which listing pay 6% and which pay 12% you ask? I am not sure and to my knowledge Airbnb has not revealed this information. Most of the listings I have checked hover around the 14% mark the lowest I have seen was 8% and that was on a shared room for £10 a night.
Airbnb payments via Paypal
Airbnb will pay you your hosting money the day after the guest checks in. There are several methods of payment to choose from however the main two are via Paypal or Direct credit into a bank account. What’s important here is the time it takes for the money to reach you. If your getting paid by direct credit into your account then this can take up to 5 working days (occasionally longer in my experience) however Paypal takes only a couple of hours if not instantly. You can then transfer into your bank account and have the money in a couple more hours after that.
There are two major reasons why you might want to choose Paypal instead of Direct credit into your bank account. The first being the time it takes (Paypal can take only a couple of hours versus 5 days or more for direct credit). The second could be tax planning. You might want to consider that Airbnb is a US company and will be collecting its revenue in US dollars. It will then need to convert that money to GBP to pay you.