Chapter 12

What is Airbnb Host Payment and How Does It Work?

There are different Airbnb fees and ways that hosts are able to receive payment on Airbnb depending on not only their preference but also yours. When you wish to receive payment in only a certain way, you have to disclose it before the guest tries to make their payment. You can even provide them with a number of ways that they’re able to cash out, depending on their preference. This allows them to have the flexibility to choose which payout method is the best for you and your guests.

Disclaimer: Lodgify is an Airbnb Preferred Software Partner. This guide, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.

If you’re a Lodgify customer and want to connect via API with Airbnb, please get in touch with our customer support team. For more information: Connect Lodgify to Airbnb

When Do Airbnb Hosts Get Paid?

Guests are charged the total amount when they reserve accommodation on Airbnb. Once the guests have checked in, hosts typically get paid 1-2 days after their arrival. If guests are staying in the rental for more than 28 nights, the hosts get paid monthly.

If a host is new to Airbnb and receives their first reservation, Airbnb may take 30 days to pay the host.

Hosts on Airbnb can keep track of their payout status by having a look at their transaction history to see what payments are pending and received.

Types of Airbnb Payment Methods

Hosts are able to accept a number of methods of payment. Though each method depends on where they’re located, providing the guest with a number to choose from is ideal. Most of the Airbnb payment methods are accepted in many countries across the globe, so they should not be something that you should be worried about.

All of the accepted forms of payment for your listings include:

  •  Direct Deposit
  •  PayPal
  •  Western Union
  •  International Wire
  •  Payoneer
  •  AIS Debit Card

How Does Airbnb Pay Hosts?

Airbnb host payment options provide the host with a way to choose the right payment options that work with their needs or wants. The host actually receives the payment depending on which method they have chosen for their listing.

The Airbnb host payment method is entirely up to the host to choose what works for them. You can choose from the handful of options provided, just like the person booking the rental is able to do the same when paying for it.

  • If you want to change/add/remove a payout preference to your account, this can be done easily and effectively by going to Your Account and going to the Payout Preferences option.
  • Click on the Add Payout Method option and then complete the information that they ask of you depending on the payout method that you choose to go with. It can take up to three business days for Airbnb to confirm the account by sending $0.01 to it. Once this is done, you can then use that payout method for all of the listings that are booked and paid for on your account.

It is possible to have more than one payout method if you so choose. This way, you can bounce between the two if you want. Simply choose the one you want to use as your default method for payout on the account settings. You can even have the choice to set the payout method to a specific bank account on each of the listings.

You can do this under the Future Transactions settings section. Another interesting feature you can set up regarding payments is the convenient Airbnb security deposit, which will have you covered in case of damages to your property.

Keep in mind that Airbnb also will collect the necessary taxes, which are based on the area that you’re doing business in. This will ensure that you get the required amount for the rental that you are advertising, especially if you’re unsure of the tax rate for your area, as this will need adjusting in the final payment from the guest.

There is a processing time depending on the payment method. Bank transfer or international wire transfers can take from 3 – 7 business days, whereas Paypal, Western Union and Payoneer prepaid debit cards usually take the standard one business day.

If guests check in on the weekend or during a holiday, there may be delays as some banks do not transfer during this time period. For example, if a guest checks in between Friday and Sunday, the payment may not arrive until the following week.

How does the Airbnb co-host payment work?

If you’re finding that the amount of work needed to run your Airbnb is too overwhelming, you can always consider hiring a co-host. What this job details is up to you, but the co-host payments work all the same.

For the amount of work a typical co-host will take on, be it check-out inspections or key exchange, the rate is about 10-30% of the average daily rate, not including the cleaning fee or additional charges. 

How to split payment with a co-host on Airbnb

Paying your Airbnb co-hosts is easy. Just as you would add your payout method as an individual host, you can opt for split-payment under the “routing rules” option inside your payment method dropdown. From here, you’ll need the bank details of your co-host so they can receive the payments accordingly. If your co-host isn’t comfortable sharing their bank details, you can collect the full payment and split the payment outside of the Airbnb platform.

What is Host Early Pay?

When you enable Host Early Pay on your account, the account will take payments for the rentals that you list on the platform. Then, within 48 hours of confirmation of the booking, they will release them to the host. Airbnb will send the payout amount to the chosen payout account within 1 to 3 days from obtaining the payment from the guest. Keep in mind that a convenience Host Early Pay fee is added to the amount that Airbnb will payout.

One thing to keep in mind with Host Early Pay is that cancelations still stand based on the cancelation conditions of your listing. Additionally, this is only available to listings in the US and valid between 14 and 90 days before the guests’ scheduled check-in time. Any strict reservations, co-hosted reservations, those using Western Union payout methods and long-term rentals are not eligible for Early Pay.

Airbnb hosts are able to choose the method or methods that suit them the best to receive the payments for all of their bookings. Hosts can easily adjust their payment preferences to suit their individual needs. This also ensures that those who want to book properties can do so with their own method of payment, and you can receive that payment in your own method. Everyone is happy when booking or advertising properties on Airbnb’s website.

Common Airbnb host payment problems and how to resolve them

Millions upon millions of payments are collected, divided, and distributed every day on the Airbnb platform. With that said, sometimes problems arise in how to effectively manage Airbnb host payments. Fortunately, many of these problems that hosts face are shared, meaning that there are numerous solutions and workarounds to help you get your payout issues resolved.

Missing Airbnb payments

Hosting can be rewarding and fun, but at the end of the day, the purpose is to get paid. Missing Airbnb host payments can be frustrating, but don’t stress yet! Airbnb has an excellent tracking system, with every reservation and cancellation filed, so a missing payment can be more of a nuisance than anything, but still a nuisance nonetheless. 

If you haven’t selected Host Early Pay, then your payout is due within 24 hours, as stated earlier. Some hosts don’t receive their payment until after the 24-hour period and preemptively assume they’re dealing with a missing payment. Now that’s where it can be a bit tricky. The 24-hour mark is a little more complicated than it seems. If you have multiple properties and you have guests checking in on the same day at different times, Airbnb will make the payment from the final check-in time in a lump sum. Also, if you have long-stay guests, you will be paid at the end of the month. It might not be a missing payment, so much as a delay.

Even so, if your payment has yet to arrive after at least 24 hours, you can always get in touch with an Airbnb representative. Sometimes there may be an inconsistency in the payout system, so it’s best to contact Airbnb directly to smooth this out.

Switching payments

If you change banks or just decide to update your payout method, you’ll need to coordinate in the Airbnb platform. Most of the time, this is done seamlessly and the changed payment is reflected in the immediate next payout; however, this isn’t always the case. One of the biggest mistakes that can happen is that hosts add a payment option instead of changing the payment altogether. This can cause problems if the old payment method isn’t active or accessible anymore. To avoid this, make sure you remove your old payment method from the payments dashboard to eliminate receiving the payment here.