Airbnb Moves Property Managers to a Single-Fee Payment System: What Landlords and Tenants Need to Know in 2025

Airbnb’s Shift to a Single-Fee Payment Structure: What’s Changing?

Big news hit the short-term rental world this October. Airbnb is rolling out a major change to how payments and fees work for property managers. Starting October 27, 2025, property managers will switch from a “split-fee” approach to a required single-fee system. Instead of breaking service charges between the host and guest, Airbnb will bundle the platform fee so that only property managers pay and guests see a clear final price.

This update matters for landlords, tenants, and anyone managing rentals. For cities where short-term renting continues to boom, like so many urban hubs and popular vacation spots, transparency around pricing makes a difference. Whether you’re listing a studio in the city center or seeking a hassle-free stay, knowing what you’ll pay—or what you’ll earn—is more important than ever.

How Airbnb Service Fees Worked Until Now

For years, Airbnb spread its service fees across both hosts (the people listing a space) and guests (the people booking it). Industry data suggests about 95% of hosts have used what’s called the “split-fee” model. Under this system, guests typically saw a 14.1% to 16.5% service fee tacked onto their total, while hosts were charged a modest 3% fee on every booking.

Here’s what it looked like in practice: if a property rented for $100 a night, the guest’s receipt would show $115 (reflecting a $15 service charge paid to Airbnb). The host, out of that original $100, would end up with $97 after their 3% fee. For guests, the final price at checkout felt less than straightforward.

What the New Single-Fee Model Means

The single-fee model swaps out the old split structure for something more streamlined—at least from a guest’s point of view. Property managers will now pay a 15.5% fee directly to Airbnb. And guests? They’ll only see one clear price when booking, with no additional service fee displayed at checkout.

• If a manager wants to keep their net earnings steady, they’ll likely need to increase their nightly rate. For example, the $100 listing from before would be bumped up to $115 to cover Airbnb’s new share.
• The guest sees $115 and pays that amount—no hidden service fees or surprises once they’re ready to book.
• After Airbnb deducts the 15.5%, the property manager still nets around $97, matching their earnings under the split-fee structure.

What Happens If Property Managers Don’t Raise Rates?

Let’s say a property manager decides to keep prices the same—maybe to attract more budget-conscious travelers. Under the new system, if a listing stays at $100 a night, Airbnb’s 15.5% cut means the manager only brings home about $85. That’s a notable dip compared to the $97 they’d pocketed before.

It poses a choice: adjust rates to maintain income, or try to stand out with lower prices to capture more bookings.

Can Individual Hosts Opt In?

This mandatory change targets property managers, typically those using management software to handle multiple listings. But if individual hosts (who usually manage one or two properties themselves) want to make things simpler for guests, they do have the option to switch to the single-fee approach. It’s not required, but for some, the draw of price transparency could be appealing—especially in competitive local markets.

Will Hosts Lose Visibility If They Stick With the Old Model?

There’s understandable concern among hosts about how this shift might affect bookings. Airbnb’s search algorithm, however, is designed to showcase listings based on total price—regardless of how fees are split behind the scenes. Since guests don’t see the breakdown until the final step, a single-fee model won’t hide or lower your property’s search ranking. In fact, listings that don’t add an extra service fee at booking may even stand out in search results for travelers who prefer everything rolled into one price.

What’s the Reason Behind Airbnb’s Update?

Airbnb describes this as a move toward greater pricing clarity, promising a more straightforward experience for both hosts and guests. According to the company, feedback revealed that the existing fee structure often confused travelers and created frustration. By giving property managers full control over the price shown at booking (before taxes), Airbnb’s hoping to make it easier for everyone to budget, compare, and book stays.

“We’ve heard from both guests and hosts that Airbnb’s pricing can be complex so we’re simplifying our service fee structure to help make pricing clearer and more transparent for guests while giving hosts full control over the final price displayed and paid by guests, before taxes,” explained one Airbnb spokesperson.

Host and Industry Reactions: Concerns and Opportunities

Not everyone sees this update as an unequivocal win. A number of hosts and industry advocates have pointed out that although guests now get more clarity, property managers might feel squeezed—especially if they don’t want to risk raising their prices and losing out to individual hosts or other platforms.

One property management software owner noted on LinkedIn that this marks a shift away from a “host-first” approach, observing that Airbnb appears to be prioritizing guests and large-scale managers. At the same time, revenue experts, such as John An, warn that smaller hosts who don’t use advanced management systems could be left at a disadvantage, with their listings potentially perceived as less valuable by travelers searching for deals.

Meanwhile, industry veterans point out strategic consequences. HomeAway co-founder Carl Shepherd remarked that the fee change pulls back the curtain on the full cost of booking. For years, some hosts saw Airbnb’s 3% host fee as just a credit card charge—a minor expense. But now, the true cost of listing with Airbnb becomes harder to ignore, possibly prompting competitors like Booking.com or Vrbo to reconsider their own pricing structures.

“Booking and Expedia can raise their rate 3% because they now are under the total cost of a booking on Airbnb,” Shepherd observed. He also suggested that these changes signal a deeper identity shift for Airbnb—from a community-driven service toward a pure tech platform, potentially straining the sense of “community” that drew many hosts in the first place.

Former Interhome CEO Simon Lehmann added that giving property managers and individual hosts different fee options might confuse travelers, who’ll sometimes see a service fee and sometimes not, depending on the listing. This could erode trust just as new regulations around short-term rentals are on the horizon.

How This Might Change the Local Rental Scene

For landlords and property managers navigating the busy rental markets of 2025, keeping up with how platforms like Airbnb handle fees could impact both short-term and long-term decisions. Will some managers move to raise prices to offset new costs, or will they absorb the loss to stay competitive? Will tenants favor listings with a clear, single price, even if nightly rates appear higher up front?

Don’t be surprised if competitors adjust rates in the coming months, as major vacation rental marketplaces respond to Airbnb’s shift. In popular neighborhoods where guests are already price-sensitive, even small changes to how costs are shown can sway a leasing decision or change the makeup of the rental community. It’s another reminder that transparency and communication matter—whether you’re handing over keys for the weekend or managing an extensive rental portfolio.

What Landlords and Tenants Should Watch For

Property managers will likely monitor their margins and be prepared to tweak prices. Individual hosts who want to remain competitive will have to decide whether to opt into the single-fee option. Tenants booking through Airbnb should expect to see simpler, more transparent pricing by late October, which could make comparison shopping a little easier.

Curious how all these fee structures stack up? Airbnb’s official guidelines and independent breakdowns can help landlords and tenants alike make sense of every dollar spent or earned. For property managers relying on streamlined processes, adapting quickly will be key to both keeping units booked and renters happy throughout this transition.

Looking Ahead: Adapting and Thriving in a Changing Market

Fee structures and payment models might not be the flashiest topic in rental real estate, but these changes have real financial impact on local communities. Successful landlords and tenants understand the value of transparent pricing, quick communication, and keeping up with the way technology shapes everyday rental life. Whether you’re experimenting with new platforms or seeking the right mix of affordability and convenience, staying flexible is always a smart move—especially as the rules of the game keep evolving in 2025.