Airbnb’s New Single-Fee Policy: What Denver Short-Term Rental Owners Need to Know
How Airbnb’s New Single-Fee System Impacts Property Managers
As autumn settles over the Front Range in 2025, Denver’s short-term rental scene faces its own wave of change. Airbnb—often the go-to for both travelers and hosts across Denver and the foothills—has announced a shift that could reshape how properties are priced and managed: the upcoming move to a mandatory single-fee payment system for property managers. If you’ve ever wondered what these behind-the-scenes adjustments could mean for your income, guest experience, and the local rental market, you’re not alone. Let’s look at what’s changing, how it connects to renting in Colorado, and what both owners and managers should consider now.
Breaking Down Airbnb’s Fee Structure: The Old vs. the New
Until now, Airbnb’s payment model has been divided between hosts and guests—a split setup many Denver hosts know well. Typically, a host collects a base nightly rate and pays Airbnb around 3% of that income, while guests are charged a separate service fee of about 15% when they book.
Here’s how it played out in practical terms: say you list a LoHi condo at $100 per night. Your guest ends up paying $115 thanks to the Airbnb service fee added during checkout. After Airbnb takes its host cut, you’d likely receive $97 from that reservation. It’s a structure property managers and owners have gotten used to throughout neighborhoods like Capitol Hill and up into Evergreen, but all that’s about to change.
What Is the New Single-Fee System?
Starting October 27, 2025, Airbnb will require property managers to use a new “single-fee” model for all listings managed on behalf of owners. Instead of sharing service fees between hosts and guests, property managers now pay a flat 15.5% fee to Airbnb on every reservation. Guests won’t see an added service charge—just a single, all-in price.
So, what does this look like in action? If a property manager wants to net the same $97 on a $100 nightly rate as before, the rate will now need to be set around $115 per night. Airbnb will deduct its larger fee, while the guest’s experience at checkout becomes simpler and, from the outside, potentially less intimidating since no service charge is tacked on at booking. For travelers choosing a place near City Park or Golden, the sticker price is clearer, but hosts must rethink their pricing strategy.
How Will Denver Property Owners & Managers Adjust Pricing?
This change requires property managers in Denver—and owners working through them—to reconsider what nightly rate to publish. It’s a pivotal moment: keep rates where they are and accept the smaller payout, or increase prices to preserve profits, knowing that Denver guests may directly compare what’s included in each rate.
Take this simple scenario. If a manager sticks with a $100 nightly rate but pays the new 15.5% fee, their payout slides to $84.50—a notable dip from what’s become standard. The only way to maintain earnings is by boosting the nightly rate. For owners invested in Denver’s active rental market, particularly in competitive neighborhoods or during busy seasons, recalculating rates smartly is key to staying visible to travelers searching by price range.
Property managers who hesitate to raise nightly rates risk lowering their take-home pay—especially in a market as dynamic as Denver’s.
Transparency and the Guest Experience: The Shift’s Double Edge
Airbnb’s reasoning centers on transparency. Guests often cite confusion over surprise service fees at checkout. The company aims to keep things straightforward, promising that whoever browses a Park Hill bungalow gets a simple, upfront final price—nothing hidden. While this approach could make listings more attractive at first glance, especially to out-of-town visitors searching for Colorado stays, owners must balance that appeal with the need to cover their own costs.
The change gives managers more control over displayed prices, but it also increases responsibility for competitive rate-setting. Every dollar counts, and the new model prompts a fresh look at seasonal pricing, special events, and occupancy trends unique to Denver’s neighborhoods.
What About Individual Hosts?
One important note: this mandatory switch applies to property managers, not individual hosts. Casual owners who manage single properties themselves—think someone renting a secondary suite in Lakewood—can stick with the old, split-fee program. Yet, some suggest guests might choose single-fee properties over those with visible added costs, simply because the pricing appears more transparent or less complicated.
Some individual hosts who want to compete for direct bookings may voluntarily move to the single-fee system. If they do, they’ll face the same math: to take home the same earnings, base rates need to increase to offset the larger percentage going to Airbnb. Of course, whether or not this trade-off pays off depends a lot on how sensitive guests are to nightly prices and service fees.
Will Search Rankings or Booking Visibility Be Affected?
There has been some understandable anxiety about whether switching to the new fee system could hurt listing visibility in Airbnb’s search rankings—a particular worry for local property owners who depend on strong placement during prime travel weekends, like fall festivals or big events at Red Rocks. Yet, data from AirDNA and insights shared by Airbnb themselves reinforce that search ranking calculations focus on the total price (including all fees), not which fee model an owner uses.
Since guests see the full cost in their search results, properties will continue to compete on that visible number. A well-priced, professionally managed Denver rental still draws strong visibility, especially if the guest perceives value and transparency. Owners should keep an eye on how competitors adjust their strategies so their listing stands out for all the right reasons.
Reactions Across the Rental Community
Not every host feels the new policy benefits everyone equally. On platforms like LinkedIn, some host advocates and software providers have shared concerns. Many argue that this system leans in favor of property management companies and guests, perhaps at the expense of small, independent hosts who don’t use a professional management system.
Some experts worry that the overhaul nudges Airbnb away from its original community-driven identity and that trust between hosts, guests, and the platform will be tested. The reality is, Denver’s short-term rental market—powered by a mix of independent owners and larger manager portfolios—will need to adapt and see how guests respond to shifted pricing in an environment filled with both transparency and new competition.
How This Change Compares with Other Platforms
It’s not just Airbnb considering a shake-up. Other major listing sites like Booking.com and Vrbo currently include credit card processing in their fees, and pricing can be all over the map depending on the host’s approach. There’s even speculation that competitors may raise their own service rates in response to Airbnb’s adjustment, trying to stay under Airbnb’s total cost to guests. This may influence Denver owners who list on multiple booking sites to review their overall fee structures and decide where best to focus their marketing for higher returns.
Clear professional standards like these can make a busy market more navigable for both owners and guests, but they don’t erase the need for careful pricing and smart management.
What Should Denver Owners and Managers Do Next?
With this new system just around the corner, here’s what property owners and managers in Denver should consider right now:
- Review your property’s occupancy history, nightly rates, and guest feedback from previous seasons
- Experiment with rates ahead of October 27 to see where bookings hold steady and where pushback starts
- Compare prices and service fees across multiple platforms (Airbnb, Vrbo, Booking.com) to maximize your revenue opportunities
- Pay close attention to how competitors in your area react—especially those managing multiple properties in the hills or the heart of Denver
Change can be unsettling but also brings opportunity, especially for owners ready to adapt. By understanding how fees flow, keeping up with guest expectations, and leaning into local expertise, Denver’s property managers and owners can continue to thrive, offering visitors the best possible Rocky Mountain stays, no matter how Airbnb adjusts the numbers behind the scenes.