Airbnb is implementing a new fee policy for all U.S. hosts starting September 15, replacing the old system where hosts paid a 3% service fee and guests paid a separate 14.1% to 16.5% service fee. Under the updated structure, hosts will pay a single 15.5% service fee, with no additional guest fees at checkout. This change aims to offer clearer upfront pricing for guests, but it has frustrated many hosts, some of whom are considering leaving the platform or switching to long-term rentals. Early data from last year’s rollout showed about 30% of hosts raised prices enough to fully offset the increased fee, while another 30% partially adjusted prices.

Several hosts interviewed by CNBC expressed mixed reactions to the new policy. Chris Dickey, a host from Wyoming managing a rental in Utah, appreciates the transparency of the 15.5% fee but has noted a slowdown in bookings as pricing adjusts in the market. Airbnb believes that clearer guest pricing could boost demand and ultimately benefit hosts, but running a short-term rental remains a challenging business full of operational demands including managing pricing, guest relations, maintenance, and compliance with local regulations. Sébastien Long, CEO of Lodgeur, calls short-term rental hosting a “serious undertaking” that requires significant effort and is not a passive way to earn income.

Those considering entering the short-term rental market are advised to carefully evaluate several factors that influence success. Hosts need to navigate changes in booking platform policies, monitor local demand and competition, manage fluctuating operating costs like cleaning and maintenance, and stay compliant with local regulations. For example, New York City’s recent regulations restrict short-term rentals of entire homes for stays under 30 days, impacting potential hosts. Selecting locations with established tourism and stable regulatory environments can help mitigate risks, as can ongoing market research and dynamic pricing strategies.

Operating a short-term rental also involves substantial expenses beyond platform fees, including cleaning, utilities, and insurance. Hosts should budget carefully and keep emergency funds for unexpected repairs. While charging cleaning fees to guests can offset some costs, Airbnb recommends hosts avoid excessive fees that could deter bookings. Overall, experts stress that short-term rental hosting requires active and consistent management, and those seeking passive income may want to consider other investment avenues. Prospective hosts should prepare for the demanding nature of hospitality and assess whether they are ready for the continuous effort it entails.