Pricing

It depends how badly you want to encourage travelers to book direct on Houfy. Keep in mind, one of the major reasons travelers are drawn to direct book is to bypass the high rates and fees charged on the other platforms.

Many hosts keep rates the same across all platforms: Airbnb, Vrbo, and Houfy. They prefer their most attractive rates to be on Houfy. And since they have to pay Airbnb and Vrbo 3%, they consider the 3% to Stripe or Square the cost of doing business. Not to mention, they get paid sooner when a traveler books on Houfy.

Here are some reasons why hosts choose to have the most attractive rates on Houfy:

1. Airbnb can refund guests on day of arrival, even after holding the calendar for months. Some hosts consider this policy too risky.
2. They prefer guests recommend Houfy to friends and family versus their Airbnb listing. When travelers book on Airbnb, it gives Airbnb even more leverage than they already have.
3. Airbnb bookings tend to be time-consuming. Navigating the red tape and dealing with runarounds is something they want to avoid if possible.
4. Airbnb is not host-friendly when it comes to allowing hosts to get signed rental agreements or ID. On Houfy, they can easily do this.
5. Hosts with pet-free listings worry about guests bringing emotional support cats.

Many hosts refuse to open their prime calendar weeks on Airbnb. Instead, they only list their shoulder weeks or off season dates. And they increase rates by at least 10%, just to make up for the hassles of Airbnb policies.

Here is one way some hosts reduce credit card costs:

Allow a small reservation deposit by credit card. Require the balance by check. The traveler won't worry about losing dates, and your calendar won't be blocked while waiting for payment to be made.

Checks need time to clear so this works best for properties that book at least 45 days in advance. Here is how to set this up on Houfy:

1. Go to Manage Listings > Settings > Payment & Policies.
2. Describe your policy in the Payment Policy section and note when the check payment is due. If you allow the balance to be paid by credit card (if the guest pays the fees), note this as well.
3. Select your reservation deposit amount. This can be a fixed $ amount, or a percentage of the total booking, such as 15%.
4. Set the final payment due date.
5. Update your rental agreement to reflect any changes. Consider reiterating the check payment in the cancellation policy and house rules as well.

The more places noted, the less chance your policies will be overlooked. If the person just left Airbnb, your Houfy listing might only be skimmed. Note: Always check your state's laws before charging consumers credit card fees. Some states make it illegal.

If you do want to charge more on Houfy, I highly suggest not charging a separate percentage fee, but increase your rates instead. Remember, the host still pays the credit card fee even if it's a separate line item. It's just semantics to say the guest pays it. The only time the guest pays the fee is when they have a choice to choose a lesser rate.

You can charge extra fees on your Houfy listing: Menu > Manage Listings > Edit > Pricing > Rates and Fees.

This will likely depend on your market, minimum night stay, and housekeeper's availability. Below are some common scenarios of when hosts might use changeover dates. 

Scenario 1

In your market it's customary for travelers to book week-long stays. Let's say your minimum night stay is 7 days, and you don't specify a "check-in changeover day." Guests may book: Wednesday to Wednesday, Thursday to Thursday, Sunday to Sunday, and so on.

Now you have 1, 2, 3, 4, 5, and 6 day calendar gaps. 

You can sell off the gap dates–or to avoid them altogether, select a check-in/check-out changeover day. The most common changeover days are Friday, Saturday, Sunday, and Monday. Guests depart in the morning, with new ones checking in that afternoon. 

Scenario 2

Let's say you want two sets of week-long reservations over the Christmas/New Years holidays: One group will stay for a min. of 7 nights over Christmas, and another for 7 nights over New Year's.

Sometimes travelers will book 9 nights: checking in on Christmas Eve, and checking out on January 2nd.

To prevent this, you can create a calendar season called "Christmas;" then adjust the check-in/check-out changeover days and number of minimum/maximum night stays. 

Scenario 3

During the off-season, only weekends usually book and your min. night stay is 2 nights. Friday and Saturday are priced much higher than the rest of the week, and you'd like to keep those two days together.

To prevent a traveler from taking only Thursday/Friday OR only Saturday/Sunday, do not allow check-in/check-out on Saturdays.

Please select pricing at edit listing and select or remove the checkmarks..

There are several ways to add additional fees:

1. One-time flat fee
2. Percentage fee
3. Per night fee
4. Per person fee
5. Optional fee

Please read these tutorials for adding pet fees and additional guest fees.

1. Click on top right arrow to display Drop-down Menu>Manage Listings>Edit>Pricing>Rates & Fees.
2. Scroll down and click Add a Fee. Complete information and click Save.

Mandatory fees such as cleaning will be included in the total. Travelers can check the box to include any optional fees, and total will be adjusted.

How to Add Additional Guest Fees

If you charge extra above a certain number of guests staying at your property, you can easily add a per night, per guest fee to your listing.

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Where Do I Update Pet Fees and Pet Requirements?

Guests love to bring their furry friends on vacation with them. If you have a pet-friendly property, let guests know if you have any specific pet requirements. There are tow pricing options to choose from: Pet fee per night, or a flat "Per stay"...

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I added my prices using seasons. We normally have people coming for a week (although we can be flexible on some weeks), seven night stay, so I added the prices this way. I am not showing up on bookdirect map unless I add seven nights as search dates and Sunday to Sunday. I would say this is not ideal, as perhaps people do not know my dates run from Sunday to Sunday. Is there some way around this...

Try removing the changeover day. (Changeover days require the guests to check in and check out on a specific day) - You can keep your 7 night minimum stay. This means you will only show on search results when guests look without dates or with 7+ night stays.

You can add any fees you want to your Houfy listing:

Menu > Manage Listings > Edit > Pricing > Rates and Fees

The reason people are drawn to booking directly on Houfy is to bypass all the fees on the platform, consider including the fee in your nightly fee.

Calendar pricing removes the need to edit the beginning/end dates of each season. By using calendar pricing, you can leave the seasonal rates alone, and just override any rates/minimum night stays.

Once your calendar starts to fill, rates/min. night stays might need to be adjusted. (It's common for owners to lift minimum night restrictions, as to minimize 1-2 night calendar gaps). To do this, you can:

1. Edit each season's beginning/end dates and/or rates.

OR

2. Override the seasonal rates with calendar pricing.

When editing one season's start/end dates, often the preceding/subsequent seasons will need to be adjusted as well. This can be time-consuming if you don't use a channel manager or dynamic pricing software.

A general (not literal) view when comparing seasonal and calendar pricing is:

• Seasonal rates = set it and forget it
• Calendar rates = manual dynamic pricing

But most hosts use a combination of the two, as they tend to overlap.

For example, in the Outer Banks, Jersey Shore, and Cape Cod it's common to require weekly reservations only, with a weekly designated changeover date. If each week was created as a separate season, then the host just edits the rate of each season as supply/demand fluctuates.

But in markets where the minimum night stay varies: reservations may range from 1 to 14 nights, calendar pricing is probably more convenient.

How do I add calendar pricing?

1. Go to the calendar view in your dashboard: Manage listings > Calendar
2. Highligh the calendar dates that need to be edited
3. Adjust rates and minimum night stay in the left pop-up window.

You can also choose to display or hide the seasonal rates table on your listing's homepage.

How do I remove calendar pricing from my rates?

You can change the minimum night requirement at:

• Menu > Manage Listings > Edit > Pricing > Rates & Fees
• Menu > Manage Listings > Edit > Pricing > Seasons if you have any seasons
• Menu > Manage Listings > Edit > Calendar > Select dates and change the min. nights.

On Desktop/laptop:

• Navigate to Edit listing > Calendar
• Click on any date or the date you want to change the minimum stay(On mobile click "Set price")
• Change the dates as required.
• Set the price and minimum stay and click Save.

On Mobile/tablet:

• Right menu > Manage listings > Edit listing > Calendar
• Click on "Set Price"
• Change the dates if required, set price and minimum stay, and save.
  
  

Your place is set up to accommodate a certain number of guests, but maybe you’re OK with adding more if it brings in a little extra cash. Perhaps you’ve got an air mattress in the closet and a few extra essentials on hand—why not?

Change Maximum occupancy to maximum number of guest you can accomodate

Add an additional guests fee:

Edit listing > Pricing > Rates & fees

You can easily show or hide the security deposit on your listing by going to:

Menu > Manage Listings > edit > pricing

Scroll down to: security deposit > edit > Show or hide from your listing.

You can edit this setting at:

1. Log in
2. Menu (top right)
3. Manage Listings
4. Edit > Pricing > Rates & Fees
5. Scroll down to the securit deposit part and select show or hide.

1. Log in
2. Menu (top right)
3. Manage Listings
4. Edit > Pricing > Rates & Fees

Select the fee you want to remove. Click and remove.

There has been a lot of interest in how I use PayPal to do security deposit authorization holds. So I am posting the instructions on how to do that. Feel free to reach out with any questions or feedback!

They are automatically is lifted (no sending it back) when a claim isn't made within 29 days. My original post has more information about the benefits of doing this. Processing fees are only collected for the specific amount that you make a claim on. If you don't make a claim and the hold expires there are no processing fees!

How to Set Up a Security Deposit Credit Card Authorization
1. Set up a JotForm account. The free version is what I use
2. Set up a business PayPal (not sure if this works with PayPal Personal)
3. On JotForm press Create Form
4. Press Start From Scratch
5. Select Classic Form
6. On the left select Add Form Element. You will need the following elements:
a. iFrame embed (under widget tab)
b. Full Name
c. Short Text
d. Paragraph
e. Email
f. PayPal Standard (under payments tab) PayPal Commerce works as well but will show Standard as it might work with PayPal Personal but PayPal Commerce only is for PayPal Business
g. Unique ID (under widgets)
7. Go to Houfy and get the link for your photos iframe. You will find this under the photo section of your listing. Click Embed Photos and copy just the https link (where it says src= in quotes). Go back to JotForm and select your iframe. Select the wizard wand (widget settings). Paste this url into Frame URL. Select the gear (properties) and adjust width and height as desired. Drag it to be above your header so it functions as a banner
8. Select the Header and change the text from Form to Security Deposit. If you have named your place add it to the subheader
9. Select Full Name. Click on the gear (properties). Change question text to Booking Name. Optional – make it a required field
10. Select Short Text. Click on the gear (properties). Change question text to Houfy Confirmation #. Optional – make it a required field
11. Select paragraph. Click on the gear (properties). Change question text to include “This will put a 29 day authorization hold in the unlikely event that damages occur during you stay. Check-in instructions will be emailed to you when the hold is authorized” and any other information they need to convey
12. Select Email. Click on the gear (properties). Change the question text to What Email Should Invoice Be Sent To? Make this field required
13. Select Payment Standard. Click on the wizard wand (Payment Settings). Input your PayPal account email. Payment type should be Sell Products. Under Additional Gateway Settings:
a. Enable Users Can Select Multiple Products
b. Enable Show Total Price on the Form
c. Enable Authorization Only
d. Change Pending Payment Email to Notifiers and Autoresponders so both you and the guest get an email stating the payment didn’t go through
e. Press continue
14. You should be redirected to the products tab. Press create new product. Change name to “Security Deposit”. Change price to what you charge for a security deposit. Enable required so it’s automatically selected and cannot be removed. Press save product. If you charge additional deposits like for events or pets add them but do not make them required. But do add in the paragraph above that if they aren’t selected then the pet may not come or the event may not take place until rectified.
15. Optional – select the invoice tab and enable the invoice creation
16. Select Unique ID. Click the gear (properties). Under prefix input “# INV-“. Either select Sequential Numbers or Random Numbers depending on how you like to see invoice numbers.
17. Change from the Build portion of the form to Settings at the top
18. Change Title to Security Deposit
19. Select Emails
a. Click Notification 1 (the emails you will receive when a guest submits)
i. Edit email subject. From the drop down list select any of the fields you set up earlier to make it easier for you to identify the booking
ii. Under recipients. Change sender name to the guest name option or leave it as JotForm
b. Click Autoresponder 1 (the emails the guest will receive when submitting)
i. Edit Email subject as desired using drop down menus of the fields you added earlier to customize and/or by manually typing
ii. Delete the default email content. Change it to your custom welcome letter. Also include that an invoice (if you opted for this) and the check-in instructions are attached
iii. Under recipients. Change sender name to your name and/or your property Name
iv. Under advanced
1. Optional – enable the PDF attachment so the guest gets a copy of their submission
2. Upload your check-in instructions under Attach a File. Now the check-in information is automatically provided but only after everything is in order with the security deposit
3. Change sender email to your email so that guests can email you back with any questions. To do this you need to select add an email in the drop down menu. Under email type select verified. Then go to the bottom and add your email. Make sure to confirm the email address with the verification code
20. Select Thank You Page
i. You have two options to choose from
1. Show a Thank You page. You can edit and change what they provide to provide them with additional information and/or to remind them to check their email for the check-in instructions
2. Redirect to External Page. You can alternatively redirect them to your guidebooks on Houfy. Just input the link
21. Select Publish at the top. Edit your link using “security-deposit”. Now you and your guest can see what it’s for just by looking at the link. Press apply then copy the link for your records so you can easily send it as part of your “I’m so excited to host you next week you can get the check-in information by authorizing the security deposit at this link” message

1. Log in
2. Menu (top right)
3. Manage Listings
4. Edit > Pricing > Rates & Fees

Members with connected payments will have two options:

• Charge through Houfy
• Collected by Host.

Members who collect payment outside of Houfy will only have the Collected by Host option. You will invoice your guest directly the same way you invoice them to collect the rental rate/cleaning fee, etc.

Owners who have Square or Stripe connected will see this option.

Note: Only members who use the Charge through Houfy option will see "At Booking" in their drop down menu.

If you prefer to collect outside of these options, you can set up the damage deposit as a fee.

1. Manage Listings > Edit > Pricing > Rates & Fees
2. Enter the total percent amount in the Collect total tax of field.

Note: Do not use the Future tax rate change field unless entering a future tax rate increase. Ex: Beginning October 1st, your lodging tax rate will change from 12% to 13%.

Example: You receive a notice from your county, state, city, etc. that your lodging or occupancy tax rate will change from 12% to 13% on October 1st. As soon as you receive this notice, update your Houfy listing so that any new reservations made beginning this date will have the appropriate taxes collected.

But what about existing reservations that begin after the new tax change date? Owners typically handle this in one of two ways:

1. They include in their contract (that the guest already signed) that guest will be notified and is responsible for any subsequent increase in the occupancy tax.
2. The owner chooses to pay the difference out of his/her own pocket.

How Do I Add the Future Tax Rate?

1. Menu>Manage Listings>Edit>Pricing>Rates & Fees.
2. Check box next to Future tax rate change.
3. Enter future tax percent and select starting date.

1. Click top right arrow to display Drop-down Menu > Manage Listings > Edit > Pricing > Rates & Fees.
2. Enter the total percent amount in the Collect total tax of field.
   
   Note: Do not use the Future tax rate change field unless entering a future tax rate increase. Ex: Beginning October 1st, your lodging tax rate will change from 12% to 13%.

No. Houfy doesn't interfere between guest and host payment transactions. Square and Stripe are payment options integrated with Houfy. If you do connect a Square or Stripe account to your Houfy listing, the funds never touch Houfy's bank account.

Why do some listing platforms collect tax for me?

For the most part, tax collection and remittance by listing sites is because of their voluntary agreements with tax authorities. These are often created as a means of deterring restrictions/bans on short term rentals. In very few cases is a rental platform actually required to collect lodging tax for their hosts.

For example, you sometimes hear hosts complain that only the state tax (or another specific portion) is collected by the site, and they must collect the remaining local county/city taxes separately. This is because the state has agreed for their "portion" to be collected/remitted on behalf of the owner, but the local government has no such agreement.

You may still be required to register and file periodic returns.

When a listing site collects/remits lodging tax on your behalf, they generally do so in one lump sum, with zero identifying host information. Be sure to check your local laws to see if your jurisdiction requires individuals to file a return, regardless if a site collects/remits the taxes.

Even if a site collects tax on the original reservation, additional taxes may need to be collected later.

Let's say an Airbnb guest books and last minute wants to bring their pet, and you collect a $100 pet fee. If your state requires lodging tax on pet fees (such as North Carolina), then you need to make sure you have met all of your lodging tax obligations.

Airbnb sometimes suggests to collect these fees via the resolution center, especially if the reservation has ended and you no longer have the ability to "alter" it. Get it in writing from Airbnb if they state guest payments made to you via the resolution center are exempt from lodging tax.

It's important to thoroughly understand your local tax laws and what is required to be 100% compliant. Never assume a listing site is handling all of your lodging tax obligations. Be sure to register in all applicable jurisdictions, and learn the filing requirements for each one.

If you need any assistance, Avalara is an excellent resource and their site provides a wealth of information. These guys specialize in the collection and remittance of lodging taxes. They are happy to answer any questions, or handle your lodging taxes for you.

Do I charge lodging tax on the turnover clean fee?

Generally, yes. But not always. The answer will depend on your specific state and local laws. In only a few areas is the turnover clean fee considered to be a nontaxable charge. Even though the amount of the turnover clean fee is typically itemized...

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Where do I add lodging/TOT/guest occupancy tax?

Click top right arrow to display Drop-down Menu>Manage Listings>Edit>Pricing>Rates & Fees.

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Step by Step Guide to Add Your Houfy Listing

Listing your property for FREE on Houfy! - a marketplace where members book and connect directly, and pay no commissions nor booking fees. Here are a few reasons why you should join Houfy: Connect a Stripe or Square account on Houfy and receive payment right after booking. Houfy doesn't hold your $$$.

https://www.houfy.com

Generally, yes. But not always. The answer will depend on your specific state and local laws. In only a few areas is the clean fee considered to be a nontaxable charge. Even though the amount of the clean fee is typically itemized separately from the nightly rate–it's still considered part of the total reservation cost.

Get to know all of your lodging tax laws before opening your doors for business. And don't rely on short term rental platforms to inform you of your tax obligations! If the laws are not completely clear, be sure to gain clarification by calling or visiting your local tax office in person.

Even if a platform does collect and remit lodging tax, that doesn't apply to the payments guests often send hosts such as pet fees, additional guest fees, extra parking fees, additional nights, etc. You'll also want to be registered so repeat guests can book your property directly.

It's best to get set up with your state and city/county tax offices before accepting reservations. Otherwise your booking opportunities will be very limited. Not to mention, travelers are often put off if an owner can only do business through sites that charge them unnecessary service fees.

My tax advisor says clean fees are not taxable

This very well might be true. But triple check yourself just to be on the safe side. So, why do I suggest this? Because sometimes CPAs and tax advisors assume all services or labor are nontaxable, without checking any accommodation tax laws.

For example, let's say a computer shop sells both computers, as well as a service to set them up in customers' homes. The computer might be taxed at one sales tax rate, and the "service/labor" setup is considered nontaxable. A tax advisor not familiar with lodging tax, nor different types of sales tax, might assume all labor is nontaxable without ever looking up the applicable laws.

There is no shortage of owners who discovered years later they were incorrectly informed. Not only were they liable for back taxes, but for the penalties and late filing fees as well. Be sure your tax advisor verifies and shows you that the law applies to accommodations and not just general labor and services.

If you have any doubts at all about your lodging taxes, I highly suggest contacting Avalara. The company specializes in the collection and remittance of short term rental taxes. They have a ton of free information on their website, as well as a phone number to call if you have any questions.

Does Houfy collect, remit, and file my lodging/TOT/guest occupancy tax?

No. Houfy doesn't interfere between guest and host payment transactions. Square and Stripe are payment options integrated with Houfy. If you do connect a Square or Stripe account to your Houfy listing, the funds never touch Houfy's bank account. For the most part, tax collection and remittance by listing sites is because of their voluntary agreements with tax authorities.

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Yes. For example, let's say your base rate is set at $350 a night, and your Seasonal Winter Rates are $300 a night. If a traveler enters dates that fall within your "winter season" the quote will be at $300 a night.

No. Houfy offers seasonal rates to give owners more control and flexibility with their pricing. You can skip right over the seasonal rates section.

The only rate you have to set is a base rate. Many hosts set their base rate to their highest holiday rate, just in case they forget to set their holiday rates in advance.

Seasonal rates allow hosts to set rates based on specific times of year, certain holidays, etc.

For example: if you are in the U.S., your property's peak season may run from Memorial Day weekend thru Labor Day weekend. For others, their peak season might be in the middle of winter ski season, with their slowest season during the hot summer months.

Many hosts will create a "season" for the busy and slow periods.The might name a busy period: "Peak Season" or "Prime Season Dates."

1. Log in>Menu>Manage Listings>Edit>Pricing>Seasons
2. Select the season to be deleted.

Scroll down and click Delete. OR, just edit the dates in the expired season to create a new season.

1. Click Menu to display and select Manage Listings
2. Select Edit
3. In edit listing mode: select Pricing > Seasons
4. Scroll to the bottom of rates table and click the Yes tab.

Houfy shows ranges when guests search without dates.

Adding seasons to your listing will show the highest and lowest rate per night when users search without selecting specific dates.

No seasons added

Lowest and highest nightly rate show

To create seasons: Log in > My Listings > Edit > Pricing - seasonal pricing

Create a coupon discount code in case you offer extra discounts. Coupon discounts are applicable along with the length of stay discounts and early-bird discounts if there are.

Coupon codes are private to your account and if you share them with your guest then they can use them for applying the discount.

• Edit listing -> Pricing -> Discounts
• Coupon discounts -> Add
• Enter coupon code, discount percentage, minimum nights, coupon validity dates, and a coupon for the dates(Check-in and check-out).
• Save the changes and share the coupon code with your guest.

You have an option to select a timeframe the coupon is valid.

You create a discount code and only give it out to the person you want to have it. It is not visible to the public. It’s only visible on your listing if you add it to your description.

When planning their vacation, travelers often have some flexibility with their dates and will add an extra day or two if the price is right. Give them an incentive to extend their reservation by offering a weekly discount in your rates.  

Log in > Manage Listings > Edit > Pricing > Discounts > Weekly discount

Enter 7 days or longer to view Weekly Discount.

1. Click top right down arrow to display Drop-down Menu> Manage Listings>Edit>Pricing>Discounts.
2. Enter Monthly discount %.

The discount % only applies to total nightly rate, and applies to any stay of 30 days or more.

Houfy Help Guide for Vacation Rental Owners