Let the Cash FLOW! Reviewing Airbnb’s New Payment Feature.

Airbnb has deployed their BEST FEATURE ever!

I think I still have the pinch marks to prove it.

I thought I was dreaming when I read that Airbnb now offers 50% payout at the time of booking. Airbnb will pay you 50% of the booking amount 3 days after the booking up to 4 months ahead of the guest check-in. Previously, we had to wait 1 day after check-in to be paid the booking amount. Now you can get 50% up to 4 months earlier. The remaining 50% is still payable 1 day after guest check in (by the way, as we describe in the book, Airbnb payment terms are still way better than an agency payout – agencies usually pay you a month afterward – yikes, cash is not flowing very well in that scenario).

Now, just because you can collect monies in advance does not mean that you have hit the lottery – Remember that when that guest does actually check in, you will get only the remaining 50%. It just means that you are getting cash sooner in the cycle and can use that to make improvements, pay other bill(s) or, dare I say it…save!

Don’t fret your cash flow being any less in the future since you will only get 50% of the booking amount at the check-in – because you should be collecting the upfront 50% payouts after booking. One would imagine that, going forward, the monthly payouts should even out. It’s just that you can expect a nice 50% increase amount of payouts in the next 4 months.

Let’s say you usually draw around 10K per month. In a four month time period, you can count on $40K. With the new program you can probably collect a quicker $20K than you would have otherwise. Not a bad chunk of change for just agreeing to join the program and give Airbnb 1% in advance fees. Airbnb will deduct an additional 1% for the privilege to collect booking fees at booking time. Please consult your tax professional or municipality about how that affect your monthly TOT payments and your State and Federal income taxes with the new payout timings.

I am so excited – I’m already receiving the accelerated payments and it’s helping my cash flow – I’m building my cash reserves (savings – kinda boring) but will be happy when the next unexpected maintenance expense crops up!



Let the Cash FLOW! Reviewing Airbnb’s New Payment Feature.

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