Understanding the Hidden Costs of Booking on VRBO and Airbnb in New Jersey

Centre Court pool in Seapointe Village, NJ

Planning a getaway can be exciting, but it’s essential to know what you are really paying for when booking accommodations through platforms like VRBO and Airbnb. In lovely New Jersey, particularly in bustling tourist spots like Wildwood, unexpected costs can quickly add up. Let's take a closer look at these hidden expenses so you can make smarter choices and save money.

The Tax Implications

Booking a short-term rental through VRBO or Airbnb in New Jersey means you must pay local taxes, which can vary based on your location. In Wildwood, for instance, this tax sits at about 14.6%. This tax is imposed by the state and local governments, aimed at enhancing public services and local tourism.

Here's a quick example: If you find a beachfront property for $200 a night, the tax adds almost $30 to your total. While this tax is necessary for community enhancements, it can inflate your budget considerably.

Service Fees: The Hidden Charges

Along with taxes, VRBO and Airbnb also impose service fees that can go up to 10% of your booking total. These fees cover platform costs, such as payment processing and customer service. However, for travelers looking to stick to a budget, these service fees can feel like a frustrating surprise.

When you combine taxes and service fees, the total costs can increase your booking by nearly 25%. For example, if your rental was initially listed at $150 per night, after adding taxes and service fees, you might be paying around $188 per night.

The True Cost of Booking

Let’s break down an example to illustrate the full cost of booking a vacation rental. Suppose you book a property for four nights at a base rate of $250 per night:

• Base cost: $500 x 7 nights = $3500

• Taxes (14.6%): $3500 x 0.146 = $511

• Service Fees (10%): $3500 x 0.10 = $350

• Total Cost: $3500 + $511 + $350 = $4361 for a total of $861 more!

  
  

In this case, the additional costs clearly show how quickly your vacation budget can swell.

The Book Direct Movement

To combat these rising expenses, a "book direct" movement has started gaining traction. More travelers are looking for ways to bypass these extra charges by contacting property owners directly. Many hosts now sprinkle hints for how to find them throughout their listings. It could be a title such as "Moose cabin in the woods", words you can search for in google to find their direct book site. Look for those hints.

Opting for a direct booking can allow you to save on service fees or even taxes, depending on local laws. Research shows that travelers booking directly can save anywhere from 5% to 15% compared to third-party booking platforms.

Hidden Benefits of Booking Directly

Booking directly comes with its own set of advantages. You might be able to negotiate a lower rate, particularly for longer stays. Additionally, property owners are more likely to offer personalized touches, such as local recommendations or special amenities, creating a warmer and more enjoyable stay.

For instance, owners who manage their listings are often more invested in improving the property and ensuring a great experience for guests. Many even provide updated features or complimentary items, enhancing the overall visit.

What to Look For

If you are considering a direct booking, it’s essential to ensure its legitimacy. To protect yourself, check for reviews, verify property details, and be cautious of any offers that seem too good to be true. Look for direct listings on personal websites or through respected vacation rental management firms. The Seapointe Village owners on our site are the actual owners so you can feel safe. Also join our Facebook page to discuss a specific rental with other guests to help you feel even more secure. We would be extremely appreciative if you would help to promote these two pages by posting them to your social media pages. Thank you in advance.

As a last note regarding those platforms: Property owners are not allowed to include their contact information on their VRBO or Airbnb profiles PRIOR to booking. Thus all communication with them until you book is via the platform only.

Key Takeaways

Understanding the hidden costs associated with booking through platforms like VRBO and Airbnb is crucial, especially in places like Wildwood, NJ. With local taxes of about 14.6% and potential service fees of 10%, it’s clear that your vacation investment can be impacted significantly.

By exploring the book direct movement, you can save money and foster a closer connection with your accommodations. Make it a point to consider these options so that you can get the best deal without compromising on your experience.

So next time you plan a getaway, keep these costs in mind and investigate direct booking options. You might uncover a better deal and a richer travel experience!