One common question from new and prospective Turo hosts is – how much does Turo take from each rental transaction as the hosting platform? Understanding Turo’s various fees and commissions allows hosts to accurately calculate their potential earnings and set profitable pricing.
In this comprehensive guide, we’ll explain the different Turo host fees, how they are calculated, and strategies hosts can use to maximize their rental income even after Turo’s deductions. Gaining clarity into Turo’s host revenue split helps hosts make informed business decisions.
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Turo’s Host Fees and Commissions
Turo generates revenue by deducting various fees from the total rental price hosts charge guests. Here are the primary fees hosts pay Turo:
Turo Host Fee – This is Turo’s commission, which is typically between 25-35% of the base rental price hosts set before taxes and other charges. Lower commissions apply for highly rated Power Hosts.
Liability Fee – This covers Turo’s standard liability insurance. It is a flat 10% deducted from the base rental rate.
Mileage Fee – For each rental mile driven, hosts pay Turo $0.45. This covers gas, wear & tear, and maintenance.
Cleaning Fee – If you use Turo’s cleaning partners, they deduct the cleaning cost per trip from your payouts. Typically $30-50.
So in summary, hosts pay Turo a 25-35% commission, 10% for liability coverage, 45 cents per mile, and any cleaning fees for using Turo’s services. These represent the primary fees.
How Turo’s Host Fees Are Calculated
To understand what Turo deducts, it helps to walk through their fee calculations on a sample booking:
Rental Rate:
Guest pays host $150 per day
Length:
3 day rental
Mileage: Renter drives 150 miles
Turo Fees Breakdown:
- Host Fee – 25% of $450 rental price = $112.50
- Liability Fee – 10% of $450 rental price = $45
- Mileage Fee – 150 miles x $0.45 per mile = $67.50
- Cleaning Fee – $50
Total Turo Fees: $112.50 + $45 + $67.50 + $50 = $275
**Rental Earnings After Turo Fees: ** $450 rental – $275 Turo fees = $175 to host
This illustrates how the various commissions and costs add up for hosts. While fees do take a chunk, earnings can still be significant.
Strategies to Maximize Earnings as a Turo Host
Smart Turo hosts utilize some key strategies to maximize their rental income:
- Price competitively – Set base daily rates aligned with local demand and similar models listed in your market. Avoid leaving money on the table.
- Offer weekly/monthly discounts – Since Turo fees are fixed percentages, longer rentals earn more income after fees. Incentivize extended bookings.
- Limit mileage – Lower mileage rentals reduce the variable per-mile payout deduction. But balance restrictions against guest demand.
- Manage cleaning yourself – Handling cleaning between guests yourself avoids the $50+ cleaning fee deductions.
- Earn Power Host status – Reaching Power Host lowers Turo’s commission deduction from 35% to 25% once attained.
- Drive for hosts needing vehicles – Earn additional trips powered by Turo without having to own the fleet. Provides upside with no ownership costs.
While Turo takes its share of revenue, savvy hosts use smart pricing and accounting for costs to maximize their rental income.
Turo Host Fees vs. Traditional Rental Car Companies
How does Turo’s revenue split compare to traditional rental car companies? Here’s a look:
Most traditional rental car companies take around 20-35% commission from hosts to cover their platform and insurance. So Turo’s 25-35% host fee is largely aligned.
However, Turo’s per-mile charge of $0.45 significantly exceeds mileage fees from most traditional rental firms. Rental agency mileage fees range from $0.08-$0.40 per mile typically.
But platforms like Hertz have large upfront fleet costs compared to Turo hosts using their own vehicles. Overall revenue split trade-offs exist at both options.
WaysHosts Can Offset Turo’s Deductions
Here are some additional ways Turo hosts can offset the fees deducted and increase income:
- Charge trip fees – Add small trip fees for meet/greet, cleaning, pet handling etc. to earn extra per rental.
- Offer delivery – Provide delivery for a fee to maximize rental convenience and earn more.
- Upsell protections – Offer Turo’s damage waivers and insurance upgrades. You keep a cut of these added purchases.
- Feature upgrades – Provide add-ons like car seats, bike racks, WiFi hotspots etc. for added fees.
- Highlight features – Ensure your listing promotes amenities that justify higher rates.
- Maximize visibility – Use professional photography and optimal listing details to attract more booking inquiries you can convert.
Getting creative with additional revenue streams and promotions allows Turo hosts to minimize the impact of commissions and deductions.
Turo Host Fee FAQs
Here are some common host questions about Turo’s fees and revenue splits:
Does Turo take fees from cleaning and other charges?
No, Turo only deducts from the base daily rental rate, not add-ons like cleaning, delivery, or insurance you offer.
Can I see a breakdown of all the Turo fees on my payouts?
Yes, Turo provides a detailed invoice showing each rental’s earnings and a line-item breakdown of every fee deducted.
Do discounts impact the Turo fees?
Discounts impact your base rental rate which Turo commissions are calculated on. But their fixed fees remain unchanged.
Can I deduct Turo’s fees for tax purposes?
Yes, Turo’s payments and commissions would qualify as tax deductible business expenses. Confirm with an accountant.
Does Turo take a cut of protection plan revenue?
Yes, Turo keeps around 20% of additional protection products you sell to renters. The remaining 80% gets paid to the host.
How do I minimize the Turo fees?
Competitive base pricing, earn Power Host status, manage own cleaning, optimize listing visibility, offer frequent renter discounts.
So in summary, Turo deducts around 25-35% in platform commissions from hosts, plus per-mile and cleaning fees if applicable. But hosts have many options to maximize bookings and revenue even after Turo’s cut. Understanding the breakdown allows for informed business decisions.
