FTC Mandates Transparent Pricing for Short-Term Rentals: What Airbnb Hosts Need to Know

Rental Regulations in Mammoth Lakes, CA

Starting May 12, 2025, the Federal Trade Commission (FTC) has made it official: all platforms like Airbnb and VRBO must show all-in pricing upfront.

That means the price you see must now include cleaning fees, service charges, and other mandatory add-ons – no more surprises at checkout. Whether you’re a seasoned host or just thinking, how do I sell my Airbnb now that regulations are changing? This article breaks it all down for you.

Let’s talk about what this means, how it affects your listings, and how you can stay competitive in 2025.

What Exactly Is the FTC’s New Pricing Rule?

The FTC’s new rule requires all short-term rental platforms to display the total cost, including hidden fees, at the very start of the booking process. No more seeing “$120/night” only to be slapped with an extra $90 in fees when you click “book.”

The goal? To make prices more transparent for guests and eliminate deceptive pricing. This rule doesn’t just apply to Airbnb but to any STR platform operating in the U.S.

According to the FTC announcement, this is part of a wider effort to crack down on “junk fees” across hospitality and travel sectors.

Why Does This Matter for Hosts?

As a host, you now need to be crystal clear about what you’re charging and why. This new transparency law could actually help honest hosts stand out while penalizing those who bury their fees.

Here’s how it impacts you:

  • Your property may appear more expensive upfront (but so will everyone else’s)
  • Guests will compare total cost, not just nightly rates
  • Clean pricing = more trust and potentially better booking rates

It’s a good time to revisit your listing and pricing strategy. If you’re working with a Short-Term Rental Realtor, now is the time to get their advice on how this change might affect your property’s marketability.

How Does It Affect Airbnb Property Value?

Let’s say you’re asking yourself, how to sell my Airbnb profitably now?

Well, the value of your STR property is more than just bricks and mortar—it’s now also about how it performs in this fee-transparent environment.

Buyers are smarter. They’re looking at net yield, occupancy rates, guest reviews, and how your property competes on platform visibility. If your STR is well-reviewed and your pricing is fair, your property may become more attractive under the new rules.

You can run full ROI, occupancy, and gross yield estimates with Chalet’s STR investment analytics tool to get a sense of how your property stacks up.

  • 📊 Which Airbnb rental markets are set to outperform in 2025 based on revenue growth, occupancy trends, and supply shifts.
  • 🏡 Where home prices are still affordable while generating high rental income.
  • 📈 How to identify markets with strong appreciation potential for both short-term cash flow and long-term gains.

Tips for Hosts to Stay Ahead

Here’s what hosts and STR investors can do right now:

1. Bundle Your Fees into Nightly Rate

Instead of charging a $60 cleaning fee, consider bumping your nightly rate by $10–15. You’ll appear more upfront and “cleaner” in listings.

2. Use a Short-Term Rental Realtor for Local Insight

Markets vary by zip code. A qualified Short-Term Rental Realtor can help you align with what works in your region and avoid overpricing pitfalls.

Use tools like Rental Regulations by Market to ensure you stay compliant with both national and local guidelines.

3. Highlight All-In Pricing as a Feature

If your listing includes no hidden fees, say it loudly. Guests appreciate that transparency and are more likely to book a hassle-free stay.

Thinking About Selling Your STR?

The question of how to sell my Airbnb in a changing market is more relevant than ever.

Transparency could work in your favor. Well-managed listings with clear pricing, good reviews, and solid occupancy can become prime acquisition targets for institutional and private investors alike.

Platforms like GetChalet allow you to showcase the cash flow, occupancy, and regulatory compliance of your property—making it easier to sell to a data-driven buyer.

Final Thoughts

The FTC’s new rule doesn’t hurt STR owners it just raises the bar. Guests are more informed, pricing is more transparent, and hosts who adapt quickly will win in the long run.

Whether you’re holding or planning to exit, understanding how your Airbnb property performs under the new guidelines can give you a clear advantage.

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