Blenheim, New Zealand Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Blenheim, New Zealand?

Short-term rentals through booking platforms like Airbnb and VRBO have become increasingly popular in Blenheim and throughout New Zealand in recent years. However, it's important for property owners to understand the local laws, regulations, and zoning rules that apply to short-term rentals before listing their property. Here's an overview of what you need to know:

Starting a Short-Term Rental Business in Blenheim

To operate a short-term rental in Blenheim, you'll need to comply with the Marlborough District Council's rules and regulations:

• The guest accommodation must be for short-term visits of less than 1 month
• The guests must be paying guests
• If the Council receives a complaint about an arrangement that doesn't meet these criteria, they may investigate further

You should also check if you need any special permits or business licenses from the local government to rent out your property short-term. This information can often be found on the city's website or by contacting them directly.

It's also wise to review your lease agreement, timeshare ownership rules, condo/co-op board rules, or homeowners association rules to ensure short-term rentals are allowed. Tenants generally need the property owner's permission to sublet.

Short-Term Rental Licensing Requirements in Blenheim

To legally operate a short-term rental in Blenheim, you must comply with the Marlborough District Council's rules and licensing requirements:

1. STRs are defined as guest accommodations for short-term visits of less than 1 month where the guests are paying
2. If the Council receives a complaint about an STR arrangement that doesn't meet these criteria, they may investigate further
3. Commercial properties used as STRs accommodating 30 or more people are charged commercial/industrial rates
4. It's recommended to apply for and hold a current Resource Consent and Building Warrant of Fitness to ensure the property, location, and STR activity is fit for purpose and won't disrupt neighbors or natural resources
5. Traditional commercial accommodation providers are required to have Resource Consent and Building Warrants of Fitness, so the same should apply to STRs

To apply for the necessary STR permits and licenses in Blenheim:

1. Review the Marlborough District Council rules to check your eligibility
2. Submit a Building Consent/PIM/Amendment application form, either online or on paper
3. Provide required documents like proof of property insurance, a site plan, parking management plan, and fire safety plan
4. Pay the associated fees - additional time spent by the Council responding to your application is charged at the duty planner's hourly rate of $163 plus GST
5. Get your property inspected to ensure it meets building, health, and safety standards
6. Allow time for processing - timeframes are not specified but may take several weeks

Fines for non-compliant STRs are not explicitly outlined on the Marlborough District Council website. However, fines issued by the Ministry of Justice start at $30 and go up to $7,500 depending on the offense. Fines must be paid within 28 days or additional fees may apply.

In summary, Blenheim has specific licensing and permit requirements for short-term rentals that involve submitting an application, providing documentation, paying fees, and getting the property inspected. Operating without the proper approvals could result in fines if the Council receives complaints. For the most up-to-date information, check the Marlborough District Council website or contact them directly.

Required Documents for Blenheim Short-Term Rentals

When applying for a short-term rental permit or license in Blenheim, you will likely need to submit the following documents to the Marlborough District Council:

1. Building Consent/PIM/Amendment Application Form: This form starts the process of getting your property approved for short-term rental use. It can be submitted online or on paper to the Council. The purpose is to provide key details about the property and intended rental activity for their review.
2. Proof of Property Insurance: You may need to provide documentation showing you have appropriate insurance coverage for using the property as a short-term rental, including liability insurance. Contact your insurance provider for the necessary paperwork.
3. Site Plan: A site plan shows the layout of the property, including parking areas, entrances/exits, and surrounding buildings or geographic features. This helps the Council assess the suitability of the location for rental activity and any potential impacts on neighbors or the environment. You may need to have a professional draft this plan.
4. Parking Management Plan: If your property has limited parking, the Council may require a written plan outlining how you will manage guest parking to avoid issues like illegal parking or blocking driveways. Draft this yourself or with help from a lawyer or consultant familiar with the local rules.
5. Fire Safety Plan: You will likely need to provide information on fire safety features in the building, evacuation procedures, and other emergency protocols. Work with a fire safety professional to create this plan and document the required equipment is in place.

While not mentioned in the search results, other common STR documentation requirements in New Zealand include:

1. Tenancy Agreement or Proof of Owner's Consent for Subletting
2. Guest Register with Names and Contact Info
3. Tax Documentation like an IRD Number
4. Building Warrant of Fitness

The Marlborough District Council website has limited specifics on the STR application process and requirements. For the most accurate and up-to-date list of required documents, it's best to contact the Council directly via phone, email, or in person:

1. Phone: 03 520 7400
2. Email: mdc@marlborough.govt.nz
3. Address: 15 Seymour Street, Blenheim 7201

Gathering the necessary paperwork takes time, so start the process well in advance of when you hope to begin renting out the property. Incomplete applications can cause delays in getting approved.

Blenheim Short-Term Rental Taxes

When operating a short-term rental business in Blenheim, there are two main types of taxes you need to be aware of: Goods and Services Tax (GST) and income tax.

Goods and Services Tax (GST)

GST is a consumption tax in New Zealand, currently set at 15%. As of April 1, 2024, new rules will require electronic marketplace operators like Airbnb to collect and return GST on short-term rental accommodation provided through their platforms, even if the property owner earns under $60,000 annually and is not GST-registered.

For non-registered hosts, Airbnb will collect the 15% GST from guests and split it as follows:

1. 8.5% flat-rate credit paid to the host to cover potential GST claimable expenses
2. 6.5% paid to the Inland Revenue Department (IRD)

This means hosts who are not GST-registered will receive the rental income minus approximately 6.5%. Hosts cannot claim GST on related expenses in this scenario.

GST-registered hosts will receive the full rental amount minus 15% GST, which Airbnb will pass on to the IRD. These hosts can continue claiming GST input credits on their expenses.

Income Tax

Income earned from providing short-term accommodation, even for occasional rentals, is taxable in New Zealand. The amount of tax owed depends on the host's total taxable income and corresponding tax bracket for the financial year.

Hosts who rent out their property for short stays can use the standard-cost method if they meet certain criteria, including:

1. Renting out for no more than 100 nights per year
2. Not offering the rental as part of a GST-taxable activity

Under this method, a fixed nightly rate is used to calculate the tax-exempt portion of the rental income - $61 for homeowners and $55 for renters in the 2023-2024 tax year. Income above these nightly rates is taxable.

Hosts who don't meet the standard-cost criteria must declare all rental income and can deduct related expenses like insurance, management fees, repairs, etc. Only the net profit is taxable.

Deductions and Write-Offs

Depending on your GST registration and tax calculation method, you may be able to deduct some or all of the following expenses from your short-term rental income:

1. Airbnb service fees and commissions
2. Cleaning, laundry, and property management costs
3. Insurance premiums
4. Local authority rates
5. Repairs and maintenance
6. Mortgage interest (may be limited for residential property loans)
7. Utilities like internet, power, etc.
8. Depreciation on furniture and fittings
9. Marketing and advertising costs
10. Accounting and legal fees

Proper record-keeping is essential to claim these deductions. Consult with a qualified tax professional to optimize your tax strategy and ensure compliance with all rules and regulations.

New Zealand Wide Short-Term Rental Rules

In addition to any Blenheim-specific regulations, there are several national laws and tax rules that apply to short-term rentals across New Zealand:

Goods and Services Tax (GST): As of April 1, 2024, new rules require short-term rental platforms like Airbnb and Bookabach to collect and return GST on behalf of hosts, even if the host earns under the $60,000 annual threshold for GST registration.

• For hosts not GST-registered, the platform will collect 15% GST from guests and pass on an 8.5% flat-rate credit to the host to cover potential claimable expenses. The remaining 6.5% is paid to the IRD.
• GST-registered hosts will receive the full rental amount minus 15% GST collected by the platform and remitted to the IRD. These hosts can continue claiming GST input credits on their expenses.

Income Tax: All income earned from short-term rentals is taxable in New Zealand. Hosts can use the standard-cost method if they rent out for no more than 100 nights per year and don't offer the rental as part of a GST-taxable activity. This allows a fixed nightly rate ($61 for homeowners, $55 for renters in 2023-2024) as a tax-exempt allowance, with remaining income being taxable.

Hosts not eligible for the standard-cost method must declare all rental income and can deduct related expenses like insurance, management fees, repairs, etc. Only the net profit is taxable.

Residential Tenancies Act: Short-term holiday rentals are not covered by the Residential Tenancies Act that governs long-term tenancies. This means hosts need to create their own written rental agreement outlining rules, terms, and conditions for guests. Some platforms like Airbnb provide agreement templates.

Council Registration: Some local councils in New Zealand require short-term rentals to be registered and may charge commercial rates or a targeted accommodation rate on properties rented out for more than a certain number of nights per year (often 28-30 nights). While not currently required in Blenheim, it's important for hosts to check their local council rules.

Building and Housing Standards: While there aren't explicit nationwide standards for short-term rentals yet, hosts should aim to meet the Healthy Homes Standards that apply to long-term rentals in terms of heating, insulation, ventilation, etc. Rentals may also require building consent for any change of use to comply with the Building Code on things like fire safety, sanitation, etc.

Health and Safety: Under the Health and Safety at Work Act 2015, short-term rental hosts have responsibilities to ensure guest health and safety, including identifying hazards, maintaining smoke alarms, providing evacuation instructions, etc.

By understanding and complying with these national regulations in addition to any Blenheim-specific rules, hosts can operate their short-term rentals legally and avoid potential penalties. Consulting with a qualified lawyer and tax professional is recommended to ensure full compliance.

Does Blenheim Strictly Enforce STR Rules?

Based on discussions in online forums like BiggerPockets and Reddit, it appears that Blenheim and the surrounding Marlborough region are relatively friendly towards short-term rentals compared to larger cities in New Zealand. While there are some rules and regulations in place, enforcement seems to be less strict than in places like Auckland or Queenstown.

On the Marlborough District Council website, the guidance for short-term accommodation providers is fairly minimal - rentals are allowed as long as they are for paying guests staying less than 1 month. If the council receives complaints that a rental doesn't meet those criteria, they may investigate further. But there are no specific permit or licensing requirements outlined.

In contrast, Auckland has much tighter restrictions, limiting entire home rentals to 60 days per year in most areas. Queenstown also has strict zoning rules and requires resource consent for short-term rentals in many cases.

While Blenheim STR operators should make efforts to comply with the basic rules, pay required taxes, and be good neighbors, the regulatory environment seems more relaxed overall. Several BiggerPockets members mentioned successfully running short-term rentals in the Marlborough area without major issues.

One host on Reddit shared: "I've been operating an Airbnb in Blenheim for over a year with no problems. The council doesn't seem too concerned as long as you're not causing any disturbances. Just be sure to collect and pay the GST if you're over the threshold."

So in summary, Blenheim appears to be a relatively Airbnb-friendly destination compared to some other parts of New Zealand. Many hosts are operating short-term rentals there, and while it's important to follow the regional rules, enforcement of STR regulations seems to be fairly hands-off unless problems arise. As always, it's wise to do your own due diligence and consult with local authorities and experts for guidance on your specific situation.

How to Start a Short-Term Rental Business in Blenheim

Starting a short-term rental business in Blenheim can be a lucrative venture, but it requires careful planning and execution. Here are the key steps to get started:

• Research local regulations: Familiarize yourself with Blenheim's short-term rental rules, zoning restrictions, and permit requirements. The Marlborough District Council defines short-term rentals as guest accommodations for paying guests staying less than 1 month. If complaints arise, the Council may investigate. Commercial properties accommodating 30+ people are charged commercial rates. Contact the Council directly for the most up-to-date guidance.
• Create a business plan: Develop a comprehensive plan outlining your target market, pricing strategy, marketing approach, and financial projections. Identify your ideal guest profile and tailor your property to their needs and preferences. Set competitive rates based on similar listings in your area.
• Choose a property: Select a property that aligns with your business goals and target market. Consider factors like location, size, amenities, and local attractions. If purchasing a property, review financing options and calculate your expected return on investment. If renting, ensure your lease allows sub-letting for short stays.
• Obtain necessary licenses and permits: Apply for any required business licenses and permits from the Marlborough District Council. This may involve submitting an application, providing documentation like proof of insurance and safety plans, paying fees, and getting your property inspected. Allow ample processing time.
• Set up your listing: Create an attractive listing on popular platforms like Airbnb and Vrbo. Invest in high-quality photos, write compelling descriptions, and highlight your property's unique features and amenities. Be accurate and detailed to set appropriate guest expectations.
• Prepare your property: Furnish and equip your rental to provide a comfortable and inviting stay. Focus on cleanliness, quality linens and towels, well-equipped kitchens, and reliable Wi-Fi. Consider hiring a professional cleaning service between guests. Provide house rules and local recommendations for a smooth experience.
• Implement a pricing strategy: Use dynamic pricing tools to optimize your rates based on demand, seasonality, and local events. Monitor your competition and adjust your prices accordingly. Consider offering discounts or promotions during slower periods to boost occupancy.
• Automate your operations: Utilize vacation rental software to streamline tasks like booking management, guest communication, cleaning coordination, and financial tracking. Automating repetitive processes will save you time and ensure a seamless experience for guests.
• Market your listing: In addition to leveraging the built-in audiences of listing platforms, develop a targeted marketing strategy to reach your ideal guests. This may include social media advertising, email marketing, and partnering with local businesses or tourism boards.
• Provide excellent guest service: Prioritize responsive communication, proactive support, and personalized recommendations to create a memorable guest experience. Promptly address any issues or concerns that arise during a stay. Encourage satisfied guests to leave positive reviews to build your reputation and attract future bookings.

By following these steps and continually adapting to market trends and guest feedback, you can build a successful short-term rental business in Blenheim. Remember to stay compliant with local regulations, prioritize guest satisfaction, and optimize your operations for maximum efficiency and profitability.

Who to Contact in Blenheim about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations, permits, or zoning in Blenheim, the best place to start is by contacting the Marlborough District Council directly:

• Phone (24 Hours): 03 520 7400
• Email: mdc@marlborough.govt.nz
• Postal Address: PO Box 443, Blenheim 7240, New Zealand
• Blenheim Office Address: 15 Seymour Street, Blenheim 7201
• Picton Office Address: 2 Dublin Street, Picton 7220

The Council's customer service team is available to field general inquiries. For more specific questions, you can use their online Duty Planner Enquiry Form to get in touch with the duty planning officer who can advise on resource consent requirements and zoning restrictions that may apply to short-term rentals.

It's also worth checking the Marlborough District Council website (www.marlborough.govt.nz) for any updated information or guidance related to short-term rental operations in the region. The site has a helpful FAQ section that addresses some common questions around rules for Airbnb and other short-stay accommodation providers.

In addition to official Council resources, connecting with other local short-term rental hosts can be valuable for navigating the regulatory landscape and sharing experiences. While there don't appear to be any Blenheim-specific host groups, here are a few online communities where you may find useful discussions and insights:

• Airbnb Community Center - Hosting Forum: https://community.withairbnb.com/t5/Hosting/bd-p/listing-and-reservations
• Airhosts Forum: https://airhostsforum.com/
• Blenheim Subreddit: https://www.reddit.com/r/blenheim/
• New Zealand Bigger Pockets Forum: https://www.biggerpockets.com/forums/88-real-estate-investing-in-new-zealand

Remember that while insights from other hosts can be helpful, it's important to verify any regulatory information with the Council to ensure you are getting accurate and up-to-date guidance. By utilizing both official and community resources, you'll be well-equipped to understand and comply with Blenheim's short-term rental rules.

What Do Airbnb Hosts on Reddit and Bigger Pockets Think about Local Regulations?

While searching Reddit and BiggerPockets for Blenheim-specific discussions about short-term rental regulations, there were limited results with hosts directly sharing their experiences navigating local rules. However, these forums still contain valuable insights that may be relevant to Blenheim hosts:

On Reddit, the r/blenheim subreddit has some general discussions about living costs and housing in the area, but no posts specifically related to short-term rental regulations. One post from a family considering moving to Blenheim inquired about rent prices and daily expenses like groceries and utilities. While not directly addressing STR rules, the responses could be useful for hosts budgeting their operating costs.

Another relevant BiggerPockets thread was posted by a travel nurse who, after frequently staying in medium-term and short-term rentals, was considering investing in real estate to operate their own STR. The ensuing discussion, while not Blenheim-specific, touched on important considerations like local market conditions, zoning rules, and neighbor relations that hosts in any city should evaluate.

So while direct insights from Blenheim STR hosts were limited in these forums, the broader discussions still highlight key topics like understanding local market demand, researching applicable regulations, and being a responsible operator. Blenheim hosts may find it valuable to continue engaging in these types of forums to exchange ideas and learn from the experiences of STR operators in other cities, even if the specific rules and conditions vary.

As the short-term rental industry matures, it's likely that more Blenheim-specific discussions will emerge in online host communities. In the meantime, keeping up with official Marlborough District Council communications and connecting with local hosts through platforms like Airbnb and Vrbo can help fill in the gaps and provide the most relevant regulatory insights.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.