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

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

Short-term rentals like Airbnb and VRBO have become increasingly popular in New Zealand, including in the city of Gisborne. However, there are various regulations property owners need to be aware of before listing their home or investment property on these platforms.

Starting a Short-Term Rental Business in Gisborne

If you're considering using your property in Gisborne as a short-term rental on Airbnb or a similar site, the first step is to check the local council rules. Gisborne District Council recently passed a Temporary Accommodation Order that permits temporary accommodation for the next 3 years to help people displaced by Cyclone Gabrielle.

The order defines temporary accommodation as housing provided to those displaced from their normal residence due to damage from a severe weather event. It allows temporary housing on a property even if it exceeds current density rules in the District Plan, as long as it meets certain requirements:

• Set back at least 1m from the boundary on urban land or 3m on rural land
• Does not exceed the relevant height limit
• Meets any minimum floor level requirements set by the council
• Any new vehicle crossing complies with sight line requirements
• Vehicle accessway complies with width requirements in the District Plan

Owners must provide written notice to the council with details of the temporary accommodation prior to relocating it.

For regular short-term rentals not related to the cyclone, they are classified differently than long-term rentals and are not covered by the Residential Tenancies Act. This means standard rental agreements don't apply.

Some key things to consider when starting a short-term rental in Gisborne:

1. Create a written rental agreement outlining terms, pricing, cancellation policy, etc. Airbnb has built-in terms you can use.
2. You cannot force existing tenants to leave so you can convert a property to short-term rental use. Tenants need permission to sublet.
3. Income from short-term rentals is taxable, even for irregular rentals. You may have GST obligations if earning over $60k per year.
4. Expenses can be claimed but are limited based on property type and rental availability. Special "mixed-use asset" rules apply for part-time holiday homes.
5. Notify your insurance company, as standard policies may not cover short-term rental use. Consider public liability coverage as well.

There are also potential health and safety regulations to comply with, which can be found in resources like the Bookabach holiday home-owner's guide.

The rise of Airbnbs has become a point of debate in New Zealand, with some arguing they are negatively impacting the long-term rental market in cities like Wellington, Queenstown, and Tauranga. Some local councils like Christchurch and Queenstown Lakes have proposed or implemented new restrictions.

Real estate investors on forums like BiggerPockets have also noted the challenging economics of rentals in New Zealand, where high home prices and interest rates mean short-term rental income often just covers expenses. Many rely on appreciation rather than positive cash flow.

In summary, while short-term rentals can provide a good opportunity, it's critical for Gisborne property owners to understand all the regulations involved with platforms like Airbnb. Checking council rules, taxation requirements, and insurance should be the first step before listing a property for short-term use.

Short-Term Rental Licensing Requirement in Gisborne

Based on information from the Gisborne District Council website, there does not appear to be a specific short-term rental licensing requirement or program in place for properties in Gisborne at this time. The council website provides details on various consents and licenses required for activities like building, alcohol sales, events, and more, but does not mention any STR licensing.

However, this does not necessarily mean short-term rentals are unregulated. Property owners looking to start an STR in Gisborne should still be aware of and comply with other relevant rules and requirements, such as:

1. Checking the property's zoning allows for STR use in the Gisborne District Plan
2. Obtaining resource consent if required based on the scale and nature of the STR activity
3. Ensuring the building complies with all health and safety requirements for accommodating guests
4. Registering for and paying applicable taxes on STR income
5. Notifying insurers and complying with any STR-specific insurance requirements

While an STR-specific license may not be needed, operating without required zoning or resource consents could still result in fines and penalties under the Resource Management Act. Enforcement could include infringement notices, abatement notices, or further action.

The Gisborne District Council recently passed a Temporary Accommodation Order to allow temporary housing, even if it exceeds density rules, for those displaced by Cyclone Gabrielle. This applies for the next 3 years but requires notifying the council in writing with details of the accommodation.

For general inquiries on planning requirements for STRs, prospective operators can contact the council's Duty Planner at dutyplanner@gdc.govt.nz. Questions on building requirements can be directed to the Building Services team at building@gdc.govt.nz.

In summary, while Gisborne does not seem to require STR-specific licensing at this time, owners should still carefully review all applicable rules before starting an STR. Consulting with the council early in the process is advised to avoid any compliance issues. Rules may also change over time as STRs continue to grow in popularity.

Required Documents for Gisborne Short-Term Rentals

Based on a review of the Gisborne District Council website and related resources, there does not appear to be a specific short-term rental permit or licensing program that requires submission of particular documents at this time.

However, short-term rental operators in Gisborne should still be prepared to provide certain documentation to demonstrate compliance with applicable rules and regulations if requested by the council. Key documents to have on hand may include:

1. Proof of property ownership or permission to sublet from the owner if you are a tenant. This establishes your right to rent out the property on a short-term basis.
2. A detailed site plan and floor plans of the short-term rental property. These may be needed to show compliance with District Plan rules on things like boundary setbacks, building height limits, parking requirements, etc.
3. Records of the dates the property was rented and to how many guests. This information is important for correctly reporting and paying tax on your rental income to Inland Revenue.
4. Evidence that the property meets all building codes and health & safety requirements for accommodating short-term guests. This could include approved building consents, code compliance certificates, etc.
5. Proof of appropriate insurance coverage for short-term rental use of the property. Most standard home insurance policies do not cover STR use, so you may need to show you have obtained an extension or separate policy.
6. A written tenancy agreement template outlining the key terms and rules for guests. While not mandatory, having a formal rental contract is a best practice to set expectations and protect yourself as a host.

So in summary, while Gisborne does not seem to require a specific set of documents to register STRs at this time, it's still prudent for hosts to maintain organized records establishing their right to rent the property and their compliance with all relevant regulations.

Having this documentation on hand will make it easier to respond to any questions or issues that may arise. As always, it's best to check directly with the Gisborne District Council to confirm their latest requirements.

Gisborne Short-Term Rental Taxes

When operating a short-term rental in Gisborne, it's important to understand your tax obligations. The two main types of tax that may apply are income tax and Goods and Services Tax (GST).

Income Tax

All income earned from providing short-term accommodation, including through platforms like Airbnb, is taxable in New Zealand. STR hosts will need to file an income tax return to account for their rental earnings each year.

The amount of tax owed will depend on the host's total taxable income and corresponding tax bracket. For the 2023 tax year, the income tax rates are:

1. Up to $14,000 - 10.5%
2. Over $14,000 and up to $48,000 - 17.5%
3. Over $48,000 and up to $70,000 - 30%
4. Over $70,000 and up to $180,000 - 33%
5. Remaining income over $180,000 - 39%

STR hosts can deduct eligible expenses from their rental income to reduce their taxable profit. If the property is used solely for STR purposes, direct costs like interest, rates, insurance, and repairs may be fully deductible. If the property is also used privately, costs need to be apportioned using special rules.

Goods and Services Tax (GST)

GST is a 15% tax on most goods and services in New Zealand. STR hosts may need to register for and charge GST if their total taxable supplies exceed $60,000 in a 12-month period.

This is because short-term accommodation is considered taxable, unlike long-term residential renting which is exempt. The $60,000 threshold includes income from the STR activity plus any other taxable supplies like a business.

Once registered, 15% GST must be added to the STR rental price and paid to Inland Revenue. Hosts can claim back GST on any expenses related to the STR. Failing to register when required can result in penalties.

However, new rules taking effect from 1 April 2024 will require STR platforms like Airbnb to collect GST on behalf of hosts, even if the host earns under $60,000. Airbnb will charge the 15% to guests and pass on 8.5% to the host as a flat-rate credit to cover estimated expenses. The host will not be able to claim actual GST on costs.

GST-registered hosts will be paid the GST-exclusive amount by Airbnb and will need to return it as a zero-rated supply. They can still claim actual GST on their expenses.

Possible Deductions

STR hosts can potentially claim deductions for expenses like:

1. Mortgage interest (may be limited)
2. Rates and insurance
3. Utilities like power and internet
4. Cleaning and property management fees
5. Repairs and maintenance
6. Depreciation on chattels
7. Marketing and photography costs

Adequate records should be kept to support any expense claims. If a property is used both personally and as an STR, apportionment rules apply to limit deductions. Hosts should consult a tax professional to ensure they are claiming the correct amounts.

In summary, STR operators in Gisborne need to be aware of their income tax and GST obligations based on their specific situation. With the new GST rules for platforms coming in 2024, it's especially important to understand how they may impact an STR's bottom line. Proper planning and record-keeping is key to staying compliant.

New Zealand Wide Short-Term Rental Rules

In addition to any specific regulations in Gisborne, short-term rental hosts must also comply with several national laws and tax requirements that apply across New Zealand.

Income Tax

All income earned from providing short-term accommodation, including through booking platforms like Airbnb, is taxable. This applies even for one-off or irregular rentals. Hosts must declare this income in their annual tax return.

The amount of tax owed will depend on the host's total taxable income and corresponding marginal tax rate, which ranges from 10.5% to 39%. Expenses related to the rental activity can be deducted, but may be limited based on the property type and amount of personal vs rental use.

If a property is rented for short-term stays but falls under the "mixed-use asset" rules (used both personally and for income-earning), special tax regulations apply:

1. If annual income is under $4,000, the income does not need to be declared, but expenses cannot be claimed either.
2. Above the $4,000 threshold, specific rules determine how to apportion expenses between personal and rental use.

Goods and Services Tax (GST)

Short-term accommodation is subject to GST at 15%. Hosts must register for and charge GST if their annual turnover from all taxable activities, including rental income, exceeds $60,000.

However, new rules taking effect from 1 April 2024 will require short-term rental booking platforms like Airbnb to collect and return GST on behalf of hosts, even if they earn under the $60,000 threshold. Hosts can claim back a flat 8.5% GST credit on expenses, while those earning over $60,000 can continue claiming actual GST.

Health and Safety

The Health and Safety at Work Act 2015 requires short-term rental hosts to take reasonable steps to ensure guest health and safety. While not all obligations on commercial providers apply, hosts should still:

1. Identify and manage any property hazards
2. Ensure working smoke alarms are installed
3. Provide fire evacuation information to guests
4. Comply with all Building Code requirements

Although not yet mandatory, it's recommended for short-term rentals to meet the Healthy Homes Standards on heating, insulation, ventilation, moisture ingress, and drainage.

Tenancy Laws

Short-term holiday rentals are not covered by the Residential Tenancies Act, so standard tenancy agreements do not apply. However, it's still important to have a written rental contract outlining terms and conditions for guests.

Hosts cannot force existing tenants to leave in order to use the property for short-term rentals. Tenants also require landlord permission to sublet the property on sites like Airbnb.

Council Rates and Fees

Some local councils charge higher rates or fees for properties used as short-term rentals. For example, Auckland Council requires short-term rentals to pay the Accommodation Provider Targeted Rate.

Hosts should check their council's policy, as failing to declare a property's short-term rental use could result in financial penalties or a retrospective rates bill.

Insurance

Standard home and contents insurance policies may not cover damage or liability related to paying guests. Hosts should inform their insurer of the short-term rental use and get appropriate coverage extensions.

While not exhaustive, this overview covers some of the key national regulations short-term rental operators in Gisborne and across New Zealand need to be aware of. Penalties for non-compliance can be significant, so it pays to do your research and engage professional tax and legal advice to ensure you are operating within the rules.

Does Gisborne Strictly Enforce STR Rules?

Based on discussions in online real estate investing communities like BiggerPockets and Reddit, Gisborne appears to take a relatively relaxed approach to enforcing short-term rental regulations compared to larger cities in New Zealand. While hosts are expected to comply with applicable rules, active enforcement seems limited.

One Reddit user noted that "Quite a few smaller areas with good tourism [are] rekt by air bnb. It's ridiculous in some places." They specifically called out the town of Te Anau, where apparently no long-term rentals are available but around 300 properties are listed on Airbnb. This makes it very difficult for local workers to find housing.

The situation in Gisborne may be similar. With its scenic beaches and wineries, the area is a popular tourist destination. This creates strong incentives for property owners to convert homes into more lucrative short-term holiday rentals.

While the Gisborne District Council website outlines various requirements around building consents, health and safety, and rates for visitor accommodations, there is little mention of proactive auditing or penalties for non-compliance. Enforcement likely relies heavily on complaints from neighbors or guests.

In contrast, cities like Queenstown and Christchurch have recently proposed or implemented stricter rules on short-term rentals, such as capping the number of nights per year a property can be rented out. Hosts failing to register properties have faced hefty fines.

So while Gisborne is not as overtly hostile to Airbnb as some other councils, it also doesn't appear to be going out of its way to assist or attract STR operators. Hosts seem to be operating with minimal interference as long as they avoid egregious violations.

Of course, this relatively hands-off approach has consequences. It can put upward pressure on long-term rents and home prices, while also disrupting the character of residential neighborhoods. Gisborne may need to consider a more balanced regulatory framework as short-term rentals continue to proliferate.

But for now, it's fair to say that Gisborne is generally Airbnb-friendly from an enforcement perspective compared to major cities. Hosts can operate with a fair degree of flexibility, though they should still make good faith efforts to follow the rules. Responsible STR operators who pay their taxes and ensure safe accommodations are unlikely to face serious compliance issues in Gisborne.

How to Start a Short-Term Rental Business in Gisborne

Starting a short-term rental business in Gisborne can be a great way to earn extra income from your property. However, it's important to approach it strategically and ensure you comply with all relevant regulations. Here are the key steps to get started:

Research local rules and regulations: Before listing your property, familiarize yourself with Gisborne District Council's requirements for short-term rentals. While there doesn't appear to be a specific STR licensing program, you still need to check zoning allows for this use, obtain any required resource consents, and ensure the building meets health and safety standards.

Register and obtain required consents: If your property needs resource consent to operate as a short-term rental based on the zone and scale of activity, apply for this early to avoid delays. You'll need to provide an assessment of environmental effects with your application. It's best to consult with the council's duty planner for guidance.

Prepare your property: Ensure your space is clean, well-maintained, and equipped with essential amenities to provide a comfortable stay for guests. Consider any upgrades or renovations that could make it more appealing. Obtain professional photos that highlight your property's best features for your listing.

Set up your listing: Create an attractive listing on platforms like Airbnb and Vrbo. Write a compelling description, choose a competitive nightly rate based on similar properties, and establish clear house rules. Be responsive to inquiries and keep your calendar up to date. Leverage Airbnb's built-in booking tools and guest communication features.

Understand your tax obligations: Income from short-term rentals is taxable, even for occasional rentals. You may have GST obligations if earning over $60k per year. Consult a tax professional and keep accurate records of all rental income and expenses. New rules taking effect in 2024 will require platforms like Airbnb to collect and return GST.

Arrange cleaning and turnover: Establish a reliable cleaning and turnover process, either by handling it yourself or hiring a reputable service. Create a detailed cleaning checklist to ensure consistent quality. Quick turnarounds are key to maximizing bookings. Consider using automated tools to streamline cleaning team coordination.

Obtain proper insurance: Contact your insurance provider to ensure you have proper coverage for short-term rental use. You may need to pay a higher premium or add riders for liability and contents protection. Some platforms offer limited coverage, but it's best to have your own policy as well.

Provide excellent guest communication: Be proactive and responsive in your communication with guests before, during, and after their stay. Provide helpful local recommendations, ensure check-in instructions are clear, and address any issues promptly. Encourage guests to leave reviews and respond to feedback graciously.

Monitor your performance and adjust: Regularly assess your listing's performance, including occupancy rate, revenue, and guest reviews. Adjust your nightly rates based on demand, events, and seasonality. Continuously improve your property and guest experience based on feedback.

Expand your portfolio strategically: As you gain experience and if market conditions are favorable, consider expanding your short-term rental portfolio in Gisborne. Assess potential properties based on location, amenities, and revenue potential. Leverage tools to efficiently manage multiple listings across booking platforms.

Some additional tips for success:

1. Focus on providing a unique, high-quality guest experience that showcases the best of Gisborne
2. Develop a detailed business plan and financial projections to guide your growth
3. Stay up to date on industry trends and regulatory changes that could impact your business
4. Network with other local short-term rental operators to share insights and best practices
5. Reinvest a portion of your profits into property upgrades and amenity improvements
6. Consider partnering with local businesses to offer exclusive guest perks or packages

By following these steps and continually optimizing your operation, you can build a thriving short-term rental business in Gisborne. While the market has become more competitive, there are still good opportunities for diligent operators who prioritize guest satisfaction and regulatory compliance.

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

If you have questions about short-term rental rules or want to ensure your property is compliant, there are several ways to get in touch with the relevant authorities in Gisborne:

Gisborne District Council

The Gisborne District Council is the main point of contact for inquiries related to planning, zoning, building, and health & safety requirements that apply to short-term rentals.

You can contact the council by:

• Phone: 0800 653 800 or (+64 06) 867 2049 (24 hours)
• Email: service@gdc.govt.nz
• Online contact form: https://www.gdc.govt.nz/forms/contact-us
• Postal mail: PO Box 747, Gisborne 4010, New Zealand
• In-person: 15 Fitzherbert Street, Gisborne (main office) or 4746 Waiapu Road, Te Puia Springs (service center). Hours are 9am-4pm Monday to Friday.

For specific planning and zoning questions, you can email the council's duty planner at dutyplanner@gdc.govt.nz. For building-related questions, contact the Building Services team at building@gdc.govt.nz.

Online Communities

In addition to directly contacting the council, short-term rental hosts in Gisborne can also benefit from connecting with others in the industry to share experiences and insights. Some helpful online communities include:

Airbnb Community Center - Hosting Forum: https://community.withairbnb.com/t5/Hosting/bd-p/listing-and-reservations

This is Airbnb's official forum where hosts from around the world ask questions, share advice, and discuss a wide range of hosting topics. While not Gisborne-specific, it's a great resource to learn hosting best practices and get tips on regulatory compliance.

New Zealand Airbnb Hosting Facebook Group: https://www.facebook.com/groups/airhostnz/

This is a private Facebook group for Airbnb hosts across New Zealand to connect, ask questions, and share knowledge. With over 5,000 members, it's an active community to get NZ-specific hosting advice, including on local regulations.

Short Term Accommodation Association of New Zealand: https://www.staanz.org.nz/

STAANZ is an industry group representing short-term rental owners and managers across New Zealand. They provide useful resources and advocate on behalf of members regarding the regulatory landscape for STRs.

By engaging with both official council contacts and wider industry communities, short-term rental operators in Gisborne can stay informed and ensure they are operating responsibly within all applicable rules and regulations. Proactive compliance is key to running a successful and sustainable STR business.

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

While there are active online communities for short-term rental hosts in New Zealand, specific discussions about Gisborne's regulatory environment seem to be limited. Most threads focus on larger cities like Auckland, Wellington, and Queenstown. However, some insights can still be gleaned:

On a Reddit thread discussing housing challenges on Waiheke Island, one user drew comparisons to the Gisborne market, noting there were only six long-term rentals listed on TradeMe compared to over 400 Airbnb listings.

They argued this imbalance is "screwing over" the community and called for tighter restrictions on short-term rentals, similar to regulations introduced overseas. However, another commenter pushed back, noting that many Waiheke properties are consented for short-term use only due to infrastructure constraints. They also highlighted how the local economy relies heavily on visitor spending.

This exchange underscores the complex trade-offs communities like Gisborne face in regulating short-term rentals. While stricter rules could potentially improve housing access for locals, they could also have unintended economic consequences in tourism-dependent areas.

On the BiggerPockets forums, there are several discussions about investing in short-term rentals in New Zealand, but most focus on the general regulatory and economic landscape rather than Gisborne specifically.

Overall, while there is limited Gisborne-specific commentary from hosts on these forums, the discussions still provide some relevant insights:

• There is an inherent tension between using properties for short-term rentals vs long-term housing, especially in smaller communities with limited stock
• The behavior of some short-term guests can create friction with neighbors, underscoring the need for sensible rules around things like noise and occupancy
• Inconsistent and changing regulations across jurisdictions can create financial challenges and uncertainty for short-term rental operators
• At the same time, overly restrictive rules can have negative economic consequences in tourism-dependent markets like Gisborne

As Gisborne and other councils grapple with how to regulate the growing short-term rental industry, it will be important to find a balanced approach that considers the needs of both local residents and the tourism sector. Engaging hosts in these policy discussions can help ensure regulations are practical and effective.

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.