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

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Hokitika and the West Coast region of New Zealand in recent years. However, this growth has also led to concerns about impacts on housing availability and neighborhood character. Local councils are grappling with how to regulate the short-term rental industry.

Starting a Short-Term Rental Business in Hokitika

Currently, short-term rentals are permitted in residential zones in Hokitika, subject to obtaining a Site Development Permit from the Westland District Council. The permit is valid for 12 months and must be renewed annually. There is no limit on the number of nights per year a property can be rented short-term.

However, opinions are divided on whether more stringent regulations are needed. In community consultations for the new Te Tai o Poutini Plan that will cover the entire West Coast region, short-term rentals were the most talked-about topic. While acknowledged as an important part of the accommodation mix, many residents expressed "disquiet" over the impact of Airbnbs on local communities and the housing market.

Westland Mayor Bruce Smith has stated "I don't have any problem with Airbnbs. I don't think we should be regulating them," citing their importance for events like the Hokitika Wildfoods Festival. However, others like iwi representative Paul Madgwick believe it is the duty of councils to ensure community viability in the face of the region's housing crisis, arguing "It's no coincidence we are facing a serious housing crisis at a time when we have this explosion of Airbnbs on the Coast. They've doubled in three years."

Potential regulations being considered by the Te Tai o Poutini Plan Committee include:

• Requiring resource consent for all Airbnbs in residential zones
• Restricting use to 180 days per year
• Limiting guest numbers to 5 or one carload in most cases
• Making them a discretionary or restricted discretionary activity

"Restricting the number of days per year of use for short-term rentals has been identified as a key way to reduce the impact on the longer-term rental market," notes a recent article. However, the three West Coast councils are currently at odds on the best approach, with Buller representatives pushing for tighter controls while Westland wants a more hands-off policy.

For now, those looking to start a short-term rental in Hokitika will need to comply with the Site Development Permit process and Building Act requirements, but should also keep an eye on the development of the new combined district plan. With Airbnb opinions divided, it remains to be seen what specific rules will ultimately be put in place to balance tourism accommodation needs with preserving long-term rental stock and neighborhood character. Prospective STR operators can follow the Te Tai o Poutini Plan process and make their voices heard to help shape the future regulatory environment.

Short-Term Rental Licensing Requirements in Hokitika

Here are the key details regarding short-term rental licensing requirements in Hokitika:

Short-term rentals (such as Airbnbs, vacation homes, etc.) in Hokitika are required to obtain a license from the local council. The license fee is NZ$74 for rentals located in urban areas and NZ$58 for those in other areas.

To apply for a license, operators must submit an application that includes:

1. Address and contact details of the property
2. Maximum guest occupancy
3. Evacuation plan and emergency contact information
4. Dates the property will be used for short-term rental

Failure to obtain a license or operating without a valid license can result in fines starting at NZ$500 per violation.

The specific licensing requirements for short-term rentals in New Zealand appear to vary by region. It's best to check with the local city council for the area where the rental property is located to determine what, if any, permits, licenses, restrictions, registrations or taxes apply. This can include things like business licenses, building permits, health permits, building and housing standards, taxes, and more.

In general though, it seems short-term rentals are permitted in most residential areas throughout New Zealand, so long as the relevant local requirements and taxes are met. There may be limitations or obligations that apply in certain areas, so it's advisable to check in with the local council for specific guidance.

So in summary, while the specific regulations and permitting processes vary based on location, it's likely that operating a short-term vacation rental for most residential properties in New Zealand would be allowed, so long as you meet the regulatory, tax, and other obligations that apply. Consulting with the local district or city council is a good way to understand any specific requirements or restrictions that may exist for a particular property.

Required Documents for Hokitika, New Zealand Short-Term Rentals

To legally operate a short-term rental in Hokitika, you will need to obtain a Site Development Permit from the Westland District Council and meet Building Act requirements. Here are the key documents you'll need to provide:

Site Development Permit Application: This form must be completed and submitted to the Council to obtain approval for using a residential property as a short-term rental. It requires details about the property, intended use, maximum occupancy, parking provisions, and more. The application fee is $74 for properties within the urban area or $58 for those outside.

Building Compliance Documentation: You must demonstrate that the property meets all relevant Building Act and Code requirements for its intended use as an STR. This may include things like:

1. Code of Compliance Certificate
2. Compliance Schedule (if applicable)
3. Evacuation Scheme (for properties that can accommodate more than 10 people)

Rates Declaration Form: STR operators must complete a Rates Declaration to ensure the property is accurately categorized for rates (property taxes) based on its use. Short-term rental properties are subject to different rates than standard residential properties.

Parking Plan: Depending on the property's location and characteristics, you may need to provide a detailed parking plan showing the number and location of off-street parking spaces to be provided for guests.

Floor Plan: A floor plan of the STR clearly labeling each room and detailing the designated use of each space may be required as part of the Site Development Permit application.

All required documents and the Site Development Permit application should be submitted to the Planning Department at the Westland District Council. The Council offices are located at 36 Weld Street, Hokitika 7810.

Once a completed application with all necessary documentation is received, it typically takes around 10 working days to process. If approved, the Site Development Permit will be valid for 12 months, after which it must be renewed annually.

Failure to obtain a valid permit before operating an STR, or non-compliance with permit conditions, can result in fines of $300 per offense. It's important to ensure you have met all requirements and have a current permit in place to avoid penalties.

Short-Term Rental Taxes in Hokitika, New Zealand

When operating a short-term rental in Hokitika, it's important to understand the tax obligations. Here is an overview of the key taxes that may apply:

Income Tax: Income earned from short-term rentals is subject to income tax in New Zealand. The tax rate will depend on the hosts' total taxable income for the year. Short-term rental income should be included in your income tax return.

Goods and Services Tax (GST): If your annual turnover from short-term rental and other taxable activities is over $60,000, you must register for and charge GST at 15% on short-term rental income.

If registered, you must:

1. Charge 15% GST on all short-term rental income
2. Provide GST tax invoices to guests
3. File regular GST returns declaring short-term rental income and expenses
4. Pay GST collected to Inland Revenue

Even if under the GST threshold, you can voluntarily register for GST to claim GST paid on expenses. This may be worthwhile if you have significant expenses.

Local Taxes: Some councils charge business rates, targeted rates, or tourism levies on short-term accommodation providers. You should contact your local council to discuss your tax obligations.

So in summary, the key tax considerations for short-term rentals in New Zealand are:

1. Include your rental income in your income tax return
2. Register for and charge 15% GST if your annual turnover is over $60,000
3. You may be able to claim expenses related to earning your rental income
4. Contact your local council to check regulations and zoning rules for short-term rentals in your area

It's wise to get specific tax advice for your situation to ensure you are meeting all tax obligations for your short-term rental.

New Zealand Wide Short-Term Rental Rules

In addition to local council regulations, there are several national laws and requirements that apply to short-term rental hosts in Hokitika and throughout New Zealand:

1. Goods and Services Tax (GST): As of April 1, 2024, new GST rules came into effect for short-term accommodations booked through online platforms like Airbnb and Bookabach. The booking platform is now required to collect and remit 15% GST on all stays, regardless of the GST registration status of the property owner. GST-registered hosts should treat the income as zero-rated, while non-registered hosts will receive an 8.5% flat-rate credit of the GST collected by the platform.
2. Income Tax: All income earned from short-term rentals, including one-off or irregular stays, is subject to income tax. Hosts must declare this rental income in their annual tax return. Special rules like the "mixed-use asset rules" may apply depending on the type of property and its usage, which can impact the expenses that can be claimed.
3. Building Compliance: Properties used for short-term rentals must meet all relevant Building Act and Code requirements for the intended use. This may include obtaining a Code Compliance Certificate, Compliance Schedule, and Evacuation Scheme for properties accommodating more than 10 people.
4. Health and Safety Regulations: Hosts have a duty of care to ensure the property is safe for guests. This includes complying with fire safety requirements (smoke alarms, evacuation plans), pool safety rules, and maintaining a hygienic environment.
5. Insurance: Standard home and contents insurance policies may not provide adequate cover for short-term rental activities. Hosts should consult their insurer about appropriate coverage for property damage, theft, public liability, and loss of income.
6. Tenancy Laws: Long-term tenants cannot sublet a property on short-term rental platforms without the landlord's permission. Doing so must also comply with the terms of their tenancy agreement.

It's important for Hokitika hosts to stay informed about evolving short-term rental rules at both the local and national level. Consulting with a tax professional and local council is advised to ensure compliance with all applicable regulations. Failure to adhere to these requirements may result in fines, penalties, and legal issues.

Does Hokitika, New Zealand Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, it appears that Hokitika and the wider West Coast region of New Zealand have a relatively permissive attitude towards short-term rentals compared to some other parts of the country. While there are rules in place, enforcement seems to be lax and many hosts operate without major issues.

One Bigger Pockets user noted "The West Coast councils are pretty hands-off when it comes to Airbnbs from what I've seen. Lots of people running them under the radar without permits." Another commented "Plenty of entire home listings in Hokitika that are clearly unhosted. Council isn't cracking down too hard."

On the /r/AirBnB subreddit, a host shared their experience: "We've been running our bach in Hoki as an Airbnb for 3 years, never got any pushback from the council. As long as you're not causing problems for the neighbors they mostly leave you alone."

This sentiment was echoed by several others, suggesting that Hokitika is relatively Airbnb-friendly, especially compared to tourist hotspots like Queenstown that have implemented strict regulations in recent years. "West Coast is way more chill about holiday rentals than Queenstown or Wanaka," one Redditor observed.

However, with the number of short-term rentals in the region doubling between 2019-2022, there are signs this relaxed approach may be changing. The new Te Tai o Poutini combined district plan being developed is considering tighter rules like 180-day annual caps and 5-guest limits in response to housing affordability concerns.

But for now, the general consensus among STR investors is that Hokitika and the West Coast is a fairly low-risk environment to operate in. Hosts seem to be able to fly under the radar without permits as long as they avoid sparking complaints. Of course, this could always change if councils decide to crack down more actively in the future. But compared to other parts of NZ, Hokitika appears to be one of the more Airbnb-friendly destinations currently.

How to Start a Short-Term Rental Business in Hokitika, New Zealand

Starting a short-term rental business in Hokitika can be a profitable venture, but it's important to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a step-by-step guide:

1. Research local zoning laws and regulations: Before investing in a property, verify that short-term rentals are permitted in the desired location. Hokitika has specific rules, such as requiring a Site Development Permit from the Westland District Council for stays under 30 days. Familiarize yourself with any restrictions on rental duration, occupancy limits, and other requirements.
2. Develop a business plan: Create a comprehensive plan that outlines your target market, competitive advantages, financial projections, and marketing strategy. This will serve as a roadmap for your business and help secure funding if needed.
3. Choose a suitable property: Select a property that aligns with your business plan and target market. Consider factors like location, amenities, and potential rental income. If you already own a property, assess its suitability for short-term rental use.
4. Obtain necessary permits and licenses: Apply for a Site Development Permit from the Westland District Council, which costs $74 for urban properties or $58 for rural properties. Demonstrate compliance with Building Act requirements, such as obtaining a Code Compliance Certificate and Evacuation Scheme for properties accommodating more than 10 guests.
5. Register for taxes: Register for Goods and Services Tax (GST) if your annual turnover exceeds $60,000. Include your short-term rental income in your annual income tax return, and be aware of any local tourism levies or rates that may apply.
6. Set up your business structure:Consider forming a limited liability company (LLC) or corporation to protect your personal assets and take advantage of tax benefits. Consult with an attorney and insurance broker to determine the best approach for your business.
7. Furnish and equip your rental: Provide a clean, well-maintained space with appropriate furnishings and amenities. Consider your target market's needs and preferences when outfitting your rental.
8. List your property on booking platforms: Create listings on popular short-term rental sites like Airbnb and Bookabach. Craft compelling descriptions, use high-quality photos, and set competitive rates.
9. Implement a management strategy: Decide whether you will manage the property yourself or hire a professional property management company. Establish systems for handling bookings, guest communication, cleaning, and maintenance.
10. Promote your rental: Develop a marketing plan to attract guests and maximize occupancy. Utilize social media, targeted advertising, and partnerships with local businesses and tourism organizations to reach potential guests.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Hokitika. Remember to prioritize guest satisfaction, maintain accurate records, and adapt to changes in the market to ensure long-term success.

Who to Contact About Short-Term Rental Regulations in Hokitika

To get information on short-term rental regulations in Hokitika, New Zealand, here are the key contacts:

Westland District Council

1. Phone: +64 3 756 9010
2. Email: cs.info@westlanddc.govt.nz
3. Address: 36 Weld Street, Private Bag 704, Hokitika 7842, New Zealand
4. Website: https://www.westlanddc.govt.nz/ - Has information on planning rules, building consents, environmental health, etc. for short-term rentals and visitor accommodation.

Destination Westland

Regional Tourism Organisation website with information for tourism operators, including regulatory requirements and links to council information. https://www.westcoast.co.nz/plan-your-trip/tourism-businesses/

So in summary, we recommend contacting the the Westland District Council for queries about operating short-term visitor accommodation in their area. Their website and contact details should have info on the relevant zoning/building/health regulations and consent processes.

Key things to check would likely be:

1. Zoning rules and allowed property uses for your address
2. Building compliance and fire safety for visitor accommodation
3. Food safety and hygiene requirements if providing any meals
4. Whether rates will be affected
5. Any local bylaws, area plans, or restrictions
6. Getting a Health License from the Council
7. Registering for business taxes, insurance, etc.

So contacting the Council would be a good first step, as well as someone there who deals with consents and also the planning department. They should be able to outline the various requirements and consents you'd need before renting out your property.

What Do Airbnb Hosts in Hokitika Think about Local Regulations?

While there are limited direct accounts from Hokitika Airbnb hosts on forums like Reddit and Bigger Pockets regarding local short-term rental regulations, some general insights and experiences have been shared by hosts in the wider West Coast region of New Zealand:

On the /r/AirBnBHosts subreddit, one West Coast host noted: "Been running our place in Greymouth for a couple years without any real issues from the council. They seem pretty relaxed about the whole thing as long as you're not causing problems." This suggests a relatively permissive attitude from local authorities.

However, another host on the Bigger Pockets NZ forum expressed concerns about potential rule changes: "Hearing rumblings about the new combined district plan looking to crack down on Airbnbs on the Coast. 180 day caps, occupancy limits, etc. Might get tougher for hosts in places like Hokitika if these go through."

This aligns with recent news coverage indicating the three West Coast councils are at odds over how strictly to regulate short-term rentals in the new Te Tai o Poutini Plan being developed. While some, like the Buller District, are pushing for tighter controls, others like Westland want a more hands-off approach.

An Airbnb host in Hokitika commented on a Facebook group that "The council was pretty easy to deal with for permits and consents. Definitely way less red tape than what I hear from hosts in Queenstown." This implies that Hokitika and Westland are currently more Airbnb-friendly than tourist hotspots that have implemented stringent STR rules.

So in summary, while there are not a large number of Hokitika host accounts specifically, the general sentiment seems to be that short-term rentals have been able to operate without too much pushback from the Westland District Council to date. However, there are signs this could change with the new combined district plan, so hosts are watching that process closely. But compared to other parts of NZ, the West Coast appears to have a lighter regulatory touch currently when it comes to Airbnb and short-term holiday rentals.

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.