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

Starting a Short-Term Rental Business in Tauranga

If you're considering starting a short-term rental business in Tauranga using platforms like Airbnb or VRBO, it's important to be aware of the local regulations. Tauranga City Council has specific rules around short-term accommodation that property owners must follow.

According to the Tauranga City Plan, short-term rental accommodation is classified as "Residential Visitor Accommodation" (RVA). This is defined as the use of a residential unit for paying guests on a short-term basis. The City Plan sets out where RVA is permitted and what standards need to be met.

In most residential zones, RVA is a permitted activity as long as it meets certain criteria, such as:

• No more than 6 guests at a time
• Minimum parking requirements
• Meeting Building Code standards for fire safety, etc.

However, in some higher density residential zones, resource consent may be required to operate short-term rentals. It's important to check the zoning rules for your specific property.

There are also a few other key things to be aware of:

1. Taxes: Income earned from short-term rentals is taxable and needs to be declared to Inland Revenue. GST may also apply if your annual turnover exceeds $60,000.
2. Insurance: Standard home insurance policies often don't cover short-term rentals, so you may need to arrange additional cover. Public liability insurance is also recommended.
3. Health & Safety: Property owners have obligations under the Health and Safety at Work Act to ensure their property is safe for guests. This includes things like working smoke alarms, safe gas/electrical fittings, pool fencing, etc.
4. Tenancy Rules: If your property is currently tenanted, you can't simply kick out tenants to convert it to a short-term rental. Fixed-term tenancies must be honored. For periodic tenancies, the correct notice period must be given.

Overall, while starting an Airbnb in Tauranga is certainly possible, property owners need to do their due diligence on the various rules and regulations. The Tauranga City Council website has useful information and resources.

Short-Term Rental Licensing Requirements in Tauranga

Based on the information available on the Tauranga City Council website, short-term rental accommodation is classified as "Residential Visitor Accommodation" (RVA) in the Tauranga City Plan. The City Plan sets out where RVA is permitted and what standards need to be met.

In most residential zones, RVA is a permitted activity as long as it meets certain criteria, such as:

1. No more than 6 guests at a time
2. Minimum parking requirements
3. Meeting Building Code standards for fire safety, etc.

However, in some higher density residential zones, a resource consent may be required to operate short-term rentals. It's important to check the zoning rules for your specific property.

The Tauranga City Council website does not appear to have comprehensive details on a formal short-term rental licensing or registration process at this time. There is no clear information on where to submit applications, the fees involved, processing times, or penalties for operating without proper approvals.

Property owners considering short-term rentals in Tauranga are advised to contact the Council directly to confirm any registration, licensing, or consent requirements that may apply to their specific circumstances. The Council's planning department should be able to provide guidance on:

1. Whether a resource consent is needed based on the property's zoning
2. Building Code compliance for fire safety and other standards
3. Any registration process and fees for residential visitor accommodation
4. Potential fines or enforcement action for non-compliant short-term rentals

It's important to ensure your short-term rental is fully compliant with all Council regulations to avoid issues. Failing to obtain required consents or meet important safety standards could result in significant fines or restrictions on your ability to operate. Working closely with the Council is the best way to ensure a smooth process in setting up your rental business.

Required Documents for Tauranga Short-Term Rentals

Based on the information available from the Tauranga City Council, property owners looking to operate short-term rentals or "Residential Visitor Accommodation" may need to provide the following documents:

1. Resource Consent Application (if required)

In some higher density residential zones in Tauranga, a resource consent may be required to operate short-term rentals. The resource consent application demonstrates that the proposed activity complies with the City Plan rules. It typically involves providing:

1. Completed application form
2. Assessment of environmental effects
3. Site and floor plans
4. Written approvals from affected parties
5. Deposit fee

Consult with the Council's duty planner to determine if resource consent is needed for your specific property and zone.

2. Building Warrant of Fitness (for fire safety)

Short-term rental properties must comply with the Building Code requirements for fire safety, which includes having compliant fire alarms, evacuation procedures, etc. A Building Warrant of Fitness is the building owner's annual statement confirming the property's life safety systems have been maintained and inspected.

1. Issued by a registered Independent Qualified Person (IQP)
2. Includes Form 12A and Form 12B certificates
3. Must be supplied to Council and publicly displayed in the building

3. Electrical and Gas Safety Certificates

Holiday rental owners have obligations under the Health and Safety at Work Act to ensure their property is safe for guests. This includes making sure all gas and electrical appliances are safe and properly maintained.

1. Gas Safety Certificates issued by certified gasfitters
2. Electrical Safety Certificates issued by registered electricians
3. Recommend having appliances checked annually or as required

4. Insurance Policy Documents

Having appropriate insurance cover is crucial for short-term rentals. Owners should provide copies of their:

1. House and contents insurance
2. Public liability insurance
3. Any additional policy covering short-term or holiday rentals
4. Check with your insurer that your policy adequately covers damage and liability related to paying guests.

5. Tax Documents and Records

Income from short-term rentals is taxable and must be declared to Inland Revenue, even for one-off or irregular rentals. Special tax rules apply for calculating rental income and expenses.

1. Records of all rental income and expenses
2. Copies of tax returns showing rental income declared
3. GST registration and returns if required

Owners should keep meticulous records and consult a tax professional to ensure compliance with all tax rules for short-term rentals.

The specific documentation required for short-term rentals in Tauranga may vary depending on the property and situation. Always consult with the Tauranga City Council directly to confirm the current rules and required documents for your rental property.

Tauranga Short-Term Rental Taxes

If you operate a short-term rental business in Tauranga, there are several types of taxes you need to be aware of:

1. Income Tax

All income you earn from renting out your property is subject to income tax. The rate you pay depends on your total taxable income for the year, based on these tax brackets for 2024-2025:

• 10.5% on income up to $15,600
• 17.5% on income between $15,601 and $53,500
• 30% on income between $53,501 and $78,100
• 33% on income between $78,101 and $180,000
• 39% on income over $180,000

However, if you use the short-stay standard-cost method, income up to the nightly standard-cost rate is tax-free ($61 per night for homeowners or $55 for non-homeowners in 2023-24). You only pay tax on amounts charged above this rate.

2. Goods and Services Tax (GST)

If your total business turnover from all sources, including rental income, exceeds $60,000 in a 12-month period, you must register for GST. The GST rate is 15%.

From 1 April 2024, short-stay accommodation booked through online platforms like Airbnb will have GST added at 15%, regardless of whether the host is GST-registered. The platform will be responsible for charging and remitting this GST.

Deductions and Write-Offs

You can deduct expenses related to your rental business to reduce your taxable income. Allowable deductions may include:

• Rates and insurance
• Interest on money borrowed for the rental property
• Fees or commission paid to agents who collect the rent, maintain the property, or find tenants for you
• Repairs and maintenance (but not capital improvements)
• Motor vehicle and travel expenses for rental property purposes
• Mortgage repayment insurance
• Accounting costs for preparation of tax returns
• Depreciation on furniture or appliances used in the rental property

If your property is a mixed-use holiday home (used both personally and for income-earning) and you earn less than $4,000 per year from renting it, you don't need to declare the income or claim expenses.

Keeping accurate records of all rental income and expenses is essential to ensure you meet your tax obligations. Consult a tax professional or the Inland Revenue Department if you need assistance.

New Zealand Wide Short-Term Rental Rules

In addition to Tauranga-specific regulations, there are several national rules and requirements that all short-term rental hosts in New Zealand need to be aware of:

1. Goods and Services Tax (GST) Changes

Starting from April 1, 2024, all short-term accommodation bookings made through online platforms like Airbnb will have a 15% GST applied, regardless of whether the host is GST-registered or not. The booking platform will be responsible for collecting and remitting this GST to Inland Revenue.

This means Tauranga hosts will no longer have to add GST to their rates or file GST returns themselves for platform bookings. However, GST will still apply as normal to any direct bookings.

2. Income Tax Obligations

All income earned from short-term rentals is subject to income tax in New Zealand. Hosts must declare this income in their annual tax return, even for one-off or infrequent rentals.

Special tax rules apply for calculating deductible expenses, depending on factors like:

• If the property is also used personally
• How many nights per year it is rented out
• If the annual income is under $4,000

Tauranga hosts should carefully review their tax obligations and keep accurate records of all income and expenses.

3. Local Council Regulations

While each council has its own rules, common requirements include:

• Limits on maximum guest numbers
• Parking provisions
• Meeting building and fire safety standards
• Possible resource consent for some zones

Tauranga hosts must ensure they comply with all applicable council regulations for short-term rentals in their area.

4. Insurance Coverage

Standard home insurance policies often do not cover short-term rental use. Hosts should inform their insurer and get appropriate coverage for:

• Damage to the property or contents
• Liability if a guest is injured
• Loss of income if the property is damaged

Some platforms offer limited cover, but hosts should still review their insurance needs.

5. Health and Safety Standards

Under the Health and Safety at Work Act, short-term rental hosts must ensure their property is safe for guests. This includes:

• Working smoke alarms
• Safe gas and electrical appliances
• Secure pool fencing
• Emergency evacuation information

Tauranga hosts should understand their health and safety obligations and have processes in place to meet these requirements.

While not exhaustive, these are some of the key national rules and considerations for short-term rental operators in New Zealand. Tauranga hosts should stay informed of any regulatory changes and ensure they are meeting all their compliance obligations.

Does Tauranga Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, it appears that Tauranga does not have an overly strict approach to enforcing short-term rental regulations compared to some other cities in New Zealand.

While Tauranga has specific rules around short-term accommodation in its City Plan, there is limited evidence of active enforcement action being taken against non-compliant operators. Anecdotally, many hosts seem to be operating without major issues, even if they may not meet all the technical requirements.

This relatively hands-off approach contrasts with the stricter stance taken by councils in areas like Queenstown which have introduced tougher regulations and oversight of Airbnb-style rentals. Queenstown has been more proactive in requiring resource consents and cracking down on illegal operators.

However, this doesn't mean Tauranga is a completely Airbnb-friendly free-for-all. The city still has rules that hosts are expected to follow, such as limits on guest numbers, parking requirements, and building compliance. While active enforcement may be limited, hosts who blatantly flout the rules could face issues.

There are also signs that Tauranga, like many cities, is grappling with the impacts of short-term rentals on housing affordability and supply. In online forums, locals express concerns that the proliferation of Airbnbs is contributing to rental shortages and high prices. This could prompt the council to take a stricter regulatory approach in the future.

Overall, while Tauranga seems to have a fairly permissive approach to short-term rentals currently, hosts should still aim to understand and comply with the City Plan rules. Operating under the radar carries inherent risks. As the sector evolves and housing pressures mount, regulations and enforcement may well tighten up over time.

How to Start a Short-Term Rental Business in Tauranga

Starting a short-term rental business in Tauranga can be a lucrative 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:

• Research Legal Requirements: Familiarize yourself with Tauranga's short-term rental rules in the City Plan. Determine if your property is zoned for "Residential Visitor Accommodation" and what standards you need to meet, such as guest limits, parking, and fire safety. If you're in a higher density zone, you may need to apply for resource consent.
• Prepare Necessary Documents: Gather all the required documents for your short-term rental. This may include a resource consent application, Building Warrant of Fitness for fire safety, electrical and gas safety certificates, insurance policies, and tax records. Having these documents ready will make the registration process smoother.
• Register and Obtain Licenses: Contact the Tauranga City Council to confirm any registration, licensing or consent requirements for your specific property. Submit your application along with the necessary documents and fees. Be patient, as the process may take some time. Obtaining proper approvals upfront will help you avoid penalties later.
• Set Up the Property: Prepare your property for guests. This includes furnishing and decorating the space, providing essential amenities, and ensuring everything is clean and in good working order. Consider hiring a professional photographer to take high-quality photos for your listing.
• List the Property on Rental Platforms: Create listings on popular short-term rental platforms like Airbnb and Bookabach. Write compelling descriptions, use attractive photos, and set competitive rates. Be clear about your house rules and expectations for guests. Consider using a dynamic pricing tool to optimize your rates based on demand.
• Manage Business Operations: Establish systems for managing bookings, communicating with guests, handling check-ins and check-outs, and coordinating cleaning and maintenance. You can do this yourself or hire a property manager. Using vacation rental software can help automate many tasks and streamline operations.
• Handle Taxes and Insurance: Keep accurate records of all rental income and expenses for tax purposes. If your annual turnover exceeds $60,000, you may need to register for GST. Consult a tax professional to ensure you're meeting all your obligations. Additionally, make sure you have appropriate insurance coverage for short-term rental use.
• Follow Health and Safety Standards: Ensure your property meets all health and safety requirements, such as having working smoke alarms, safe electrical and gas fittings, and pool fencing. Provide guests with emergency contact information and evacuation procedures. Regularly inspect and maintain the property to prevent any hazards.

Some additional tips for success:

• Start small and learn as you go. Consider renting out a room or a small property first before expanding.
• Be a responsive and attentive host. Quickly address any guest concerns or maintenance issues that arise.
• Solicit feedback from guests and use it to continuously improve the guest experience.
• Stay up-to-date on any changes to short-term rental regulations in Tauranga and adapt your business as needed.

With careful planning, attention to detail, and a commitment to providing excellent guest experiences, you can build a thriving short-term rental business in Tauranga.

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

If you have questions about short-term rental regulations, zoning, or need help determining if you require resource consent for your rental property in Tauranga, here are the key contacts:

Tauranga City Council
Phone: 07 577 7000 (available 24/7)
Email: info@tauranga.govt.nz
Duty Planner Email: dutyplanner@tauranga.govt.nz

The Council's duty planner can help you navigate the City Plan and understand the rules that apply to your property. You can also book a meeting with a member of the planning staff by calling the main Council number.

For any other queries or technical questions about the City Plan, you can email cityplan@tauranga.govt.nz.

Useful Community Resources

In addition to contacting the Council directly, connecting with other local short-term rental hosts can be a great way to get advice, share experiences, and stay up-to-date on any regulatory changes. Here are a few online communities and resources you may find helpful:

Airbnb Community Center: https://community.withairbnb.com/

The Airbnb forum has a dedicated space for hosts to ask questions, discuss challenges, and learn from each other. While not Tauranga-specific, many of the topics are relevant to hosts everywhere.

Tauranga Airbnb Hosts Facebook Group: https://www.facebook.com/groups/taurangaairbnbhosts/

This is a private Facebook group for Airbnb hosts located in the Tauranga area. It's a place to network with other local hosts, share recommendations for service providers, and get advice on anything from regulations to pricing.

New Zealand Holiday Rental Owners Forum: https://www.propertytalk.com/forum/forumdisplay.php?16-Holiday-Rental-Owners-Forum

This online forum has a section dedicated to discussions among holiday rental owners across New Zealand. While not limited to short-term rentals, many of the topics are applicable, such as tax issues, insurance, property management, etc.

Tauranga Property Investors Association: https://tpia.co.nz/

Although primarily focused on long-term rentals, the Tauranga Property Investors Association is a useful resource for staying informed about the local rental market, networking with other property investors, and educational events.

By utilizing these Council contacts and tapping into the knowledge of the local short-term rental host community, you'll be well-equipped to ensure your Tauranga Airbnb operates smoothly and in compliance with all the relevant rules and regulations.

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

Based on discussions in online forums, it appears that many Airbnb hosts in Tauranga have mixed feelings about the local short-term rental regulations:

Lack of Strict Enforcement

In a Reddit thread titled "Tauranga: 'This whole town has become one big Airbnb'", several commenters noted that while Tauranga has rules around short-term rentals in its City Plan, enforcement seems to be fairly lax compared to other cities. One host mentioned "When I lived in the mount, mid eighties this was common for many rentals... the summer get out season pre dates air bnb, it's just got worse I'd guess." This suggests that seasonal rentals have long been a feature in Tauranga, but the rise of Airbnb has exacerbated the issue.

Concerns About Housing Affordability

Some Tauranga locals expressed frustration that the proliferation of Airbnbs is contributing to housing shortages and high rents, especially over the summer months. In the same Reddit thread, one commenter lamented "Still can't rent a place for a decent price in winter though, they're all holding onto their shitty places for summer Air BnB round up." This sentiment was echoed in another thread titled "Why are rentals short term in Tauranga?", where the original poster noted many rentals are only offered for a few months as landlords want "the ability to kick you out come summer to chuck it on Airbnb and rip off suckers night after night."

Desire for Tighter Regulations

To address these housing pressures, some have called for Tauranga to tighten short-term rental regulations, such as limiting the number of nights per year a property can be rented on Airbnb. One Redditor suggested "Yeah, kinda like they did in Japan. Limit the number of days you can rent out a place on airBnB to 180 days a year, and make the people running them register their property." However, others argued that further restricting Airbnb isn't the solution, but rather closing tax loopholes and correctly appraising short-term rental income.

While these forum discussions provide anecdotal insights, it's clear that opinions are divided on whether Tauranga's current approach to regulating short-term rentals is adequate. As the city grapples with housing affordability challenges, striking the right balance between enabling tourist accommodation and ensuring sufficient long-term rentals will be key. Hosts should stay abreast of any potential regulatory changes that may impact their Airbnb operations.

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.