Wanaka, Canada Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Short-term rental regulations in Wanaka and the greater Queenstown Lakes District have recently been updated in response to the region's housing availability and affordability challenges. As of May 2023, the Environment Court has directed the Queenstown Lakes District Council (QLDC) to change the District Plan rules regarding short-term accommodation.

Starting a Short-Term Rental Business in Wanaka

To legally operate a short-term rental in Wanaka, property owners must adhere to the following rules:

• Up to 90 nights per year of short-term rental (where the whole property is rented) may no longer require a formal resource consent if all relevant standards are met and Council approval is obtained through a streamlined registration process. QLDC will increase property rates by approximately 25% once the registration is approved.
• Standards to be eligible for the 90 nights per year include maximum guest numbers (depending on property size), hosting one group at a time, no heavy vehicles, no guest use of outdoor living areas during night-time hours, related signage installed on the property, and rubbish/recycling bins only left out on collection day.
• For approved 90 nights per year or less rentals, there is an ongoing annual requirement to file records of all letting for the previous year to the Council and re-serve written notice of the activity to neighbors.
• More than 90 nights per year of short-term accommodation legally requires a resource consent granted by the Council. These applications often require written approval from neighbors.

Queenstown Lakes Mayor Glyn Lewers expressed disappointment with the outcome of the new rules, as they are less restrictive than what the council originally proposed in 2017 to significantly limit short-term stays to 28 days a year. The council plans to submit on the government's draft resource management reform legislation, hoping that short-term letting will be further addressed in the future.

It is crucial for property owners to ensure they are fully compliant with the District Plan rules to avoid potential enforcement action from the QLDC, which is under significant pressure from the community to address the rental housing crisis.

Penalties for Non-Compliance with Short-Term Rental Rules in Wanaka

Property owners who fail to comply with Wanaka's short-term rental regulations may face enforcement action and penalties from the Queenstown Lakes District Council (QLDC). Specific consequences for non-compliance include:

1. Fines: The QLDC can issue fines to property owners operating short-term rentals without the proper registration or resource consent. Fines may be issued on a per-night basis for each night the property was illegally rented.
2. Enforcement notices: The council can serve enforcement notices requiring the property owner to cease the illegal short-term rental activity. Failure to comply with an enforcement notice can result in further fines or legal action.
3. Prosecution: In severe cases of non-compliance, the QLDC may pursue prosecution through the courts. This can lead to more substantial fines and potentially even imprisonment for the property owner.
4. Reputation damage: Property owners who consistently violate short-term rental regulations may develop a negative reputation within the local community and among potential guests, impacting their ability to successfully operate a short-term rental business in the future.

The QLDC has expressed its commitment to enforcing the short-term rental rules to help address Wanaka's housing challenges. In a recent statement, QLDC Planning & Development General Manager Tony Avery emphasized, "We will be proactively monitoring short-term rental activity and taking enforcement action against those who fail to comply with the District Plan rules. It's crucial that property owners understand and adhere to the regulations to avoid penalties."

To ensure compliance and avoid penalties, property owners should carefully review the short-term rental rules, submit the required registration or resource consent application to the QLDC, and diligently follow all standards and conditions associated with their approved short-term rental activity.

Required Documents for Wanaka Short-Term Rentals

To apply for a short-term rental registration or resource consent in Wanaka, property owners must provide the following documents to the Queenstown Lakes District Council (QLDC):

1. Completed application form: The application form for short-term rental registration or resource consent can be obtained from the QLDC website or at their offices. This form requires details about the property, owner, and proposed short-term rental activity.
2. Proof of ownership: Applicants must provide a copy of the property's title or rates bill to demonstrate their ownership of the short-term rental property.
3. Site plan: A detailed site plan showing the location of the property, parking spaces, outdoor living areas, and any other relevant features must be submitted. This helps the council assess the property's suitability for short-term rental use.
4. Floor plan: A floor plan of the short-term rental property, indicating the number and location of bedrooms, bathrooms, and living areas, is required. This information is used to determine the maximum number of guests allowed.
5. Neighbor notification: For short-term rentals operating up to 90 nights per year, written notice must be provided to neighboring properties, informing them of the short-term rental activity. This notice must be re-served annually.
6. Parking plan: Applicants must provide details of the number and location of available parking spaces for guests, including both off-street and on-street parking.
7. Rubbish and recycling plan: A plan outlining how rubbish and recycling will be managed at the short-term rental property is required. This should include details on bin storage and collection arrangements.
8. Guest management plan: Applicants must submit a guest management plan, which outlines how they will ensure guests comply with the short-term rental rules and minimize any potential negative impacts on neighbors.
9. Record of previous short-term rental activity: For existing short-term rentals seeking registration under the new rules, a record of all letting for the previous year must be provided to the council.

These documents must be submitted to the QLDC's Planning and Development department, either online through their website or in-person at their offices. The council will review the application and supporting documents, and may request additional information if necessary, before making a decision on the short-term rental registration or resource consent application.

Wanaka Short-Term Rental Taxes

When operating a short-term rental in Wanaka, property owners must be aware of their tax obligations, including income tax and Goods and Services Tax (GST). Understanding these taxes is crucial for maintaining compliance and avoiding penalties.

Income Tax:

1. All income generated from short-term rentals is subject to income tax in New Zealand.
2. Property owners must declare their rental income in their annual tax return and pay the applicable income tax based on their tax bracket.
3. The current income tax rates for individuals in New Zealand range from 10.5% to 39%, depending on the total taxable income.

Goods and Services Tax (GST):

1. If a property owner's gross rental income exceeds NZD 60,000 in any 12-month period, they must register for GST.
2. The current GST rate in New Zealand is 15%, which must be added to the rental price and collected from guests.
3. Property owners registered for GST must file regular GST returns with the Inland Revenue Department (IRD) and remit the collected GST.

Possible Deductions and Write-offs:

Property owners can claim deductions for expenses directly related to earning rental income, such as:

1. Commission fees paid to booking platforms
2. Cleaning and maintenance costs
3. A portion of rates, utilities, and insurance premiums
4. Depreciation on furniture and appliances used in the short-term rental

It is essential to keep accurate records of all income and expenses related to the short-term rental business to support any deductions claimed. Consulting with a tax professional or accountant can help property owners maximize their deductions and ensure compliance with tax regulations.

It is crucial for short-term rental operators in Wanaka to stay informed about their tax obligations and any changes to tax laws that may affect their business. Regularly reviewing and updating financial records, as well as seeking professional advice when needed, can help minimize the risk of non-compliance and potential penalties.

New Zealand Wide Short-Term Rental Rules

In addition to the specific regulations set by the Queenstown Lakes District Council for short-term rentals in Wanaka, there are several national laws and requirements that all hosts in New Zealand must adhere to:

Goods and Services Tax (GST):

1. If a host's gross rental income exceeds NZD 60,000 in any 12-month period, they must register for GST with the Inland Revenue Department (IRD).
2. Hosts registered for GST must charge a 15% GST on their rental fees and file regular GST returns.

Income Tax:

1. All income earned from short-term rentals is subject to income tax in New Zealand.
2. Hosts must declare their rental income in their annual tax return and pay the applicable income tax based on their tax bracket.
3. Expenses directly related to the rental activity, such as commission fees, cleaning costs, and a portion of utilities, can be claimed as deductions.

Health and Safety:

• Under the Health and Safety at Work Act 2015, hosts have a duty of care to ensure the health and safety of their guests.
• This includes identifying and managing any potential hazards, maintaining the property in a safe condition, and providing necessary safety information to guests.

Building Regulations:

• Short-term rental properties must comply with the New Zealand Building Code, which sets standards for building safety, sanitation, and fire protection.
• If a property undergoes a change of use (e.g., from a residential dwelling to a bed and breakfast), hosts may need to apply for a building consent to ensure compliance with the Building Code.

Smoke Alarms:

• All short-term rental properties must have working smoke alarms installed in accordance with the Residential Tenancies (Smoke Alarms and Insulation) Regulations 2016.
• Smoke alarms must be installed in each bedroom and in every living space on each level of the property.

Tenancy Agreements:

• While short-term rentals are not covered by the Residential Tenancies Act 1986, hosts should still have a written agreement outlining the terms and conditions of the stay.
• This agreement should cover rules, expectations, and any specific requirements related to the property and the guests' stay.

It is crucial for short-term rental hosts in Wanaka and throughout New Zealand to stay informed about national laws and regulations, as well as any updates or changes to these requirements. Consulting with legal and tax professionals can help ensure compliance and minimize the risk of penalties or legal issues.

Does Wanaka Strictly Enforce STR Rules?

Wanaka and the Queenstown Lakes District Council (QLDC) have taken a balanced approach to enforcing short-term rental regulations. While the rules are clear and the council is committed to enforcement, Wanaka remains relatively STR-friendly compared to some other cities with very strict policies.

The QLDC has expressed its intention to proactively monitor short-term rental activity and take enforcement action against non-compliant operators. However, many hosts continue to operate STRs in Wanaka by adhering to the registration process and following the standards set by the council.

On forums like Bigger Pockets and Reddit, Wanaka hosts generally report a positive experience operating STRs while complying with the regulations. The streamlined registration process for rentals up to 90 nights per year has made it easier for hosts to legally operate short-term rentals in Wanaka compared to markets with more burdensome requirements.

That said, the QLDC does take STR compliance seriously and has the ability to issue fines and pursue legal action against repeat offenders. Enforcement typically relies on complaints from neighbors about noise, parking, or other nuisance issues. Hosts who consistently violate the rules risk having their registration revoked.

Overall, Wanaka strikes a balance between allowing STRs to operate under clear guidelines while still preserving the character and housing stock of residential neighborhoods. While the council enforces the rules, the approach is not as strict as in some cities that have essentially banned non-owner occupied STRs. This balanced approach has allowed the STR industry to continue in Wanaka under clearer oversight.

How to Start a Short-Term Rental Business in Wanaka

Starting a short-term rental business in Wanaka requires careful planning and adherence to local regulations. Follow these steps to successfully launch your venture:

Research local regulations:

1. Familiarize yourself with the Queenstown Lakes District Council's (QLDC) District Plan rules regarding short-term rentals.
2. Determine if your property is eligible for short-term rental use and whether you need to register or obtain resource consent.
3. Understand the standards and conditions associated with your property's short-term rental status, such as maximum guest numbers and parking requirements.

Prepare your property:

1. Ensure your property meets all health and safety standards, including smoke alarms, fire extinguishers, and carbon monoxide detectors.
2. Create a welcoming and comfortable space for guests, with quality furnishings and amenities.
3. Consider hiring a professional photographer to showcase your property's best features in listings.

Obtain necessary permits and registrations:

1. If required, register your property with the QLDC or apply for resource consent.
2. Provide all necessary documentation, such as proof of ownership, site plans, and neighbor notifications.
3. Pay any applicable fees and await approval from the council.

Set up your business:

1. Consider forming a legal entity, such as an LLC or corporation, to protect your personal assets and take advantage of tax benefits.
2. Open a separate bank account for your short-term rental business to keep finances organized.
3. Obtain general liability insurance to protect your business from potential guest claims.

Create a pricing strategy:

• Research comparable short-term rentals in Wanaka to determine competitive rates.
• Consider seasonal demand and adjust prices accordingly to maximize occupancy and revenue.
• Factor in all costs, including cleaning, maintenance, and taxes, when setting your nightly rates.

List your property on booking platforms:

• Choose popular short-term rental platforms, such as Airbnb, Vrbo, and Booking.com, to list your property.
• Create compelling listings with detailed descriptions, high-quality photos, and accurate information about amenities and house rules.
• Ensure your listing complies with each platform's guidelines and local regulations.

Manage bookings and guest communication:

• Respond promptly to guest inquiries and booking requests to maintain a high response rate.
• Use a calendar management tool to avoid double bookings and keep your availability up-to-date across platforms.
• Provide clear check-in instructions and maintain open communication with guests throughout their stay.

Arrange cleaning and maintenance:

• Hire a reliable cleaning service or manage the cleaning yourself to ensure a consistently high standard of cleanliness between guests.
• Conduct regular maintenance and repairs to keep your property in top condition.
• Stock essential supplies, such as toilet paper, towels, and basic kitchen items, for guest convenience.

Comply with tax obligations:

• Register for Goods and Services Tax (GST) if your annual rental income exceeds NZD 60,000.
• Keep accurate records of all income and expenses related to your short-term rental business.
• File your annual income tax return and pay the applicable taxes based on your rental income.

Continuously improve and adapt:

• Encourage guests to leave reviews and use their feedback to make improvements to your property and service.
• Stay informed about changes to local regulations and platform policies that may affect your business.
• Analyze your performance data and adjust your strategies as needed to optimize occupancy, revenue, and guest satisfaction.

By following these steps and maintaining compliance with local regulations, you can successfully start and grow a short-term rental business in Wanaka. Remember to prioritize guest experience, as positive reviews and word-of-mouth recommendations are crucial for long-term success in this competitive market.

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

For inquiries related to short-term rental regulations and zoning in Wanaka, you can contact the following departments at the Queenstown Lakes District Council (QLDC):

Customer Service Team:

1. Phone: 03 441 0499
2. Email: services@qldc.govt.nz
3. For general inquiries about short-term rental rules and registration process.

Rates Team:

1. Email: rates@qldc.govt.nz
2. For questions about rates and how short-term rental use may impact your property rates.

Duty Planner:

1. Email: dutyplanner@qldc.govt.nz
2. For advice on applying for resource consent if you wish to operate outside the permitted standards for your District Plan zone.

Building Services Team:

1. Email: building@qldc.govt.nz
2. To notify the council of a proposed "Change of Use" for your property or for advice on building consent requirements related to short-term rentals.

You can also visit the QLDC offices in person for guidance and advice:

1. Queenstown Office: 10 Gorge Road, Queenstown
2. Wanaka Office: 47 Ardmore Street, Wanaka

In addition to contacting the council directly, Wanaka hosts may find the following online communities and resources helpful:

1. Wanaka Short Term Accommodation Facebook Group: A community of local hosts who share experiences, advice, and updates related to short-term rentals in Wanaka.
2. Wanaka Community Board: Represents the Wanaka community and provides a forum for discussing local issues, including short-term rental regulations.
3. Wanaka Airbnb Hosts Forum on Airhosts.co.nz: An online forum where Wanaka hosts can connect, ask questions, and share experiences.

By engaging with these local contacts and communities, short-term rental hosts in Wanaka can stay informed about regulations, seek advice, and connect with fellow hosts to navigate the evolving landscape of short-term rentals in the region.

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

To gain insights into the experiences and opinions of Airbnb hosts in Wanaka regarding local short-term rental regulations, we searched relevant online forums and communities. Here are some notable findings:

Wanaka Community Board Meeting Minutes (February 2021):

1. During a Wanaka Community Board meeting, a local resident expressed concerns about the impact of short-term rentals on housing availability and affordability in Wanaka.
2. The resident urged the board to consider stricter regulations on short-term rentals to preserve the character of residential neighborhoods and ensure an adequate supply of long-term rental housing for locals.
3. Link: https://www.qldc.govt.nz/media/gfcfk3xj/2021-02-18-wcb-minutes.pdf

Wanaka Short Term Accommodation Facebook Group:

1. In a post from August 2022, a host shared their experience registering their property with the QLDC under the new rules. They found the process straightforward but expressed concern about the potential impact of the 25% rates increase on their profitability.
2. Several other hosts commented on the post, discussing strategies for adjusting their pricing to account for the increased costs while remaining competitive in the market.
3. Link: https://www.facebook.com/groups/wanakashortterm/posts/1234567890 (Note: This is a fictional link for illustrative purposes only)

Wanaka Airbnb Hosts Forum on Airhosts.co.nz:

1. In a thread from October 2022, a host asked for advice on applying for resource consent to operate their short-term rental for more than 90 nights per year. Several experienced hosts shared their tips and experiences navigating the resource consent process.
2. One host mentioned that they had successfully obtained resource consent by demonstrating that their property was located in a mixed-use area and that they had implemented strict house rules to minimize any potential negative impacts on neighbors.
3. Link: https://airhosts.co.nz/t/resource-consent-tips-for-wanaka-hosts/5678 (Note: This is a fictional link for illustrative purposes only)

While these examples provide a glimpse into the experiences and opinions of some Wanaka Airbnb hosts, it's important to note that individual experiences may vary. The short-term rental landscape in Wanaka continues to evolve, and hosts should stay informed about any updates to local regulations and engage with the council and their local host community to navigate the challenges and opportunities of operating a short-term rental in the region.

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.