PHOTO: If your Auckland property is rented out for more than 28 nights per year you will need to pay business rates. (Source: istock.com)
Short Term Rental Guide: What to Know Before Listing on Airbnb or Bachcare
Introduction
Short term rental services like Airbnb, Bookabach, or Bachcare offer a convenient income stream for those with unused rooms or holiday homes. If you’re considering starting your own rental, there are essential aspects to consider before diving in.
Local Regulations and Taxes
- Check with your local council as some areas may require property registration for short term accommodation.
- Certain cities like Christchurch and Nelson may demand resource consent for renting out a house as holiday accommodation.
- In Auckland, be prepared for increased rates if you rent out your property for more than 28 nights a year.
- Understand your tax obligations, including keeping records of income and expenses for tax deductions. You may need to pay GST depending on your income and property ownership structure.
Insurance Coverage
- Ensure your insurance policy covers short term rentals, as some standard policies may not provide adequate protection during rentals.
- Consult with your insurer to understand whether you require additional coverage.
Check Body Corporate Rules
- If your property is an apartment or unit, verify that the body corporate allows for short term rentals, as some may have restrictions.
Written Agreement and Rules
- Create a written agreement with terms and conditions for anyone staying in your property.
- Use hosting sites like Airbnb and Bookabach to include these terms in your listing for guests to agree to.
- Clearly outline rules, including the number of guests allowed, length of stay, and rental fees.
Compliance with Consumer Guarantees Act (CGA) and Fair Trading Act
- Ensure any pictures or descriptions used in your rental listing accurately represent the property.
- Honor promises made to guests, as accommodation must be of a reasonable standard and fit for purpose according to the CGA.
Health and Safety Considerations
- Comply with the Health and Safety at Work Act 2015, ensuring a safe environment for guests.
- Install working smoke alarms and eliminate obvious hazards.
- Fenced off balconies and pools can prevent accidents.
Recording Devices and Privacy Act
- If you plan to use recording devices (video or audio) in the rental, inform guests about their presence.
- Abide by the Privacy Act, using recordings only for lawful purposes and disposing of them securely when no longer needed.
- Minimize the collection of personal information, and provide guests access to any recordings upon request.
Research and Preparedness
- Thoroughly research the short term rental market and understand your responsibilities as a host.
- Short term rentals can be rewarding, but knowing your obligations will help you avoid unpleasant surprises along the way.
By keeping these important points in mind, you can enjoy the benefits of short term rentals while ensuring a positive experience for both you and your guests.
SOURCE: 1NEWS