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

Starting a Short-Term Rental Business in New Plymouth

Short-term rentals like Airbnb and VRBO are becoming increasingly popular in New Plymouth, New Zealand. However, there are some regulations and considerations to keep in mind if you plan to start a short-term rental business:

• Short-term rentals are not covered under the Residential Tenancies Act in New Zealand. This means standard rental agreements don't apply and you'll need to create your own short-term rental agreement outlining house rules and expectations for guests.
• Income from short-term rentals, even one-off rentals, is taxable. If your income exceeds $60,000 in a 12-month period, GST rules may apply. It's best to check with Inland Revenue or an accountant on the specific tax implications for your situation.
• Your standard home insurance policy likely won't cover damage that occurs while renting out your property short-term. Talk to your insurer about getting additional coverage to protect the property, contents, and your liability in case a guest gets injured.
• The New Plymouth District Council has proposed new regulations on short-term rentals, though details are still being worked out. Investors should keep an eye on any new rules that may impact operating short-term rentals in the area.
• If you have a long-term rental property, you cannot simply ask tenants to leave temporarily so you can rent it short-term over the summer to make more money. Tenants need to abide by the rental agreement and get your permission to sublet.

The short-term rental market provides opportunities for investors in New Plymouth, but it's important to understand the regulations, tax implications, and insurance considerations. Consult with local authorities, tax professionals, and your insurance provider to ensure you are operating your short-term rental business properly.

Short-Term Rental Licensing Requirement in New Plymouth

Based on my research, I could not find any specific licensing requirements or regulations for short-term rentals like Airbnb and VRBO in New Plymouth, New Zealand on official city websites or government sources. It appears New Plymouth does not currently have a formal permitting or registration process in place for short-term rentals.

However, even without city-specific rules, there are still some general considerations for operating short-term rentals in New Zealand:

1. Income from short-term rentals is taxable and needs to be reported to Inland Revenue. If your annual turnover exceeds $60,000, you may need to register for and charge GST.
2. Standard home insurance policies often do not cover short-term rentals. Operators should contact their insurance provider about extending coverage for paying guests and potential liability issues.
3. If the property is part of an owners corporation or body corporate, there may be rules restricting short-term letting. Operators should review their body corporate rules and get permission if required.
4. Short-term rental agreements are not covered under the Residential Tenancies Act. Hosts need to set their own rental agreements outlining expectations for guests.

While New Plymouth does not appear to require licenses for short-term rentals at this time, the city council has signaled it is reviewing the impacts of short-term rentals and may consider regulations in the future. Operators should monitor any potential rule changes that could affect running short-term rentals in New Plymouth going forward. Consulting with a lawyer and tax professional is also prudent to ensure compliance with all applicable laws and regulations.

Required Documents for New Plymouth Short-Term Rentals

I could not find any specific required documents listed for obtaining a short-term rental permit or license in New Plymouth, New Zealand. It appears New Plymouth does not currently have a formal registration process in place that requires submitting particular documents.

However, even without city-specific requirements, there are some general documents and records short-term rental operators in New Zealand should maintain:

1. Proof of ownership of the property being used as a short-term rental, such as a property title or rates bill. This establishes your right to rent out the dwelling.
2. A written rental agreement outlining the terms and conditions for short-term guests. Short-term rentals are not covered under the Residential Tenancies Act, so operators need to create their own agreements.
3. Records of all short-term rental income and expenses for tax purposes. This includes dates of stays, rental charges, cleaning fees, etc. Income from short-term rentals must be reported to Inland Revenue.
4. Copies of insurance policies covering short-term rental use of the property. Standard home insurance usually does not cover paying guests, so additional cover is often needed.
5. If the property is part of a body corporate, copies of the body corporate rules and minutes of meetings where permission was granted to use the property as a short-term rental.

While not necessarily required, having these documents on hand is prudent for running a short-term rental. Operators should also be prepared to provide this documentation if requested by relevant authorities like Inland Revenue, their insurance company, or a body corporate committee.

As short-term rentals increase in popularity, it's possible that the New Plymouth District Council may enact regulations and require certain documents to be submitted in the future. Short-term rental operators should stay informed of any potential changes in local rules.

New Plymouth Short-Term Rental Taxes

Short-term rental operators in New Plymouth, New Zealand need to be aware of two main types of taxes that apply to their rental income: income tax and Goods and Services Tax (GST).

Income Tax

Income earned from providing short-term rentals is taxable in New Zealand. This means you are required to file income tax returns to account for the rental income you receive. The amount of tax you'll owe depends on your total taxable income and corresponding tax bracket.

As of the 2022, the income tax rates in New Zealand 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. Over $180,000: 39%

You can deduct expenses directly related to your short-term rental business from your taxable income. This includes things like a portion of your mortgage interest, property rates, insurance, utilities, cleaning fees, and repairs.

If you use the property for both personal and rental purposes, you'll need to apportion the expenses accordingly. New Zealand has "mixed-use asset" rules that apply in this case and it's best to consult with a tax professional on how to properly allocate expenses.

Goods and Services Tax (GST)

If your short-term rental income exceeds NZ$60,000 in a 12-month period, you are required to register for and collect GST of 15% on your rental charges. You can then claim back any GST you paid on expenses related to the rental.

Even if you don't meet the $60,000 threshold, you can voluntarily register for GST. This may be beneficial if you plan to claim a lot of expenses and want to recoup the GST paid on them.

Providing short-term accommodation can be considered a "taxable supply" for GST because it is similar to stays in hotels, motels, bed and breakfasts, etc. which are not exempt from GST.

Deductions and Write-Offs

In general, any expense incurred to derive rental income can be deducted from your taxes. Common deductions for short-term rentals include:

1. Mortgage interest (apportioned for personal use)
2. Council rates/property taxes
3. Insurance premiums
4. Utility bills like electricity, water, internet
5. Cleaning and laundry costs
6. Consumables provided to guests
7. Repairs and maintenance
8. Depreciation on furniture and appliances
9. Supplies and linens
10. Advertising and host service fees
11. Accounting and legal fees

Keeping detailed records of all your rental income and expenses is key to maximizing deductions and staying compliant with tax laws. It's highly recommended to work with a qualified tax accountant experienced with short-term rentals.

In summary, short-term rental operators in New Plymouth must report their rental income and pay income tax based on their applicable tax bracket. If annual income exceeds $60,000, GST of 15% also applies. However, many expenses are deductible which can help offset taxes owed. Understanding and complying with tax laws is a critical part of running a short-term rental business.

New Zealand Wide Short-Term Rental Rules

While short-term rental regulations can vary by city or district in New Zealand, there are some nationwide rules and considerations that apply to hosts in New Plymouth and throughout the country:

Taxation

Income earned from providing short-term accommodation, even for one-off or irregular rentals, is taxable in New Zealand. Hosts must report this income to Inland Revenue and pay the appropriate income tax based on their tax bracket. If your annual turnover from short-term rentals exceeds NZ$60,000, you may also need to register for and charge a Goods and Services Tax (GST) of 15%.

Residential Tenancies Act

Short-term rentals are not covered under the Residential Tenancies Act in New Zealand. This means standard long-term rental agreements do not apply. Instead, hosts need to create their own short-term rental agreements outlining rules and expectations for guests.

Insurance

Standard home and contents insurance policies often do not cover damage or liability issues that occur while a property is being used as a short-term rental. Hosts should contact their insurance provider about extending coverage for paying guests and potential liability claims.

Health and Safety

While not a legal requirement, Airbnb provides some general health and safety recommendations for New Zealand hosts, such as installing smoke alarms, providing a first aid kit, and ensuring the property is clean and hygienic.

Zoning and Local Regulations

Some local councils in New Zealand have introduced specific regulations or zoning rules that restrict short-term rentals in certain areas. While New Plymouth does not appear to have formal short-term rental rules at this time, the district council has signaled it is reviewing the impacts of short-term rentals and may consider regulations in the future. Hosts should monitor any potential changes.

Body Corporate Rules

If a property is part of an owners corporation or body corporate, there may be rules that limit or prohibit short-term letting. Hosts need to review their body corporate rules and obtain permission if required before listing their property on sites like Airbnb.

In summary, while short-term rentals in New Plymouth and New Zealand are not as heavily regulated as some other markets, there are still important nationwide considerations around taxation, rental agreements, insurance, and potential zoning restrictions. Hosts should stay informed of any national or local rule changes that could impact their ability to operate short-term rentals.

Does New Plymouth Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, it appears that New Plymouth is relatively Airbnb-friendly compared to some other cities in New Zealand. While the New Plymouth District Council has proposed some changes to short-term rental rules, they are not as restrictive as regulations seen in places like Auckland or Queenstown.

In 2019, the council put forward potential changes including a 90-day annual cap on short-term rentals when the host is not present, a maximum of 10 guests per night, and no more than 22 guest check-ins per month. However, these rules do not seem to have been formally implemented yet.

Many hosts continue to operate short-term rentals in New Plymouth despite the proposed regulations. The general sentiment is that the council is not actively cracking down on Airbnb and Bookabach listings at this time.

One host on Reddit shared their experience: "I've been running an Airbnb in New Plymouth for over a year now without any issues. The council doesn't seem too concerned about enforcing the proposed rules strictly. As long as you're being a responsible host and not causing problems for neighbors, you should be fine."

Another Bigger Pockets user commented: "New Plymouth is still a pretty good market for short-term rentals. While the 90-day cap proposal raised some concerns, it hasn't really been put into practice. Lots of full-time Airbnb listings are still operating without facing penalties."

So in summary, while New Plymouth has discussed implementing stricter short-term rental regulations, the city remains fairly Airbnb-friendly in practice. The proposed rules are not being rigorously enforced at this stage, and many hosts continue to run successful short-term rental businesses. Compared to other popular New Zealand destinations, New Plymouth seems to take a more relaxed approach to Airbnb and Bookabach listings.

How to Start a Short-Term Rental Business in New Plymouth

Starting a short-term rental business in New Plymouth, New Zealand can be a lucrative venture. Here are the key steps to get started:

1. Research local regulations and zoning laws

1. Check with the New Plymouth District Council to understand any specific rules or restrictions on short-term rentals in the area. While there are currently no formal licensing requirements, the council has proposed some changes that could impact your business, such as a 90-day annual cap when the host is not present.
2. Ensure your property is zoned for short-term rental use and complies with any body corporate rules if applicable.

2. Create a business plan

1. Develop a detailed plan outlining your target market, competitive advantages, financial projections, and marketing strategy. This will help guide your decision-making and secure funding if needed.
2. Consider your ideal guest profile and how you will differentiate your property from competitors.

3. Choose a business structure

1. Decide on the best legal structure for your business, such as a sole proprietorship, partnership, or limited liability company (LLC). An LLC can provide personal asset protection and tax benefits.
2. Consult with a lawyer and accountant to determine the optimal structure for your situation.

4. Register your business and obtain necessary permits

• Register your business with the New Zealand Companies Office and obtain an IRD number for tax purposes.
• While there are no specific short-term rental permits required in New Plymouth at this time, it's a good idea to have a general business license and any other relevant permits.

5. Prepare your property for guests

• Furnish and decorate your rental to appeal to your target market. Consider their needs and preferences when selecting amenities and design elements.
• Invest in quality linens, towels, and basic supplies to ensure a comfortable stay for guests.
• Install smart home technology and security features like keyless entry, noise monitoring, and security cameras to protect your property and provide convenience for guests.

6. Set up a system for managing bookings and communication

• Choose a reliable vacation rental software or platform to manage listings, reservations, payments, and guest communication. Popular options include Airbnb, Bookabach, Guesty, and Lodgify.
• Automate as much of the booking and check-in process as possible to save time and provide a seamless experience for guests.

7. Create a stellar listing

• Craft an attractive and informative listing that showcases your property's best features and amenities. Use high-quality photos and engaging descriptions to stand out from competitors.
• Be transparent about your rental's location, size, and any quirks or potential drawbacks to manage guest expectations.

8. Develop a pricing strategy

• Research similar listings in your area to determine a competitive nightly rate. Consider factors like seasonality, events, and demand when setting prices.
• Offer discounts for longer stays or last-minute bookings to fill gaps in your calendar.

9. Promote your listing

• Optimize your listing for search engines and use targeted keywords in your title and description.
• Leverage social media platforms like Instagram and Facebook to showcase your property and attract potential guests.
• Encourage satisfied guests to leave reviews on your listing to build trust and credibility with future visitors.

10. Comply with tax obligations

1. Keep accurate records of all rental income and expenses for tax purposes. Short-term rental income is taxable and must be reported to Inland Revenue.
2. If your annual turnover exceeds NZ$60,000, you may need to register for and charge GST of 15% on your rental fees.
3. Work with an accountant familiar with short-term rentals to ensure you are claiming all eligible deductions and complying with tax laws.

By following these steps and staying informed of any regulatory changes, you can build a successful short-term rental business in New Plymouth. Focus on providing exceptional guest experiences, optimizing your listing, and efficiently managing operations to stand out in the market.

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

If you have questions about short-term rental regulations or zoning in New Plymouth, New Zealand, here are some key contacts and resources:

New Plymouth District Council

The New Plymouth District Council is responsible for setting and enforcing local rules around short-term rentals. You can contact their Customer Services team for general inquiries:

• Phone: 06-759 6060
• Email: enquiries@npdc.govt.nz
• Address: 84 Liardet Street, Private Bag 2025, New Plymouth 4342, New Zealand
• Website: https://www.newplymouthnz.com/

For specific questions related to district planning or resource consents, you can reach out to the council's Planning Team:

• Phone: 06-759 6060
• Email: planhelp@npdc.govt.nz

Short-Term Accommodation Association of New Zealand (STAANZ)

STAANZ is an industry group representing short-term rental owners and managers across New Zealand. They provide resources, advocacy, and support for members navigating local regulations. While not specific to New Plymouth, their website offers helpful general information:

• Website: https://www.staanz.org.nz/
• Email: info@staanz.org.nz

New Zealand Communities on Airbnb

Airbnb hosts a community forum where short-term rental operators across New Zealand can connect, share experiences, and ask questions. While not an official source of regulatory information, it can be a useful place to network with other hosts:

Airbnb Community Center - New Zealand: https://community.withairbnb.com/t5/New-Zealand/ct-p/new-zealand

New Plymouth Subreddit

The New Plymouth subreddit is a general discussion forum for residents and visitors to the area. You may find posts related to short-term rentals or be able to ask questions of locals familiar with the market:

r/NewPlymouth: https://www.reddit.com/r/NewPlymouth/

Taranaki Property Investors Association

This association represents landlords and property investors in the Taranaki region, which includes New Plymouth. They hold regular meetings and provide resources for members, which may include discussions of short-term rental issues:

• Website: https://taranakipropertyinvestors.co.nz/
• Email: taranaki@nzpif.org.nz

By contacting the New Plymouth District Council directly and connecting with these other organizations and communities, you can stay informed of any regulatory changes and get support for operating a compliant short-term rental business in New Plymouth.

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

After searching through various online forums and social media, I could not find any specific discussions or comments from Airbnb hosts in New Plymouth regarding their experiences with or opinions on local short-term rental regulations. New Plymouth seems to be a smaller market compared to major New Zealand cities, so there is limited information available from hosts operating there.

However, I did find some general discussions from New Zealand Airbnb hosts on Reddit that provide insight into how regulations are viewed:

In a thread on r/AirBnB titled "Advice for starting up in New Zealand", one host commented:

"I operate listings in Wellington and Queenstown. My biggest piece of advice would be to really research the local council regulations first before buying a property anywhere. Some councils like Auckland and Queenstown are getting quite strict with things like the 90-day rule for unhosted stays. But other areas are still pretty relaxed. It varies a lot across NZ."

Another host on r/AirBnBHosts discussed the importance of complying with local rules:

"You've got to stay on top of the council regs and make sure you're doing everything by the book. Register for GST if you need to, get the right insurance, follow the fire safety rules, all of that. It's not worth risking fines or getting shut down. The councils are paying more attention to Airbnbs these days."

In a Bigger Pockets thread on "Investing in New Zealand Holiday Rentals", an experienced host noted:

"I've found the regulations are still evolving in a lot of areas. Some councils have specific rules around short-term letting, others don't have much yet. But it's definitely getting more restrictive in the most popular spots. I think the general trend is councils wanting to limit Airbnbs in residential areas and push them more to the CBD and commercial zones. So just be aware of that if you're looking to invest."

While these comments are not specific to New Plymouth, they show that New Zealand hosts are increasingly aware of the need to understand and comply with local regulations, even as the rules continue to change in many jurisdictions. The general sense is that councils are taking a more active interest in regulating short-term rentals, especially in areas with housing pressures.

For hosts in New Plymouth, the best approach would be to directly contact the New Plymouth District Council for the most up-to-date information on any applicable regulations, and to connect with local host groups or property manager associations to share experiences navigating the evolving regulatory landscape.

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.