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Sleeping Well With Airbnb Investment

Sleeping Well With Airbnb Investment

The conversion of properties to Airbnb and similar platforms remains an area of contention, but due diligence will avoid nasty surprises, writes Lucy de Latour.

By: Lucy de Latour

12 December 2024

As is symptomatic of some of the challenges for those engaging in the RMA, district plans across Aotearoa regulate short-term visitor accommodation differently and there is not one set of consistent rules nationwide.

Given the increasing focus in some areas on these uses (including from council compliance officers), if buying a property with the intention of using it for short-term accommodation, you should always appraise yourself of the current rules as part of your due diligence so there are no nasty surprises.

Whether short-term visitor accommodation will require resource consent will depend on the zone in which the property is located. In many centres short-term visitor accommodation will be a permitted activity (and not require resource consent) in at least some zones.

Central City

Generally speaking, central city zones tend to have more permissive rules. For example:

  • In Wellington, no resource consent is required in the neighbourhood centre, local centre, mixed use, metropolitan centre or city centre zones.
  • In Tauranga, visitor accommodation does not require resource consent in the city centre or commercial zones.
  • In Hamilton, properties in the downtown precinct of the central city zone, and visitor facility areas within the residential intensification zone, can host visitor accommodation without a resource consent.
  • Christchurch allows visitor accommodation without resource consent at properties in the residential visitor accommodation, commercial core, commercial mixed-use, commercial central city mixed use, commercial central city (south frame) mixed use and commercial central city business zones.

Rules tend to be much more restrictive in residential zones, by either requiring resource consent or restricting the number of nights or number of people that can be hosted. However, even then the extent of regulation varies widely.

Perhaps the most permissive of the centres, Wellington, permits visitor accommodation without resource consent in the medium density residential, high density residential and large lot residential zones if guests do not exceed 10 per night.

Queenstown

This in turn can be contrasted with the rules in Queenstown, which takes a more restrictive approach to visitor accommodation, requiring a resource consent in all residential area, township, town centre and business zones.

Given the variation in extent and nature of regulation of visitor accommodation, we recommend always checking with your local council about any specific requirements for your area, as regulations can vary widely. Specific planning or legal advice may also be warranted.

If a resource consent is required to operate visitor accommodation, the consent application is likely to be assessed based on factors like the impact on the neighbourhood, traffic, noise and other environmental considerations (although this will again depend on particular rules in place).

Of course, planning regulations are just one consideration. Other things to watch out for are rating implications, Building Act and health and safety considerations, insurance and taxation.

Disclaimer: The information provided in this article is for general informational purposes only and should not be relied on as legal advice. Always consult a qualified lawyer for advice specific to your situation.

wynnwilliams.co.nz

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