Is Airbnb worth it in New Zealand? What owners should know
Income, costs, tax, GST and time. An honest look at whether short-term letting is worth it for New Zealand property owners.
Quick answer: Short-term letting through Airbnb can be worth it in New Zealand for homes in popular holiday areas such as Waiheke, Wānaka and Queenstown, especially if you want to use the property yourself at times. Income varies with the seasons, costs are higher than a long-term tenancy, and there are tax and GST rules to understand before you start.
When short-term letting works well
It works best for homes in places people want to holiday, close to beaches, lakes, ski fields or vineyards, and for well-located city apartments. It also suits owners who want to keep the home for their own use for part of the year.
What affects your income
Your income depends on location, the quality of the home and photos, how many nights you can fill, your nightly rate through the seasons and your reviews. Peak periods such as summer and school holidays often make up much of the year's income, with quieter months in between.
The costs to plan for
Allow for furnishing and setup, cleaning and linen between every stay, platform fees, consumables, maintenance, utilities and internet, and insurance that covers short-stay guests. Management costs apply if you use a manager.
Tax and GST
Short-stay income is taxable. Since 1 April 2024, platforms like Airbnb have collected GST on short-stay accommodation booked through them. If you also use the home privately, the mixed-use asset rules may apply. Talk to an accountant or check IRD guidance for your situation.
Local rules
Check your district plan and any council rules on visitor accommodation, your body corporate rules if it's an apartment, and your mortgage and insurance terms.
The time involved
Guests expect fast replies, smooth check-ins and a spotless home every time. Many owners use a manager so they get the income without the day-to-day work. We've done this for more than ten years and are happy to give you a straight view on your property.
Frequently asked questions
Do I have to pay GST on Airbnb income in New Zealand?
Since 1 April 2024, online platforms such as Airbnb have collected GST on short-stay accommodation booked through them. How it affects you depends on whether you're GST registered, so check with IRD or an accountant.
Is short-term letting more profitable than long-term?
It can be in strong holiday locations, but income is less predictable and costs are higher. Long-term letting gives steadier income with less work.
Do I need council consent to run an Airbnb?
It depends on your council and zone. Check your district plan and any visitor accommodation rules before you list.
Can a property manager run my Airbnb?
Yes. A short-term manager can handle listings, pricing, guest messages, cleaning, linen and maintenance.
Alberon Property & Accommodation · Mt Eden, Auckland and Landsdown Rd, Wānaka, New Zealand · +64 22 601 0943 · admin@alberon.co.nz