Short-term or long-term letting: which suits your property?
Income, time, wear and flexibility compared. A plain guide for New Zealand owners choosing between holiday letting and a long-term tenancy.
The short answer
It depends on where the property is, how often you'd like to use it yourself and how hands-on you want to be. Homes in holiday areas like Waiheke and Wānaka often suit short stays. Homes in suburbs close to schools, work and transport usually suit long-term tenants.
Short-term letting
Short stays can earn more per night, especially in summer and over holidays, but income changes with the seasons. The home needs to be fully furnished, cleaned and restocked between every stay, and guests expect quick replies at any hour.
The upside is flexibility. You can block out dates to use the home yourself, and good reviews build steady repeat bookings over time.
Long-term letting
A long-term tenancy gives you steady weekly rent and lower turnover costs, with less day-to-day work. In exchange you have less flexibility, and the home must meet the Healthy Homes standards and the Residential Tenancies Act, including bond lodgement and regular inspections.
Questions to ask yourself
Do you want to use the home yourself during the year? How seasonal is demand in your area? Who will handle cleans, call-outs and guest questions? Does your insurer cover short-stay guests, and does your body corporate allow them?
Tax and local rules
Speak to an accountant about income tax and GST before you start, as the rules differ between short and long-term letting. Check council and body corporate rules too.
Talk it through with us
We've managed both holiday homes and long-term rentals for more than ten years. If you're not sure which suits your property, we're happy to talk it through.
Alberon Property & Accommodation · Mt Eden, Auckland and Landsdown Rd, Wānaka, New Zealand · +64 22 601 0943 · admin@alberon.co.nz