Kiwis set to reap big RWC dividend

Photo / Sarah Ivey

In just over a year, rugby-going foreigners with open chequebooks will be welcomed into thousands of New Zealand homes.

The estimated 85,000 visitors coming in search of Rugby World Cup glory are likely to fill every hotel bed in the country several times over.

The expected shortage of accommodation has seen an explosion of would-be landlords, keen to cash in and open their homes to strangers - for a price.

Almost as soon as the hosting rights were announced, the dollar signs started spinning in canny homeowners' eyes as speculators predicted the rugby equivalent of the West Coast gold rush.

Hysterical figures were bandied about - including one Mt Eden bed and breakfast that reportedly tried, unsuccessfully, to charge a rugby fan $16,000 for a 10-night stay.

But with October 2011 creeping steadily closer, Kiwi home owners are becoming more realistic, according to Cameron Macneil, a director of Stay2011.com.

"Initially there was a big rush of people going 'I can make $10,000 a week' and 'let's cash in on the World Cup', but people are more realistic about it now," he says. "Having said that, you can still make a hell of a lot of money."

So just how much are well-heeled foreigners prepared to pay for a comfy bed and their own kitchen during the Rugby World Cup?

Big dollars if you have a multi-million dollar home or, better still, a balcony overlooking Eden Park. But, agents say, the rest of Auckland should be charging around $100-a-person a night.

Lucky home owners with property near Eden Park, Wellington's Cake Tin and Christchurch's AMI Stadium can expect to rent their houses for three or four times the going rate, says Macneil.

But Sue Robinson, managing director of property managers 80 Minute Game, is warning against setting rents too high and leaving visitors feeling they've been ripped off.

"It's not an opportunity to extort people from the international community. We want people to enjoy their time here, if it's too expensive, they won't, "she says.

"If they look at this as a normal rental rate that's fair rather than trying to fleece people."

Renting a local home "gives people a fantastic opportunity to live like a Kiwi for their time in New Zealand".

Robinson recommends people charge a "shoulder season" rate - roughly what you would get if you were renting your house out at Easter.

But is it really worth the upheaval and risk of allowing strangers to mind the silverware for a few weeks, not to mention the tax, insurance, and property maintenance headaches?

Robinson's Nelson-based firm has thought of that, offering specialist World Cup property managers who will look after the process from taking the booking to making sure a plumber is available when the toilet blocks at 3am.

"It's a massive decision to rent your house out, and that's part of the reason why it makes sense to get a property manager," she says.

"I don't think people realise how hard it is. There is so much potential for things to go wrong."

With Rugby World Cup visitors now starting to make inquiries about accommodation, bookings for inner-city apartments have been strong.

"I could rent out 20 apartments tomorrow. I have been approaching apartment buildings to look at rentals," Robinson says.

"There is a huge demand for people who want to be housed with their own cooking facilities, a washing machine, and all of the home comforts."

While there has been a lull in interest while the Football World Cup is on in South Africa, it is expected that many fans will wait until tickets go on sale in August to firm up their travel plans.

Accommodation will be in particularly hot demand in Auckland during semi-final and final time in October.

One website, stayinnz.com, has a "rental calculator" for customers to work out rents, which takes the base rent, multiplies it by three and adjusts for travel time to the stadium.

But Mike Gray, marketing manager at gorugbyhomes.co.nz, doesn't believe rugby renters will be that concerned about staying close to games.

"It's not all about proximity to stadiums. The rugby is the driving force for them to be here but it's not the be all and end all. Their choice will be made by what the rental property has to offer, what facilities it has, whether it is close to grounds, public transport, restaurants and bars. A lot depends on how it is presented."