He said it was the first time the cash prizes went directly to the winners, previously the prizes went to a school of their choice.
To keep the charity aspect, text voting will cost $3 with money going to the Rotorua Mountain Bike Club to help with the operational costs of the club's new first response vehicle, Mr Lovegrove said.
"That will benefit all forest users: walkers, runners, horse riders and mountain bikers."
Mr Lovegrove said there were normally about 20 or 30 entries, but this year the hope was for 40 entries.
Entries are now open and will close on December 9 to allow a trail map to be produced so people can view the houses before Christmas.
Judging will take place between December 14 and 16, with winners announced on January 20.
The winners will be selected through a combination of voting and judging, Mr Lovegrove said.
To enter the competition look out for an entry form in the Rotorua Daily Post or pop into Professionals McDowell at 1290 Eruera St. Entry is free.