Bachcare says properties in Rotorua earned owners an average of $13,750. Photo / Andrew Warner
Bachcare says properties in Rotorua earned owners an average of $13,750. Photo / Andrew Warner
Bay of Plenty residents pocketed an average of $14,300 renting out their properties on holiday accommodation booking site Bachcare in the last year, new data shows.
But an accommodation owner says while holiday homes are an important market to Rotorua, they can also decrease rental stock.
Bachcare says short-term accommodationserves a different market and it is "actively looking" to expand its offerings.
Latest Bachcare figures showed properties in Rotorua earned owners an average of $13,750 and $13,000 in Tauranga.
In the past 12 months, the average owner income per booking was $663 in Rotorua and $662 in Tauranga.
The highest price fetched in the region was $1422 per night for a four-bedroom property on Mount Maunganui's Marine Parade that sleeps up to 10 people during the New Year period.
The cheapest for the same period was $200 per night for a one-bedroom Ōhope property.
A Mount Maunganui home earned $81,000, the equivalent of more than $1500 per week and nearly three times higher than an average Bay of Plenty rental property that is fully tenanted for the full year.
There were 63 homes in Rotorua listed for short-term rental on Bachcare, 75 in Tauranga and 204 across the whole Bay of Plenty.
Hospitality NZ accommodation sector Rotorua vice-chairman Nick Fitzgerald said on face value, it made more sense for property owners to be in the long-term rental market than the short-term.
"We have got to be realistic. The holiday home market is an important market to Rotorua because it does increase capacity.
Hospitality NZ accommodation sector Rotorua vice chairman Nick Fitzgerald. Photo / Andrew Warner
"But at the same time, it can be challenging for Rotorua because it decreases housing stock."
Fitzgerald, who also managed Aura Accommodation, said ultimately the more people who visited and stayed in Rotorua the better it was for the local economy.
"The longer people stay, the more money they will spend.
"Increasing our capacity for people to stay a night or two in Rotorua is important for hospitality, activities and attractions."
There had been high booking demand during winter so far and forward bookings were strong, he said.
Rotorua Property Investors Association president Sally Copeland. Photo / Supplied
Rotorua Property Investors Association president Sally Copeland said income for short-term rentals was often considerably higher than long-term rentals.
But there was a lot of work involved in the day-to-day running of that type of property, she said.
"When factoring the hourly rate of a changeover and increased costs such as insurance, many property investors I have spoken to revert to long-term rental agreements."
Copeland, also the owner of New Zealand Home Loans and Insurance in Rotorua, said changes to interest deductibility could have an influence in the next few years as short-term rentals were exempt from the new tax rules.
"This may see an increase in short-term rentals and fewer long-term rentals. Good for holidaymakers but not so good for tenants."
Copeland said she had rented her property in Rotorua's Ramada Resort on holiday accommodation booking site Airbnb before.
"It suited families coming to Rotorua for holiday. It was a good experience, however, very labour-intensive."
The impact of short-term rentals clearly reduced the number of rental properties available, Copeland said.
However, she said there was a need for holiday accommodation, with many motels and hotels having been used for other purposes such as MIQ.
"Rotorua needs to be able to provide accommodation to attract tourists to support our hospitality and tourism industry.
"We need holiday accommodation for our tourist industry. We also need more houses for rental stock."
Chief executive of the Realty Group Limited, which operates Eves and Bayleys, Heath Young. Photo / Supplied
Chief executive of Realty Group Limited, which operates Eves and Bayleys, Heath Young, said the figures showed there was still healthy demand for short-term holiday stay properties despite borders being closed to international tourists.
Short-term accommodation did have some impact as it took property away from longer-term rentals, but the number of properties available on Bachcare was not high enough to have a material impact on the rental market, he said.
Bachcare spokeswoman Zaina Razzaq said the holiday home rental industry contributed hundreds of millions of dollars to regional economies annually.
Its data showed regions that earned the highest average income per booking during the summer were Abel Tasman/Nelson, Raglan, Wairarapa and Northland and Coromandel.
At a town level, the highest income per booking was found at properties in Hahei, Mount Maunganui, Whitianga, Waihi Beach, Pauanui, Matarangi and Mangawhai Heads.
Razzaq said despite borders reopening she was forecasting another bumper year for holiday homeowners and regional tourism as an influx of international tourists was expected to bring "higher demand than ever" for holiday home rentals.
"At peak times like this, there is a shortage of supply and we are actively looking to expand the number of properties we manage."
The holiday home market operated in parallel to long-term rentals and served different markets, she said.
"Bach owners look for the flexibility of short-term rentals to help offset the costs of maintaining their property, while still allowing them to use their asset."
It also provided short-term accommodation options for Kiwis throughout the year in popular holiday spots, where the accommodation infrastructure was not in place to handle seasonal peaks, she said.
"Many owners we work with will also switch between long-term and short-term contracts – depending on the needs of the market at the time their property becomes available."
Baches outside of main areas with fewer potential tenants also provided owners with the ability to optimise the use of their property, she said.
How much did property earn on Bachcare?
Average income in the last 12 months
Bay of Plenty: $14,300 Tauranga: $13,000 Rotorua: $13,750
Homes listed on Bachcare Bay of Plenty: 204 Tauranga: 75 Rotorua: 63
Average owner income per booking Bay of Plenty: $565 Tauranga: $662 Rotorua: $663
Highest price Cost: $1422 per night Location: Marine Parade, Mount Maunganui
Cheapest price Cost: $200 per night Location: Ōhope
Highest annual revenue for single property in the Bay Revenue: $81,000 Location: Mount Maunganui
