Airbnb Proposed Regulations for Short-Term Rentals in New Zealand

by: Scott Mears

With regulation a risk in the short-term rental (STR) market, we look at what Airbnb proposes - a national regulatory framework - to address challenges facing the short-term rental sector in New Zealand. 

Airbnb New Zealand by the numbers

With STRs playing a significant role in the country’s tourism industry, the proposed measures aim to simplify compliance, support local economies and ensure sustainable practices.

Key Elements of the Proposal

1. Streamlined Nationwide Regulation
   Airbnb calls for a uniform approach to STR regulation, replacing the current system involving 67 district councils with varying and often conflicting rules. The new framework would introduce a sliding scale of regulation, including exemptions for home-sharing scenarios where the host is present and sustainable regulations for unhosted properties.

2. Code of Conduct
   To address concerns about guest and host behavior, Airbnb advocates for a "two-strike" model similar to systems in New South Wales, Australia. This would set clear behavioral expectations and establish an exclusion register for repeat offenders, ensuring accountability and safeguarding community trust.

3. Data Sharing for Policy Decisions
   Recognising the value of accurate data, Airbnb proposes sharing information with governments to aid in compliance and data-driven decision-making. This initiative would enhance transparency regarding the STR footprint across communities.

4. Sustainable Visitor Levy
   Airbnb suggests an opt-in levy for local councils to fund infrastructure projects and mitigate the effects of over-tourism. This would provide targeted financial support for regions under strain from high visitor numbers.

Regulatory Risks and Considerations

Despite these proposals, the STR sector faces the risk of overregulation. Excessive rules could deter hosts, reduce accommodation options and hinder the sector's contribution to local economies. For instance, past council initiatives, such as Auckland’s differential rates proposal, have proven complex and administratively burdensome.

Airbnb emphasises that a balanced regulatory framework is essential to maintaining the benefits of STRs, which contributed $2.5 billion to New Zealand’s GDP in 2019 and supported over 26,000 jobs. By reducing red tape and ensuring proportional regulation, the proposed measures aim to preserve the STR sector's vitality while addressing housing and tourism challenges.

As New Zealand’s rulemakers consider these proposals, the focus remains on achieving fair, consistent and sustainable outcomes for all stakeholders involved in the STR ecosystem.

Like Airbnb, Aspire PRO Enterprises (Aspire) focuses on compliance with regulations to mitigate this risk. Aspire will also work closely with the government and local councils to limit any restrictive laws or bylaws on STRs.