Kiwis cautioned to do homework before putting pads on Airbnb

October 31, 2019

Homeowners may face costs and risks that should be considered before renting their space out.

A property expert is warning New Zealanders to do their homework before renting out properties on Airbnb, a move many will be thinking of with a number of big events coming up in the country.

The America's Cup and perhaps APEC in 2021, and Sir Elton John's farewell tour next February will be making people think putting their pad on Airbnb might be a stellar idea to make some significant cash.

But beware, there's a lot too consider, Seven Sharp cautioned.

Crockers chief executive Helen O'Sullivan says first on your checklist should be, where are you going to relocate to and what's it going to cost you?

"The rates we were seeing in Auckland, even at high peak, were about the same cost as a hotel room somewhere else," she said.

You also need to check you're legally allowed to rent out your home.

"If you're renting, your landlord rented to you on strength of who you are. What if the landlord hears? They may be very unimpressed," Ms O'Sullivan warned.

"We have seen a case very recently in the tribunal where a tenant who didn't have the right to sublet their property did so, and was required to pay 100 per cent of that to the landlord."

But there are risks for homeowners too.

"We've heard stories of people coming back and the underfloor heating has been left on. And a month later you get a thousand-dollar power bill, which can be pretty shocking and wipe out some gains pretty quickly."

And a cost you may not have predicted is arise in rates when your property is let.

"You become a business. So your rates become charged at a commercial level as opposed to a residential level. Price difference is quite significant," Ms O'Sullivan said.

Catherine Goodwin is chief executive of Goodwins, a business renting out homes during events. And she has a big one coming up, the America's Cup.

"Coming to Auckland is challengers from three confirmed nations. Goodwins is very proudly representing American Magic under an exclusive contract and we need homes for their crew, their supporters, their principals, and affiliates of the yacht race," Ms Goodwin said.

"It's a lot of people. It's very, very exciting for Auckland.

"We see this as an opportunity for the whole of the country. If people can embrace the event, then I genuinely believe that those that are coming will spend much more time outside of Auckland than in Auckland."

And they don't just need fancy houses.

Ms Goodwin said those coming have, "really diverse budgets. Those that are coming on corporate contracts with companies and then there are families that are on just market rent budgets".

"Rather than take that OE as a mature person and lock the door, or ask a child to look after your home, or beg for a housesitter, these properties are working while you're not here."

And it's not just yachties. Sir Elton John has sold out the notoriously hard-to-accommodate Napier and Dunedin.

And Hollywood is getting comfortable in New Zealand too.

"Auckland now has confirmed multiple long contracts with film and media, productions of sizes we've never seen before, across the whole of the country," Ms Goodwin said.

"We know we need hundreds. We know that that number is going to grow. We need them now."

So Airbnb might be an option for the brave on the hunt for short-term gain.

But if a gap year's calling, consider turning your keys over to a new family because opportunity is knocking.

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