7 Dec 2017

Auckland Airbnb could be hit hard by new rates

11:38 am on 7 December 2017

Aucklanders who rent out entire properties to visitors for more than 20 weeks a year could be hit hard by new rates being pondered by the council.

bedroon, accommodation, Air BnB

Photo: 123rf

A home in central Auckland valued at the city average of $1.078 million, could pay $6161 more, in two layers of rates under consideration.

The Auckland Council is considering rating private dwellings heavily-rented to visitors, as businesses, and also making them liable for an additional accommodation rate on top.

Council research has found the number of Auckland properties listed with online accommodation service Airbnb, has more than doubled in the past year from 5210 to 12370.

Those properties are thought to have earned a total of more than $113 million.

Variations on the Auckland idea are already in place in Queenstown and Rotorua.

The council offered to explore rating more heavily, informal visitor accommodation, after controversially introducing a new targeted rate, aimed at raising $13.5 million from the tourist accommodation sector.

The council will consider the possible rating formula on Monday and put them out for public consultation early next year, if they decide to go ahead.

Proposed targeted rates in Auckland.

The proposed targeted rates in Auckland. Photo: Auckland Council

Table shows the extent to which rates will change.

Table shows the extent to which rates will change. Photo: Supplied