Holiday homeowners set for $1500 a night as rentals soar
Homeowners could pocket up to $1500 a night by renting out their homes this summer, with holiday rentals in hot demand as international tourists return to Aotearoa.
The arrival of international visitors will see the cost of renting a holiday home reach record levels, according to new data from Bachcare – New Zealand’s largest holiday home management firm.
An influx of international tourists, coupled with strong demand from domestic holidaymakers and a shortage of rental accommodation, are behind a 25% increase in pricing over the peak period, said Nick Peirce, Bachcare head of revenue.
Peirce said holiday homeowners in some regions will be able to earn up to $1500 per night during the peak season by renting out their property.
He said a property which would normally rent for $1000 per night during the peak is now selling at $1250.
‘‘Pricing in this part of the tourism industry is closely tied to the availability of supply,’’ he said. ‘‘When there is a shortage, it creates an opportunity for property owners to earn up to $81,000 per annum – with around a fifth of this revenue earned in January alone.’’
Demand is forecast to be strongest in the Bay of Plenty, Coromandel and Queenstown regions, particularly for large waterfront properties offering a spa and wi-fi.
‘‘Properties with a spa will earn 43% more than those without, and a bach with five-to-six rooms will earn almost twice as much as one with three to four rooms.’’
A home in Mt Maunganui, called The Nest, is the top-earning rental property in the country, with its owners earning $81,000 a year by renting it out.
Meanwhile, a search on September 9 on Airbnb reveals a waterfront house in Te Puna in the Western Bay of Plenty is available for a week in mid-December for $2626 per night. The house is already booked out from December 21 though to January 9, as well as Anniversary Weekend and most of February.
An Airbnb house in central Tauranga, with a sea view from the upstairs, is already booked out in January for $4898 per night.
The Bay of Plenty was recently revealed to be the most expensive region in New Zealand to rent a home.
Bachcare data shows the top 50 holiday homes around the country earn an average of $65,000 rental revenue.
Peirce said the company had sold 31% more nights for the coming summer season compared to the same time last year.
He said international visitors are on track to extend the summer peak period into February, while the domestic market tends to tail off after Waitangi Day.
‘‘Compared to the 2021/22 summer period, we have already sold around 3100 more nights – with December up by around 52%, ’’ he said.