Motel association wants tax on baches

Two former directors of one of New Zealand’s biggest failed finance companies have been sentenced to community work for misleading investors with untrue statements in a prospectus.

Former directors of OPI Pacific Finance Mark Lawrence Lacy and Jason Robert Duncan Maywald pleaded guilty in August to two charges under the Securities Act.

The charges related to a registered prospectus and an advertisement distributed in 2007, which the Financial Markets Authority (FMA) alleges included untrue statements.

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Lots of cars, overcrowded rooms, and booming noise – the Motel Association says these are just some of the problems faced by neighbours of holiday homes being offered for nightly rental.

More and more Kiwi bach owners are opting to rent their properties on a per-night basis, using websites such as Bookabach, HolidayHouses.co.nz and international accommodation app Airbnb.

Thames-Coromandel District Council had previously proposed a $200 ‘‘bach tax’’ for anyone renting a home as short-term accommodation, but the idea was put on hold after a backlash from property owners and booking services.

However, Motel Association chief executive Michael Baines said the council should impose the tax, and other local authorities should follow. Regulations were needed throughout the country to bring ‘‘freeloaders’’ into line.

‘‘If they want to play in the same paddock, they should play by the same rules. Any contribution they make is only right and proper.’’

He had been surprised at the level of public support for new regulation in areas where there were lots of holiday homes for rent. Issues of overcrowding, noise and too many cars could occur at such properties, Baines said.

While commercial providers had to meet regulations that were enforced by local authorities, the owners of holiday homes did not have any such rules to abide by.

Daniel Bridges, head of Trade Me’s satellites division, which runs HolidayHouses.co.nz, was concerned the ThamesCoromandel situation would be seen as a test case. But he said many bach owners may decide they could not be bothered dealing with any extra requirements and could pull out of the market if new rules were imposed.

That would put a squeeze on areas such as Coromandel, where existing motels did not have sufficient rooms to deal with the busiest periods of the year.

Bridges said the average house listed on Holiday Houses was rented for 60 nights a year. ‘‘It’s not very frequent.’’

Such taxes could be just the beginning, he said, and property owners could find themselves facing commercial rates on their properties and other red tape. In some other parts of the country, providers of holiday home rentals are required to register with their local authorities.

Baines said some property owners in Hokianga were making $45,000 a year from their houses. But Bridges said most people were not making big bucks.

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