25 November 2022
Media: NZME (Rotorua Daily Post and BOP Times)
Topic: Holiday rentals
Enquiry
I'm doing a story about the impact Airbnbs and other holiday rentals have had on Rotorua's housing shortage.
Background:
I have obtained a copy of a report that was presented to the Rotorua Lakes Council in 2018 by the then Rotorua Motel Association that effectively warned the council Rotorua was in for a major housing crisis if it didn't put in place some stricter controls around private holiday rentals.
It also warned the redistribution of tourist spend into this type accommodation and away from motels was taking its toll on moteliers and their ability to invest in repairs and maintenance. They said the concern was "Fenton St would start to resemble squatters' accommodation and would not be dissimilar to the empty run down buildings in Rotorua's CBD".
At that time Airbnbs alone had just over 470 private rentals on its books. Today it has more than double - 980 plus.
The association asked the council to put in controls, such as a need to obtain resource consent, insisting the home owners pay commercial rates and putting in place restrictions of lengths of stays and excluding some areas of Rotorua.
The association asked the council what it was doing to replace the rental houses being bought and used for private rentals and warned the council if it remained allowing the status quo, the council would need to do a massive u-turn in 5-10 years to solve the upcoming housing crisis.
Rotovegas owner Bryce Smart has also brought up this issue in his submission to the commissioners deciding if resource consent should be granted for contracted emergency housing (see link below to Smart's submission).
In a nutshell, Smart said out-of-towners shouldn't be blamed for being in emergency housing motels when 1000 residential homes were removed for short-term holiday accommodation. He said this was the cause of the housing crisis.
He said moteliers started noticing requests from locals for accommodation from 2016 as a result of fewer rentals being available.
He said once MSD began sponsoring motel accommodation, many Rotorua "Airbnb refugees" (as he called them) who had been forced to live in cramped conditions as a result of a fewer rentals being available, took up the option of staying in warmer and safer living conditions in motels.
Questions for the council:
1.What restrictions or conditions from a council perspective are currently in place for the private rental sector, such as Airbnbs
2. Why didn't the council do anything, similar to what Queenstown did, to tighten controls on this industry after being warned by the Rotorua Motel Assocation in 2018?
3. Does the council now regret that decision?
4. Would the council consider putting in stricter measures now in the hope some of the Airbnbs/private accommodation rentals might drop off and become available for locals to rent?
Response
From DCE Organisational Enablement, Thomas Colle:
It is clear that the district and city has an acute shortage of homes of all types. This has contributed to high rents and house prices. As a consequence, large numbers of people are in housing distress.
Council needs to look at all options to improve housing availability. Homes being used for holiday accommodation is only one area, but is not a silver bullet.
As a district we have always had a large number of holiday homes available for holiday rental accommodation. The vast majority of these are at the lakes. Lakes properties are listed on many platforms, including Airbnb.
Council in the past has accepted that owners can make decisions about whether a house is used for a business or part business purpose. In some cases, they may need a resource consent and may be charged commercial rates. Obvious examples include day care centres, dental or vet practices.
In the same way, Council has allowed holiday homes to be rented out as holiday accommodation below a certain number of nights, without being charged additional rates. Only large fully commercial holiday homes require a resource consent.
Previous Council's determined that this struck a reasonable balance between 'rules' and an owners choice.
The Queenstown approach has been considered, as have other options, and have been rejected by previous Council's.
The new council has not had the chance to consider whether current consenting requirements and rating rules need to change.
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Media: NZME (Rotorua Daily Post and BOP Times)
Topic: Christmas Functions
Enquiry
I am working on a story that we have done in the past and I was hoping for some comment and data. The story is about Christmas Parties or functions and what the council has spent on that last year and what you are hoping to do this year and what it will cost.
- Is the council holding a Christmas party or function this year - what is it and what is it costing?
- Why are these functions or parties important?
- And what did the council do last year and what did it cost?
- Plus, will employees get a Christmas gift this year - what is it and how much did it cost and what was it last year?
And why or why not are you giving Christmas gifts?
Response
From DCE Organisational Enablement, Thomas Colle:
Is the council holding a Christmas party or function this year - what is it and what is it costing?
Council contributes $20 per staff member to go towards their own team function (which is organised in their own time).
Why are these functions or parties important?
The contribution towards individual team functions is a small acknowledgement to recognise the hard work that our staff put in, especially given the last few years have been challenging with COVID-19 and not being able to celebrate together.
And what did the council do last year and what did it cost?
Previously, Council put on a staff lunch on the last day of the year, but due to COVID-19, this has not been able to take place the last couple of years.
Plus, will employees get a Christmas gift this year - what is it and how much did it cost and what was it last year?
Staff do not receive gifts from the organisation.
And why or why not are you giving Christmas gifts?
Council’s position is not to use ratepayer money to purchase gifts for staff. However, Council offices close at midday on the last working day of the year (21 December) to enable staff to spend time with whānau and friends ahead of the busy festive season.