Questions and answers

Prospective holidaymakers should be careful when renting a bach online, as rental listings promoted on the internet can be a popular target for scammers.
Scammers can sometimes go to extraordinary lengths to trick unsuspecting people into giving up personal details or making payments. They may pose as owners or real estate agents and use the actual property address and photographs, often copied from real estate websites, in an effort to convince you they are genuine.
Here are some online renting guidelines to follow to help you avoid being scammed:   

• Watch out for obvious spelling mistakes, grammatical errors or pixilated photographs – scammers tend to operate from overseas and English may not be their first language.
   
• If you don’t live in New Zealand, ask someone you trust to make local enquiries.  There are reputable websites out there.  In general, if a bach renting offer looks too good to be true, it probably is.
   
• Don’t rely on referrals or recommendations of others, unless you know the source of the referral or recommendation personally.

 

• Never pay funds via a bank transfer unless you are sure who the recipient is. Avoid using non-bank payment systems such as Western Union, which scammers are well known to use.  It could be very difficult to ever get your money back from these networks if there are issues.
   
• If the owner or agent for the bach lives overseas, this is a warning sign that it could be a scam. Most New Zealand bach owners live in New Zealand.  Ask for local telephone numbers and addresses, and have these verified.

 

• Search online for reviews of the owner or agent offering the holiday home for rent.  The experiences of others can be very useful indicators.
   
• Keep all written correspondence about the holiday home rental, including payment details and a copy of the listing itself.
   
• Watch out for holiday homes being advertised at conspicuously cheap rental prices (unless at the last minute). This is a sure sign that the listing is a scam.
   
• Never send money in order to be posted keys to a property. You should always be able to pick up the keys personally, or retrieve them from an agent.  Many owners are happy to accept just a deposit up front when you book the accommodation, and to receive the remainder when the keys are exchanged.

Some holiday home owners rent their holiday homes out themselves.  Others rent their holiday homes out via agents.  As a renter, your interests and personal details are better protected when you rent your holiday home via a licensed real estate agent.  You also benefit from more choice of homes, because the real estate agents have exclusive listings that are not available through any other market channel.
Whether you rent a bach or holiday home directly from the property owner or through a licensed agent, it's advisable to search for online reviews of the property. Make sure that the photos shown are legitimate and represent the current property conditions. If you are able to, you should physically inspect the property and ask as many questions as possible before signing any holiday home rental agreement.
All details concerning the holiday home rental should be put in writing.
 

Services provided with the bach rental will differ from property to property. If there is anything that you are unsure of, contact the holiday home owner or agent before signing any written agreement. Things you may want to clarify include:

• Does the owner have the right to enter the property while you are living there? If so under what circumstances?
   
• Is the holiday home accommodation rated in accordance with any classification system (e.g. Tourism New Zealand’s Qualmark)?
   
• Is the holiday home accommodation serviced, and if so how often and when?
   
• Will the electricity be on when you arrive at the property? Is it included in the rental price, or does it operate on a coin meter basis or similar?
   
• Is there anything in the property that cannot be used or are there any facilities that are shared with other properties / tenants?
   
• Is the holiday home accommodation fully furnished including cutlery, bedding, and kitchen equipment?
   
• How close is the bach or holiday home to local points of interest and transport?
   
• If there are any disputes, how will these be settled?  Does any formal dispute resolution system exist?
   
• Will there be manuals and instructions for using appliances available in the property when you arrive?
   
• Who do you call in the event of a problem or an emergency relating to the property?

 

When paying the rent or deposit to secure the holiday home, ensure that you receive a detailed receipt for the amount paid showing what the payment is for. Ask the agent or the landlord how and when your security deposit will be refunded to you. 
Before moving into the holiday home, you should conduct an inspection of the property. In some cases the inspection will be carried out in the presence of the owner or agent. During the inspection you should note down any existing damage, the items contained within the property, and note any missing or faulty appliances. 
It's important to write your comments down and highlight the matter with the owner or agent prior to the commencement of your tenancy in order to protect your interests. This will help you avoid any disputes when you complete your stay. 
You will be responsible for any damage to the property or its equipment, fixtures and fittings if it is caused through your negligence. You are not responsible for fair wear and tear of the items.

Some holiday rental accommodation is pet friendly, but check with the owner or real estate agent first about what is permissible on the premises. Most pet friendly holiday homes will ask you to bring your pet’s own bedding.  Some holiday homes may additionally require you to keep your pet outside. 

Holiday homes near the beach are in high demand during the summer in New Zealand, while alpine (ski) holiday homes will be popular during the winter and ski seasons. Here are some simple tips if you’re planning to rent a New Zealand bach during these peak seasons:

• Availability will be much more limited during peak seasons, so plan ahead and book well in advance to make sure you secure your holiday home for the specific period you want.
   
• Ask the owner or agent how far the bach or holiday home actually is from the sand and sea, or how difficult it is to get to the nearest ski field. Families with young children often prefer holiday homes right on the beach to avoid car rides or long walks.
   
• Check whether your beach holiday home has outside lighting, a BBQ and outdoor furniture for dining - to maximise your enjoyment.
   
• If booking an alpine holiday home, ask what kind of heating it has (gas or electric), and whether the power or gas required to run the heating is included in the hiring charge or not.

Some of the usual rules governing tenancies don't apply for short fixed-term tenancies of less than 90 days duration.  You don't need to worry about the rules concerning fair market rent, tenant eviction notice periods, or rent increases following substantial improvements to the property.
Rental returns for short term tenancies will normally be higher than for long term leases, especially if the property is fully furnished. But as holiday seasons represent only part of the calendar year, this higher short-term rental yield must be balanced against the security of income that a long term lease situation provides.
You should consider the tax treatment of your holiday home by the Inland Revenue Department (IRD). While all rental income is taxable and needs to be declared on your tax return, your ability to deduct expenses related to the holiday home (such as interest, insurance, depreciation and council rates) may depend on how often, and for how long, the property is rented out.
In general, you will be allowed a deduction if you can demonstrate that these expenses are related to the earning of rental income. The amount of time that the property is rented out may impact on this assessment. If you only rent the house out for 10 weeks per year, you may only be able to claim the deduction at a rate of 10/52 - i.e. pro-rata, based on the weeks that rental income was generated. 
If the IRD believes that your expenses are private in nature, and are not a legitimate expense that led to the generation of rental income, they will likely be denied. Visit the IRD website for more information, or contact a First National Real Estate agent