Northlanders do business by renting out holiday homes

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Bachs at Mangawhai Heads, with its superb coastal lifestyle, leads Northland in terms of highest average revenue per booking during the summer.

Many Northlanders make a business out of renting out their bachs, with some earning over $1000 a night.

New figures from Bachcare, New Zealand’s largest holiday home management company, show that the top rental areas over the summer are Abel Tasman/Nelson, Raglan, Wairarapa and Northland in fourth – followed by Coromandel.

The new data shows that a sector of the domestic tourism market hit new revenue records over the past year.

Thousands of Kiwi residential property owners have benefited from an increase in domestic tourist numbers, earning up to $81,000 a year renting out their vacation homes – earning up to three times the regional average for rental properties.

The highest paying holiday home in the past year is in Mt Maunganui.

Bachcare’s latest figures show landlord rental yields up 14 per cent on the previous year and 39 per cent on pre-pandemic levels as Kiwis vacation at home amid closed borders .

The summer season which ended in March set a new record for the most accommodation bookings – up 4% from the previous year and 15% from 2019 levels.
Forecasts based on forward bookings suggest that the year 2022/23 will exceed previous years and could lead to a shortage of short-term rental accommodation in some areas.

Langs Beach bachs were popular rentals for Kiwis during the summer.
Langs Beach bachs were popular rentals for Kiwis during the summer.

A new record was also set for the highest annual income for a single property – a Mt Maunganui house earning $81,000, the equivalent of more than $1,500 a week, and around three times higher than renting Bay of Plenty average which is rented for the full year.

Zaina Razzaq, a spokeswoman for Bachcare, said the vacation home rental industry contributes hundreds of millions of dollars to regional economies across the country each year.

She said while the latest figures from the tourism industry show domestic tourism spending rose 2.6% ($622 million) to $24.6 billion, the growth in rental revenue from vacation homes during the same year increased by 23%.

“We know that 90% of domestic leisure travel in New Zealand is by car and that holiday home rentals appeal to a lifestyle-oriented segment of the local market, primarily water-based activities.

“For residential property owners, particularly those in coastal regions that are within driving distance of major urban centres, this has provided a growing opportunity to supplement their income.

“Based on our data covering over 2,300 holiday homes, the areas earning the highest average revenue per booking during the summer are Abel Tasman/Nelson, Raglan, Wairarapa and Northland.

“At the city level, the highest revenue per booking is found at properties in Hahei, Mt Maunganui, Whitianga, Waihi Beach, Pauanui, Matarangi and Mangawhai Heads.

“If we look at the highest earning property as an example of what appeals to domestic travellers, the main drivers of its high rental returns are its location, capacity and quality. The property offers stunning sea views, four bedrooms , two bathrooms, sleeps up to 10 people, and offers additional amenities such as free wifi.”

The Bachs in Tutukaka, above, were also popular rentals during the summer.
The Bachs in Tutukaka, above, were also popular rentals during the summer.

Razzaq said that despite the reopening of borders and international travel for the coming year, they expect further annual growth.

“We know there will be a segment of the market that will be looking to travel overseas, but early indications from forward bookings indicate that it will be another bumper year for vacation homeowners and regional tourism.

“With many Kiwis choosing to vacation locally and an expected influx of international tourists later in the year, we expect higher than ever demand for vacation home rentals.

“At peak times like this there is a shortage of supply and we are actively looking to increase the number of properties we manage,” she said.

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