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Auckland Council

Online accommodation rating

​Change to rating online accommodation providers

Auckland is growing, and so are the numbers of visitors who want to experience the attractions the city offers. To meet the demand, online accommodation services such as Airbnb and Bookabach are expanding. In the last year, Airbnb rentals alone took more than 10 per cent of market share.  

However, we have identified an issue of fairness in how we classify online accommodation providers for rating purposes. It relates to the Accommodation Provider Targeted Rate (APTR) and to general property rates.

How we currently apply the APTR

The APTR is a targeted rate introduced in 2017 to partly fund the activities of Auckland Tourism, Events and Economic Development (ATEED).

It is charged to commercial providers such as hotels, motels and serviced apartments, that benefit from ATEED’s work in promoting the city.

Why we are changing

We are making rates charges fairer between commercial and residential providers.

Commercial providers pay the APTR and also pay higher, business rates.

However, residential owners who let out their properties online also benefit from ATEED’s activities, but they do not pay the APTR, and their property rates are lower.

How it will work

We are revising the charges for properties being let online.

The change in rates will depend on a number of factors, including the number of nights booked, the zone a property is in, and the property value.

APTR zones

The APTR is charged at different levels depending on the zone.

Properties in zone A or B are charged the APTR, properties in zone C are not.

 

ZoneLocal board area ​APTR level
​A​Albert-Eden, Devonport-Takapuna, Māngere-Ōtāhuhu, Maungakiekie-Tāmaki, Ōrākei and Waitematā ​Higher
​B​Henderson-Massey, Hibiscus and Bays, Howick, Kaipātiki, Manurewa, Ōtara- Papatoetoe, Puketāpapa, Upper Harbour, Waiheke and Whau ​Lower
​C​Franklin, Great Barrier, Papakura, Rodney and Waitakere Ranges ​No charge

Accommodation types affected

The new rates only apply if you are using online platforms to let out:

  • an apartment
  • an entire dwelling
  • a self-contained unit.

They do not apply if only part of the dwelling is let, such as a bedroom.

 

Number of nights booked per year ​APTR rates level ​General rates level
​Up to 28​Does not apply​Continue to be rated as residential
​29 to 135​25% of APTR if the property is in zone A or B​Rated as 75% residential and 25% business
​136 to 180​50% of APTR if the property is in zone A or B​Rated as 50% residential and 50% business
​More than 180​100% of the APTR if the property is in zone A or B​Rates as business

 

The upper limit of 180 nights, where full business and APTR applies, is around the occupancy level for motels.

No revenue increase

The total amount collected from the APTR will remain the same, but it will be spread over more ratepayers.

This means commercial providers will be charged less for the APTR.

Rates changes

Changes in your rates will apply from 1 July 2018. They will show in your August 2018 rates invoice.             

Letters to property owners

In May we wrote to residential property owners in the city centre, asking if they list their property with a web-based accommodation service.

Our analysis shows the city centre has the greatest concentration of online providers.   

Responding to our letter

If you let us know that your property is let via an online accommodation service, there will be a follow-up letter in June asking you to provide proof of the number of booked nights over the previous 12 months.

Proof will include information from the provider of the online service or a declaration.

If you don’t list your property on an online accommodation service, the changes do not affect you and you do not need to take any action.

Other ways we can identify online providers

We will also be searching websites and working with commercial accommodation providers and body corporates to help identify residential property owners involved.

Contact us

If you have a question, please email us at accommodationproviderrate@aucklandcouncil.govt.nz or phone us at 09 979-5500.

 

 

 

Online accommodation ratinghttps://www.aucklandcouncil.govt.nz/property-rates-valuations/your-rates-bill/Pages/accommodation-provider-targeted-rate.aspxOnline accommodation ratingInformation on the 2018 changes to the Accommodation Provider Targeted Rate.aspx
How your property rates bill is made uphttps://www.aucklandcouncil.govt.nz/property-rates-valuations/your-rates-bill/Pages/how-rates-bill-made-up.aspxHow your property rates bill is made upDescriptions of the charges that make up your property rates bill.aspx
Get your property rates and valuation notice by emailhttps://www.aucklandcouncil.govt.nz/property-rates-valuations/your-rates-bill/Pages/sign-up-rates-bill-by-email.aspxGet your property rates and valuation notice by emailFind out how to get your property rates bill by email. aspx