Rates relief is being offered to residential owners who have registered with council to use all or part of their residential dwelling for visitor accommodation.

With far fewer tourists visiting the region due to COVID-19 restrictions, the provision of visitor accommodation far exceeds the demand and the Queenstown Lakes District Council (QLDC) is offering relief for those providing short-stay visitor accommodation.

A council statement last week advised that many houses in the district previously used for visitor accommodation, including Air B’n’B, have now become long-term rentals instead or remain unrented. 

“This has had an impact on the rates owners of these properties need to pay,” the statement said. 

It includes those registered as residential visitor accommodation (RVAs) (renting out entire homes/apartments on a short-stay basis to visitors) and homestays (those residing at home but renting out a portion of their home to short-stay visitors, such as Air B’n’B).

Owners of such properties can now apply for visitor accommodation rates relief if they do not intend to use the property for visitor accommodation for the next 12 months, the statement said.

Rates relief is also available for those who hold a 365 day visitor accommodation consent and are significantly reducing the amount of visitor accommodation use to fewer than 180 days per year.

Owners will be required to make a declaration that they are aware of obligations to pay rates and that the property will be used in the manner specified on the rates relief application form for the next 12 months.

Applications must be made before June 30, 2020. Application forms can be found here.

Approved applications for the visitor accommodation rates relief will have their rates readjusted for the rating year starting July 1, this year. Rates will revert back to pre-COVID visitor accommodation rates in July 2021 unless the QLDC is contacted prior to June 30, 2021.

There is no requirement to adjust resource consents to be eligible for the rates relief.

The council said the rates relief is not available to owners of commercial accommodation, such as hotels, motels, lodges, backpackers, timeshare units, managed apartments and holiday parks or motor camps.

Three years ago the QLDC reviewed the provision of visitor accommodation in the district and discovered a significant and increasing amount of the district’s housing stock was being used for short-term visitor accommodation.

In addition to rates relief for residential and homestay accommodation providers, the council is also offering broader options for rates payment instalments and intends to limit this year’s overall rates increase to better reflect the significant impact COVID-19 has had on the district’s economy.

The council has reviewed the budgets supporting the draft Annual Plan, which sets the rates, and is now targeting an average rates increase closer to the current rate of inflation at 1.8 per cent.

The revised budget will be discussed by councillors this week (May 29) as part of its consideration of Annual Plan submissions.

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