How to Sublet or Airbnb Legally in New Zealand.

With the rise of flexible living arrangements and short-term rental platforms like Airbnb, more Kiwis are exploring the idea of subletting their homes or renting them out on a casual basis.

But before you hand over the keys to a guest or subtenant, it’s important to understand what’s legally allowed in New Zealand and what’s not.

From tenancy rules to council regulations, here’s what you need to know to stay on the right side of the law when it comes to subletting or hosting on Airbnb.

Can tenants sublet in New Zealand?

Yes but only with written permission from the landlord.

Under the Residential Tenancies Act, tenants must have consent from their landlord before subletting any part of the property. This includes situations where a tenant wants to rent out a single room, move out and rent the property to someone else, or host short-term stays through platforms like Airbnb.

If you sublet without approval, you risk breaching your tenancy agreement and could be issued notice to vacate.

Is Airbnb considered subletting?

If you’re a tenant: yes.

Airbnb is classified as a form of subletting when a tenant is earning income from the property they are renting whether it’s for a single room or the whole home. This still requires landlord consent.

If you’re a homeowner, you don’t need landlord permission, but you do need to comply with local council rules and zoning requirements (more on that below).

Key legal considerations for Airbnb and subletting

Landlord consent If you’re a tenant, this is your first and most important step. Always get permission in writing before allowing anyone else to stay at the property.

Local council rules Many councils across New Zealand have introduced regulations around short-term rentals. These vary depending on location, but common rules include:

• Caps on the number of nights a property can be rented per year

• Requirements for resource consent

• Zoning or usage restrictions

• Registration or permit processes

  
  

If you're in areas like Auckland, Queenstown, or Wellington, make sure you check your council’s website for the most up-to-date requirements.

Body corporate rules (for apartments/townhouses) If your property is part of a unit title or apartment complex, your body corporate may have specific bylaws prohibiting or restricting short-term letting. Always check before proceeding.

Insurance Standard landlord or home insurance policies may not cover guest-related damage or liability under subletting or Airbnb situations. Talk to your provider to confirm you’re covered or look into specific short-term rental insurance products.

Tax obligations Any income you earn through Airbnb or subletting must be declared to Inland Revenue (IRD). In some cases particularly if you earn over $60,000 per year you may also be required to register for and charge GST.

What can go wrong if you don’t follow the rules?

• You could be evicted for breaching your tenancy

• Your insurance may not cover guest-related damage

• You could face fines or compliance issues from your council

• Neighbours may lodge complaints, triggering investigations

• You might receive unexpected tax bills if you don’t declare income properly

  
  

Subletting and Airbnb best practices

If you’ve received the necessary approvals and checked off your legal responsibilities, here are a few tips to make the process smooth and stress-free:

• Always use formal written agreements with subtenants

• Set clear rules and expectations for guests

• Keep your landlord or body corporate informed

• Maintain a high standard of cleanliness and safety

• Monitor your listing and guest reviews closely

  
  

Final thoughts

Subletting or listing your home on Airbnb can be a great way to earn extra income or manage your lease more flexibly but it’s not something you can do on a whim. Always check with your landlord, your council, and your insurance provider before you go live.