Rules & compliance
Can I Short-Stay a Rental Property?
Whether you can short-stay a rental property depends on your lease with the owner or mortgage terms with your lender. Short-stay income (under 90 days) is not covered by the Residential Tenancies Act. You must check your lease for restrictions on holiday rental or short-stay use. If your lease prohibits commercial activity or holiday rental, you cannot legally operate short-stay without the landlord's written permission. Always get landlord consent in writing.
The difference between short-stay and residential tenancy
When a house is used as a holiday rental or short-stay accommodation for periods under 90 days, it is not covered by the Residential Tenancies Act. This means the protections that apply to long-term tenants, such as 90 days notice to end the tenancy or the right to a bond return within stipulated timeframes, do not apply to short-stay guests. From a tenancy law perspective, short-stay accommodation is treated as a hospitality business, not a residential rental. The difference matters legally and financially.
However, if you are renting a property as a tenant and you intend to use it for short-stay income, you cannot simply ignore the Residential Tenancies Act. The Act applies to you as the tenant to the owner. Your lease agreement or tenancy agreement with the property owner is a separate contract that governs what you are and are not allowed to do with the property. Short-stay restrictions are typically found in the lease, not in the Residential Tenancies Act itself. This is a common point of confusion for new hosts who assume they can use a rental property however they wish as long as it is short-stay.
What your lease says about commercial use and holiday rental
The critical document is your lease or tenancy agreement with the property owner. Most standard residential leases contain clauses about what you can and cannot do with the property. Common restrictions include prohibitions on commercial activity, running a business from the premises, or operating holiday rental or short-stay accommodation. If your lease says you cannot operate short-stay, or if it prohibits commercial activity generally, you do not have the right to list the property on online platforms or run it as a holiday home. This is a straightforward breach of contract.
Read your lease carefully and look for clauses about permitted use, commercial activity, subletting, or holiday rental. These clauses can be buried in pages of legal text, often under headings like 'Tenant's Obligations' or 'Breach of Tenancy'. If you are unsure whether short-stay is allowed, contact the landlord or property manager directly and ask for written clarification. Do not assume silence or ambiguity means permission. Leases are contractual agreements, and breaching them can result in the landlord ending the tenancy, serving notice, and potentially pursuing you for breach of contract damages. The landlord may also evict you if you are operating a short-stay business in violation of the lease.
Getting the landlord's written permission
If your lease restricts short-stay or does not explicitly permit it, the only way to legally operate is to get the landlord's written permission to use the property for holiday rental or short-stay income. This should be done in writing, not verbally. A simple email from the landlord confirming they approve short-stay rental is sufficient, but a formal letter or an amended lease clause is better. Having written consent protects you if the landlord later disputes whether they gave permission or if a property manager claims the permission was unauthorized.
When you ask the landlord, be explicit about what you intend to do. Explain that you plan to operate short-stay accommodation through platforms or through your own booking website, that guests will stay for periods under 90 days, and that you will handle all the bookings and guest management yourself. Describe the expected frequency and maximum number of guests. Some landlords may be receptive if they understand the arrangement and believe it fits their investment strategy. Others may refuse because they fear increased wear and tear, noise complaints, or liability issues. There is no legal obligation for them to agree, but getting their permission in writing is your only safe option if the lease does not already permit it.
Mortgage and lender restrictions
If you are buying the property to use for short-stay, check your mortgage documents as well. Some mortgages restrict the use of the property to owner-occupation only, or they require the lender's permission before you can operate it as a holiday home or investment property. Breach of mortgage terms can give the lender grounds to call in the loan, which is a serious consequence. Your mortgage documents will specify what you can and cannot do with the property, and holiday rental may not be mentioned at all or explicitly prohibited.
Before purchasing a property you intend to short-stay, or before converting a rental property you already own to short-stay, confirm with your lender that short-stay income is permitted under your mortgage terms. Most lenders allow it for investment mortgages and allow the income to be counted toward serviceability. Owner-occupied mortgages sometimes have restrictions because the lender originally approved the loan based on the borrower's employment income, not holiday rental income. A brief email or phone call to your lender clarifies this and prevents problems later. Ask specifically about commercial short-stay use so there is no ambiguity.
Council and zoning rules still apply
Even if your lease permits short-stay, you still must comply with your council's planning rules and zoning requirements. If your council requires resource consent for short-stay accommodation in your zone, you need that consent regardless of what your lease says. The lease controls whether the property owner allows you to operate short-stay. The council controls whether short-stay is a permitted use for that property's zone. These are two separate layers of regulation, and you must satisfy both.
Before committing to short-stay income from a rental property, check both your lease and your council's rules. You need permission from both the property owner and the council to operate legally. Check your council's District Plan or Unitary Plan for your property's zoning, and see what the rules allow for short-stay or visitor accommodation. If you are in Auckland, check the zone on the Unitary Plan. In Queenstown, check QLDC's ePlan. Most councils have guides on their websites. A 20-minute phone call to your council's duty planner or planning team will give you a clear answer about what is and is not allowed on your property. Do not skip this step.
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See Tideline House Ask about my propertyThis page explains the general position at the time it was written. Rules differ by council, by property, and by your own structure, and they change. Confirm your specific situation with your local council, your accountant, or a lawyer before you rely on it.
Last reviewed: 2026-08-04