​The city’s short-term accommodation (STA) sector provides an effective alternative to motels and hotels and adds capacity when major events are held in Wellington. This accommodation is most often provided through peer to-peer platforms such as Airbnb or Bookabach.

Currently, most short-term accommodation providers pay residential rates, even though the current Council policy is that some should pay commercial rates.

When we consulted on this topic last year, we listened to concerns about the impact of the full commercial rate differential being applied to all STA providers.

What we are proposing

We have listened to this feedback and now propose to introduce a new general rates differential covering short-term accommodation.

The differential proposed will be 2.6 times the base rate. In comparison, the commercial differential rate is 3.7 times the base rate.

It will apply to all units that are used for short-term accommodation, meaning:

  • the rental, or availability for rental, of houses or units on the property that would otherwise be used for residential purposes:
    • for periods of less than one month and
    • where that house or unit is, or has been, made available for short-term accommodation for more than 60 days within the financial year.

This proposed differential only applies to general rates – all other commercial targeted rates would still apply.

As explained in the 2025 consultation, this new rate will explicitly exclude single rooms, granny flats, sleepouts, and dual key homes (adjoining units) that are used for non-commercial purposes or are self-contained but do not meet the criteria for short-term accommodation.