Institute to fight rent rule at resorts

The Real Estate Institute may seek a court injunction to stop enforcement of a controversial Queenstown Lakes District Council rule that it fears could be adopted in other holiday resorts.

Under the Queenstown district plan, houses rented for less than three months to groups of more than four should be subject to resource consents and/or higher mixed use or commercial rates - potentially costing many short-term home renters thousands of dollars.

The Queenstown council last year indicated its intention to enforce the rule affecting people renting out their homes - a move applauded by moteliers and other commercial accommodation providers - and a moratorium on prosecutions expires next week.

Wakatipu institute branch president Richard Newman said there were fears that similar charges could be adopted in other holiday resorts, and the institute wanted the rule modified.

Institute representatives have met concerned homeowners, property managers and real estate interests in Queenstown and local real estate industry and property owners have formed a committee seeking a change to the district plan rule.

The real estate lobby will consider on February 11 whether to fight the Queenstown council by seeking a court injunction.

Otherwise it feared people could be put off buying properties, investors would say they could not get a return and property values would drop, Newman said.

The charge could cost some homeowners $3000 to $4000 a year more in rates, one-off council headworks fees of between $4000 and $10,000 and "$1500-plus" for a resource consent, he said.

- NZPA