Short vs Long Term Rentals

If you own property in Matakana, Omaha, or Point Wells, you are sitting on one of the most desirable assets in the country. But how do you make it pay?

For years, “sticking it on Airbnb” was the default choice. However, in 2026, the landscape has changed. With the Auckland Council’s Accommodation Provider Targeted Rate (APTR) and a softening domestic tourism market, the “easy money” of short-term letting is no longer guaranteed.

Here is a realistic look at the two models to help you decide which one fits your lifestyle.

1. The Short-Term (Holiday) Model

The “High Risk, High Reward” Strategy.

This model works best if you have a high-spec property in a prime location (e.g., walking distance to the Village or water) and you absolutely need to use the property yourself during the year.

• The Income: In peak season (Dec–Feb), Matakana homes can command $400 – $800+ per night.
• The Reality Check: Occupancy is highly seasonal. While January is fully booked, midweek occupancy in August or September can drop to near zero.
• The “Bed Tax” (APTR): This is the sting in the tail. If you book your property for more than a certain number of nights a year, Auckland Council may classify a portion of your property as “Business” for rating purposes. This can significantly increase your rates bill, eating into your profits.
• The Hassle: You are in the hospitality business. Guests expect hotel-standard cleaning, fresh linen, and immediate responses if the Wi-Fi drops out at 9 pm on a Friday.

2. The Long-Term (Residential) Model

The “Set and Forget” Strategy.

This is currently the fastest-growing segment of our portfolio. Why? Because as Matakana grows, so does the workforce.

• The Income: A modern 3-4 bedroom home in Matakana typically rents for $750 – $950 per week.
• The Demand: There is a severe shortage of quality rentals for professionals. We have waiting lists of business owners, vineyard managers, and families building in the area who need stable, long-term housing.
• The Stability: You get paid 52 weeks a year, regardless of whether it rains all summer. Tenants pay for their own power, water, and internet.
• The Trade-off: You cannot use the property yourself. Under the Residential Tenancies Act, you cannot simply ask tenants to leave because you want the house for New Year’s Eve.

3. The “Hybrid” Myth

Can I rent it out for winter and take it back for summer?

We often get asked this. In theory, you can sign a Fixed Term Tenancy for the winter months.

• The Problem: Most quality tenants want security. They do not want to move out in December just when the rental market is at its tightest.
• The Risk: By limiting your tenant pool to “winter only,” you often have to drop the rent significantly or accept tenants who are less stable.

4. The Verdict: Run the Numbers

Below is a simplified comparison based on a typical $1.5M Matakana property.

Our Recommendation?

If you need the property for your own holidays, keep it short-term but be prepared for the work. If this is an investment, long-term residential almost always delivers a better net return with significantly less stress and risk.