Airbnb is a great option for those with investment properties to earn some extra cash in an economy of high inflation, but what is the cost?

For those left locked out of the market due to a reduction in long-term rental properties, the price is high.

While some are making the most of a profitable and easy side hustle, more and more families are left houseless as rental properties become Airbnb's.

Some Airbnb properties ask $600 a night, which roughly equates to a modest weekly rent paid by long-term renters here in Tauranga. 

Listing properties on Airbnb has a lot of benefits, fourth-year social work student Julz Marriner.

“It’s becoming more common for people to – if they have extra properties, put it on Airbnb rather than renting out long-term.”

The housing crisis is already extremely tough in the Bay of Plenty.

“There are fewer properties available for long-term renters, and more 'ghost hotels' than ever before,” says Julz. 

“Neighbourhoods across Tauranga are scattered with empty dwellings.”

Julz says that while she was on placement at Te Tuinga Whanau in 2023, she worked with whanau who were being directly impacted by the housing shortage. 

“The level of stress is very high. A family's ability to live a 'normal' life is diminished greatly when they have no place to call home. 

“It is also extremely disturbing to see the high level of profiling that occurs as part of the rental vetting process (which is not seen in the short-term rental market), rental agents hold a huge amount of power and are being paid to choose the best tenant for the property. 

“I advocate for legislation that bans this practice and instead is replaced by an ethical application process, followed by a lottery system that randomly picks one applicant. 

“It's not ok for Tauranga to be known for homelessness. 

“We must do better.  It's simply not ok to prioritise the tourist dollar and personal gain, over the wellbeing of people who live in your community.”

Julz says this is an issue that is seen overseas as well in Toronto and Paris.

Residents of these cities are grappling with a housing shortage and Airbnb has been identified as a company that has contributed to the problem.

Julz says Canada and France have brought in legislation to help solve the issue.

“It’s a two-fold problem, not only do we have more people than ever looking for accommodation, we have fewer houses available and this is why.

“It’s so much more cost-effective as well as better on your property.

“It makes total sense if you are thinking about protecting your assets and returns.

However, “Houses are sitting there empty while some of the community are living in their cars or tents.

“A quick online search reveals there are hundreds of properties available across Tauranga, dedicated to short-term rentals.

"This makes sense when the returns are so high and tax breaks incentivise Airbnb models of investment.”

In addition to this there is a strong investment protection culture and Airbnb-type arrangements get more and more attractive, says Julz.

"More needs to be done to balance the individual rights of homeowners with socially responsible investment. 

The costs will get passed on to the renter as interest rates rise, says Julz.

“Historically homeowners have passed on the rising costs associated with investment properties to the renter. 

“Renters are yet again doing all the heavy lifting; successfully navigating the application process, booking in viewings, then literally attempting to prove they are worthy to rent the property, then hopefully your 'landlord' doesn't keep putting the rent up to cover their increased investment costs."

Tauranga has recently hosted the Salvation Army’s State of The Nation Report where housing, taxes related to private rental properties and rent-to-own solutions were briefly discussed.

Julz says, amongst those in attendance was National MP Sam Uffindell, who showed an interest in finding solutions to Tauranga's housing crisis.