Western Bay of Plenty residents hoping to cash-in on the 2011 Rugby World Cup by renting their homes to overseas visitors could find themselves thousands of dollars out of pocket and in serious trouble with the Inland Revenue Department.

Tauranga Insurance Services broker/ manager Keiran Vlietstra is warning people who rent out their homes during the 2011 Rugby World Cup that it may cost them more than they earn from it. Photo by Bruce Barnard.

Tauranga Insurance Services broker/ manager, Keiran Vlietstra, says he was approached by many people in Tauranga, Auckland and Hamilton seeking insurance advice about renting their homes during the world cup.
He says most of them were completely unaware of what they need to do before renting their homes and planned to 'hand over the keys and walk out the door”.
Western Bay of Plenty residents have had overseas interest to rent their homes because of the region's desirable coastal location, warm weather and close proximity to world cup centres: Hamilton, Rotorua and Auckland.
Keiran says if people do not consult with an insurance adviser and talk to their insurance company, they could find themselves in dire straits if rowdy rugby fans damage the house during parties, or property is stolen.
'It would be very naive of someone to think that they could just walk out of their place, rent it to someone else, come back, and expect any damage to be covered by insurance.
'They need to sit down with their insurance adviser and set out what is and what isn't covered.
'If people walk out, leave their personal effects behind and expect to get $5000 a week or more, and then after three or four weeks walk back in and think it's going to be the same as what they left it, the chances of that happening are going to be extremely remote.”
The Inland Revenue Department announced it would monitor websites and other places for people advertising their homes to rent during the world cup.
Any income earned from renting a house must be declared in annual tax returns.
'Inland Revenue will be looking at these people fairly closely and saying you've just made $20,000 tax free, we want part of that,” says Keiran.
Tourism Bay of Plenty general manager Tim Burgess is urging people to advertise their homes through credible and established booking agencies.
Online examples are www.holidayhomes.co.nz and www.bookabach.co.nz
'It's not as simple as putting an ad on a website. There are many issues to consider and then there's the liability.”
He anticipates there will not be huge demand to rent properties in the Western Bay during the world cup.
'The premium demand will only be at the very sharp end of the tour.”