With the rise of short-term rental platforms like Airbnb and Bookabach, many Body Corporates across New Zealand are facing new challenges. Councils around the country are beginning to classify short-term accommodation as a commercial activity, leading to higher rates for unit owners. At the same time, Body Corporates are increasingly questioning whether they have the legal authority to restrict or prevent short-term leasing within their apartment complexes.

At Core Legal, based in Masterton and Wellington, we regularly advise clients on the legal rights and limitations of Body Corporates when it comes to short-term rental activity.

🏢 Can a Body Corporate Ban Airbnb?

Under the Unit Titles Act, a Body Corporate does not have the legal power to outright ban short-term letting of units. This was confirmed by the Tenancy Tribunal, which ruled that such a restriction is not “incidental to” any of the powers granted under the Act. In simple terms, unit owners have the right to lease their unit—whether short or long term—and Body Corporate rules cannot override this right.

🔍 What a Body Corporate Can Do

While a Body Corporate cannot prohibit short-term rentals entirely, it can create rules that indirectly limit their viability. These may include:

• Noise control policies
• Restrictions on rubbish disposal or recycling
• Security requirements
• Limitations on common area usage

These rules must be lawfully adopted at a general meeting of the Body Corporate through an ordinary resolution. Once passed, the rules must be registered with Land Information New Zealand (LINZ) to become enforceable.

⚖️ Why Legal Advice Matters

Drafting Body Corporate rules, especially those that affect property use or leasing, must be handled with care. Any rule that exceeds the powers granted under the Unit Titles Act risks being ruled invalid or challenged by affected owners.

That’s why it’s critical to seek specialist legal advice before implementing or amending Body Corporate rules, particularly when it comes to short-term rentals. Our team at Core Legal can help ensure your rules are compliant, fair, and effective.

💼 Book a Consultation with Core Legal

Whether you’re a Body Corporate committee member or a unit owner concerned about short-term letting in your building, Core Legal in Masterton and Wellington offers cost-effective, fixed-fee initial consultations. We’ll help you understand your rights, obligations, and the best path forward in managing short-term rental activity within your development.

📞 Contact us today to book your consultation and get clarity on short-term leasing and Body Corporate rules.