Boarders, Benefits, and the Law (NZ)
If you're renting out a room in your home, it's important to know the difference between a boarder and a tenant — and how it affects your legal obligations and government benefits.
The information on this page is current at the time of writing and may change at any time due to policy and law changes. Make sure you research the legalities correctly before entering into a contract with anyone.
1. Who Is a Boarder?
A boarder is someone who rents a room in your home where you also live. They may share facilities and sometimes meals. In most cases, the Residential Tenancies Act 1986 does not apply to boarders — only to tenants with full tenancy rights.
2. How It Affects Government Benefits
If you receive support from Work and Income NZ (WINZ), you must declare any income from boarders.
- You can usually have up to two boarders before it's considered a business.
- Income up to a threshold (currently around $207/week per boarder) is not taxable.
- Declaring income is required for benefits like the Accommodation Supplement or Jobseeker Support.
More info from WINZ: Income from Boarders
3. Do You Need to Pay Tax?
As long as you stay below the IRD's boarder income threshold, you won’t pay tax. If you exceed the threshold, you may need to pay tax on the income or use the actual cost method.
IRD Guidance: Boarders and Renters – IRD
4. Written Agreements
It's strongly recommended you have a written boarder agreement. It should cover rent, bills, house rules, and other expectations.
Example template: Community Law Sample Boarder Agreement