Hosting International Students (Homestay/Boarding) – The Definitive New Zealand Guide
Understand the pros and cons of hosting international students; we explain how to become a host, what to expect, the money involved, must-know tips and facts and frequently asked questions.
Updated 4 August 2023
Summary:
Our guide covers:
Know This First: What taxes do I pay on the money I generate for hosting international students?
Summary:
- One of the main ways to create an additional revenue stream from an existing asset (i.e. your home) is to host international students through homestays or boarding. Families, couples and singles all over New Zealand have a long history of hosting students from around the world.
- We estimate there's likely to be 8,000+ international students attending 350+ high schools around New Zealand.
- With the borders open and international student coming back in since 2022, hosting is an excellent way to experience different cultures, support the New Zealand education system/economy, and earn extra income.
- The amount you’ll earn ranges, but $250 to $300+ per week is a reasonable range.
- However, the process, rules and regulations around tenancies, private boarding and hosting international students can be confusing and complicated. We have published this guide to make sense of the different options, what you can earn and the tax obligations you may face.
Our guide covers:
- Understanding the Legal Background (Boarding vs Renting a Property and the Different Types of Hosting/Housing Agreements)
- How Can I Become a Host for International Students in New Zealand? Do I Need Qualifications?
- Estimated Income and Costs When Hosting international Students
- Must-Know Tips When Preparing to Host International Students
- Must-Know Facts about Hosting International Students in New Zealand
- Frequently Asked Questions
Know This First: What taxes do I pay on the money I generate for hosting international students?
- As a rule of thumb, the money you get for hosting international students will be considered income and must be disclosed in your yearly IRD tax return. The amount of tax you pay on the money you generate for hosting international students in New Zealand depends on a few factors, including the number of students you host, the amount of rent you charge, and your total household income.
- The IRD has specifically written out guidance on tax treatment for Kiwis hosting private boarders or home-stay students. If your income from homestay students or boarders is higher than your total costs to service those boarders/students, you’ll need to pay tax on this difference.
- The IRD has a standard cost method that you can use to calculate your taxable rental income from hosting international students. The standard cost method takes into account the cost of food, utilities, and cleaning, as well as the cost of providing accommodation to the students.
- If you’re still unsure about how much tax you need to pay on homestay/boarding, the IRD have created a guide to tax responsibilities when it comes to boarders and international students.
- Note that the tax treatment on private boarders or home-stay students is different compared to that of flatmates or short-term renting out of one of your rooms. Check out the IRD’s guidance that distinguishes between these three types.
- More details: Please visit the IRD guide to rental income and IRD’s guidance on renting out a room in your main home
MoneyHub Founder Christopher Walsh shares his views and experience of hosting international students:
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"My experience with hosting is admittedly limited. My only real exposure was when my parents hosted a Japanese high school student during his two-week class trip when I was in Year 10. It was a rewarding experience, albeit tiring. If you're considering opening your home, understand that it could be more work than it initially seems. It's essential to embark on this journey for the right reasons".
"Hosting a student for an entire school year is a massive responsibility, not something to rush into lightly. Balancing your existing commitments with providing an enjoyable experience for your guest can be challenging. If their English isn't fluent, you'll need to speak slowly, possibly explain things multiple times, and be patient – all of which can be draining on your time and energy". "To be a successful host, genuine interest in foreign cultures is crucial. If you're in it solely for money, your homestay experience may lack authenticity, and you risk getting frustrated. Inviting a student into your home is a big responsibility and must be approached with care. Even though you could easily earn $10,000 a year in hosting fees, the costs can mount when considering food, utilities, and activities". "So, if you're considering hosting, do it for the right reasons. Be enthused by the prospect of cultural exchange, learning, and the enriching experiences that it promises, rather than just the automated payment that follows." |
Christopher Walsh
MoneyHub Founder |
Understanding the Legal Background – Boarding vs Renting a Property and the Different Types of Hosting/Housing Agreements
In New Zealand, tenancies are regulated by the Residential Tenancies Act 1986, which outlines the rights and responsibilities of both landlords and tenants. There are four key tenancies regulated by the Residential Tenancies Act 1986 (as set out by Tenancy Services):
Of the four types of tenancies above, Fixed Term/Periodic and Boarding are the most common in New Zealand. Specifically, the three main types of hosting/housing agreements as set out by the New Zealand Government (Tenancy Services) are:
Of the four types of tenancies above, Fixed Term/Periodic and Boarding are the most common in New Zealand. Specifically, the three main types of hosting/housing agreements as set out by the New Zealand Government (Tenancy Services) are:
- A Boarding House Agreement (AKA Boarding - covered by legislation)
- A Residential Tenancy Agreement (AKA Renting - covered by legislation)
- A Flat or House Sharing Agreement (AKA Flatting - NOT covered by legislation)
How do private board arrangements differ from residential tenancies?
If the property has less than six tenants/boarders, the agreement will NOT fall under the Residential Tenancies Act (RTA). If the property has rooms for six or more tenants, and the proposed tenancies are for at least 28 days, your agreement will fall under the Residential Tenancies Act, meaning you’ll have certain obligations to meet. Given most New Zealanders won’t be housing more than a couple of international students (at most), the legislation does not apply.
Tenancy Services has a specific flatting page for standard private flatting agreements to assist Kiwis in considering private flatting arrangements. For example, under a private boarding arrangement, you'll need to negotiate and agree with the individual(s) that you're setting up the flatting agreement with on key discussion points such as:
Know This: Given that as a homestay host you're effectively creating a private contract between yourself as the landlord and the person (or people) living/flatting with you, whatever you agree will go into the contract and will be the rules you'll all need to follow. Generally, if you're choosing to host an international student (homestay), your agreement will likely fall under the "Flat or House Sharing Agreement" bucket and not be covered by the legislation.
What's the main difference between a standard and boarding tenancy in New Zealand?
Tenancy Services has a specific flatting page for standard private flatting agreements to assist Kiwis in considering private flatting arrangements. For example, under a private boarding arrangement, you'll need to negotiate and agree with the individual(s) that you're setting up the flatting agreement with on key discussion points such as:
- Food and beverages.
- Internet and power.
- Minimum notice period to end the private flatting arrangement.
- Cleaning protocols.
- Bond (the amount of money you need to pay upfront as security for flatting).
Know This: Given that as a homestay host you're effectively creating a private contract between yourself as the landlord and the person (or people) living/flatting with you, whatever you agree will go into the contract and will be the rules you'll all need to follow. Generally, if you're choosing to host an international student (homestay), your agreement will likely fall under the "Flat or House Sharing Agreement" bucket and not be covered by the legislation.
What's the main difference between a standard and boarding tenancy in New Zealand?
- Boarding houses and standard tenancies share many of the same requirements but are distinctly different. The main difference between standard and boarding tenancy is the living arrangement and the level of services the landlord provides.
- A standard tenancy typically involves renting an entire property without additional services (such as food, internet and cleaning). In contrast, a boarding tenancy generally involves renting a room within a shared property where the landlord provides additional services such as meals, cleaning, or laundry. Some homestays will call their agreement a "boarding tenancy" (although they may not fall under the formal "Boarding House Agreement" tenancy that the Residential Tenancies Act defines).
How Can I Become a Host for International Students in New Zealand? Do I Need Qualifications?
To become a host for international students in New Zealand, you will need to register with a reputable homestay provider or educational institution. There are options all over New Zealand - some examples of providers or educational institutions offering homestay agreements include:
New Zealand Schools
Important: This is a shortlist - 100+ schools around New Zealand have international students enrolled and will likely always be looking for hosts.
Homestay Organisations in New Zealand
Know This: School homestay programmes often exist for private schools and state schools. Depending on where you live, one of the best ways to find a homestay programme is to research your local high schools and see whether they need hosts. You don’t need to have children at the school to be considered (in most cases, but not always, so you'll need to check before applying).
Qualifications aren't required to become a host, but you'll need to meet certain criteria, such as having a clean and safe home, a spare room for the student, and a willingness to provide a supportive environment. Homestay providers will conduct a home inspection and background check to ensure you can host international students.
New Zealand Schools
- Auckland Grammar School - Homestay Host
- Wintec - Becoming a Homestay Host
- ACG Schools - Homestays
- Green Bay High School - Homestay & Accommodation
- Scots College - Become a Homestay Family
- Westlake Girls High School - Homestay Options
- Kristin School - Accommodation
Important: This is a shortlist - 100+ schools around New Zealand have international students enrolled and will likely always be looking for hosts.
Homestay Organisations in New Zealand
Know This: School homestay programmes often exist for private schools and state schools. Depending on where you live, one of the best ways to find a homestay programme is to research your local high schools and see whether they need hosts. You don’t need to have children at the school to be considered (in most cases, but not always, so you'll need to check before applying).
Qualifications aren't required to become a host, but you'll need to meet certain criteria, such as having a clean and safe home, a spare room for the student, and a willingness to provide a supportive environment. Homestay providers will conduct a home inspection and background check to ensure you can host international students.
How is hosting international students different from private boarding?
- Hosting international students and private boarding is similar in accommodating individuals not part of the host family.
- Hosting differs from private boarding because it involves more than providing accommodation. As a host, you are responsible for the well-being of your students, including providing meals, transportation, and emotional support. However, there are several key differences between the two arrangements:
Purpose
Hosting international students primarily focuses on cultural exchange and providing a supportive environment for students studying abroad. The goal is to help students immerse themselves in the local culture, improve their language skills, and better understand the host country. Private boarding, on the other hand, is a more general accommodation arrangement that may not necessarily involve international students or cultural exchange.
Duration of stay
Hosting international students typically involves shorter stays, ranging from a few weeks to several months or a year, depending on the student's academic program. Private boarding may involve more long-term arrangements with no specific time limit.
Support and involvement
Host families are expected to be actively involved in the student's experience by providing emotional support, guidance, and assistance in adjusting to the new environment. In private boarding, the level of support and involvement may vary and can be more limited, with the focus primarily on providing accommodation.
Compensation
Host families generally receive financial compensation to cover the cost of meals, power, internet etc, and accommodation. In private boarding, the boarder usually pays rent for their room and may be responsible for their own meals and utilities.
Regulations and oversight
Hosting international students is often regulated and overseen by homestay agencies or educational institutions, with specific requirements and guidelines to ensure a positive experience for both host families and students. Private boarding arrangements may not have the same level of oversight or regulation, as they are often more informal agreements between the homeowner and the boarder.
What are the benefits and drawbacks of hosting international students in New Zealand?
By hosting international students, Kiwis can share their culture and hospitality with people worldwide. It's a great way to learn about different cultures and customs, improve language skills, and gain a new perspective on life. Hosting can also be a rewarding experience, as hosts have the chance to make new friends and expand their horizons. Additionally, hosting international students has the added benefit of generating income from a room within a house that may not otherwise be rented out.
However, while hosting international students has many benefits, there are also some drawbacks. As a host to an international student, you'll ultimately have the responsibility of providing care and support for the student, maintaining a clean and safe home environment and dealing with any communication difficulties that may arise.
Estimated Income and Costs When Hosting international Students
It will vary heavily on the area or city you live in, the quality/decile of the school, the average rent rate for your area, demand to live in the specific school zone and the type of room/homestay environment you’re offering. Generally, boarding or homestay for private schools or higher decile areas will garner higher incomes compared to public or lower decile areas. Additionally, the number of students your host will also impact how much income you can bring in.
As a rule of thumb, you can expect to earn between $250 and $300 per week per student. As an example, Kristin College charges $340 per week for international students looking to stay in homestay accommodation. Assuming a portion of this $340 goes to Kristin College to facilitate, the homestay provider is likely to get c. $300 per week in income for hosting an international student.
What are the typical expenses I’ll need to pay when hosting international students?
Again, the typical expenses you’ll need to pay when hosting international students will vary heavily. However, you can expect to spend between $50 and $100 per week per student on a variety of expenses such as food, power and broadband, cleaning, laundry, entertainment (such as taking them to events, extracurricular activities or language lessons), transportation (such as public transport or Uber fares).
Is it profitable to host international students?
Whether or not it’s profitable to host international students depends on a number of factors, including the amount of income you’ll likely generate and the expenses you incur for each student. A few key things to consider when hosting international students include:
Important: The biggest thing to note is that while on the surface it may seem like a great idea to host international students, there is a significant non-monetary responsibility to hosting international students. The time, effort and mental effort it takes to host someone in your home is not to be taken lightly. Additionally, any idea of the $ amount of expenses you think it will cost to homestay is likely to be understated (due to any unexpected expenses or events that may arise).
However, generally if you’ve got a spare room or you’re already covering some of the costs of running a home (like utilities, food, etc.) the cost to service another person is likely not as high as you’d think - meaning most homestays are profitable in New Zealand.
As a rule of thumb, you can expect to earn between $250 and $300 per week per student. As an example, Kristin College charges $340 per week for international students looking to stay in homestay accommodation. Assuming a portion of this $340 goes to Kristin College to facilitate, the homestay provider is likely to get c. $300 per week in income for hosting an international student.
What are the typical expenses I’ll need to pay when hosting international students?
Again, the typical expenses you’ll need to pay when hosting international students will vary heavily. However, you can expect to spend between $50 and $100 per week per student on a variety of expenses such as food, power and broadband, cleaning, laundry, entertainment (such as taking them to events, extracurricular activities or language lessons), transportation (such as public transport or Uber fares).
Is it profitable to host international students?
Whether or not it’s profitable to host international students depends on a number of factors, including the amount of income you’ll likely generate and the expenses you incur for each student. A few key things to consider when hosting international students include:
- The amount of time and effort you are willing to put into hosting students.
- Your ability to provide a comfortable and welcoming home for students.
- Your willingness to share your home with students from different cultures.
Important: The biggest thing to note is that while on the surface it may seem like a great idea to host international students, there is a significant non-monetary responsibility to hosting international students. The time, effort and mental effort it takes to host someone in your home is not to be taken lightly. Additionally, any idea of the $ amount of expenses you think it will cost to homestay is likely to be understated (due to any unexpected expenses or events that may arise).
However, generally if you’ve got a spare room or you’re already covering some of the costs of running a home (like utilities, food, etc.) the cost to service another person is likely not as high as you’d think - meaning most homestays are profitable in New Zealand.
Must-Know Tips When Preparing to Host International Students
Hosting international students for the first time can be a stressful and daunting process, especially if you've never hosted people outside of your family before. We outline the top considerations you should prepare for to stay ahead and ensure a smooth start:
Preparing Your Home
Before your student arrives in New Zealand, it's essential to prepare your home to ensure it's safe and comfortable. This preparation includes providing a clean and tidy room with adequate storage space, access to a desk or study area, and a comfortable bed. Additionally, ensure your house's common areas are welcoming and inviting.
Establishing Clear Expectations
Having a clear set of guidelines from the outset will help create a positive living environment for you, your family and your student. Set clear house rules, including curfews, chores, use of shared spaces, and any expectations regarding school attendance.
Communicating Effectively
Establishing open and honest communication is crucial to creating a comfortable living situation for everyone. Check in regularly with your student to discuss any concerns or challenges they may face (whether at school or personally). Ensure they feel comfortable approaching you with questions or problems. It's also important to be sensitive to cultural differences that may impact communication styles.
Encouraging Cultural Exchange
One of the most valuable aspects of hosting an international student is learning about their culture and sharing your own. Encourage your student to talk about their traditions, customs, and experiences, and in return, share your own Kiwi cultural heritage.
Encouraging Social Interaction
Your student may not have an extensive network in New Zealand. Try to help your student build a social network by introducing them to friends, family, neighbours and locals. Encourage them to join clubs or organisations and invite them to participate in family outings and social events. This will help them feel more connected and engaged in their new surroundings.
Addressing Homesickness
Homesickness is a natural part of the adjustment process for many international students. Be understanding and empathetic, offering a listening ear and support when needed. Encourage them to stay in touch with their family and friends back home, and help them find ways to connect with their culture in your local community.
Preparing Your Home
Before your student arrives in New Zealand, it's essential to prepare your home to ensure it's safe and comfortable. This preparation includes providing a clean and tidy room with adequate storage space, access to a desk or study area, and a comfortable bed. Additionally, ensure your house's common areas are welcoming and inviting.
Establishing Clear Expectations
Having a clear set of guidelines from the outset will help create a positive living environment for you, your family and your student. Set clear house rules, including curfews, chores, use of shared spaces, and any expectations regarding school attendance.
Communicating Effectively
Establishing open and honest communication is crucial to creating a comfortable living situation for everyone. Check in regularly with your student to discuss any concerns or challenges they may face (whether at school or personally). Ensure they feel comfortable approaching you with questions or problems. It's also important to be sensitive to cultural differences that may impact communication styles.
Encouraging Cultural Exchange
One of the most valuable aspects of hosting an international student is learning about their culture and sharing your own. Encourage your student to talk about their traditions, customs, and experiences, and in return, share your own Kiwi cultural heritage.
Encouraging Social Interaction
Your student may not have an extensive network in New Zealand. Try to help your student build a social network by introducing them to friends, family, neighbours and locals. Encourage them to join clubs or organisations and invite them to participate in family outings and social events. This will help them feel more connected and engaged in their new surroundings.
Addressing Homesickness
Homesickness is a natural part of the adjustment process for many international students. Be understanding and empathetic, offering a listening ear and support when needed. Encourage them to stay in touch with their family and friends back home, and help them find ways to connect with their culture in your local community.
Must-Know Facts about Hosting International Students in New Zealand
1. Know your obligations under the school or company homestay agreement (if applicable).
2. Try and empathise with the student you’re hosting.
3. Some homestay applications will have far more rigorous application processes than others.
More details:
- If you're hosting international students through an agreement with a homestay provider or educational institution, ensure you fully read the terms and conditions of the homestay agreement.
- For example, specific provisions may relate to the level of accommodation, minimum responsibilities for providing meals or packed lunches, transportation to and from school or other activities, and emotional support. Failure to provide these essentials as set out in the homestay agreement can result in penalties or recourse by the educational institution or homestay provider.
2. Try and empathise with the student you’re hosting.
- Remember that your host student has likely undertaken the biggest shock of their life by moving to a foreign country that may speak a foreign language.
- In addition, they likely don't know many people in New Zealand and are probably still trying to establish a sense of identity. This can be incredibly stressful for the host student, so be supportive and understanding.
3. Some homestay applications will have far more rigorous application processes than others.
- Each homestay application process will vary depending on the school. However, some schools will put far more scrutiny on the quality of the homestay host than others. Some common additional hurdles that homestay families will need to get over include the following:
- Character assessments/references.
- Police checks or clearances.
- Whether the homestay family has a child also attending the school (to provide additional support to the student).
- Whether the homestay family has any pets, dietary restrictions or other household nuances.
More details:
- Tenant and Landlord Obligations & Rights for Rental Property - The Definitive New Zealand Guide.
- Finding a Rental in Auckland - The Definitive Guide to Securing a Home.
- Renting a Home Directly to Tenants vs Using an Agent - The Definitive Guide for New Zealand Property Investors.
- Landlord Insurance
- Tenancy Services New Zealand - Flatting.
- Tenancy Services New Zealand - Tenancy Agreements.
- Tenancy Services New Zealand - Boarding Houses.
Frequently Asked Questions
If you have any questions specific to hosting, please ask the school or organisation you plan to work with as standards and requirements vary. Our list of questions below are general in nature.
I’ve heard horror stories of awful hosts treating their students badly. I’ve also heard of hosts having awful experiences with international students due to cultural differences. What can I do to avoid both of these scenarios?
While it's impossible to guarantee that you'll avoid the scenarios above, the best thing to do if you want to become a quality homestay host is to ensure that you pick a high-quality homestay provider/school and ensure you're communicating with the student and the provider as much as possible. So often, disagreements or poor treatment happen due to miscommunication (especially when the student doesn't speak the language of the homestay family). The school you work with has a dedicated team to manage resolve such issues if and when they arise.
Can I choose the nationality of the student I host? Is it rude to not ask for students of certain nationalities?
Homestay providers will ask for your preferences but cannot guarantee that you will host a student from a specific country. Generally, homestay students will be from a foreign country and might not speak English as their first language. Knowing this beforehand can help to set expectations right.
How much can I expect to make by hosting international students?
Generally, hosts receive a weekly payment for providing accommodation and support for their students. The payment amount varies depending on the school, duration, provider and level of ancillary services (such as food, cleaning, activities, obligations etc.)but can range from $200 to $350 per week.
Why do international students choose to do homestay?
Choosing a homestay in New Zealand is ideal for first-time visitors to New Zealand who want the warmth of a home environment, coupled with the advantage of having hosts ready to offer guidance on things like culture, experiences or sightseeing and transportation.
Homestays get provided with access to all household amenities alongside the host family, including bathroom facilities. In addition, homestays get a deeper immersion in Kiwi culture by joining the family for meals. Generally, homestay hosts are inherently friendly, meaning international students get far more quality time with Kiwis outside of traditional schooling.
Homestays are also a lot cheaper than private renting – many international students and their families don’t have the means to pay expensive living costs after paying international school fees, so a homestay is a cost-effective option that also provides security while studying.
Homestays get provided with access to all household amenities alongside the host family, including bathroom facilities. In addition, homestays get a deeper immersion in Kiwi culture by joining the family for meals. Generally, homestay hosts are inherently friendly, meaning international students get far more quality time with Kiwis outside of traditional schooling.
Homestays are also a lot cheaper than private renting – many international students and their families don’t have the means to pay expensive living costs after paying international school fees, so a homestay is a cost-effective option that also provides security while studying.
What types of students can I host through homestay?
You can host all types of students. There aren't any restrictions on the type of student you can host. However, check the homestay agreement you sign with either the education or homestay provider. Some providers specialise in hosting high school students, while others focus on hosting university students. Additionally, some providers offer cultural exchange programs, where Kiwis can host international students from a specific country or cultural background.
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