Airbnb is the largest online platform hosting short-term accommodation rentals and while it has been a great income-generator for many South African investors, body corporates are getting more sticky about all sort of short-term lets. Picture: Kylefromthenorth/UnSplash
Image: Kylefromthenorth/UnSplash
As short-term letting, particularly through platforms like Airbnb, continues to surge in South Africa, homeowners and tenants in Cape Town are raising their voices in concern. The rise of these rentals within complexes, estates, and apartment blocks has sparked a wave of complaints, leading to a growing tension between residents and property owners.
Some residents are expressing their frustrations over disruptive parties that often extend into the early hours, as well as the unruly behaviour of some guests. One owner reported a staggering R20 million in damages caused by Airbnb guests, highlighting the potential risks associated with short-term rentals.
In popular coastal towns like Cape Town, locals argue that these short-term lets are creating a false economy, making it increasingly difficult for them to find reasonably priced long-term rentals.
Security is another pressing issue, with residents voicing concerns about the risks posed by transient guests.
As complaints regarding noise, parking issues, property damage, and security in sectional title buildings continue to mount, bodies corporate are beginning to take action.
Grant Smee, CEO of Only Realty Property Group, notes that these bodies are implementing new short-term letting rules to address the ongoing concerns. He adds that upcoming regulations may further compel property owners to shift towards long-term letting strategies in the future.
Earlier this year, Andrew Schaefer, managing director of property management company Trafalgar, indicated that new regulations are on the horizon for short-term lets.
These changes aim to integrate Airbnb and similar platforms into the mainstream tourism industry, imposing regulations akin to those faced by hotels, guesthouses, and hostels.
Potential requirements could include mandatory registration with tourism boards, payment of hospitality taxes, and adherence to strict health and safety standards.
While freehold property owners have more flexibility, sectional title property owners are bound by a different set of laws.
Smee emphasises that, despite the headlines, complaints and concerns stem from a small minority of short-term rental properties. He maintains that short-term letting can still be a positive investment strategy, especially with interest rates at a multi-year low, which may lead to an increase in short-term rentals entering the market.
According to a blog titled "Rights, responsibilities, and investment property," published by Nedbank in January, Airbnb is the largest online platform for short-term accommodation rentals.
Property owners using Airbnb must comply with the provisions of the Rental Housing Act (RHA) and adhere to specific rules for their area. This includes cleanliness protocols that Airbnb implemented following the Covid-19 pandemic, which all properties are required to follow.
The RHA regulates the relationship between property owners and renters, and if you’re renting a section of your house as an Airbnb, you may also be subject to regulations under the Sectional Titles Act and other relevant legislation.
In Cape Town, local bylaws dictate that short-term rentals can only be offered for a maximum of 30 days per booking.
Airbnb provides hosts with AirCover for damage protection and host liability insurance; however, this does not replace the need for standard homeowner’s insurance and general liability coverage.
Smee below unpacks the rules and regulations of short-term letting within a sectional title building to bring further clarity:
Under the Sectional Titles Management Act (STSMA), property owners are required to inform the body corporate when leasing out their units. Owners must also ensure that tenants receive — and adhere to — the scheme’s conduct rules.
“A body corporate has the authority to establish and amend conduct rules that govern the use of individual units and common areas, says Smee.
Body corporates may impose minimum lease periods (such as six months) or even ban short-term rentals entirely. However, these rules must be reasonable, applied equally to all property owners, and approved by the Community Schemes Ombud Service (CSOS). In addition to rental restrictions, body corporates may implement strict record-keeping and rule dissemination policies.
At the municipal level, specific bylaws and regulations can influence the operation of short-term rentals, making it crucial for property owners to understand their zoning restrictions and whether special permissions are required.
As new government regulations are being developed to further regulate short-term letting in South Africa, landlords must stay informed and proactive.
While the rules and regulations may seem daunting, Smee reassures that mishaps and aggravated cases are exceptions rather than the norm. “The majority of landlords welcome well-informed, well-behaved guests to the premises, but in reality, there are still some guests who will not understand—or adhere to—body corporate rules, and may compromise security if not properly screened.”
To help landlords navigate the complexities of short-term letting, Smee shares his top tips:
Open lines of communication: “The biggest issue in cases like these is a lack of communication. Be open, engaging, and transparent in your dealings with your body corporate so that you can work together throughout.”
Have a firm understanding of the rules: If you haven’t already, carefully examine the scheme's management and conduct rules to understand any restrictions on short-term letting.
Stay informed: Keep up to date with any changes in legislation, scheme rules, and bylaws to understand how these may affect your short-term letting strategy.
Tenant collaboration: “Where possible and prior to accepting a booking, make sure that you have checked your tenant’s previous letting history. Also ensure that they understand the rules upfront and that these are clearly communicated in a way that’s easy to digest.” Instead of copying and pasting the body corporate rules, Smee suggests including bite-sized snippets, such as “Parking in bay 1 only. Visitors to park in visitor’s bays and permission to be requested from the landlord prior to arrival.”
“While security and other concerns are valid, staying proactive, informed, and hands-on in the process is key to ensuring a smooth and profitable experience,” he concludes.