South Africa is preparing to introduce stricter regulations for the country’s rapidly growing short-term rental market, with platforms such as Airbnb, Booking.com and LekkeSlaap expected to face greater oversight under a new regulatory framework.
The proposed changes form part of the government’s broader effort to balance tourism growth with the availability of long-term housing. Officials have expressed concern that the rapid expansion of short-term rentals has reduced housing supply, driven up rental prices and made affordable accommodation more difficult to access in popular destinations.
Earlier this year, Tourism Minister Patricia de Lille published the Code of Good Practice for Short-Term Rentals for public comment. Although the code is not yet legally binding, it serves as interim guidance while amendments to the Tourism Act are being prepared.
The proposed code applies to property owners, guests, accommodation platforms and other parties involved in the short-term rental industry. It outlines responsibilities such as respecting neighbours, preventing excessive noise and complying with local municipal requirements.
Sectional title schemes expected to play a bigger role
Legal experts from Wright Rose-Innes said body corporates and homeowners’ associations will become increasingly important in regulating short-term rentals, particularly in sectional title developments where holiday letting has become common.
These organisations are responsible for enforcing scheme rules governing owners, tenants and visitors. Any amendments to conduct rules, once approved by the Community Schemes Ombud Service (CSOS), become binding on all residents.
A recent High Court ruling confirmed that body corporates may lawfully prohibit short-term letting within a residential scheme, provided the rule is reasonable and approved by the required majority of owners.
The court found that limiting the duration of leases does not violate constitutional property rights because it regulates how property is used rather than preventing owners from renting their homes altogether.
Cape Town considers commercial rates
Additional changes are also being considered at municipal level.
The City of Cape Town is assessing whether certain properties used primarily for short-term accommodation should be classified as commercial properties instead of residential homes.
If implemented, affected owners could become liable for commercial municipal rates and taxes.
According to Wright Rose-Innes, the city believes that operating short-term rentals constitutes a business activity and should therefore be treated under existing commercial tariff structures.
Property owners are being encouraged to familiarise themselves with the rules applicable to their schemes and to monitor upcoming legislative developments as South Africa moves towards a more comprehensive regulatory framework for the short-term rental sector.
Source: Wright Rose-Innes / Department of Tourism