Major Shift Coming for South African Homeowners in Complexes

South African homeowners in sectional title complexes could soon face new restrictions on short-term rentals, as the Department of Tourism moves forward with tighter regulations for platforms like Airbnb, LekkeSlaap, Afristay, and Booking.com.

The proposed changes, which mirror similar crackdowns in major cities worldwide (such as New York, Amsterdam, and Berlin), aim to bring stability to South Africa’s complexes and apartment buildings, where short-term letting has caused security risks and housing shortages.

What Could Change for Short-Term Rentals in South Africa?

According to Andrew Schaefer, Managing Director of Trafalgar, the upcoming rules could limit the number of rental days per year—a strategy that has been used globally to deter property investors from turning residential units into mini-hotels.

Other key changes may include:

Mandatory registration for all short-term rentals
Health and safety compliance, similar to hotels and guesthouses
Stronger regulations on Airbnb and other platforms

Cape Town, in particular, has struggled with a housing crisis, partly due to investors snapping up properties for short-term letting, which reduces long-term rental availability and inflates prices.

A Win for Sectional Title Owners?

For many trustees and property owners in sectional title complexes, these changes could bring much-needed relief.

Security concerns: High tenant turnover increases risks in complexes.
Wear and tear: Common areas suffer due to frequent guest stays.
Enforcement challenges: Current laws make it difficult to regulate short-term letting in sectional title schemes.

While the Sectional Titles Schemes Management Act (STSMA) allows complexes to change conduct rules via a special resolution, securing enough votes has been difficult—especially in buildings where short-term rentals generate income for many owners.

If new government regulations take effect, trustees and owners may finally get the backing needed to impose stricter rules, ensuring greater stability and long-term property value.

What This Means for Property Investors

If South Africa’s short-term rental market becomes less profitable, property investors may choose to:

Sell their units, leading to a shift in the property market
Convert short-term rentals into long-term leases
Comply with new regulations, making Airbnb-style letting less flexible

While some landlords may see this as a loss, tenants and long-term homeowners could benefit from improved security, less disruption, and more housing availability.

The future of Airbnb-style letting in South Africa is on the brink of major changes. Whether you’re a homeowner, trustee, investor, or tenant, these new short-term rental regulations could have a lasting impact on the country’s housing market.

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