The short-term rental market in South Africa has experienced significant growth in recent years. This trend is especially prominent in coastal cities and tourism hubs, largely driven by online platforms such as Airbnb, Booking.com and LekkeSlaap, which have made it easier for both landlords and tenants to enter short-term lease arrangements.

This expansion has drawn the attention of both the government and the courts, prompting regulatory developments that could have far-reaching implications not only for property owners but also for tenants and rental agencies. Government intervention is largely motivated by concerns that the short-term rental market is contributing to a shortage of long-term housing in high-demand areas, while simultaneously driving up rental prices and reducing access to affordable accommodation. As such, there is a growing need for increased oversight and regulation.

In March 2026, the Minister of Tourism published a Code of Good Practice for Short-Term Rentals for public comment. Although the Code is not legally binding, it provides interim guidance pending amendments to the Tourism Act 3 of 2014. The Code is intended to apply to short-term rental hosts, short-term rental guests, designated persons, and platform/accommodation facilitators. It aims to provide guidance on responsible conduct within the short-term rental environment. Once in force, it will place specific obligations on these role players, including the duty to avoid excessive noise or disruption and to comply with local authority requirements and any applicable body corporate or homeowners’ association rules.

Body corporates in sectional title schemes and homeowners’ associations (HOAs) in residential estates play a critical role in regulating property use. Sectional title schemes, in particular, have seen a notable increase in short-term letting due to the typically compact nature of their units and the range of amenities they offer.

To ensure effective management, these schemes must have rules governing the conduct of owners, tenants and visitors. The body corporate has a statutory duty to enforce compliance with applicable laws and the scheme’s management and conduct rules. Importantly, these rules must be reasonable and applied uniformly to all residents.

In terms of the Regulations under the Sectional Titles Schemes Management Act 8 of 2011, a unit may not be used in a way that unreasonably interferes with others in the scheme. However, body corporates may amend their rules, subject to approval by the Community Schemes Ombud Service (CSOS), after which such rules become binding on all residents.

Recent High Court decisions have clarified that a body corporate may validly prohibit short-term letting within a scheme, provided that such rules are reasonable and properly adopted by the required majority of members. Importantly, such a prohibition does not infringe on an owner’s constitutional property rights, as long as it regulates the duration of leases rather than imposing an outright ban on leasing.

Further regulatory developments are emerging at the municipal level. The City of Cape Town is introducing measures that would classify certain short-term rental properties as commercial. These properties may then be subject to commercial rates and taxes, rather than residential rates. The Municipality’s position is that short-term letting constitutes a business activity, thereby justifying its classification under existing commercial tariff structures rather than the creation of a new tax category.

Property owners and rental agencies should take careful note of these developments, as government regulation of the short-term rental market is clearly intensifying. Non-compliance with applicable rules and regulations may result in significant consequences, including financial penalties.

Owners within sectional title schemes should familiarise themselves with their scheme’s rules to determine whether short-term letting is permitted. As the regulatory landscape continues to evolve, staying informed and compliant will be essential to safeguarding both property rights and investment value.


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