Think twice before just renting out your property in an estate or gated community in South Africa
Homeowners should think twice before simply renting out their properties in estates or gated communities using platforms like Airbnb.
This is according to Johlene Wasserman, Director of Community Schemes and Compliance at Sandton-based law firm VDM Incorporated, following a recent Gauteng High Court judgment that has significant implications for short-term letting (STL) in South Africa.
The case of Blyde River Walk Estate HOA & Others v CSOS & Others provided clarity on the rights of homeowner associations (HOAs) and bodies corporate to regulate holiday rentals.
According to Wasserman, the ruling marks an important win for residential complexes trying to manage the disruptive effects of Airbnb-style rentals.
“The High Court’s ruling, which is currently being appealed, affirms the right of HOAs and bodies corporate to regulate disruptive holiday rentals while the broader dispute continues,” she said.
“The court has delivered a clear message that short-term letting is a commercial activity and that HOAs and bodies corporate have the power to regulate them, provided the rules are properly adopted and approved.”
The case arose after some owners at the Blyde River Walk Estate in Pretoria began using their units for short-term holiday accommodation.
This led to complaints from permanent residents about noise, overcrowding, and security risks. In 2020, the estate’s HOA and developer tightened the conduct rules to restrict STL.
While the Community Schemes Ombud Service (CSOS) initially approved these stricter rules, an adjudicator later overturned them, reinstating the more lenient 2018 regulations.
The HOA subsequently appealed to the High Court.The court did not grant the HOA’s request in full, but it provided important relief.
Schemes are legally entitled to regulate short-term rentals
It partly suspended the adjudicator’s order, allowed the stricter 2020 rules to remain in force until the appeal is concluded, dismissed allegations of contempt against the HOA, and awarded costs against the STL owners due to unnecessary opposition and procedural non-compliance.
“In practical terms, this means that short-term letting is still permitted at the Blyde Estate, but only under the more restrictive 2020 rules, at least until the appeal is concluded,” Wasserman explained.
She added that the judgment underscored several key legal principles. STL is considered commercial in nature and can be disruptive in residential schemes, justifying tighter regulation.
HOAs and bodies corporate are entitled to regulate STL under section 10 of the Sectional Titles Schemes Management Act (STSMA), as long as the rules are reasonable, adopted by special resolution, and approved by CSOS.
“CSOS adjudicators cannot rewrite rules; they may only set aside defective ones. Any amendments must come from the scheme itself,” said Wasserman.
She added that the court balances the interests of permanent residents’ right to quiet enjoyment with property owners’ right to rent, reinforcing the idea that both rights must be considered.
The implications for South African community schemes are significant. “Short-term letting is not an unregulated right and may be limited through properly adopted and CSOS-approved rules,” Wasserman noted.
For residents, the ruling offers reassurance that their concerns are being taken seriously and that stricter STL rules can protect peace, security, and the family-oriented character of estates.
For HOAs, bodies corporate, and community schemes nationwide, the judgment strengthened the principle that schemes are legally entitled to regulate disruptive commercial activity and preserve the residential nature of their developments.
Wasserman cautioned that homeowners should consider the broader consequences before renting their properties for short-term stays.
“While the legal process continues, the court recognises the rights of permanent residents to quiet enjoyment that isn’t overshadowed by disruptive holiday rentals,” she said.
Loading ...