Big changes for Airbnb and Booking.com in South Africa
The short-term rental market has grown rapidly in South Africa over a short period, with many sectional title property owners letting out their properties.
South Africa’s coastal areas and tourism hubs have seen a massive rise in short-term letting options, disrupting the traditional hotel and bed-and-breakfast markets.
In South Africa, the largest short-term letting platforms are Airbnb, Booking.com and LekkeSlaap, which have allowed landlords and tenants to enter into short-term leasing arrangements.
Law firm Wright Rose-Innes said that the expansion has drawn the attention of the government and courts, prompting the creation of regulations that could have far-reaching implications.
The government fears that the short-term rental market is contributing to a shortage of long-term housing, while also increasing rental prices and reducing access to affordable accommodation.
In March 2026, the Minister of Tourism, Patricia de Lille, 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,” said Wright Rose-Innes.
“The code is intended to apply to short-term rental hosts, short-term rental guests, designated persons, and platform/accommodation facilitators.”
The code also aims to provide guidance on responsible conduct within the short-term rental market. When in force, it will look at specific obligations, such as the duty to avoid excessive noise or disruption.
Sectional title changes
Role players will also have 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 will thus 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,” said Wright Rose-Innes.
“To ensure effective management, these schemes must have rules governing the conduct of owners, tenants and visitors.”
The body corporate will also have a duty to enforce compliance with all laws and the scheme’s management and conduct rules.
These rules will also need to be reasonable and applied uniformly to all residents. As per the Sectional Titles Schemes Management Act, a unit cannot unreasonably interfere with others in the scheme.
That said, body corporates can amend their rules, subject to Community Schemes Ombud Service (CSOS) approval. These rules would then become binding on all residents.
A recent High Court ruling has held that a body corporate may validly prohibit short-term letting within a scheme, provided the rule is reasonable and adopted by a majority of residents.
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 developments are also underway at the metro level, with the City of Cape Town introducing measures to classify certain short-term rental properties as commercial.
“These properties may then be subject to commercial rates and taxes, rather than residential rates,” said Wright Rose-Innes.
“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.”
The law firm said that owners in sectional title schemes should familiarise themselves with their scheme’s rules to determine whether short-term letting is allowed.
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