Navigating the rules and regulations for short-term letting.
With short-term letting and (more specifically) Airbnbs ramping up in South Africa, disgruntled owners and tenants are voicing their concerns when it comes to short-term letting properties contained in complexes, estates, and apartment blocks.
While freehold property owners can act freely, sectional title property owners are bound by a different set of laws.
Complaints around noise, parking, damage to property, and (most importantly) security in sectional title buildings are ongoing, resulting in bodies corporate having begun to implement short-term letting rules. New regulations may force owners to adopt a long-term letting strategy in future.
Although complaints and concerns relate to a very small minority of short-term rental properties, experts still strongly encourage short-term letting as a positive investment strategy, and with interest rates at a multi-year low, they foresee more short-term rentals coming to market.
This article unpacks the rules and regulations of short-term letting within a sectional title building, bringing further clarity to the process and any actions that may be taken in the event of mishaps.
Rules and regulations
Under the Sectional Titles Schemes Management Act (STSMA), property owners are obligated to inform the body corporate when they lease out their units, and the owners must ensure that tenants receive and adhere to the scheme’s conduct rules.
A body corporate has the authority to establish and amend conduct rules that govern the use of individual units and common areas. Body corporates may choose to impose a minimum lease period (such as six months) or ban short-term rentals entirely (in rare cases).
However, these rules must be reasonable, applied equally to all property owners, and approved by the Community Schemes Ombud Service (CSOS).
In addition to rental restrictions, body corporates may also implement strict record-keeping and rule dissemination policies.
At a municipal level, specific by-laws and regulations can influence the operation of short-term rentals—therefore, it’s important that property owners clearly understand their zoning restrictions, and whether they require special permission.
Beyond municipal and body corporate regulations, new regulations by the government are underway to further regulate short-term letting in South Africa. These regulations may include mandatory registration, adherence to health and safety standards, and the payment of hospitality taxes.
Tips for short-term letting landlords
While these rules and regulations may sound daunting, it’s important to highlight the fact that mishaps and aggravated cases are the exception, not the rule.
The majority of landlords welcome well-informed, well-behaved guests to the premises, but in reality, there are still some guests who will not understand (or adhere to) body corporate rules and may compromise security if not properly screened.
Here are some tips for landlords looking to embark on a short-term letting venture, or wishing to further comply:
- Open lines of communication: The biggest issue in cases like these is a lack of communication. Be open, engaging, and transparent in your dealings with your body corporate, so that you can work together throughout.
- Have a firm understanding of the rules: If you haven’t already, carefully examine the scheme’s management and conduct rules to understand any restrictions on short-term letting.
- Stay informed: Keep up to date with any changes in legislation, scheme rules, and bylaws to understand how these may affect your short-term letting strategy.
- Vet your tenants: Where possible, and before accepting a booking, make sure that you have checked your tenant’s previous letting history. Also, ensure that they understand the rules upfront and that these are clearly communicated in a way that’s easy to digest.
- Keep things simple: Rather than copying and pasting the body corporate rules, it is suggested that you include bite-sized snippets in your information pack, for example, “Parking in bay 1 only; visitors to park in visitors’ bays, and permission to be requested to the landlord prior to arrival.”
Owning a short-term rental property remains an exciting opportunity, and with the right management, it can be highly successful despite evolving regulations. While security and other concerns are valid, staying proactive, informed, and hands-on in the process is key to ensuring a smooth and profitable experience.
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.