With short-term letting, particularly Airbnbs, increasing in South Africa, owners and tenants are voicing concerns about properties in complexes, estates and apartment blocks.

While freehold property owners can act freely, sectional title property owners are bound by different laws. Complaints about noise, parking, property damage and especially security in sectional title buildings are ongoing.

Bodies corporate have begun implementing short-term letting rules. New regulations may force owners to adopt long-term letting strategies in the future. However, complaints and concerns relate to a very small minority of short-term rental properties.

We still strongly encourage short-term letting as a positive investment strategy. With interest rates at multi-year lows, we foresee more short-term rentals entering the market. However, we have unpacked the rules and regulations of short-term letting within sectional title buildings to clarify the process and potential actions in case of issues.

Regulations around Airbnb and sectional title

Under the Sectional Titles Management Act (STSMA), property owners must inform the body corporate when leasing out their units. Owners must ensure tenants receive and adhere to the scheme’s conduct rules.

A body corporate has the authority to establish and amend conduct rules governing the use of individual units and common areas.

Bodies corporate may impose a minimum lease period (such as six months) or, in rare cases, ban short-term rentals entirely. 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, bodies corporate may implement strict record-keeping and rule dissemination policies.

At the municipal level, specific by-laws and regulations can influence the operation of short-term rentals. Therefore, it’s important for property owners to understand their zoning restrictions and whether they require special permission.

Beyond municipal and body corporate regulations, new government regulations 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 Airbnb and sectional title landlords

While these rules and regulations may sound daunting, mishaps and aggravated cases are the exception, not the rule. The majority of landlords welcome well-informed, well-behaved guests to their premises. However, some guests may not understand or adhere to body corporate rules and may compromise security if not properly screened.

Here are top tips for landlords embarking on short-term letting ventures or wishing to ensure compliance:

• Open lines of communication

The biggest issue in such cases is a lack of communication. Be open, engaging, and transparent in your dealings with your body corporate to foster collaboration.

• 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 changes in legislation, scheme rules, and by-laws to understand how they may affect your short-term letting strategy.

• Tenant collaboration

Where possible, before accepting a booking, check your tenant’s previous letting history. Ensure they understand the rules upfront, clearly communicating them in an easy-to-digest manner. Rather than copying and pasting the body corporate rules, consider including bite-sized snippets, such as: “Parking in bay 1 only. Visitors to park in visitor’s bays; permission to be requested from the landlord prior to arrival”.

In conclusion

Owning a short-term rental property remains an exciting opportunity. With proper management, it can be highly successful despite evolving regulations. While security and other concerns are valid, staying proactive, informed, and hands-on is key to ensuring a smooth and profitable experience.

Grant Smee | Property Entrepreneur | Managing Director | Only Realty Property Group | mail me |

Related FAQs: Airbnb and sectional title 

Q: Can I use my sectional title unit for short-term rentals through Airbnb in South Africa?

A: Whether you can use your sectional title unit for short-term rentals through Airbnb depends on the rules set by the body corporate and the provisions of the Sectional Titles Act. It’s essential to check the rules of the sectional title scheme to see if they prohibit short-term letting.

Q: What is the Sectional Titles Act and how does it relate to Airbnb rentals?

A: The Sectional Titles Act 95 of 1986 regulates the ownership and management of sectional title schemes. It includes provisions that may affect homeowners looking to rent their units short-term. Homeowners must comply with the act and any rules set by the body corporate regarding short-term rentals.

Q: What should I do if the body corporate rules prohibit short-term rentals?

A: If the body corporate rules prohibit short-term rentals, it’s important to comply. You may want to seek legal advice to understand your options or to discuss the possibility of changing the rules with other owners in the sectional title schemes.

Q: How does the Sectional Titles Schemes Management Act affect Airbnb rentals?

A: The Sectional Titles Schemes Management Act (STSMA) governs the management of sectional title schemes, which includes the ability of owners to rent out their units. Homeowners must ensure that their rental practices comply with this Act as well as the rules established by the body corporate.

Q: Can I be fined for renting my sectional title unit on Airbnb if it violates the rules?

A: Yes, if you rent your sectional title unit on Airbnb in violation of the rules set by the body corporate, you may face fines or other penalties. The body corporate has the authority to enforce rules and take action against non-compliance.

Q: What are the responsibilities of the body corporate in managing short-term rentals?

A: The body corporate is responsible for enforcing the rules of the sectional title scheme, which may include regulations on short-term rentals. They ensure that all owners, including those renting through platforms like Airbnb, comply with the rules and the Sectional Titles Act.

Q: Is there a limit on the number of days I can rent my unit on Airbnb in a sectional title scheme?

A: There may be a limit on the number of days you can rent your unit, depending on the rules of the sectional title scheme and the decisions made by the body corporate. It’s crucial to review these rules to avoid any violations.

Q: What happens if a short-term tenant causes damage in a sectional title unit?

A: If a short-term tenant causes damage in a sectional title unit, the homeowner may be held responsible for the repairs. Homeowners should ensure that their rental agreements include provisions for damages and that they have adequate insurance coverage.

Q: How can I legally navigate the process of letting my sectional title unit on Airbnb?

A: To legally navigate the process of letting your sectional title unit on Airbnb, you should review the rules of your sectional title scheme, comply with the Sectional Titles Act, and possibly consult with a legal expert to ensure you adhere to all relevant legislation.