While Airbnb continues to gain traction across South Africa, its presence could lead to legal action within a sectional title scheme.
Short-term letting in sectional title schemes can conflict with the building’s rules. There are tens of thousands of Airbnb listings, most of which are entire homes or apartments.
Sectional titles and complexes in South Africa are seeing a massive influx of short-term rentals, which can cause serious issues with scheme rules.
For many sectional title schemes, this is where the friction starts. In many new developments, short-term letting is often allowed.
However, in older buildings, it’s a grey area that is beginning to be tested, according to Kayley Leverton, Senior Associate at Gillan & Veldhuizen Inc.
“At its core, these disputes are rarely about Airbnb itself; they’re about whether owners are complying with the rules they agreed to when they bought into the scheme,” said Leverton.
In a recent matter, a body corporate had clear rules that restricted short stays below a certain number of days.
Despite repeated warnings and fines, several owners continued operating Airbnb units in contravention of the restriction.
“The body corporate ultimately had to approach the High Court for an interdict,” Leverton said.
“The court granted the order, requiring the owners to stop the short-term letting. If they continue, they face contempt of court.”
The expert noted that the order is a reminder that ownership rights are never unlimited, and are always subject to the scheme’s rules and applicable law.
While short-term letting can generate higher returns than traditional leases, especially in tourist-heavy areas, its upside is weighed against very real downsides, like noise complaints and security concerns.
While the broader conversation seeks to limit short-term lets due to fewer remaining options for long-term tenants, the debate remains outside the courtroom.
“Our courts apply the law as it stands. The broader housing debate is unlikely to influence outcomes unless and until legislation changes,” she said.
However, change may be on the way, with proposed amendments to tourism legislation aimed at creating a more balanced framework between economic growth and housing needs.
SARS warning
Another shift is also happening in the background when it comes to compliance, with SARS getting wiser to income generated from short-term rentals.
Many owners do not know that short-term letting, especially under 28 days, is not VAT-exempt, unlike long-term residential rentals.
On top of that, municipal considerations must be taken into account, with the City of Cape Town requiring properties used for short-term letting businesses to be reclassified and charged commercial rates.
Cape Town’s draft 2026/27 rates policy could reclassify short-term leases and charge commercial rates, with increases of up to 135% in some cases.
Although the city said the reclassification is not a new tax but rather the enforcement of existing distinctions, it points to a larger trend: short-term rentals are not informal income streams.
“It’s questionable how many owners are actually updating their property status,” said Leverton.
“For those running multiple units or operating at scale, the gap between ‘side income’ and ‘commercial activity’ is narrowing fast.”
If matters escalate, body corporates have few options: fines, referral to Community Schemes Ombud Service (CSOS), or court proceedings. But litigation can be complex.
“These processes can be costly and time-consuming, and not every body corporate has the resources to pursue them,” Leverton said. Each case is fact-specific, and enforcement depends on the rules.
For those running short-term letting in a sectional title scheme, Leverton said that the starting point is simple: read the rules.
“If the conduct rules restrict short-term letting, those restrictions will generally be upheld,” said Leverton. “Ignoring them is what leads to disputes.”
For schemes that lack clear provisions, the window to act is before problems arise. If there’s an appetite to regulate short-term letting, the rules need to be amended properly, by special resolution.
