1. What the draft by-law is

The City of Cape Town has drafted a Short-Term Letting By-law to monitor and regulate properties used for short-term letting. It released the draft for public comment on 5 August 2026, and the comment period closed on 5 October 2026.

The City's executive summary says the by-law aims to improve compliance with its rates policy, increase transparency, set out what owners, operators and booking platforms must do, and give the City reliable data for planning and enforcement.

The draft defines short-term letting as the use of a furnished property, or part of one, by temporary guests for a fee. That covers a typical Airbnb, whether it is a whole apartment or a room.

Everything in this guide describes the draft. The final by-law may change after the City considers the comments.

2. Registration and your listing number

Under the draft, all properties used for short-term letting or listed on booking platforms must be registered with the City. The City would issue a unique registration number for each property.

A property could not be advertised without registration, and the City-issued registration number would have to be shown on every listing, on every platform.

2.1 What owners and operators would provide

Owners and operators would give the City their registration information and data on each listing's availability and occupancy. The City would use that data to decide how each property is categorised for rates.

2.2 When registration would start

The draft does not set a date. The City says it intends to allow a grace period after the by-law takes effect, so owners, operators and platforms have time to register, and will announce the timing in a public notice.

3. What booking platforms would have to do

The draft puts duties on Airbnb, Booking.com and other platforms as well as on hosts. Platforms would need to:

• identify themselves to the City and help with property registration
• share the required information and keep accurate records of registered properties
• make sure every listing is registered
• remove listings where the City has cancelled a registration.

In practice, that means an unregistered Cape Town listing would be at risk of coming down once the by-law and grace period are in place.

4. The 50% rule and commercial rates

The biggest change for many owners is the rates category.

• 50% or less: a property used for short-term letting for 50% or less of its annual room-night capacity may stay residential, as long as it meets the rates policy requirements.
• More than 50%: a property used for more than 50% of its annual room-night capacity would be treated as commercial accommodation and rated accordingly.

The City's release says the commercial rating would apply from 1 July 2027.

4.1 Who stays residential

The executive summary says commercial rates would not apply to people who let part of their home part-time to supplement their income, or to long-term rentals, because those homes are the tenant's primary residence.

4.2 The effect on full-time lets

A full-time Airbnb in a busy area is likely to cross the 50% line. In Houst's data, a two-bedroom property in Cape Town runs at 70% to 80% occupancy, so budget for commercial rates if you plan to let most of the year. Our guide to what a Cape Town Airbnb can earn has the figures by area.

5. What to do now

Keep your records in order

Registration would ask for property details and availability and occupancy data. Keep your booking calendar, platform statements and property details in one place so registering is quick.

Decide how much of the year to let

Work out whether your plans put you above or below 50% of your annual room-night capacity, and what commercial rates would cost against your expected income.

Watch for the final by-law

The comment period has closed. The City will publish the final by-law and the start of the grace period by public notice. Until then, nothing in the draft is in force.

Check your building's rules

Sectional title conduct rules can restrict short lets in apartment buildings, whatever the by-law says.

How a manager helps

A manager keeps calendars, occupancy records and listings in order across every platform, which is what registration would need. See the Airbnb management in Cape Town page, our guide to the best Airbnb management companies in Cape Town, or the best areas for Airbnb in Cape Town.

This article describes a draft by-law and is general information, not legal advice. Check the City of Cape Town's website for the final version.