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Short-Term Letting in Cape Town has become one of the latest earning sources due to the sustainability and lower level of investment. This is the reason many people are switching from long-term leasing to short-term leasing due to greater earning potential, and flexibility on the use of property.
According to one report, Airbnb created a number of different jobs and people earned more than $100 million only in one year of 2022. It means the short-term letting is a highly profitable business in Cape Town as it has the potential to grow further and expand further.
The ever-expanding tourist business in Cape Town provides a number of opportunities to the locals to host the visitors in their residence after listing them on a number of hosting websites. However, there are some rules and laws which each host and guest has to abide by to ensure compliance and safety.
In this blog, we’ll discuss short-term let in Cape Town and it works. Moreover, we’ll discuss the way Houst operates in Mother City by offering its impeccable hosting services. So, let’s start!
Table of Contents
Short- Term Rental Accommodation in Cape Town
Short-Term Rental Accommodation is referred to as renting out of a part or full residency, where the owner doesn’t live himself. This rental is allowed only for less than thirty days at a time. Otherwise, the leasing will be considered as long term.
In Cape Town, the regulations manage the ways a house, flat or apartment should operate. This is the reason many people make errors and infringe laws without being familiar with them. So, it’s the foremost step in starting a rental business to be aware of all the local laws related to short-term lets. Let’s start exploring these short-term accommodation regulations in Cape Town.
Is Short-Term Rental Profitable in Cape Town?
Of Course, short-term rental occupation has become the favourites of locals in this coastal city where people are associated with the tourist industry in different ways.
In 2021, Airbnb revealed that South Africa made $2bn by listing the short-term accommodations on their platform. Cape town is the central location and main sport where tourists rush to enjoy the coastal landscape, cultural diversity and events.
So, short-term rental business is highly profitable in Cape Town. You don’t need to invest any money. All you have to do is register your business, list your property on any online platform like Airbnb, VRBO, Booking.com and start earning rents according to the nights for which your property will be rented out.
The City of Cape Town
The City of Cape Town, as discussed above, is one of the favourite destinations of the travellers. Located at the coast of South Africa, the city is nestled between lofty mountains, stunning beaches and exquisite landscape.
The Mediterranean climate makes it the most moderate destination for the tourists during a mild season. The winters are wet and summers are warm and dry. However, the mild climate allows the tourists to enjoy the diversity and liveliness of this exquisite city.
Table Mountain is the most visited place and catches the attention of many visitors. So, Cape Town has become the best tourist and then short-term rental place for people.
Short-Term Rental Regulations in Cape Town
Short-term rental regulations in cape town allow the locals to register and start listing their property on multiple platforms. These regulations have been enacted under The City’s Municipal Planning Bylaw. The Development Management Scheme (DMS) is a part of the law. These laws determine the use of land, property, house, flats and guesthouses.
Rental Housing Act 50 of 1999 determines the nature of code of conduct between tenants and landlords. But there's no specific regulations for short-term rentals in South Africa or Cape Town.
Besides, there are other laws which are specifically for the landlords or hosts in South Africa. These laws of Sectional Titles Act 95 of 1986, Sectional Title Management Act 8 of 2011 and Sectional Title Schemes Management Regulations
Converting towards short-term accommodations from traditional hotels has revolutionised the tourist industry. Cape Town is no exception. People have taken advantage of this revolution and started letting their residencies.
In Cape Town, short-term letting is used as a guesthouse and Bed and Breakfast (B&B) business. The owners can rent out a part or entire house to the tenants, under the municipal law. The municipal laws surround the land of use only.
Besides, the body corporate and homeowners’ association in Cape Town provide regulations for the complex building or flats. Permission must be sought from these bodies to ensure compliance.
As a result, many people started to invest in their properties and got them registered. However, familiarity with regulations is a prerequisite for listing your short-term let on online platforms. Let’s discuss these regulations!
A house, flat, group house can be used as guesthouses and B&B in Cape Town. However, prior permission must be taken from the City to ensure it meets the criteria of the short-term rental regulations.
- Number of Rooms
Only three rooms in a house can be rented out at a time. If the owner offers more than three rooms in a house, it will be considered as illegal and will be treated as the infringement of laws. As a result, penalties will be charged.
- Number of Guests
Only six people will be allowed at one residence. The owner of the residence will provide meal and lodging services to these people. He cannot provide letting services to more than six people at a time in his home.
- Alcohol use is prohibited
Alcohol use is prohibited at the guesthouses and B&B in short-term let. So, the owners and the guests must ensure that the beverages and alcohol are not placed at the short-term accommodations or holiday rentals.
- Availability of Onsite Parking
The owner must ensure there’s the facility of at least one parking lot in their house. Under the Development Management System (DMS), there should be one bay for each additional bedroom.
All of the above restrictions hold true for a B&B business in cape Town. However, the restrictions are lower for the guest house. The number of rooms rented and number of guests at the guesthouses exceed those allowed in B&B.
- No zoning Requirements
Under the new bylaws, the zoning requirements are no more needed. The locals can register their business without any worry and earn higher monthly income.
- Protection of amenities
Protection of Amenities is required and governed by the municipal law. However, the amenities should be respected and maintained by the guests and hosts.
- Noise Disruptions
There should be no noise caused by parties, use of loud speakers or any other such disturbance where the neighbourhood is affected.
- Registration of Property
Registration of a property intended to be used as short-term rental is required to be registered with the City. For this, the process is as follows:
- Consult with a land use planner
- Visit the office of the City
- Register your property as short-term rental to obtain a registration number
- Use this number on listing websites
- Ready for letting
Let’s Houst Manage Your Short-Term Lets Accurately and 24-hour
Houst is a reputed and leading real estate management company providing professional hosting services across the world. Houst also operates in Cape town to help people manage their business professionally, sustainably and smoothly.
Don’t go through unreasonable stress of knowing about the local regulations and online platforms’ rules. Houst will provide you professional listing and hosting services that are according to the local laws and regulations.
Benefits of Partnering with the Houst
The benefits are numerous. However, we will list down only some of the benefits in this blog. So, let’s start exploring these advantages of hiring the best property management company in Cape Town.
- Sustainable Growth of Short-Term Accommodation Business
Houst ensures that your short-term rental or holiday home is eco-friendly by focusing on the sustainable maintenance of the property. Committed to carbon-free Earth, the Houst team is always exploring sustainable solutions in managing the short-term rentals to save cost and earn more.
- Compliance of Local Laws and Regulations
Houst has a team of professionals in each city where it is currently operating. These law experts provide expert advice for each type of [property. As a result, Houst manages to manage the property according to the local regulations of short-term rentals. The rules are not the same in each country because local laws determine the use of property and land. As a result, there are certain nuances that cannot be understood without the help of any professional advisor on your local regulations.
- Best Guest Vetting and Guest Management Services
With the help of professionals, the Houst is capable of providing best guest vetting services. Our amicable team is best in communicating with the guest without getting rude or irritated by the guests. Instead, they provide the most amiable solution and service to the guests. Moreover, the cleaning and maintenance is driven by smart solutions to ensure the sustainability of your short-term rental space.
- Save Costs by Adopting Innovation-Driven Approach
Houst believes in innovation. This is the reason they have adopted smart solutions driven by high-tech technological solutions. It relies only on the innovative and smart approaches for managing your business with a proper plan for everything.
With the help of the Tech geeks, we are able to explore different hosting platforms with their best use. This is the reason we recommend listing on certain platforms according to the local regulations and use of properties.
- Trailblazing Insights
Interactive and easy-to-use dashboards offer the insights for the clients who want to track their short-term accommodation business. The client can observe the daily, weekly and monthly insights to remain abreast of the updates about the new guests and the rents being received. It also provides updates on cleanliness and maintenance management at the short-term rentals.
Curious to see how much you could earn on Airbnb? Schedule a free, no-strings-attached consultation with our Airbnb Management Cape Town team to uncover your property’s revenue potential.
Final Thoughts
Bottom line is that Short-Term Rentals in Cape Town are catching the attention of many people now. The thriving industry has increased the number of listings on online platforms in this city. On the other hand, the short-term rentals regulations must be abided by and should not be neglected because it can make you liable to pay hefty fines for carrying out unregistered listings and getting illegal rents.
Houst, a property management company, is the best choice for getting a stress-free short-term rental income in Cape Town. Because they manage all your rental business with the professional understanding of local regulations and policies of listing platforms. So, it is guaranteed that the income will boost when your business is compatible with the local laws and regulations. Don’t wait! Reach out to Houst today.
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