Draft code of good practice for short-term rentals in South Africa | A sectional title expert perspective
08 May 2026 | Nicole Nel
Our observations are framed from the perspective of bodies corporate, trustees, and managing agents who operate within the regulatory framework of the Sectional Titles Schemes Management Act, 8 of 2011.
We have identified five key areas requiring further consideration by the Department:
Issue 1: The Code's relationship with scheme governance is underspecified.
The Draft Code of Good Practice for Short-Term Rentals in South Africa “the Code” notes it "does not override or supersede" scheme rules and operates "alongside them."
While this is appropriate in principle, the Code does not address what occurs when conflicts arise between the Code's framework and stricter body corporate or community scheme conduct rules. Does the Code's non-binding status imply that hosts or guests may disregard conduct rules that exceed the Code's requirements? The Department should explicitly state that community schemes' governance documents take precedence within their respective schemes, and that compliance with the Code does not constitute compliance with scheme-level obligations.
Issue 2: Trustees and managing agents have no defined role.
The Code identifies hosts, designated persons, guests, platforms, and accommodation facilitators as key participants. Trustees and managing agents are entirely absent from this framework. In the community scheme context, these parties are the primary enforcement layer, they issue breach notices, apply conduct rules, and manage community contributions. The Code should explicitly acknowledge their obligations and powers, and should state clearly that a community scheme retains full authority to regulate, restrict, or prohibit short-term rentals (“STR”) activity through its conduct rules and trustee resolutions.
Issue 3: The Code does not address schemes that already restrict or prohibit STR.
Many schemes have existing conduct rules that restrict or prohibit short-term rentals. The Code creates a framework of "responsible conduct" for STR operators but offers no guidance on its applicability in schemes where STR activity is prohibited. This creates potential confusion, does the existence of the Code imply legitimacy for STR activity even where the scheme has explicitly prohibited it? The Department should clarify, preferably by stating that the Code applies only where the relevant STR activity is permissible under all applicable scheme-level rules and bylaws.
Issue 4: No guidance on contribution implications for STR use.
Owners operating STRs place materially higher demands on common property, including lifts, parking, refuse facilities, security systems, and communal amenities. While the Code mentions hosts should comply with tax obligations, it is entirely silent on the contribution implications within schemes. Community schemes should be empowered, and the Code should acknowledge this, to impose special or differentiated contributions on units used for STR, where supported by the community scheme's rules or a trustee resolution. This is a significant gap that creates uncertainty for both schemes and STR operators.
Issue 5: Non-binding status creates an enforcement vacuum.
This is our greatest issue with the proposed Code.
The Code is explicitly non-binding pending amendment of the Tourism Act 3 of 2014. However, it creates obligations for hosts, guests, platforms, and facilitators with no enforcement mechanism. From a community schemes perspective, trustees and managing agents are left to enforce scheme rules, which they can do, while the Code itself remains aspirational.
The Department should clarify the intended enforcement trajectory, i,e, what will occur after the Tourism Act is amended, and will the Code become binding? Schemes and industry participants need clarity on whether to treat this as a temporary placeholder or a permanent regulatory framework.
We welcome the opportunity to engage further with the Department on these matters and remain available for consultation.
If you would like any additional information on the above, please contact info@tvdmconsultants.com today.
About Nicole Nel
Nicole Nel is a Senior Community Schemes Consultant at TVDM Consultants.
