Short-term letting regulations in South Africa: Possible changes
21 August 2025 | Nicole Nel
I recently had the privilege of attending the SCALE South Africa Conference, which is currently the only conference dedicated to property managers, hosts and agencies in the South African short-term rental industry.
The conference was hosted by the South African Short-Term Rental Association (“SASTRA”) and was designed to educate short-term rental property investors, owners, hosts, managers and agencies looking to learn and meet peers and industry experts.
Short-term rental market trends economic insights
In this article, I would like to share some interesting statistics and facts regarding short-term rentals in South Africa, as well as some of the proposed regulatory changes that the legislature is hoping to introduce through the Tourism White Paper (October 2024).
Following the “2025 Host Survey” undertaken by SASTRA, the following fascinating statistics surfaced:
More than 80% (eighty percent) of short-term rentals are being undertaken by women, therefore widening entrepreneurship and economic opportunities for persons who have, traditionally, been largely excluded from most commercial activities;
More than 52% (fifty-two percent) of short-term rentals are being undertaken by non-white persons, therefore widening entrepreneurship and economic opportunities for previously disadvantaged individuals who have been excluded from most commercial activities in the past, in light of our political history in this country, and
Around 49% (forty-nine percent) of short-term rentals are being undertaken within sectional title schemes.
Based on the above, and several other statistics mentioned, it is clear that short-term rentals positively stimulate the South African economy, and provide many economic opportunities to persons who may not have had access to same in the past.
However, when one considers the third statistic, namely that around 49% (forty-nine percent), almost half, of all short-term rentals in South Africa take place within a sectional title scheme, the need for effective regulation of short-term letting within sectional titles schemes becomes even clearer, in the sense that a comprehensive set of rules and regulations must be in place, for the sole purpose of managing and regulating short-term letting taking place within the scheme.
What does the legislature say about short-term letting?
Interestingly, the legislature shares these sentiments of regulation around short-term rentals, and has, in the Tourism White Paper (October 2024), proposed a maximum 90 (ninety) nights permissible for short-term letting, in a single calendar year, before an owner would need to register for the relevant planning permissions, i.e. applying for the running of a business.
However, the legislature with the above proposal is relying on similar regulations instituted in developed countries and major cities (London, Paris, Barçelona) without considering the impact these regulations would have on South Africa’s economy, as a developing country.
The above is of particular relevance when one considers that for every short-term rental property in South Africa, 2.7 (two point seven) people are employed, and 46% (forty-six percent) of people hosting short-term rentals recommend local businesses (shops, restaurants, etc.) to their guests.
Conclusion | The legislature is threatening job opportunities
In light of the above, and in closing, it is clear that short-term rentals and letting are creating economic opportunities for many South Africans who did not have access to same in the past, but that these opportunities are potentially under threat with the legislature’s proposed regulations for introducing maximum time periods whereby persons will only be permitted to short-term let their properties for a maximum period of 90 (ninety) days before they have to apply for the operation of a business.
In this respect, we sincerely hope the legislature considers the above challenges before permanently implementing these restrictions as hard law in South Africa.
Should you require any more information regarding this topic, don’t hesitate to contact us today on 061 536 3138 or at info@tvdmconsultants.com
About the Author:
Nicole Nel is a Community Schemes Consultant at TVDM Consultants.
Nicole joined our team at the start of 2021 after finishing up her LLB at Stellenbosch University, where in the final year of her degree, Nicole worked as a research intern for the South African Research Chair in Property Law (“SARCPL”), where her research contributed towards various Property Law Juta publications. After graduating, she went on to complete an Advanced Diploma in Corporate and Securities Law through UNISA with distinction. Nicole recently completed the SA Legal Academy mediation course, and is an Accredited Mediator. Nicole is also a member of Golden Key, international honours society as a top academic achiever in her respective fields of study.
Click here to learn more about her.
