Caution, Airbnb and holiday rentals not always permissible
Category Newsletter: Article
A recent media report (www.hometimes.co.za) quotes Councillor Brett Herron, Mayoral Committee Member for Transport and Urban Development for the City of Cape Town as advising that holiday letting in apartment blocks is generally not permitted in Cape Town in terms of the city’s Municipal Planning By-law (MPBL) together with its policies and frameworks.
According to the by-laws, a block of flats cannot be used for holiday accommodation or hotel purposes. That means that property owners who want to participate in either Airbnb or holiday type rentals will need to check whether the particular property is appropriately zoned and will have to apply for the necessary consent of use from the city’s Development Management Department.
The Development Management Department has put together a framework that includes an application document and workflow diagram with the necessary steps and timelines.
If a particular complex or apartment block already complies with the necessary zoning and permission, then it is of course no issue for the property owner. The challenge comes when it is an ordinary residential zoned property, which becomes more challenging.
It should be noted too that while the city’s Development Management Scheme permits B&Bs from General Residential (GR) zoned properties, it only applies to a dwelling house and not to a block of flats. Additionally, property owners in sectional schemes also need to ensure that the governing rules for the complex permits short-term rentals.
Short-term rentals can be problematic in sectional title schemes as these can be seen to cause disruptions. It is therefore vital for property owners to work with a specialist rental agent who understands the complexities of sectional title schemes and the applicable laws and regulations.
Property owners who may be putting their hopes on earning big returns over the approaching holiday season are advised to ensure that they comply with the necessary requirements. Here too, working with a specialist agency, the property owner can ensure compliance and minimised disruption for the complex.
Airbnb and short-term rentals is one of the most exciting arrivals for the property market, but property owners will need to also adhere to the strict rules if this is going to be a sustainable success in the city.
Popular properties tend to be those with great access to amenities and when it comes to holiday rentals, the close to the beaches, the better and the higher rental you can charge. Take care though not to set your sights too high. It is best to consult with an agent to assess how your property stacks up in terms of the demand and the potential rental income streams that you could expect.
Author: Coastal Property Group
