April 6, 2026
Airbnb has become a central part of the property conversation, particularly in Cape Town. For many buyers, short term letting is seen as a given. If you own the property, you can rent it out as you choose. In practice, it is not that simple. Short term letting is increasingly regulated, both at a municipal level and within individual developments. The idea that Airbnb is always permitted is not accurate.
In South Africa, municipalities have begun introducing frameworks to manage short term letting. In Cape Town, hosts are required to comply with zoning regulations and may need consent use approval depending on the property. There have also been ongoing discussions around national regulation, including proposals to require registration of short term rental properties.
The intention is clear. Authorities are trying to balance tourism demand with the availability of long term housing. At a building level, the rules are often even more defined. Developers and body corporates have the ability to regulate how Airbnb operates within a development. This is usually done through conduct and management rules. Paul Berman explains that this is a deliberate decision.
“Airbnb is extraordinarily attractive in our developments. When we are drafting the management and conduct rules, we think it's important to regulate the minimum stay.”
The reason is practical as in larger buildings, unrestricted short term letting can lead to constant turnover creating operational challenges and can affect the overall standard of the building. By introducing minimum stay requirements, developers are able to reduce that churn and maintain consistency within the property. This approach varies depending on the development. In larger buildings, longer minimum stays are often preferred. In smaller developments, shorter stays may still be allowed, but within a controlled framework. As Paul notes, the goal is not to prevent short term letting. It is to manage it in a way that protects the integrity of the development.
“It’s important not to get that churn in. It’s also important to maintain the standard of excellence in the building.”
For buyers, this has a direct implication. You cannot assume that Airbnb is permitted without restriction as each development operates under its own rules. These rules can influence rental flexibility, tenant profile, and ultimately the type of investment you are making. The broader regulatory environment is also evolving. As short term letting becomes more prevalent, additional oversight is likely.
If you are considering a property with the intention of short term letting, it is worth understanding both the municipal framework and the specific conduct rules of the building as Airbnb remains an attractive option in the right context and the key is knowing where and how it is allowed. Watch the full Myth vs Fact discussion with Paul Berman for a closer look at how these rules are applied in practice.
