Cape Town residents have until October 5 to weigh in on the City’s proposed short-term letting by-law, which would introduce a registration system for properties listed on Airbnb and other booking platforms.
The proposed by-law would require all properties listed on booking platforms to register with the City and display a City-issued registration number on their listings. Booking platforms, property owners and operators would also be required to share information with the City about listing availability.
The proposal is intended to improve the City’s ability to identify properties being used for commercial accommodation and ensure they are charged the appropriate property rates.
The City’s existing rates policy already requires commercial property rates to be levied on premises used for commercial accommodation.
What does this mean for short-term rental owners?
The key threshold is 50% of annual room-night availability.
Commercial property rates would apply where a property is available for short-term letting for more than 50% of its total annual room nights.
The City calculates this by looking at the number of bedrooms available for short-term letting and the number of nights they are available over a 365-day period.
However, the proposed rules would not apply in the same way to homeowners who occasionally rent out part of their primary residence.
Properties with less than 50% room-night availability for short-term letting would not be subject to commercial property rates under this threshold. This includes people who rent out part of their primary residence for some of the year to supplement their income.
Long-term rental properties that are the primary place of residence of the tenant are also excluded.
What would owners and platforms need to do?
If adopted, the by-law would require:
- Properties listed on booking platforms to register with the City.
- A City-issued registration number to be displayed on listings.
- Booking platforms, owners and operators to share listing availability data with the City.
The City says changes to a property's rating category would take effect from July 1, 2027, based on information collected through the proposed registration system.
According to the City, it has been working to identify properties used for commercial accommodation where residential rates are being charged instead of commercial rates.
"The proposed By-law ensures fairness in the commercial accommodation sector," said City Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
He said the City continues to support Cape Town's tourism economy and recognises short-term letting as an important sector for meeting the needs of different visitors.
"However, the City believes that the playing fields for businesses should be equal, with all those using a property for commercial accommodation paying the correct rates," Mbandezi said.
The City says it has been engaging with stakeholders in the commercial short-term letting sector and will continue to provide support as the proposed system is developed.
View and comment on the full draft By-Law here.
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