Transient Rentals Laws in South Africa

Transient Rentals Laws in South Africa

South Africa

Introduction
Introduction to Transient Rentals in South Africa

Imagine waking up to the breathtaking view of Table Mountain from a chic apartment in Cape Town or experiencing the vibrant nightlife of Johannesburg from a stylish inner-city loft. South Africa, known for its diverse landscapes and rich cultural heritage, has become a magnet for travelers worldwide. Popular destinations like Cape Town, Johannesburg, Durban, and the Kruger National Park draw millions of tourists eager to explore the country's natural beauty and vibrant cities. Tourism is a cornerstone of South Africa's economy, contributing significantly to national income. In 2019, the tourism sector contributed approximately R130 billion to the GDP, showcasing its vital role before the global pandemic impacted travel. As the industry rebounds, short-term rentals (STRs) have surged in popularity, offering unique and personalized accommodation experiences. Platforms like Airbnb, Booking.com, and Vrbo have made it easier than ever for property owners to list accommodations ranging from beachfront villas to urban apartments.

Overview

Imagine waking up to the breathtaking view of Table Mountain from a chic apartment in Cape Town or experiencing the vibrant nightlife of Johannesburg from a stylish inner-city loft. South Africa, known for its diverse landscapes and rich cultural heritage, has become a magnet for travelers worldwide. Popular destinations like Cape Town, Johannesburg, Durban, and the Kruger National Park draw millions of tourists eager to explore the country's natural beauty and vibrant cities. Tourism is a cornerstone of South Africa's economy, contributing significantly to national income. In 2019, the tourism sector contributed approximately R130 billion to the GDP, showcasing its vital role before the global pandemic impacted travel. As the industry rebounds, short-term rentals (STRs) have surged in popularity, offering unique and personalized accommodation experiences. Platforms like Airbnb, Booking.com, and Vrbo have made it easier than ever for property owners to list accommodations ranging from beachfront villas to urban apartments.

Property
Overview
Property
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short term rentals
What is Transient Rentals in South Africa?
What are short Term Rentals in the Country?

In South Africa, short-term rentals are commonly known as "self-catering accommodations." In local languages, they may be referred to as "vakansieverblyf" in Afrikaans and "indawo yokulala yesikhashana" in isiZulu. The South African government, through the proposed Tourism Amendment Bill, recognizes and defines STRs as accommodations rented out for short periods, primarily to tourists and travelers. They are usually listed on platforms like Airbnb, Booking.com, Vrbo, and other local platforms.

Is Subletting Legal?
Is Subletting Legal in South Africa?

Under common law, subletting is legal in South Africa unless your lease agreement states otherwise. In many cases, you’ll find a clause in your lease agreement that prevents you from subletting your property without the written consent of your lessor or landlord.

Even if your lease agreement doesn’t explicitly stop you from subletting, you are still bound by the following:

  • Municipal by-laws: In South Africa, local municipalities are authorised to regulate rental activity. You should check if there are any restrictions in place that prevent you from subletting property. The City of Cape Town, for example, allows short-term letting from a house or flat but for a period not exceeding 30 consecutive days for the same guest. However, you would still need to abide by any rules set by your body corporate or homeowners' association.
  • Body corporate rules: Depending on the rules of your sectional title scheme, you may not have the right to let out your property on a short-term or long-term basis. This is often included as a regulation for short-term renters as they have less interest in keeping neighbours happy and pose a security risk.
  • Terms of use for hosting services: Online marketplaces, like Airbnb, that specialise in short-term lettings for lodging and holidays are also clear on letting and subletting restrictions. Airbnb’s terms of service, for example, encourages hosts to comply with local laws, rules, regulations, and contracts with third parties before listing properties.

You can get into legal troubles and also be evicted from your rental property without permission. Check your lease agreement, local laws, body corporate rules, and the terms of service of your hosting site before taking the next step.

National Association for STR Owners
What is the maximum length of stay in South Africa?
What is the maximum length of stay?

Short-Term Rental Accommodation is referred to as renting out of a part or full residency, where the owner doesn’t live himself. This rental is allowed only for less than thirty (30) days at a time. Otherwise, the leasing will be considered as long term.

Is there any National Registration Requirement or Permit?

The Tourism Act requires that all establishments offering short-term accommodation for reward must be registered with the South African Tourism Grading Council. Access the procedue for the registration here and the registration procedure below;

To register your accommodation establishment with the Tourism Grading Council of South Africa (TGCSA), you must first ensure that your property meets all basic legal and safety requirements, including municipal approval, correct zoning, public liability insurance, and valid health and fire safety certificates. Once these are in place, you should identify the correct accommodation category for your property (such as hotel, guest house, or self-catering) and complete the online application on the TGCSA website under “Get Graded.”

As part of your application, you’ll need to upload supporting documents such as your tax clearance certificate, business registration documents, B-BBEE affidavit (if applicable), and proof of compliance with local authority regulations. After submitting your documents, you’ll be required to pay the necessary assessment and membership fees, although many small businesses or individual hosts can apply for financial support through the Tourism Grading Support Programme, which helps cover grading costs.

Once payment and documentation are complete, the TGCSA will assign an accredited assessor to your property. The assessor will conduct an on-site inspection to evaluate your accommodation against TGCSA’s national grading standards and will recommend a star rating from one to five stars. The final decision is made by the TGCSA Approvals Committee, and once approved, you will receive an official grading certificate and star plaque to display at your establishment.

Your property will then be added to the TGCSA’s official online directory of graded establishments, confirming it as a quality-assured accommodation provider in South Africa. The grading is valid for one year and must be renewed annually, which may include another inspection and updated fee payment.


For further assitance or guide, please contact the lodge compliance team.

Is there a need for Permission from Landlord/Local Council/Neighbors?

Yes, operating a short-term rental may require various permissions:

  • Landlord Approval: Tenants must obtain written consent from their landlords before listing a rented property as an STR.
  • Local Council Permissions: Depending on local bylaws, hosts may need to register the property with the municipality or obtain a business license.

Is Short-term rental Income taxable?

Yes, income derived from short-term rentals is subject to taxation in South Africa:

  • Income Tax: Rental income must be declared on the host's annual income tax return filed with the South African Revenue Service (SARS).
  • Value-Added Tax (VAT): Hosts must register for VAT if their annual turnover exceeds R50,000 charging 15% VAT on rental fees.

Is there any National Tourism Fund or Tourist Tax?

Yes, in South Africa, hosts are encouraged to contribute to national tourism initiatives through the Tourism Marketing Levy South Africa (TOMSA). This is a voluntary 1% levy collected from guests, which goes towards funding the marketing efforts of South African Tourism, the national tourism board. While not mandatory, participating in TOMSA supports the growth of the tourism industry by enhancing South Africa's global marketing campaigns.

Is there any Guest Registration and Reporting Requirement?

Under Section 40(1) of the Immigration Act 13 of 2002 (amended as of 26 May 2014) and Regulation 36, properties where lodging or sleeping accommodation is provided for payment must keep a register of lodgers. The register must include details like the guest’s full name, ID or passport copy, residence status, address, and signature. Although STR hosts are not required to register their guests or report them to an authority, they are mandated to keep a register of their guests.

Is there any National Health and Safety Requirements?

Yes, hosts must adhere to national health and safety standards to ensure the well-being of guests:

  • Occupational Health and Safety Act No. 85 of 1993:
    • Safety Measures: Ensure the property is free from hazards, with functioning smoke detectors, fire extinguishers, and clear emergency exits.
    • Maintenance: Regularly inspect and maintain electrical installations, gas appliances, and structural elements.
  • National Building Regulations and Building Standards Act No. 103 of 1977: Properties must meet building codes concerning structural integrity, sanitation, and accessibility.
  • Health Regulations: Maintain high standards of hygiene and cleanliness throughout the property.
  • Tourism Grading Council: The council confirms that each class of accommodation complies with the national health and safety requirement for the classification before grading and approval.

By meeting these requirements, hosts provide a safe environment, enhancing guest satisfaction and reputation.

Is there any Platform Accountability Requirement?

There is no specific national legislation in South Africa that holds online platforms directly accountable for ensuring that all listings comply with local laws.

Is there any Anti-Discrimination Law?

Yes, South Africa has robust anti-discrimination laws to protect individuals from unfair treatment. Key legislations include:

  • The Constitution of the Republic of South Africa: Guarantees equality and prohibits discrimination based on race, gender, sex, pregnancy, marital status, ethnic or social origin, color, sexual orientation, age, disability, religion, conscience, belief, culture, language, and birth.
  • The Promotion of Equality and Prevention of Unfair Discrimination Act (PEPUDA) of 2000: Prohibits unfair discrimination by the government and private organizations, including accommodation providers.

Hosts must ensure they:

  • Provide Equal Service: Offer accommodations without discriminating against potential guests based on the protected grounds.
  • Adhere to Platform Policies: Comply with non-discrimination policies set by platforms like Airbnb, which align with national laws.

Violations can result in legal consequences and removal from hosting platforms.

Is there any Data Sharing Requirements?

Currently, there is no nationwide mandate requiring short-term rental platforms to share host or guest data with national government authorities in South Africa. However, under the Protection of Personal Information Act (POPIA), personal data must be handled responsibly, and sharing without consent is restricted.

Is there any National Insurance Requirement?

There is no specific national law mandating that hosts must have liability insurance for short-term rental properties. However, it is strongly recommended that hosts:

  • Obtain Appropriate Insurance: Secure a comprehensive insurance policy that covers property damage, liability, and guest injuries.
  • Review Existing Policies: Ensure that their homeowner's or landlord's insurance policy covers short-term rentals, as some policies may exclude commercial activities.

Having proper insurance protects hosts from potential financial losses arising from accidents, damages, or legal claims.

Is there any National Zoning law/Cultural Heritage law?

Yes, South Africa has zoning laws and cultural heritage regulations that can impact short-term rentals:

  • Municipal Zoning Laws: Local municipalities have zoning schemes determining how properties can be used. Operating an STR in a zone not designated for commercial or hospitality use may require:
    • Rezoning Application: Hosts might need to apply for a change in zoning or obtain consent for temporary departure.
  • National Heritage Resources Act No. 25 of 1999:
    • Protection of Heritage Sites: Properties declared as national monuments or located in heritage areas are subject to restrictions.
    • Alterations and Usage: Any changes to the property or its use may require approval from the South African Heritage Resources Agency (SAHRA).

Hosts should consult local authorities to ensure compliance with zoning and heritage regulations before listing their properties.

Is there any Environmental Regulations that affects STR?

While there are no specific environmental regulations exclusively for short-term rentals, hosts are encouraged to operate sustainably:

  • National Environmental Management Act No. 107 of 1998:
    • Environmental Responsibility: Encourages sustainable practices to protect the environment.
    • Waste Management: Proper disposal of waste and recycling where facilities exist.
  • Energy Efficiency:
    • Resource Conservation: Use energy-efficient appliances, LED lighting, and water-saving fixtures.
    • Renewable Energy: Incorporate solar panels or other renewable energy sources if feasible.

By adopting eco-friendly practices, hosts contribute to environmental conservation and appeal to environmentally conscious travelers.

Is there any National Tenant Protection Law?

Yes, South Africa has laws protecting long-term tenants:

The Rental Housing Act of 1999 , along with its amendments and regulations, serves as the cornerstone of rental laws in South Africa. This legislation establishes the framework for rental agreements, covering various aspects such as lease termination, tenant rights, and dispute resolution. It’s essential for both tenants and landlords to familiarize themselves with the provisions of this act to ensure compliance and fair treatment.

Is there any Reporting Requirements for Foreigners?

No, there is no reporting requirement for tourist accommodations in South Africa, but tourist acommodations must maintain a guest register in order to comply with the national law.

Is there any Digital Platform Regulation Compliance?

There is no specific national legislation in South Africa requiring digital platforms to verify compliance with national regulations before listing properties.

Is there any Consumer Protection Law that affect STR?

Yes, the Consumer Protection Act No. 68 of 2008 (CPA) applies to short-term rentals:

  • Fair Contract Terms: Agreements must be clear, fair, and not contain unfair terms that disadvantage the consumer.
  • Disclosure Requirements: Hosts must provide accurate information about the property, including amenities, location, and any restrictions.
  • Right to Safety: Guests have the right to safe accommodations free from hazardous conditions.

Is there any Law that applies to Non-resident Owners?

Non-resident property owners are subject to South African laws when operating short-term rentals:

  • Tax Obligations:
    • Withholding Tax: Non-residents may be subject to withholding tax on rental income.
    • Double Taxation Agreements (DTAs): South Africa has DTAs with various countries to prevent double taxation. Non-resident owners should consult tax professionals to understand their obligations.
  • Exchange Control Regulations:
    • Repatriation of Funds: Profits transferred out of South Africa must comply with exchange control rules governed by the South African Reserve Bank (SARB).
  • Compliance with Local Laws:
    • Same Regulations Apply: Non-resident owners must adhere to the same property, zoning, and rental regulations as residents.
    • Appointing a Local Representative: It may be advisable to have a local agent or representative to manage compliance and operational matters.

Is there any classification of STR in the country?

Yes, South Africa classifies short-term rentals based on the type of accommodation and services offered. The Tourism Grading Council of South Africa grades temporary accommodations into different categories. The categories that fits into the short term rental description include;

Guest Accommodation

These are privately owned establishments that provide personalized lodging and breakfast or meals, often within the owner’s home or property.

  • Bed & Breakfast (B&B): Owner-occupied home offering private guest rooms and breakfast.
  • Country House: A luxury rural property offering accommodation and meals, typically for leisure travelers.
  • Guest House: A larger property offering multiple guest rooms, often with communal areas and optional meals.

Self Catering Accommodation

These properties provide independent living facilities, including a kitchen, for guests to prepare their own meals.

  • Exclusive Use: A full property rented to one group or guest at a time (e.g., an entire apartment, villa, or home).
  • Shared Use: Guests rent a room or portion of a property but share some facilities (e.g., kitchen or lounge) with the owner or other guests.

Are there Special National Event Regulations?

There are no nationwide special regulations specifically for short-term rentals during national events or holidays in South Africa. However, local municipalities may implement temporary measures during major events like the Cape Town International Jazz Festival or Durban July, Cities may adjust parking rules and restrict certain areas to manage crowd flow. It is advisable for hosts to also implement stricter ID verification to enhance safety.

Is there any Penalty for Violating National Rules?

Yes, the penalties for violating national laws are highlighted below;

  • Failure to Maintain Guest Register
    • If you fail to keep this register, or hinder inspection, or supply false info, you are guilty of an offence. Penalties include a fine, and/or imprisonment for up to 12 months.
  • Misuse of TGCSA star grading insignia / false claims of grading or misrepresenting star level
    • Under Section 28 of the Tourism Act 72 of 1993, there are offences for anyone who uses star-insignia when they are not graded or uses more stars than they are authorized to display.
    • Penalty on conviction is a fine or imprisonment for a period not exceeding six months.
  • Failing to declare rental income / not paying taxes to SARS
    • If you have income from hosting guests, e.g. short-term rentals, you must declare this in your income tax returns.
    • If you don’t, SARS can impose penalties such as interest, administrative penalties, and penalties up to 200% of the tax liability (depending on how much, how long, whether voluntary disclosure, etc.).
  • Are there National Rules or Regulations Governing Short-Term Rentals in South Africa?
    Are there National Rules or Regulations Governing Short-Term Rentals in the Country?
    Is there any National Tax that affects short-term rental?
    permits, license
    Are there any Permits, Licenses, or Registrations for Transient Rentals in South Africa?
    Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

    The Tourism Act requires that all establishments offering short-term accommodation for reward must be registered with the South African Tourism Grading Council. Access the procedue for the registration here and the registration procedure below;

    To register your accommodation establishment with the Tourism Grading Council of South Africa (TGCSA), you must first ensure that your property meets all basic legal and safety requirements, including municipal approval, correct zoning, public liability insurance, and valid health and fire safety certificates. Once these are in place, you should identify the correct accommodation category for your property (such as hotel, guest house, or self-catering) and complete the online application on the TGCSA website under “Get Graded.”

    As part of your application, you’ll need to upload supporting documents such as your tax clearance certificate, business registration documents, B-BBEE affidavit (if applicable), and proof of compliance with local authority regulations. After submitting your documents, you’ll be required to pay the necessary assessment and membership fees, although many small businesses or individual hosts can apply for financial support through the Tourism Grading Support Programme, which helps cover grading costs.

    Once payment and documentation are complete, the TGCSA will assign an accredited assessor to your property. The assessor will conduct an on-site inspection to evaluate your accommodation against TGCSA’s national grading standards and will recommend a star rating from one to five stars. The final decision is made by the TGCSA Approvals Committee, and once approved, you will receive an official grading certificate and star plaque to display at your establishment.

    Your property will then be added to the TGCSA’s official online directory of graded establishments, confirming it as a quality-assured accommodation provider in South Africa. The grading is valid for one year and must be renewed annually, which may include another inspection and updated fee payment.


    For further assitance or guide, please contact the lodge compliance team.

    Is there any National Association for Transient Rentals owners in South Africa?
    Is there any National Association for STR owners in the Country?
    National Association for STR Owners

    Disclaimer

    Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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