Is Airbnb legal in Cape Town?

Airbnb regulations in Cape Town have been a topic of concern and debate due to the rapid expansion of short-term rentals in the city, which have significantly impacted the local housing market. As of 2019, the City of Cape Town approved a by-law that permits short-term letting from a house or flat for a period not exceeding 30 consecutive days for the same guest. Despite the absence of specific national short-term rental regulations, this by-law serves as a local regulatory measure to manage the burgeoning Airbnb market.

The proliferation of Airbnb listings, with over 23,564 properties in Cape Town, has resulted in at least 81.8% of these being entire homes or apartments, effectively reducing the available housing stock for long-term residents. This saturation has contributed to a distortion of rental prices and increased vacancy rates for extended periods. Calls for greater regulation emphasize the protection of affordable housing and the stability of resident communities. Proposed regulatory measures include taxation, limitations on the number of rental days, bans on multiple listings by individuals or companies, and more robust permitting systems.

The City regulates short-term rentals based on land use through its Municipal Planning By-Law. Nonetheless, these regulations must balance between accommodating the influx of tourists and safeguarding the housing needs of locals. The Western Cape Department of Economic Development and Tourism acknowledges short-stay accommodations as critical to infrastructure, aiming to increase international visitors to the city.

Overall, there is a marked need for comprehensive regulation to mitigate the adverse effects of short-term rentals, ensuring that Airbnb's growth does not exacerbate housing affordability issues or displace local residents.