Is Your Short-Term Rental Legal?

In South Africa’s current economic climate, many homeowners rely on short-term letting to generate much-needed income.  A blanket closure of every residential short-term rental would not serve the public’s interest.  It would harm homeowners, local workers, restaurants, shops and the tourism industry, as well as reduce the availability of affordable visitor accommodation, particularly during peak holiday periods.

In South Africa, property letting is regulated by several different authorities and laws:

The Property Practitioners Regulatory Authority, the PPRA

Under the Property Practitioners Act the PPRA regulates that a home-owner who rents out their own property directly does not require a Fidelity Fund Certificate, a FFC.  If the home-owner appoints a property practitioner to rent their property on their behalf, that property practitioner must be registered with the PPRA and hold a valid FFC.  The PPRA does not regulate municipal planning, business licensing or municipal rates.

SPLUMA

Spatial Planning and Land Use Management Act 16 of 2013, known as SPLUMA, provides the national framework for municipal land-use planning.  The permitted zone use of the property cannot be changed without following town planning process.  If the existing land-use rights do not permit a business licence, then you may not trade as a business.  You may apply for special consent or rezoning.

Municipal Laws – Licensing and Rates

Municipal By-Laws regulate business and accommodation establishments.  Municipal rates determine how properties are categorised for rates.  The municipal land-use scheme determines whether the intended use is permitted or requires rezoning.

Municipalities can increase the rates on the property regardless of whether the zone has been changed.  Municipal rating and town-planning enforcement are separate.  Under the Local Government Municipal Property Rates Act and the municipality’s Rates Policy, property may be categorised according to actual use, permitted use, ownership or a combination of these.  A property being used for commercial accommodation can therefore be placed in a business, commercial, guest-house or mixed-use rates category even if the property’s zone certificate differs.  Being charged the higher rates rate does not legalise the unauthorised use, and planning enforcement may still follow.

Municipal rules differ.  You must obtain your local municipality’s:

• Land Use Scheme
• Accommodation Establishments By-law
• Business Licensing By-law and
• Annual Property Rates Policy and tariffs

The property’s zone certificate must be checked.  A business licence application cannot overrule unlawful land use.  Town planning approval comes first.

How do you determine the use of the property?

The number of days let may be evidence of the intensity and actual use of the property, but there is no blanket formula to determine when short-term letting becomes a business.   Room numbers, owner occupation, services supplied, meals, staff, signage, parking, guest turnover and the portion of the property used can matter where the applicable municipal rates definition or rebate criteria say they matter.

Advertising the property on Airbnb or another platform, a billboard and similar advertising is evidence of commercial letting. Advertising alone does not determine the property’s legal land use or municipal rates category.   A once-off or occasional letting and a continuously operated guest accommodation may be treated differently.   Municipalities do not have a day threshold or apply a percentage building use.  When checking your municipal by-laws you must always use the current year’s by-laws.

When Does Short-Term Letting Become a Business?

This depends on:

• Land use: this is the zone applied to your property.
• Business licence: The National Businesses Act licenses specified activities, particularly the sale or supply of meals or perishable food and certain health or entertainment businesses. Municipalities may also adopt local by-laws that regulate a wider group of businesses or accommodation establishments.
• Municipal rates: Not every person earning income from home automatically needs the same licence or attracts the same rates category. For paid guest accommodation, do not assume that an Airbnb listing is exempt merely because no meals are served or because the owner is an individual.  The exact requirement for an entire-home self-catering rental must be checked against the municipality’s current by-law and the approved land-use rights for that property.

Why Are Municipalities Inspecting Short-Term Rental Homes?

To bring unlawful or incorrectly classified properties into compliance and not to presume that every occasional short-term rental is an illegal guest house.

Correct categorisation will increase municipal revenue.  Approved rebates may reduce the charge.

The municipality is responsible for enforcing its Land Use Scheme, preventing a residential property from changing into an intensive accommodation operation without the required consent or rezoning.  This will prevent risks such as fire, health and  safety, noise, refuse, overcrowding, signage, traffic and unlawful building plans.

Get Compliant Before the Inspector Arrives

At King Large Real Estate Services, property compliance is our business.  Whether you operate a real estate agency, manage properties or offer short-term accommodation, we can help you understand what is required and what to do next.

Don’t wait for an inspection, a compliance notice or an unexpected increase in your municipal rates.

Explore Our Compliance Services

Need help understanding where you stand?   Contact PPs today.

Resources

Property Practitioners Act 22 of 2019.

Spatial Planning and Land Use Management Act 16 of 2013 SPLUMA.

Local Government: Municipal Property Rates Act 6 of 2004, including sections 8, 49-55 and 50(6).

Businesses Act 71 of 1991, Schedule 1.

eThekwini Municipality Property Rates Policy 2026/2027; Accommodation Establishments By-law, 2022; Business Licensing By-law, 2024 ; applicable eThekwini Land Use Scheme/sub-scheme.

KwaDukuza Municipality final Rates Policy and Determination of Rates 2026/2027; KwaDukuza SPLUMA By-law and Land Use Scheme; current municipal business-licence tariff and by-law materials.

Disclaimer

This information was reviewed on 26 August 2026 and is provided for general guidance only.  This is not legal, town-planning, valuation or tax advice.  Obtain written confirmation from the relevant municipality before acting or lodging an objection.