Airbnb host? Regulations are coming that will impact your investment

Lester Kiewit speaks to Grant Smee, CEO of Only Realty Property Group.

Listen below.

Airbnbs in Cape Town welcomed 700,000 guests in 2023 but, like in many other countries, government restrictions may be put in place to regulate rental properties around the City.

The South African government has announced plans to regulate Airbnb and other short-term rental platforms with the aim of balancing the needs of tourism, housing and local communities.

The proposed regulations include:

Setting thresholds on Airbnb listings to manage the impact on housing affordability and availability.
Limiting the number of days a property can be rented through Airbnb.
Capping the amount of money a single host can earn.

Airbnb hosts may also be expected to comply with local regulations, including zoning laws and by-laws, municipal by-laws, the Tourism Act, the Property Practitioners Act, and the rules and regulations of a body corporate.

"Like any sort of industry that comes from nowhere, regulations are implemented over time... Cape Town or South Africa is looking to implement new regulations in line with First World cities out there."

- Grant Smee, CEO - Only Realty Property Group

"I think the unique issue in Cape Town and South Africa... is really property prices both on the long-term rental side and the actual price of property in certain areas."

- Grant Smee, CEO - Only Realty Property Group

".... your money is made on vacancy levels... if the government comes in with those limits on how many nights you can rent property out, that's going to be a massive issue for almost all Airbnb owners... they would have to relook at whether they'll stay in the Airbnb market and maybe re-enter the long-term market or sell the property..."

- Grant Smee, CEO - Only Realty Property Group

Scroll up to the audio player to listen to the interview.