Can You Airbnb Your Home or Apartment in a Complex? What the Law Says.
You might have heard the saying: “Landlords grow rich in their sleep.” If you're hoping to buy a house or flat in a residential complex (like a security estate or apartment building) and rent it out on a short-term basis—like Airbnb, especially to make extra cash over the holidays — you need to be very careful.
A recent High Court decision confirms that the rules of your complex, set by the Body Corporate or Homeowners’ Association (HOA), can limit your right to do this.
The Problem: Permanent Residents vs. Holiday Renters
The heart of this conflict is a large estate in Pretoria, which was meant to be a secure, family-friendly place where people could enjoy outdoor activities.
However, many owners started renting out their homes for just a few days at a time as holiday rentals (called "short-term letting" or STL).
- The HOA's Argument: The HOA says these short-term visitors are causing a major headache for permanent residents. They claim the holidaymakers often ignore the rules and family atmosphere, leading to constant complaints about noise, overcrowding, traffic jams, bad behaviour, and security risks.
- The Response: The HOA tried to stop this by making new, much stricter rules. Crucially, owners were banned from renting out their homes for less than three months without permission. If they broke this rule, they faced a massive fine equal to 90% of the monthly levy.
The owners who wanted to keep short-term letting going took the matter to the Community Schemes Ombud Service (CSOS), which is like a lower court for complex disputes. The CSOS sided with the owners, saying the estate was more like a "holiday resort" anyway.
The Big Court Ruling (So Far)
The HOA appealed the CSOS decision to the High Court.
The High Court hasn't made a final decision yet, but it did issue a temporary (interim) order: The stricter, anti-Airbnb rules are allowed to stay in place for now until the full appeal hearing is done.
What This Means for You
This temporary ruling is a strong hint that courts support the right of HOAs and Body Corporates to manage short-term rentals.
If you are an Owner (or looking to buy):
- Tread Lightly: The court allowing the stricter rules to stand temporarily is a clear warning. Before you list your property on Airbnb, check your complex's rules very carefully.
- You are Responsible: Even if short-term letting is allowed, you are responsible for any rule-breaking by your guests. Your rental agreement must make them follow all the complex's rules.
- Check City Rules: Also check if your local city or municipality's zoning laws restrict short-term rentals in your area.
If you are an HOA or Body Corporate:
- Make Proper Rules: You have the right and duty to protect the peace for all residents. You can adopt or strengthen rules to control or ban stays that are too short (like less than three or six months).
- Be Fair: Your rules must be correctly voted on and implemented. They also need to be reasonable and valid, meaning they must balance the rights of owners who want to earn money against the rights of permanent residents who want a quiet life.
The Takeaway Signal
The final word is still to come, but this High Court move is a strong signal that courts are likely to uphold rules that limit or ban short-term letting, as long as those rules are fair, reasonable, and correctly put in place.
Need a Quick Resolution? Court vs. CSOS
If you have a dispute, you have two options for who hears your case:
- CSOS (Community Schemes Ombud Service): This is usually quicker, cheaper, and less formal.
- High Court: You can go straight to the High Court if you want.
- The Risk: Going straight to court might save time compared to the back-and-forth in this case, but courts prefer you use the CSOS first. If a court thinks you skipped the CSOS without a good reason, you might be punished with having to pay extra legal costs. Choose wisely!