The Freedom Front Plus (VF Plus) is concerned that many Cape Town residents and property owners may not have learnt of the City of Cape Town’s proposed Short-term Letting By-law in time.
The public had until 5 October 2026 to make submissions.
The proposed By-law could have financial consequences for property owners who rent out their houses, rooms or flats via platforms such as Airbnb and Booking.com to supplement their income.
According to the City’s proposal, properties available for short-term letting for more than 50% of total annual room nights will be reclassified as business and commercial accommodation, with property rates levied accordingly. These changes may come into effect from 1 July 2027.
The Freedom Front Plus concurs that full-scale commercial accommodation enterprises should be taxed appropriately. A clear distinction should, however, be made between a full-time commercial accommodation enterprise and an ordinary homeowner who only rents out a room, granny flat or portion of his or her primary residence part-time to supplement income.
The City has indicated that commercial tariffs are not intended for people who rent out portions of their primary residence from time to time. The Freedom Front Plus believes this principle should be clearly entrenched in the final regulations to ensure it is enforceable.
The party is also concerned that some residents only recently became aware of the proposed By-law and, therefore, did not have the opportunity to comment on it. So, the City should consider further engagement with affected property owners and accommodation providers before the final framework is implemented.
Clarity should also be provided on how the 50% threshold will be applied and what safeguards are in place in case a property is incorrectly classified as commercial.
The City should be transparent about the expected financial impact, how many properties will be affected and how much additional income is projected.
The Freedom Front Plus, therefore, calls on the City to:
• maintain a clear distinction between ordinary residential short-term letting and commercial accommodation;
• safeguard primary residences and lawful supplementary income activities against unintended commercial taxation;
• provide clarity on the application of the 50% threshold;
• introduce a simple process whereby property owners can challenge incorrect classifications;
• be transparent about what information will be obtained from property owners and platforms, and how it will be protected; and
• consider further engagement with affected residents and stakeholders before the new framework is implemented.
Fair regulation must go hand in hand with fairness towards residents. Commercial accommodation enterprises ought to contribute appropriately to municipal revenue, but ordinary property owners who use short-term letting to help cover household expenses should not be needlessly disadvantaged.
