Can You Airbnb Your House or Apartment in a Residential Complex?

“Landlords grow rich in their sleep.”
— John Stuart Mill

Short-term letting platforms like Airbnb have made it easier than ever for property owners to generate additional income. But if you own — or are considering buying — a house or apartment in a residential complex, assuming you can freely Airbnb it can be an expensive mistake.

A recent High Court matter has reinforced an important principle of South African property law: bodies corporate and homeowners’ associations (HOAs) may, within limits, regulate or restrict short-term letting in residential schemes. The decision highlights the tension between owners’ property rights and the collective rights of residents to safety, peace, and enjoyment of their homes.

The legal tension: residents vs short-term renters

The dispute arose in a large residential estate in the Silver Lakes area of Pretoria. The estate was marketed as a family-orientated lifestyle environment, offering security, amenities, and a stable residential character.

Over time, however, a significant number of owners began letting their properties on a short-term letting (STL) basis, often for periods of one to three days. According to the HOA, this led to persistent problems, including:

• excessive noise and late-night parties
• overcrowding of units
• traffic congestion and parking issues
• security risks
• repeated complaints from permanent residents

Holiday guests, the HOA argued, did not share the same stake in preserving the estate’s rules, ethos, or long-term community standards.

When conduct rules are tightened

The HOA concluded that its existing conduct rules were inadequate to address these issues. It therefore adopted stricter short-term letting rules, including:

• a prohibition on letting units for periods shorter than three months without prior HOA consent
• a significant penalty for non-compliance, amounting to 90% of the monthly levy

These rules were initially approved by the Community Schemes Ombud Service (CSOS).

However, a group of owners who relied on short-term letting challenged the rules. The CSOS adjudicator set them aside, finding that the estate functioned more like a leisure or holiday resort, where non-permanent occupation was allegedly the norm.

The High Court steps in

The HOA appealed the CSOS decision to the High Court. Pending the final outcome of the appeal, the Court issued an interim order suspending the part of the CSOS ruling that invalidated the stricter rules.

The practical effect was significant:
the tighter short-term letting rules remained enforceable until the appeal is finally determined.

While the ruling was interim, it strongly suggested that courts are willing to recognise the regulatory authority of HOAs and bodies corporate to restrict short-term letting where the rules are reasonable and properly adopted.

What this means in practice

Although the final outcome of the appeal is still awaited, the decision provides important guidance for all stakeholders in residential complexes.

1. For short-term landlords and Airbnb hosts

If you let — or plan to let — your unit on Airbnb or similar platforms:

• Check the scheme’s conduct and letting rules carefully
• Do not assume that silence in the rules means permission
• Remember that you remain responsible for your guests’ conduct
• Ensure your letting agreements expressly require guests to comply with all scheme rules
• Be aware that penalties and enforcement action may be substantial
• Investigate whether municipal zoning or land-use laws restrict short-term accommodation in your area

For disputes involving scheme rules and enforcement, see
Sectional Title Law
and broader guidance under
Property Law & Conveyancing.

2. For HOAs and bodies corporate

HOAs and bodies corporate have both powers and duties to balance competing interests within a scheme.

When dealing with short-term letting:

• Consider whether frequent guest turnover undermines safety, security, or residents’ enjoyment
• Adopt or amend rules lawfully and procedurally, including special resolutions where required
• Ensure rules are reasonable, proportionate, and defensible
• Avoid blanket bans unless clearly justified by the scheme’s character
• Enforce rules consistently and fairly, avoiding arbitrary or selective penalties

South African case law has repeatedly confirmed that properly adopted conduct rules — particularly those limiting letting to periods of three or six months or longer — may be upheld where they strike a fair balance between owners’ rights and community interests.

Is every case decided the same way?

No. The High Court emphasised that disputes of this nature are fact-specific. Relevant considerations include:

• the original purpose and character of the scheme
• how it was marketed to buyers
• the extent and impact of short-term letting
• the wording, adoption, and enforcement of conduct rules

What is reasonable in one estate may be unreasonable in another.

CSOS or High Court: where must disputes be heard?

A further complication is where such disputes should be resolved.

A recent Supreme Court of Appeal (SCA) ruling confirmed that community scheme disputes do not always have to start at CSOS. In appropriate cases, parties may approach either:

• the Community Schemes Ombud Service, or
• the High Court, directly

However, this choice carries risk. CSOS proceedings are generally quicker, cheaper, and less formal. If a court finds that you approached it prematurely or without justification, it may impose punitive costs.

Choosing the correct forum is therefore a strategic decision that should be taken with care.

More detail is available under
Mediation & Arbitration.

The bottom line: tread carefully

This ruling is not the final word, but it is a strong signal. South African courts are increasingly willing to uphold restrictions on short-term letting in residential complexes where those restrictions are:

• properly adopted
• reasonable
• proportionately enforced

Whether you are an investor, a permanent resident, or a body corporate, the legal landscape around Airbnb and short-term letting is complex and evolving. Early advice can prevent costly disputes and unintended liability.

Disclaimer
The information provided herein is for general information purposes only and should not be used or relied upon as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance on this information. Legal outcomes depend on the specific facts and applicable law. Always consult a qualified attorney for advice tailored to your circumstances. You may contact our attorneys here to discuss your specific matter.