Cape Town is seeking comment on a draft by-law that would register short-term letting properties and help determine their rates category.

By-law aims to provide oversight

The City of Cape Town has drafted the City of Cape Town short-term letting by-law, 2026, for public comment. The report was presented to all subcouncils for comment.

The City says the number of properties used for short-term letting as tourism businesses has increased over recent years, but it has struggled to identify them. Most short-term letting property owners continue to pay residential rates, while those operating commercially should pay commercial rates like hotels, guesthouses and BnBs.

The draft by-law is intended to provide oversight, serve as the regulatory mechanism for properties used for short-term letting and provide the evidence base to determine the appropriate property rating category.

Registration will be mandatory

The draft by-law will establish a mandatory registration system for all properties listed on any booking platform, including hotels, guesthouses and BnBs. An owner, operator or booking platform will have to publicly display a City-issued registration number on the listing.

Booking platforms will be required to remove listings that do not display a valid City-issued registration number. They will also have to share data on listing availability and occupancy with the City and identify themselves to the City by providing contact details and a responsible contact point.

Registration data will include the physical address, erf number, municipal account number and any requested supporting evidence. The by-law will apply to all owners or operators of property listed on a booking platform within the City’s jurisdiction, as well as any booking platform that facilitates short-term letting within the City.

Rates linked to annual room nights

The City’s Rates Policy was updated to distinguish between properties used as a primary residence and those used for commercial accommodation. A property is considered commercial accommodation if it is not used as a primary place of residence, or if it is a primary residence but is available for short-term letting for more than 50% of total annual room nights.

Properties that exceed the 50% threshold will be regarded as commercial property and rates will be levied accordingly. Properties that meet or do not exceed the threshold may be regarded as residential property if they meet the requirements in the City’s Rates Policy.

Comments open until 4 October

Public participation will run from 4 August to 4 October, a period of 60 days. The City will use newspaper adverts in the Weekend Argus and Die Burger, adverts in nine major community newspapers, a report to all subcouncils, industry engagement information sessions, media, the City’s website and libraries.

Comments can be submitted through the City’s Have Your Say webpage at www.capetown.gov.za/haveyoursay, the City’s collaboration platform, an online comment form or by email to STL@capetown.gov.za.

For more information, contact Richard Wootton on 021 400 2701 or at RichardKeith.Wootton@capetown.gov.za.

Penalties for non-compliance

Offences include advertising or listing a property without a valid registration number, or failing to comply with any obligation in the by-law. Upon conviction, the penalty is a fine or imprisonment of up to six months, or both.

The City may also approach a court for civil enforcement, including an interdict. A grace period for compliance will be declared by public notice from the City Manager.

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