Airbnb crackdown in South Africa

A recent court ruling affirms that homeowner associations and bodies corporate in South Africa can regulate or restrict disruptive short-term rentals like Airbnb.

The Gauteng High Court judgment in the matter of Blyde River Walk Estate HOA & Others v CSOS & Others, is an important win for residential complexes dealing with short-term letting.

This is according to Johlene Wasserman, Director of Community Schemes and Compliance at Sandton-based law firm VDM Incorporated.

Wasserman said the ruling will strengthen the position of homeowner associations and bodies corporate wanting to regulate or restrict Air BnB-style letting as was the case at Blyde River Walk Estate in Pretoria.

“The High Court’s ruling – which is being appealed – affirms their right to regulate disruptive holiday rentals while the broader dispute continues.”

“The court has delivered a clear message that STLs are a commercial activity and that HOA (homeowner associations) and bodies corporate have the power to regulate them – provided the rules are properly adopted and approved.”

The case arose after some owners at the Blyde River Walk Estate used their units for short-term holiday accommodation. This led to complaints from permanent residents about noise, overcrowding, and security risks.

Wasserman said that, in 2020, the Estate’s HOA and developer tightened its conduct rules to restrict short-term letting (STL).

While CSOS initially approved the new rules, an adjudicator later set them aside and reinstated the more lenient 2018 rules. The HOA then appealed to the High Court.

While the judge didn’t grant the HOA’s request in full, he did provide relief by partly suspending the adjudicator’s order, and allowing the stricter 2020 rules to remain in force until the appeal is finalised.

The judge also dismissed allegations by STL owners of contempt and attempts by the HOA to strike out evidence.

Costs, including those of two councils, against the STL owners due to “unnecessary opposition and procedural non-compliance”, were also awarded.

“In practical terms, this means that short-term letting is still permitted at the Blyde Estate, but only under the more restrictive 2020 rules – at least until the appeal is concluded,” Wasserman said.

Tighter regulations for short-term rentals

Wasserman explained that the key legal principles in this case were that STL is commercial in nature and may be disruptive in residential schemes.

As a result, this justifies tighter regulation, and that HOAs and bodies corporate may regulate STL under section 10 of the Sectional Titles Schemes Management Act (STSMA).

However, these rules must be reasonable, validly adopted by special resolution, and approved by CSOS. “CSOS adjudicators cannot rewrite rules; they may only set aside defective ones,” Wasserman said,

“Amendments must come from the scheme itself. And the court will balance competing interests, recognising both residents’ rights to quiet enjoyment and owners’ rights to rent.”

She explained that the implications for community schemes are that short-term letting is not an unregulated right and may be limited through properly adopted and CSOS-approved rules.

“For residents, this judgment provides reassurance that their concerns have been heard; that stricter short-term letting rules are now in place to safeguard their peace, security, and the family-oriented nature of their estate.”

“While the legal process continues, the court recognises the rights of permanent residents to quiet enjoyment that’s not overshadowed by disruptive holiday rentals.”

Wasserman added that this judgment also enforces the rights of HOAs, bodies corporate, and community schemes across South Africa.

It strengthens the principle that schemes are legally entitled to regulate disruptive commercial activity and preserve the residential character of their developments.