Released for public comment last week, the City of Cape Town’s draft Short-Term Letting By-law, 2026 (‘the draft By-law’) introduces a regulatory framework for the registration, monitoring, and enforcement of short-term letting within the City’s jurisdiction. Proposed against the backdrop of increasing concern around the affordability of housing in Cape Town, the proposed By-law is principally designed to ensure that property predominantly used as commercial short-term letting accommodation is accurately classified for municipal property rates purposes.
What is the underlying purpose of the City’s draft By-law?
Centred on the registration, monitoring, and enforcement of rules regulating short-term letting that takes place within the bounds of the City of Cape Town, the proposed legislation’s core objectives are to:
- Regulate the registration of short-term letting properties within the City’s jurisdiction to ensure that property predominantly used as commercial short-term letting accommodation is accurately classified for property rates purposes;
- Enable the effective monitoring and enforcement of short-term letting in accordance with the City’s by-laws and policies; and
- Ensure that the respective roles and responsibilities of owners, operators, booking platforms, and the City are clearly defined.
Who will the draft By-law apply to?
In its current form, the draft By-law applies to:
- Owners or operators of property listed on a booking platform within the City’s jurisdiction;
- Owners or operators who manage, market, offer, or make property available for short-term letting or temporary accommodation for reward on a booking platform; and
- Booking platforms that facilitate, enable, advertise, promote, or publish listings for short-term letting or temporary accommodation in respect of property situated within the City.
Notably, the draft defines a ‘booking platform’ broadly to include an online marketplace, mobile application, or intermediary service that facilitates transactions between owners or operators and guests for accommodation services by listing or advertising properties and collecting or processing payment by or on behalf of the owner or operator.
The registration of short-term letting properties
Critically, a central feature of the draft By-law is the introduction of a registration regime.
A property owner or operator must register every property used or intended to be used for short-term letting with the City, in a manner determined by the City, which may include through a system made available by a booking platform.
The proposed By-law further stipulates that no owner or operator may use, advertise, or list a property for short-term letting unless it has been registered with the City and the City-issued registration number is displayed on all listings associated with the property.
The required registration data includes the property’s physical address, erf number, municipal account number, and any requested supporting evidence.
The de-registration of properties used for short-term letting
In a bid to enforce compliance, the draft By-law also provides for the cancellation of registrations. In the event of a transfer of ownership, the City may cancel the property’s registration. An owner or operator may also notify the City in writing that they wish to de-register the property. In addition, the City may cancel a registration where it was obtained on the basis of false or misleading information, subject to the notice requirements set out in the proposed legislation.
Following cancellation or de-registration, the City must notify the relevant parties, and neither the owner nor a booking platform may use the cancelled registration number in a listing. A booking platform must remove an affected advertisement or listing within 10 working days. In the event of cancellation or de-registration, an owner or operator must re-register the property in accordance with the requirements of section 4 of the draft By-law.
The obligations of booking platforms
Recognising the multi-party nature of short-term letting practices, the proposed By-law imposes several obligations on booking platforms. Among other things, they must enable owners or operators to capture the required registration data, share that data with the City, display the City’s registration number on every listing, maintain accurate records of registered properties, and refrain from displaying or advertising properties that are not registered or where the required registration number is not displayed.
Crucially, every booking platform advertising or intending to advertise within the City’s jurisdiction must also identify itself to the City by providing its contact details and a responsible contact point.
Data sharing and monitoring
The draft By-law requires the collection of data relating to short-term letting, which includes the property’s physical address, municipal account number, availability data, occupancy data, and any other information relevant to its implementation. The City may determine the format and frequency with which data must be shared with it by booking platforms and registered owners.
Subject to applicable law, the City may collect, process, store, and use information obtained under the proposed legislation for purposes including verifying registration, determining property use and categorisation under the City’s Rates Policy, and supporting regulatory oversight, municipal planning, and compliance monitoring. Upon request, owners and booking platforms must therefore supply information reasonably required for these purposes.
It further provides that personal information obtained or processed under the By-law must be handled lawfully and may only be used for purposes related to its administration, monitoring, or enforcement.
Property categorisation and municipal rates
The draft By-law specifies that the determination of property use and categorisation must take place in accordance with the City’s Rates Policy, read with the By-law and the Municipal Property Rates Act.
Correspondingly, properties that meet or do not exceed the 50% of ‘total annual room nights’ threshold may be regarded as residential property, provided they meet the applicable requirements of the City’s Rates Policy. As such, properties that exceed the threshold will be regarded as commercial property, with property rates levied accordingly.
Compliance and enforcement
According to the proposed By-law, no owner or operator may use a property for short-term letting contrary to its provisions, and no booking platform may advertise or facilitate short-term letting in contravention of it.
To that end, an authorised official may issue a compliance notice where a person or booking platform is contravening the By-law. Specifically, the notice must identify the provision being contravened, the measures required to remedy the non-compliance, and the period within which compliance must be achieved.
The City may, in addition to criminal proceedings, approach a court of competent jurisdiction for appropriate relief, including an interdict, to prevent or restrain non-compliance.
Crucially, certain contraventions constitute offences, including advertising, listing, or facilitating short-term letting contrary to the By-law, failing to display a valid City-issued registration number, using a cancelled registration number, or failing to comply with an obligation imposed by the By-law. Upon conviction, an offender may be liable to a fine, imprisonment for up to six months, or both.
Transitional arrangements
To enable adaptation, the draft By-law provides for transitional arrangements from the date of promulgation. As such, owners, operators, and booking platforms will be granted a grace period to comply with the registration and listing obligations, with the grace period to be declared by public notice from the City Manager. Booking platforms must commence sharing data with the City, with the commencement date for data sharing to also be declared by public notice. During these transitional periods, the City may offer guidance or issue compliance notices to support adherence.
Conclusion
If enacted in its current form, the City of Cape Town’s proposed Short-Term Letting By-law would introduce registration requirements, impose specific obligations on booking platforms, provide for data sharing and monitoring, and establish compliance and enforcement mechanisms. Crucially, government also proposes a framework for determining whether properties are regarded as residential or commercial for rates purposes by reference to the 50% ‘total annual room nights’ threshold and the City’s Rates Policy. Accordingly, property owners, operators, and booking platforms falling within the scope of the draft legislation should not only monitor the draft By-law’s progress, but also meaningfully consider the potential implications of the proposed framework in the event of its adoption.
Submit your comments on the contents of the draft By-law by email or via the City’s dedicated web platform before 5th October 2026.
For further information or expert legal assistance, contact our experienced team of property law attorneys today.
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