Balwin Properties faces legal test over its rules prohibiting short-term rentals

Balwin Properties is facing a legal challenge at The Blyde Riverwalk Estate in Pretoria over the validity of its ban on Airbnb-style short-term rentals.

This follows an application by the Blyde Riverwalk Home-Owners Association (HOA) against a substantial number of home owners who rented out their units for Airbnb-styled short-term holiday accommodation.

However, a recent court ruling upheld the right of homeowner associations to regulate such rentals if backed by properly adopted, Community Schemes Ombud Service (CSOS)-approved conduct rules, therefore allowing Balwin’s restrictions to remain in place pending a full appeal. 

CSOS had initially approved the rules, following complaints from permanent residents about noise and security risks.

Speaking to Stephen Grootes on The Money Show, Roy Cokayne, Moneyweb contributor says ultimately, the homeowners can decide what they want.

"It will come down to the rules, and whoever has the most votes, or who gets the required majority votes. The owners who are unhappy with whatever the decision, will have to take their own decisions on what they're going to do," says Cokayne.

"When you're in a complex, you don't have as much control. You cede some of your control to other owners. Whereas on a freehold property you can do as you wish," added Cokayne. 

Listen to the interview in the audio player above.