City of Cape Town releases proposed amendments to short-term letting by-law

The City of Cape Town has released proposed amendments to its short-term letting by-law, inviting public comment.

It said the intended changes are aimed at improving compliance among short-term landlords who are required to pay commercial rates.

The draft bill introduces new mechanisms that will allow the municipality to obtain letting information directly from online rental platforms.

Mayoral Committee Member for Finance Siseko Mbandezi said the by-law will help the city determine whether a property qualifies for commercial rates.

If a property is let on a short-term basis for 50% of the year or more, it will be registered as a commercial property and charged commercial rates.

“To ensure commercial short-term operators are paying their correct rates, a forthcoming short-term letting by-law will propose mechanisms for the city to source data on a property’s short-term letting availability directly from online letting platforms.”

Mbandezi said the deadline for public comment is 30 April 2026.

He stressed that the draft bill applies only to short-term let properties.

“Commercial rates do not apply to long-term rentals and also don’t apply to people who part-time let some of their residences to supplement income.”