The City of Cape Town’s draft Short-Term Letting By-Law is open for public comment from 5 August to 5 October 2026. The City’s Rates Policy requires that commercial property rates be levied for premises used for commercial accommodation (i.e. predominantly for short-term letting). The By-Law aims to improve identification of these properties by introducing a registration system and direct information-sharing from online booking platforms. Commercial rates do not apply to properties with less than 50% of room night availability for short-term letting, such as people supplementing their income by renting out some of their primary place of residence for some of the time. It also does not apply to long-term rental properties that are the primary place of residence of the tenant. View and comment on the full draft By-Law here: www.capetown.gov.za/haveyoursay.
The By-law aims to improve compliance with the City’s existing Rates Policy, which already requires that commercial property rates be levied for premises used for commercial accommodation.
Commercial property rates apply if a property is available for short-term letting for more than 50% of the total annual room nights. The 50% ratio is arrived at by calculating the portion of nights a property’s total bedrooms are available for short-term letting over a 365-day period.
In summary, the By-law will require:
- All properties listed on any booking platform to register with the City
- That a City-issued registration number be displayed on all listings
- Booking platforms, owners and operators to share data on listing availability with the City
- Changes to a property’s rating category will be effective from 1 July 2027 based on data from the proposed registration system.
‘Over time, the City has been working to systematically identify properties used for commercial accommodation where residential rates are incorrectly being levied instead of commercial rates.
‘The proposed By-law ensures fairness in the commercial accommodation sector. The City has been engaging with the commercial short-term letting stakeholders and will continue to provide support to the sector.
‘The City continues to support the tourist economy in the strongest terms and regards short-term letting as an important sector for servicing diverse tourist needs.
‘However, the City believes that the playing fields for businesses should be equal, with all those using a property for commercial accommodation paying the correct rates,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
For more information on the draft Short-term Letting By-Law, please see this FAQ: https://resource.capetown.gov.za/cityassets/Media%20Centre%20Assets/CCT-short-term-letting-FAQs.pdf
Comments, recommendations and input may be submitted by:
- Email: STL@capetown.gov.za
Online: Scan the QR code to submit your comments digitally
Written submission: Deliver to any of the City’s subcouncil offices or City libraries (in the comment box)
Website: www.capetown.gov.za/haveyoursay and www.capetown.gov.za/collaborate
The draft STL By-Law together with its executive summary is available for viewing on the City’s website: www.capetown.gov.za/haveyoursay. In addition, the By-Law’s executive summary is available in the three official Western Cape languages at subcouncil offices during the public participation period.
The City’s Public Participation Unit will assist people living with disabilities who are unable to submit written comments to have their objections recorded and submitted to the City.
For assistance in this regard, contact Zandile Mahlasela on 021 400 5501 or STL@capetown.gov.za.
