New Airbnb tax for Cape Town homeowners

• The City of Cape Town's draft Short-Term Letting By-law does not constitute a new tax, but rather proposes changes to municipal rates and governance risks for homeowners in sectional title complexes and HOAs.
• The proposed by-law requires mandatory registration for short-term rentals on platforms like Airbnb and Booking.com, with properties needing to display a city-issued registration number.
• The adoption of the by-law is targeted for early 2027, with proposed rating category changes taking effect from 1 July 2027, which could impact community schemes and residents living in body corporate schemes and HOAs.