Cape Town AIRBNBs: Just a Temporary Guest, Not a Permanent Problem!

I remember my first New York City adventure back in 2016. On a shoestring budget, I turned to Airbnb for a taste of local life. I found a cozy apartment on the Upper West Side and was pumped to start my NYC experience. My plan? Wake up early, grab a coffee and bagel from the neighbourhood café, and hit the subway to explore the city.

Everything was going smoothly until, post-booking, I received a message from my Airbnb host. It read something like this: “Hey, just a heads-up. Technically, I’m not supposed to rent out the apartment unless I’m there with you. So, when people in the building ask, tell them you’re just friends visiting NYC, not Airbnb guests. NYC is cracking down on this, and I could lose my lease. If you’re cool with this, let me know. Otherwise, we can cancel and find another place. Oh, and I’ll send you the exact address later.”

It’s funny how people find loopholes even when regulations are in place. This makes you think—regulations might not always be the silver bullet for every problem, like in Cape Town. Airbnb offers tourists a chance to “live like locals” and is a savvy investment opportunity for property owners who want more than just a year-long lease.

So, how big is the Airbnb market in Cape Town? According to AirDNA, there are 11,873 listings. Compare that to Property24’s current numbers: 617 houses, 1,152 apartments, and 34 townhouses for long-term rent. Considering there are over 700,000 residential properties in Cape Town (according to the Centre for Affordable Housing Finance Africa, 2020), Airbnb listings are just a tiny blip on the radar and so are the long-term rentals. There are simply not enough properties.

Besides, while long-term tenants can bring stability to a neighbourhood, they can also present challenges that might make some residents raise an eyebrow—or two. These long-term dwellers might ruffle a few feathers in the community through noise complaints, parking violations and no cleanliness or pride in ownership.

The real issue is the under supply and over demand for properties. More people keep moving to Cape Town and it will drive the economic wheels of the City, however Cape Town needs to make it easier to develop and redevelop properties. The property development process is still bogged down by red tape, and let’s be honest—if developers could build faster, they would. The City of Cape Town should beef up its Building Development Management and Land Use Management teams and systems. More people working in these areas means more properties will get delivered sooner, which means more rates and taxes for the city. It’s a win-win all around!