CAPE TOWN - Airbnb hosts and other short-term rental operators in Cape Town could face new registration and reporting requirements under proposed City regulations.
The City of Cape Town released its draft Short-Term Letting By-Law, 2026 in August, setting out proposed rules for commercial short-term letting properties.
Under the draft by-law, owners of properties listed on platforms such as Airbnb would be required to register their properties, display a City registration number and provide availability data.
The proposed rules would also require commercial property rates to be paid for properties being used for commercial short-term letting.
The City says the by-law is intended to strengthen compliance with its existing Rates Policy and ensure that properties used commercially are correctly classified for municipal rates, by-laws and policies.
Hosts and operators who contravene the proposed by-law could face a fine or imprisonment of up to six months.
The draft regulations come as Cape Town faces growing pressure over its housing shortage and the impact of short-term rentals on the availability and affordability of long-term accommodation.
Housing activist Jens Horber of Ndifuna Ukwazi previously told eNCA that Airbnb listings in Cape Town had increased by 190 percent since 2022.
He said some long-term rental properties had been converted into tourist accommodation, contributing to pressure on rental prices.
According to the Inside Airbnb data project, Cape Town had more than 26,870 listings on the platform, with more than 60 percent of hosts having multiple listings.
The City has stressed that the proposed by-law does not introduce a new tax, but is aimed at improving compliance with existing municipal rates policies.
The by-law is still in draft form, and the proposed requirements are therefore subject to change before any final regulations come into effect.