Trustees clamp down on Airbnb rentals pending owners’ final decision at February AGM

• The scheme’s trustees will continue enforcing the no-subletting rule until owners decide on Airbnb rentals in February 2027.
• This decision comes after incidents involving noise complaints and reports of domestic violence related to short-term rentals.
• Sectional title law expert says any rule changes must follow the legal process and be approved by the Community Schemes Ombud Service.

A sectional title scheme in Johannesburg has taken steps to restrict the use of Airbnb and other short-term rental accommodation by sticking to its current no subletting policy until owners can decide the matter at the next Annual General Meeting (AGM).

In a memo sent to owners and residents, trustees said they discussed the issue after several incidents connected to Airbnb and other short-term rentals in the estate. According to the residents, these incidents included excessive noise and cases of domestic violence. At least three Airbnb establishments are believed to be operating from the estate.

The trustees explained that the scheme’s current Conduct Rules do not specifically address short-term letting by owners. Because of this, they decided that the existing rules prohibiting subletting will remain in place until the Body Corporate can formally consider the issue and adopt new rules if needed.

“The current no subletting policy under the Code of Conduct will continue to apply until the Annual General Meeting (AGM) in February 2027, where owners will have the opportunity to discuss, debate and decide the estate's long-term position on short-term accommodation and Airbnb-type arrangements,” the memorandum states.

The trustees also asked all owners and residents to comply with the current Conduct Rules, warning that any arrangements that go against these rules will be considered a breach of the estate’s governance framework.

Short-term rental or subletting

Ashwini Singh, an academic and prominent legal expert specialising in sectional title law, said there is an important legal difference between subletting and short-term rentals such as Airbnb.

She explained that Airbnb accommodation is usually considered short-term letting rather than subletting. “Airbnbs can be considered short-term rentals. It would only be considered subletting if a unit's tenant rents the unit out to a subtenant,” Singh said.

She added that if a scheme’s rules do not allow letting, owners cannot legally rent out their units until the rules are changed. “If a scheme's rules do not allow letting, then a unit cannot be rented out until the rules are amended and such amendments are approved by the Community Schemes Ombud Service.”

Rule changes must follow the law

Singh said that trustees who call a Body Corporate meeting to debate possible rule changes are following the correct legal process.

“A body corporate's rules can only be changed in accordance with Section 10 of the Sectional Titles Schemes Management Act 2011, which requires an appropriate body corporate resolution (special or unanimous) depending on the type of rule amendment, substitution or repeal,” she said.

She noted that owners themselves ultimately decide whether the rules should be amended through the process set out in the law.

Is Airbnb a business

Singh said whether Airbnb should be seen as a business or just a form of short-term letting is still a legal grey area. “This is a debatable matter that has two perspectives, creating a grey area for sectional title schemes,” she said.

“On one hand, an Airbnb in a scheme can be classified as a business, especially if it frequently has an influx of customers and if the unit that is operating the Airbnb is a registered company. On the other hand, a person could simply be letting their unit in a manner no different from renting to a tenant, which would simply be considered the same as rental income.”

She said a scheme’s conduct rules can still regulate how units are used, whether for living, letting, or business purposes. According to Singh, Prescribed Management Rule 30(f) of the Sectional Titles Schemes Management Regulations, 2016, states that a unit may not be used for any purpose other than its intended use as shown in the registered plans, municipal by-laws, or the body corporate’s rules.

“If a scheme's current conduct rules do not permit the letting or the running of a business in a unit, then those activities are prohibited in the scheme's units,” she said.

She also pointed to Prescribed Management Regulation 3(2), which makes owners responsible for making sure their tenants, occupants, and visitors follow the scheme’s conduct rules.

“An owner of a unit is liable for the conduct of their tenants or visitors under Prescribed Management Regulation 3(2) of the Sectional Titles Schemes Management Regulations 2016, which compels members to take steps to ensure their visitors, occupants and tenants comply with the scheme's conduct rules,” she explained.

Trustees following the correct approach

Based on the facts, Singh said the trustees seem to be acting appropriately by letting owners decide the future of short-term accommodation through the Body Corporate’s formal governance structures.

“Based on the facts presented to me, I would say that the Trustees in this circumstance are correct in their approach of calling a meeting to discuss the matter of prospective rule changes regarding short-term letting and AirBnBs in the scheme.”

She also encouraged body corporates who are considering new rules to get specialist legal help before submitting amendments for approval.

“In the instance that a body corporate needs to draft new rules, I would strongly suggest the body corporate consider engaging the services of a sectional title specialist for the drafting of the rules. The Community Schemes Ombud Service does retain the right to reject undesirable rules as stipulated in their 2025 Consolidated Practice Directives, so having a specialist can assist in preventing review delays from the Ombud.”

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