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Changes to by-law impacts new business in Cape Town

As property rates and costs increases and tourism continues to grow in Cape Town, more and more homeowners are letting out their property. But did you know, you need city permission before leasing your flat or property for short-term stays? Not anymore.

With a recent increase in the use and need for temporary accommodation, the Western Cape – City of Cape Town Metropolitan Municipality, last year, amended the Municipal Planning By-law to include and allow for controlled densification, construction of a third dwelling and short-term letting.  

These amendments are effective from 3 February 2020. This is very good news for small business owners and prospective Airbnb’s that were limited previously due to the municipal zoning restrictions.

If a homeowner constructs an additional dwelling, it will be now possible to register a sectional title scheme and can be sold off as separate dwellings.

As with any by-law, these amendments or laws do not override the rules of a body corporate or a homeowners’ association, or restrictive conditions in a title deed.

The 2020 Consolidated Municipal Planning By-law document containing all amendments from 3 February 2020 can be downloaded here. For more information on other legislation, visit https://legal.sabinet.co.za – your direct and convenient access to the laws that govern South Africa.

Access multivariate resources applicable to the Republic with the three-tier system of government – National, Provincial and Local – Your Blueprint of the South African Legal Landscape.