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short term rental of unit

By Max Hounsell on Tue, 09 Jan 2018 at 16:21

We have a conduct rule which stipulates that sections cannot be rented out on a short-term rental - i.e. for a weekend get-away. The units are in the mountains and lend themselves to renting out like this to recoup costs.
I was told that it is illegal to have such a rule and any owner is entitled to his unit at any time. Can anyone confirm this please.

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RE: short term rental of unit

Murray Bennett replied on Wed, 10 Jan 2018 at 21:16

Here are some relevant articles which will provide all the information you need.

https://paddocksblog.com/2017/01/24/short-term-letting-in-sectional-title-schemes/...Show More

RE: short term rental of unit

Callie de Jager replied on Thu, 11 Jan 2018 at 04:34

Murray. Thank you for your comprehensive answers, always. It is always a pleasure to read what you write. Thank you for the time and effort.
Max. I understand your frustration. Brian Addison from Addsure hit it on the nail - For some time now, insurers and underwriting managers have been raising concerns over the practice of short-term holiday accommodation letting in buildings regarded as standard residential occupancy risk by nature. The reality is that the moment a paying guest arrangement is entered into, a business relationship exists and the unit is no longer a residential risk but a commercial occupancy risk.
Michael Bauer says - Can one use residential sections for commercial activities? What about zoning? Doesn’t short-term letting require that the scheme be zoned for resort use? Is the zoning requirement dependent on what proportion of the sections in the scheme are regularly let for short periods? There are no easy answers to these questions! A recent news report has highlighted the need for those who rent their units out as holiday accommodation in Cape Town to check the zoning of their property and to apply for permission from the City of Cape Town’s Development Management Department.

RE: short term rental of unit

Max Hounsell replied on Thu, 11 Jan 2018 at 10:18

Thank you Murray and Callie

I was aware of the insurance implications but that could be overcome, I am sure. I am confirming with the municipality that the development is zoned "Residential / Recreational" and that renting as holiday accommodation would be permitted.
It is strange that the comment that "our rule was illegal" came from a senior member of the Paddocks team!
Max

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