Johannesburg South Africa Sectional Title Law

[Gretchen18]

Hi all - I am a fairly new host and have recently got an email from a neighbor who has reported to body corporate that my property is listed on AirBnb. Has anyone has this experience and have legal advice? My body corporate rules do not specifically prohibit this so I didn't think there is a law which prevents short term leasing. Any help will be appreciated. 

[Dihan0]

Hey Gretchen

I am going through the same ordeal now. 

what was the outcome of  your situation?

Regards

Dihan

[Kas2]

It is out of fear of rent squatters, that I have opted to do short term rentals. I am now heading for a fight with my neighbour and possibly the BC because of guests who misbehaved despite all the precautions that I take to prevent that from happening.

My understanding of the issue is based on the assumption that renting out your sectional title unit on a short term basis does not constitute running a business from your unit (which is prohibited in the standard management rules) Even short term occupation is still residential use. Many sectional title developments were done and sold to investors, long before the advent of short term rental sites such as AirBNB and Booking.com making it easy to find short term tenants so no provision for this eventuality was made in the Sectional titles act, nor in most sets of conduct rules. Bodies corporate cannot now simply introduce restrictions on owners as to how and for what duration they may rent out their units. Many people who wrote on this subject said that BC´s can take all the steps to take a special resolution at an AGM to ban short term rentals. Personally I disagree because such a special resolution, even if supported by the required majority ,ay still unjustly infringe on the pre-existing rights of the owner and could be contested in a court of law.

It would be far more productive if owners, BC´s and Managing agents work together to create mutually acceptable rules of how to manage this phenomenon which is NOT going to go away and which cannot be stopped. I for one, would have no problem to grant the Trustees or the Managing Agent, a mandate to immediately evict short term tenants who are in breach of the conduct rules and who are making a nuisance of themselves. This is not going to do anybody any good if BC's and Trustees start fighting with, or try to stop individual owners from renting out their properties for the maximum return. I would love to hear some feedback from others in the same boat

[Tim-and-Lara0]

HI All,

I have 2 units in a BC of 32 units. We recently have been notified of an individual who is starting to complain about AirBnB. The main argument the individual has is that there is a security risk involved and that they dont like the additional traffic.

Security seems like a stupid excuse as the complex has fences that children could probably climb over. And the owner should be responsible for ensuring their own security surely?

She is starting to chat to other people within the estate to get on board with her. This person was running a massage therapy business from the unit and was told to stop - I feel that since such she has become vindictive of the body corporate and now finds all little things to pick on. That being said she wants to sell her unit but still try and impose a minimum stay on her unit. I find this very odd...

So - the next step is that BC or planning to put a general vote (requires more than 50% vote) towards imposing a minimum stay on short term rentals which could be 2 or maybe 3 days( 3 days seems silly as guests dont stay friday, saturday and sunday...)

So what are my options?

Should this be considered a general vote (>50%) or a special vote (>75%) or unanimous(100% which I guess wouldn't work as I would vote against and it would not work). 

I've been in contact with a few of the units that rent out currently to try and get them to vote against imposing any restrictions.

The restriction is also detrimental to any persons trying to sell their units surely?

I look forward to any advice or responses on this matter?

[Kas2]

I am happy to report to the community that I have succesfully prevented a special resolution be taken at the last AGM to impose a ban on short term rebtals in a sectional title unit.

[Ewald3]

I am relieved to found this conversation here especially seeing that it is from fellow SA's. We just returned from a gruelling session in the Advocate's Chambers. Our HOA has taken us on for running an AirBnB arguing that "it is a business" and should not be allowed. Legal costs are running already in excess of R25 000 for our HOA, we naturally refuse to pay. On top of it all we begged them to take the dispute to the Ombud (CSOS) where the cost is R150 only to settle. CSOS is very AirBnB friendly having, according to our advisors who specialises in HOA and Sec Title Law. Look them up on Paddocks Consulting. We opted to take our dispute to the CSOS who is now handling the matter. The advocate on the HOA side now has 10 days to decide whether to go through with the HOA's arbitration process or agree with us that CSOS is the better forum. As it is with these matters, neighbours use issues like ST rentals to actually settle other scores or with other hidden agenda's - so annoying. 

Kas, I really would like to know how you managed to prevent to impose the ban at your AGM. 

[Kas2]

Dear Ewald,

The big problem with HOA´s or trustees of Sectional title complexes in South Africa (at least in my personal experience) is that more often than not, totally unqualified persons are elected as officials. People often volunteer to serve on these bodies purely to advance their own personal interests, and because it is an ungrateful job in the first place, the best people do not want to be nominated.

I have yet to lose any dispute I have ever had with trustees, and in many instances these victories came at great personal expense to me.

I have even had an AGM which was not properly convened, declared null and void and a decision taken in an unlawful manner at said AGM and wait for this, WITH the BC lawyer in attendance, revoked!!!!

Fortunately in this instance, a simple letter objecting to the planned ban, obviously with the cortrect motivation and a veiled threat of legal action against the BC, sufficed. If you send me your personal e-mail, I will gladly share my letter with you.

[Ewald3]

Hi Kas, Can I contact you via your listing? Or you can do so via mine. 

[Kas2]

contact me on [Email address hidden]

[Jo273]

Hi Kas

I would appreciate to see your letter too...I have just had an issue come up with one of my units.

Jo

[Kas2]

HI Jo, I see you are in California - I am sure thet the laws are completely different there

[Jo273]

Hi Kas...

I'm South African & my properties are in Cape Town hence me reaching out to you.

Thanks the letter was very helpful.

Regards Jo

[Penny232]

Hi Kas, I am also interested as the body corporate is trying to take chances. I want to be prepared, please share your letter with me. My listing is in johannesburg

[David2786]

Hi Kas I am in Jossie and would love to see your letter too.

[Ruth454]

Hi Kas any chance I could have a quick chat with you please ?