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The latest trend for South Africa is to buy a Sectional title Property in areas where people enjoy taking holidays.
Often people who have bought the Sectional title property will rent out these Properties (often referred to as holiday homes) in exchange for money.
This is a Short Term Rental Agreement which can be completed in terms of an oral contract or alternatively a written contract.
In terms of this Agreement there are some major risks which often are not noticed at the inception of the Agreement, for example, should a verbal contract be challenged there is no proof of the contract being concluded so, for good housekeeping, a contract should be always concluded in writing.
In South Africa, there is no law prohibiting short-term rentals in general. However, there are municipal by laws and zoning which will assist in governing the short term rental of these holiday homes.
You will also have to ensure that the zoning regulations allow such short-term letting.
If there are zoning restrictions these may also limit your ability to rent out the unit or require the necessary permission to be obtained before you rent the property.
Furthermore, Sectional Titles Schemes Management Act also requires that an owner must inform the Body Corporate of any change in ownership or occupancy of the unit and the owners must ensure that their holiday tenants do not cause a nuisance to other permanent residents or occupants.
It is therefore recommended that the rules and regulations should be annexed to the Contract when letting out your “holiday home”. This would safeguard not only protect for yourself but also it would assist in the protection of any third parties interests.
If you are unsure whether or not your unit can be rented out for holiday accommodation, it may be a good idea to talk to a property specialist at Martin Vermaak Attorneys to help you determine any restrictions or requirements to your doing so.