Short-term letting your home? Consider this!
As short-term rentals become increasingly popular among travellers and homeowners alike, many property owners are considering listing their homes on online marketplaces to generate extra income. However, before converting a garage or spare room into a short-stay option, there are several legal, financial, and practical factors to consider.
According to Adrian Goslett, CEO and Regional Director of RE/MAX Southern Africa, homeowners should first assess whether their property is suited for short-term letting and if it can be profitable.
“Short-stay rentals can be profitable if located in the right area and set up properly, but they require far more hands-on work and management than many homeowners expect,” he explains. “Instead of viewing it as an easy route to passive income, homeowners should treat short-term rentals as running a hospitality business.”
Goslett advises starting by understanding the legal framework governing short-stay accommodation. Homeowners should confirm whether their city or zoning rules restrict short-term rentals, especially if the property is within a sectional title scheme or estate.
“Many complexes have conduct rules that restrict short-term letting, require approval from the body corporate, or limit the number of occupants,” he says. “Even if permitted, owners may be responsible for ensuring guests comply with noise regulations, parking restrictions, refuse rules, and visitor access procedures.”
Insurance is another critical consideration. Standard homeowner policies may not automatically cover short-term rentals, and some insurers require disclosure or offer specialised coverage. Hosts need to ensure protection against accidental damage, theft, liability claims, and potential loss of income if the property becomes uninhabitable.
Tax obligations must also be accounted for, as any earnings from short-term rentals need to be declared. Accurate record-keeping of income and deductible expenses is essential.
Maintaining the property to a high standard is key to long-term success, as guest expectations and online reviews significantly influence a listing’s reputation. Pricing strategy is equally important: owners should factor in platform fees, cleaning costs, utilities, wear and tear, and potential vacancy periods when calculating profitability. Investments in security measures—such as smart locks, alarm systems, or controlled access—may also be necessary to manage guest turnover safely and efficiently.
Goslett advises homeowners uncertain about short-term letting to consult a trusted real estate professional who understands local demand trends, pricing expectations, and the long-term impact on the property’s market value.
