Short-term letting has become a smart strategy for homeowners looking to earn strong returns while still enjoying the flexibility of their property. 

In Cape Town, where tourism demand surges during peak seasons, the potential for high rental income is especially appealing. But alongside the rewards come responsibilities, from legal compliance to managing costs and guest expectations. 

In this article, we dive into everything you need to know about maximising your short-term letting benefits while avoiding common mistakes. 

 

 

The Appeal of Short-Term Letting 

Short-term letting has become increasingly popular among Cape Town homeowners, and for good reason.

During peak travel seasons, properties in sought-after areas like the Atlantic Seaboard or City Bowl can generate significantly higher rental rates compared to long-term leases.

Short-term letting also offers unmatched flexibility. You can rent out your home when it’s convenient and enjoy it yourself when it suits your lifestyle.

This makes short-term letting an ideal option for those who split their time between multiple homes or travel often. 

For lifestyle investors, short-term letting also strikes the perfect balance between personal use and income generation. 

Essential Tips for Maximising Your Short-Term Letting Property

To get the most out of your short-term rental, preparation is key. Here are six essential tips to help you avoid common mistakes and maximise your returns. 

1. Stay informed to avoid penalties 

Short-term letting is often subject to specific local and municipal laws. Rates, zoning restrictions, and licensing requirements may apply. 

Staying up to date with regulations helps you stay compliant and avoid costly fines or issues down the line. 

2. Check your body corporate and HOA regulations 

If your property is in a sectional title or estate, confirm that short-term letting is permitted. Some body corporates and homeowners’ associations place limits or restrictions on rentals shorter than 30 days or short-term rentals overall.

3. Diarise available property dates

Enjoying your property is a major benefit of short-term letting, but spontaneous use can interfere with bookings. 

Plan your personal stays well in advance and diarise them clearly to avoid disruptions or unexpected loss of income 

4. Consult with a real estate agent or letting agency 

Although they can be costly, partnering with property professionals can give you a big advantage. 

A knowledgeable short-term letting agency or agent can help you price your property correctly, manage bookings, and handle guest communication, all while keeping you compliant with changing laws. 

5. Be aware of extra costs 

While short-term letting can generate extra income, it can also come with higher running costs that are important to plan for. This includes:

  • Management fees: Short-term management often requires more hands-on service, whether it’s guest check-ins or cleaning coordination. That’s why these fees are often higher than traditional long-term letting fees.

  • Electricity and Wi-Fi fees: These costs usually fall to the owner for short-term letting properties, as guests expect all utilities and amenities to be included in their stay.

  • Breakages: With more frequent guest turnover, the likelihood of wear, tear, and accidental damage increases. Setting aside a small monthly contingency fund can help cover replacement costs.

  • Inconsistencies in occupancy: Short-term rentals thrive in summer, but may experience slower bookings during winter. Keep seasonal fluctuations in mind when setting up your budget. 

  • Furniture costs and replacements: Furnished properties attract higher rates, but cheap furniture may need to be replaced more often. Choose high-quality, durable, and timeless pieces to reduce long-term costs.  

6. Declare your income correctly

All your rental income must be declared to SARS. It’s best to consult with a tax advisor to understand what can be deducted and ensure you remain compliant with local laws. 

This also helps you avoid unnecessary or unexpected taxation later down the road. 

Make the Most of Your Property with RE/MAX Living 

Short-term letting in Cape Town offers incredible opportunities, from high-season rental yields to the freedom of using your property when you want.

But to maximise your investment, it’s essential to plan carefully, stay compliant, and manage the finer details strategically.

At RE/MAX Living, we work with property owners and investors every day to help them enjoy the full value of their homes.

With deep local knowledge, legal insight, and a network of trusted short-term rental partners, we’re here to support you every step of the way. Get in touch to see how we can help today.