Airbnb recently partnered with Wesgro and signed the first city collaboration agreement in Africa. However, the City of Cape Town has made it more challenging for the online platform to operate, especially in the Atlantic Seaboard region, as it is not automatically permitted in Cape Town apartments.

The City has encouraged flat dwellers to whistle-blow on anyone using a platform such as Airbnb, if the flat is not properly zoned. The City will pay the legal costs to shut down unapproved Airbnb units in flats.

One requirement by the City is that for permission to be granted, there must be at least one resident who dwells in it at the same time as a primary residence.

With many apartments only one or two rooms, the demand is for use of the entire apartment.

AirBnB apartments have helped solve the City's squeeze on accommodation and it is common for non-approved AirBnB's to be operating in the areas like Sea Point and Mouille Point. These areas near the Waterfront have changed their charachter to become high-demand tourism areas.

Property owners wishing to operate as an Airbnb must get consent from the City; consider all applicable legislation; as well as comply with all restrictions and obtain permission from the body corporate or compliance with requirements, says Councilor Brett Herron, Mayoral Committee Member for Transport and Urban Development for the City of Cape Town.

The Development Management Scheme (the zoning scheme) is one of the pieces of legislation that applies to how land and property may be used, and does not specifically provide for the land use type of short-term rental for transient accommodation as is offered by Airbnb.

He adds that the City’s enforcement for land use is complaint-driven. “Upon investigation and finding a non-compliance with the Development Management Scheme, we would serve notice on the owner to cease.”

Failure to cease would result in the City pursuing prosecution at the Magistrates’ Court or, if serious, to apply to the High Court for an interdict.