What you need to know about Airbnb in South Africa

While Airbnb is an incredibly popular platform in South Africa for property owners, many who have previously listed their property for short-term rent on the platform have switched back to long-term renting on other platforms. It is widely used for those looking to make some extra cash, but many have found that the lack of a manager for their property/ies has led to numerous downsides that they are unable to afford. While all short-term rentals, whether on Airbnb or not have their cons, experts believe these shortfalls will prohibit the platform from taking over the rental industry entirely.

Issues with Airbnb’s short-term rentals:

• Property owner takes full control over checking in and checking out guests, cleaning and maintenance, responding to enquiries, complaints, and possible grievances from neighbours.
• It’s popularity has led to the oversupply of properties available and caused prices to decrease. Owners are therefore making less of an income.
• Short-term rentals are seasonal – summer months earning are high, but during the winter months earnings are unpredictable and low.
• Location is vital – if a property is located within a city such as Johannesburg, the demand will be high, whereas if it is located just outside the city in Roodepoort for example, demand might be lower.

While these issues aren’t relevant only to Airbnb, it does place time and financial constraints on property owners who use the platform for income from short-term rentals. It is for this reason that experts believe the Airbnb model is not a big threat to the traditional rental industry in South Africa. According to Michael Hauser, estate agent at RE/MAX Living, “With long term rentals, you are guaranteed a stable income with less hassle. While I do believe Airbnb has its place – it is for the independent traveller who likes to interact with his or her host – I do not think that Airbnb will take over the rental market.”