PROPERTY NEWS - Until recently, there were two thoughts about whether it is permissible to let sectional title units via Airbnb in terms of the Sectional Title Schemes Management Act (STSMA), but for now their differences appear to be have been resolved by the Ombud for community housing schemes.
"Some people argued that Airbnb letting amounted to running a business, which you are not allowed to do in residential sectional title (ST) schemes, while others said Airbnb letting was actually no different to regular letting - or to having a friend come and stay in your spare room for a while," says Andrew Schaefer, MD of national property management company Trafalgar.
However, there is no doubt that Airbnb letting does pose a potential security risk, especially where many owners in a complex are not living there themselves, but just letting out their units and giving keys, remotes and security codes to one set of visitors after another.
In addition, various companies that provide insurance to ST schemes were starting to express misgivings about Airbnb letting, especially in complexes where this was widespread.
One suggestion for ST schemes that wished to avoid the Airbnb problem, says Schaefer, was to add a Conduct Rule forbidding short-term or holiday letting of any kind, but legal opinion appeared to be divided on that too - not to mention the fact that ST owners who are letting their units via Airbnb are hardly likely to vote in favour of a rule that stops them from doing so.
"Consequently, Trafalgar decided to seek guidance from the Ombud, and the answer is that ST schemes may indeed make a rule that no short-term letting (of less than a month, for example) is allowed.
"However, the trustees will need to ensure that the rule is properly approved by owners in the scheme and registered with the Ombud. In addition, the Ombud says the rule should provide for trustees not to be unreasonable in its application."
Issued by the Trafalgar Property Group
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