Short-Term Letting in South Africa: Eviction Risks and Insurance Considerations

Short-term letting has become increasingly popular across South Africa, largely thanks to platforms like Airbnb and the growing demand for flexible accommodation options. For property owners, this can be an attractive way to maximise returns, while tenants see it as an affordable alternative to hotels. However, short-term letting comes with its own set of legal and financial risks, particularly when it comes to eviction and insurance cover.

The Legal Nature of Short-Term Letting
Short-term stays, whether through Airbnb or fixed-term lease agreements of one to three months, are still considered lease agreements under South African law. This means that both landlords and tenants are bound by the Rental Housing Act and, in cases of unlawful occupation, the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE Act).

Even if the stay is only for a few days, once a person lawfully occupies a property with the landlord’s consent, they gain certain legal rights as occupants. This is where things become tricky if they refuse to vacate the premises.

Eviction in Short-Term Letting: What Happens if Guests Refuse to Leave?
One of the biggest risks in short-term letting is when a guest refuses to vacate after their booking or lease term ends. This can happen when:

• A guest overstays their Airbnb booking without paying for the extra days.
• A tenant under a one-to-three-month lease refuses to move out when the lease term expires.
• A guest disputes payment or simply refuses to leave the premises.

Here’s what landlords and managing agents need to know:

1. No Self-Help Evictions
Even if the guest’s time is up and they are required to vacate, landlords cannot change locks, cut utilities, or physically remove them. This is unlawful and can expose the landlord to criminal charges and civil claims. Avoid committing spoliation at all costs. Taking the law into your own hands is risky and can be costly for the landlord.

2. When does a Guest become an Unlawful Occupier?
Once the agreed period ends and the guest has not vacated, they are immediately considered an unlawful occupier under the PIE Act. From that moment, only a court order can authorise eviction, as per the Constitution and applicable South African legislation.

3. The Eviction Process and how SBL Incorporated can help

3.1. The landlord must instruct an attorney to launch eviction proceedings. SBL’s expert property attorneys will explain your rights, assess the agreement in place, and provide a tailored eviction strategy that complies with South African law.
3.2. Thereafter, the court is provided with proof of the agreement, its expiry, and evidence of unlawful occupation. SBL’s attorneys handle the entire eviction application process, from drafting court papers to serving notices via the sheriff and representing you in court.
3.3. SBL formally serves notices on the occupier, who has the right to oppose the application.
3.4. If the court grants the eviction order, a date is set by which the guest must leave. If the occupier still refuses to leave, SBL ensures the Sheriff of the Court lawfully removes them, giving you back possession of your property.

4. Timelines and Costs
The process can take several weeks to a few months to finalise, depending on whether the eviction becomes opposed. During this time, landlords may face lost rental income and will likely have to carry the legal costs upfront. Time is money; therefore, SBL’s team works to resolve matters as quickly as possible, minimising your rental losses.

Insurance and Financial Risk
Many landlords assume that Airbnb’s Host Guarantee or insurance add-ons will cover them for overstays and unlawful occupation. Unfortunately, this is not always the case. These products may cover damages or theft, but not legal costs or income loss linked to eviction.

For landlords letting short-term, it’s crucial to:

• Review their homeowners’ or landlord insurance policy to see what’s included.
• Consider specialised cover that addresses rental default or legal expenses.
• Build in clear lease terms (even for Airbnb’s) to strengthen their legal position if things go wrong.
• Ensure that potential guests are thoroughly vetted. Verify all details provided to you via the Airbnb platform, and have processes in place to screen potential guests to ensure that their ratings are legitimate and their identity verifiable.

In Conclusion

• Short-term guests gain legal rights as occupiers, even if they’ve only stayed for a few days.
• If a guest refuses to leave, the formal eviction process must be followed.
• Evictions can be time-consuming and costly, making risk management and insurance critical.
• Managing agents should warn clients about these risks and ensure that agreements, terms, and insurance are in place before listing a property.

Short-term letting can be profitable, but landlords should go into it with open eyes. The risk of guests refusing to leave is real, and, in South Africa, there are no shortcuts to eviction. Combining strong agreements and legal support from SBL Incorporated with comprehensive insurance provided by a reputable insurance provider is the best way to safeguard your investment.