Long-standing residents of Bo-Kaap, a historic neighborhood in Cape Town, are being pushed out by short-term rentals, according to the Bo-Kaap Civic and Ratepayers Association. The association is calling for regulation of platforms like Airbnb, citing the displacement of families who have lived in the area for generations. The City of Cape Town plans to start registering short-term rentals and applying commercial property rates to residential properties used for accommodation businesses.
Bo-Kaap, which borders the Cape Town CBD, is considered the ancestral home of Islam in South Africa and is fundamentally a residential area. However, the conversion of family homes into tourist accommodation is eroding community cohesion, according to the association. Rising property prices and short-term rentals are pricing out long-term residents, including the elderly. The association’s chair, Sheikh Dawood Terblanche, noted that homes being converted into short-term rental units have devastated the community and warped the property market.
The local community cannot compete with the returns generated by the tourist industry, and long-standing residents feel estranged from their own neighborhood. New residents and visitors sometimes clash with deep-rooted cultural practices, such as the Islamic call to prayer and traditional celebrations. The demand for affordable housing in the area is high, with some residents waiting over 30 years for a home. Retired business strategist Masturah Adams, who runs a weekly soup kitchen in Bo-Kaap, said there are no affordable housing units readily available.
The Bo-Kaap Civic and Ratepayers Association is calling for stricter enforcement of zoning bylaws to prevent residential properties from being used for short-term rentals. The association wants short-term rental properties to be registered and licensed, with quotas to restrict the number of units allowed to operate. Owners of these properties should be required to reside there for most of the year, the association believes.
The City of Cape Town spokesperson, Luthando Tyhlibongo, said the municipal rates policy does not allow for properties paying residential rates to be used primarily for commercial purposes. The City is building a mechanism to register units for short-term letting and ensure that commercial rates are applied to properties operating an accommodation business. Under-utilized land in the area is being considered for affordable housing. The City encourages the public to report land-use violations, which could result in penalties for property owners.