The demand for short-term rentals has skyrocketed over the past decade, and platforms like Airbnb have revolutionised the way people book holiday accommodations. South African property investors are increasingly tapping into this trend, seeing it as a lucrative business opportunity. However, like any business venture, starting an Airbnb requires careful planning and knowledge to be profitable.

Whether you’re in Cape Town, Durban, Johannesburg, or a small town with growing tourism potential, this guide will walk you through the essential steps to set up a successful Airbnb in South Africa.

6 Steps to Start an Airbnb in South Africa

Step 1: Understand Local Laws and Regulations

Before listing your property on Airbnb, make sure you’re familiar with your city’s regulations on short-term rentals. South Africa has different rules depending on the municipality, and it’s important to comply with them to avoid legal issues.

  • Contact your local municipality to understand regulations specific to short-term rentals.
  • If you live in a complex or estate with a Body Corporate (BC), check their rules on short-term letting. Some BCs may restrict rentals of less than 30 days.
  • Check whether you need additional licensing or zoning approvals for operating a guest house or B&B.

Step 2: Prepare and Declutter Your Space

Creating a welcoming and aesthetically pleasing environment is key to attracting guests. South African travellers appreciate spaces that feel like home, while international tourists might enjoy local flair and décor.

  • Clear out unnecessary clutter and aim for a minimalist design. This makes your space feel larger and more open.
  • Make sure the essentials are provided: clean towels, bed linens, kitchen basics, and toiletries.
  • Consider adding unique touches that showcase local culture, like South African art or books.

Step 3: Get Professional Photos

Good photographs are crucial for attracting bookings on Airbnb. With many South African properties competing for attention, your photos need to stand out.

  • Airbnb offers a free professional photography service in some regions. If not available in your area, invest in a local photographer with real estate experience.
  • Highlight both the interior and exterior of your property. Showcase the amenities, the neighbourhood, and nearby attractions like beaches, parks, or shopping districts.

Step 4: Craft an Engaging Listing

Your Airbnb listing should sell not only the property but the experience of staying there.

  • Focus on what makes your location unique. Is it close to popular tourist spots like Table Mountain, the Kruger National Park, or the Durban beachfront?
  • Be clear about house rules, whether pets are allowed, if there’s free parking, or any other amenities like a swimming pool or Wi-Fi.
  • Mention local tips or attractions in your area to create a sense of excitement for potential guests.

Step 5: Set the Right Price

Pricing your Airbnb correctly is key to ensuring profitability while attracting bookings.

  • Research what similar properties in your area charge and use that as a benchmark.
  • Airbnb has a Smart Pricing tool, but in a competitive market like South Africa, it’s often better to do your own research.
  • Consider seasonal pricing. Cape Town properties, for instance, can command higher rates during the summer and holiday seasons, while coastal towns may have higher demand during school holidays.

Step 6: Prioritise Guest Experience

South African hospitality is known for its warmth and friendliness. As an Airbnb host, providing great service is essential for earning positive reviews.

  • Be prompt and polite in your communication with guests. Whether it’s by message, phone, or in person, make sure they feel welcome.
  • Offer small but thoughtful touches, such as a welcome note, local snacks, or recommendations for activities.
  • Ensure the property is clean and ready for every guest, with all amenities in working order.

Management Options: Self-Managed vs. Property Management Companies

Running an Airbnb can be a full-time job, especially as you grow your portfolio. There are two primary ways to manage your Airbnb:

  • Self-Managed: You take full responsibility for everything, from guest communication and bookings to cleaning and maintenance. While this can maximise your profits, it requires significant time and effort.
  • Property Management Company: If you prefer a more hands-off approach, you can hire a property management company that specialises in short-term rentals. These companies handle everything, including bookings, cleaning, and guest interactions, in exchange for a percentage of your rental income. This is ideal if you own multiple properties or live far from the rental.

If you’re unsure which management route to take, feel free to contact our office for tailored advice on both self-management and property management company options.

Costs Involved in Starting an Airbnb in South Africa

The initial cost to start an Airbnb can vary based on factors like property location, size, and how much renovation or furnishing is required. Here are some typical expenses:

  • Insurance: Make sure you have the right insurance that covers short-term rentals. This is particularly important if you’re listing your primary residence.
  • Furnishing: Whether it’s a full renovation or just sprucing up the place, furnishing your property with durable, attractive items is crucial. You don’t need to break the bank, but ensure everything is clean and functional.
  • Utilities and Services: As an Airbnb host, you’ll be responsible for utilities like water, electricity, and internet. Although Eskom has had an over 150 day streak of uninterrupted power at the time of writing this article, load shedding is still a possibility, so consider providing a backup power solution (like a generator or inverter) to avoid negative reviews.

Can You Start an Airbnb Without Owning Property?

Yes, you can still get involved in the Airbnb business without owning property. Here are some ways:

  • Property Management: You can manage properties for other investors who own holiday homes but don’t want the hassle of hosting. There are different platforms available that can connect you with Air BnB owners looking for property managers.
  • Rent-to-Rent: Negotiate a long-term lease with a property owner and sublet the home on Airbnb, but be transparent about your intentions and get written permission from the landlord before embarking on this.
  • List a Room: If you have extra space in your home, renting out a room or flatlet can be a great way to test the waters.

Is Starting an Airbnb in South Africa Worth It?

With South Africa being a top tourist destination, the potential for success in the short-term rental market is high. Cities like Cape Town and Durban, along with safari lodges and coastal towns, offer great opportunities for Airbnb hosts. However, it’s important to remember that hosting can be a full-time commitment, especially as you scale up.

By providing a memorable guest experience and maintaining your property well, you can build a steady income stream, making the effort worthwhile.

Take the leap, and your Airbnb journey could become not just a source of extra income, but a thriving business!