Short Term Accomodation

Short-Term Rentals, Airbnb and Evictions: What Hosts Need to Know

Short-term accommodation platforms such as Airbnb have become a permanent feature of the property market. However, disputes can arise when guests overstay or refuse to vacate. In these situations, understanding the legal distinction between tenants and guests is critical.

Tenants vs Guests: A Crucial Legal Distinction

Residential tenants in South Africa are protected by the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE). Evictions under PIE require a formal court process in which a judge must consider whether eviction is just and equitable, taking into account factors such as the length of occupation, vulnerability of the occupiers, and access to alternative accommodation.

By contrast, guests staying in commercial accommodation, including hotels, guest houses and Airbnb properties, are generally not afforded PIE protection. This distinction was clearly confirmed in Yussuf and Another v Ye Khan Investments CC and Another, where the court held that PIE was enacted to protect people who occupy property because they have nowhere else to live, not visitors staying in commercial accommodation for a fixed period.

The court specifically noted that guest house and hotel occupants are temporary visitors who occupy premises with the owner’s consent and for a defined duration, placing them outside the ambit of PIE.

Why Airbnb Is Usually Treated as Commercial Accommodation

In most cases, Airbnb stays are regarded as commercial hospitality arrangements rather than residential leases. This means that where a guest overstays or breaches house rules, the owner may seek an ejectment order on relatively short notice, instead of embarking on a lengthy PIE eviction process.

However, the classification depends on substance over form. The longer and more residential the occupation appears, the greater the legal risk to the host.

The Added Risk of Digital Nomads

The rise of digital nomads has introduced a further layer of complexity. These guests may book short-term accommodation but work remotely and have no fixed address elsewhere.

This undermines one of the key assumptions underpinning commercial evictions, namely, that guests have alternative accommodation available. Where a guest is able to argue that the Airbnb property has effectively become their primary residence, a court may be asked to consider whether PIE should apply, despite the platform used or the label attached to the booking.

Practical Cautions for Airbnb Hosts

To reinforce the commercial nature of the arrangement and reduce eviction risk, hosts should:

• Avoid extended or successive bookings that resemble residential occupation
• Clearly record that the stay is temporary and not for permanent residence
• Include clauses confirming that the guest has a permanent residence elsewhere
• State expressly that no tenancy rights arise and that PIE does not apply
• Act swiftly in the event of breach or overstay

As confirmed by the courts, including in Yussuf v Ye Khan Investments, PIE protections are not intended to apply to commercial accommodation. Nevertheless, poor drafting or prolonged occupation can blur this distinction.

Carefully structured agreements and early legal intervention remain the most effective tools for Airbnb hosts seeking to protect their property rights while operating within the law.

Should you require assistance with drafting short-term accommodation agreements, managing overstays, or pursuing eviction or ejectment proceedings, you are welcome to contact our offices for advice and support.