THE HIGH COURT STRIKES FIRST

In a landmark judgment, the Western Cape High Court ruled that several municipal charges introduced by the City — including City-wide Cleaning and fixed Water and Sanitation charges based on property value — were unlawful.

The City has now been forced back to the drawing board and has proposed major changes to its tariff structure for 2026/27.

The separate City-wide Cleaning charge will disappear and be absorbed into Property Rates, while Water and Sanitation fixed charges will revert to being based on meter size rather than property value.

While many homeowners welcomed the ruling, the reality is that the City still needs to collect the money somewhere.

As every ratepayer knows, municipal charges rarely disappear — they simply change departments.

AIRBNB OWNERS IN THE SPOTLIGHT

At the same time, the City is proposing a new Short-Term Letting By-law that could see dedicated Airbnb properties reclassified from Residential Rates to Commercial Rates.

For some investors, this could result in municipal rates increasing by more than 100%.

The City argues that properties operating as full-time accommodation businesses should contribute in the same way as hotels and guest houses.

Property investors, however, are concerned that the additional costs could reduce profitability and place pressure on Cape Town's thriving short-term rental market.

For areas such as Big Bay and Bloubergstrand, where holiday accommodation plays a major role in the local economy, the proposal is being watched very closely.

THE BIGGER PICTURE

Whether it is municipal tariffs in Cape Town or international tariffs coming out of Washington, one thing seems certain — somebody always ends up paying.

Global uncertainty, rising fuel costs linked to Middle East conflicts, fluctuating exchange rates and increasing municipal costs are all adding pressure to household budgets and property investors alike.

For many owners, the question is no longer whether costs will increase, but where the next increase will appear.

WHAT SHOULD PROPERTY OWNERS DO?

✔ Review your latest municipal account carefully.

✔ Use the City's updated Rates and Tariffs Calculator to estimate the impact of the proposed changes.

✔ Airbnb operators should monitor the proposed Short-Term Letting By-law closely and participate in the public comment process.

✔ Keep an eye on future budget announcements, as several of these proposals are still subject to consultation and possible amendment.

As Big Bay residents know all too well, living by the ocean comes with spectacular sunsets, world-class views and the occasional surprise.

Unfortunately, municipal bills seem determined to remain one of them.