Sectional Title Rentals: Special Rules & Challenges for Landlords

Sectional title rentals have become a common feature of the South African property market. Unlike freehold ownership, where a landlord controls the entire property, sectional title ownership means landlords own a unit within a larger scheme, such as a flat or townhouse, while sharing common property with other owners.

Renting out a sectional title property brings unique challenges because landlords are subject not only to the Rental Housing Act but also to the sectional title scheme’s management and conduct rules.

For landlords, this dual layer of legal and regulatory requirements creates obligations that differ significantly from renting out a freehold house. To remain compliant and avoid disputes, it is essential to understand the specific rules and challenges associated with sectional title rentals.

Key Legal Framework Governing Sectional Title Rentals

South African landlords must navigate several essential laws and regulations:

• Sectional Titles Schemes Management Act (STSMA) 8 of 2011 – Governs sectional title schemes, including common property management, body corporate powers, and conduct rules.
• Rental Housing Act 50 of 1999 – Regulates rental agreements, tenant rights, and landlord obligations.
• Consumer Protection Act 68 of 2008 – Applies to fixed-term leases, requiring proper notice periods and fair treatment of tenants.
• Scheme Rules – Each sectional title complex has its own management and conduct rules, which carry legal force and must be followed by both landlords and tenants.

These overlapping legal frameworks make sectional title rentals more complex than standard residential letting.

The Role of the Body Corporate in Rentals

When a landlord rents out a sectional title property, the tenant automatically becomes bound by the body corporate’s conduct rules. The body corporate manages common property, ensures compliance, and can take action against both landlords and tenants if regulations are breached.

For example, suppose a tenant continually parks in the wrong bay or makes excessive noise. In that case, the body corporate can enforce penalties or even approach the Community Schemes Ombud Service (CSOS) for enforcement orders.

Importantly, it is the landlord who is ultimately responsible for tenant behaviour, meaning disputes between tenants and the body corporate often fall back on the landlord to resolve.

Special Rules That Affect Sectional Title Landlords

Landlords in sectional title schemes face additional restrictions compared to freehold property owners. Some of the most common rules include:

• Short-Term Letting Restrictions – Many sectional title schemes prohibit or strictly regulate short-term letting, such as Airbnb rentals. A landlord must check whether these rules exist before entering into such arrangements.
• Pet Policies – Tenants often require body corporate approval to keep pets, and landlords must communicate this upfront in lease agreements.
• Noise and Nuisance Clauses – Sectional title schemes typically impose strict noise controls, and repeated violations can lead to tension with neighbours and the body corporate.
• Parking Allocations – Tenants may only use designated bays, and landlords cannot promise extra parking without body corporate approval.
• Alterations and Renovations – Tenants are generally not permitted to make structural or aesthetic changes without prior consent from the body corporate.

Failure to disclose or enforce these rules may result in costly disputes for landlords.

Common Challenges Faced by Landlords in Sectional Title Rentals

Limited Control Over Common Property

Landlords cannot guarantee tenants exclusive use of common areas such as gardens, swimming pools, or gyms. If facilities are poorly maintained, disputes may arise even though landlords have little control.

Additional Costs and Levies

Landlords remain responsible for levies, CSOS contributions, and special levies imposed by the body corporate. Delays in levy payments can impact tenant services, including security and maintenance.

Conflict with the Body Corporate

If a tenant consistently breaks the scheme rules, the body corporate may impose fines or restrict access. Ultimately, the landlord may face financial penalties or even be forced to evict the tenant.

Higher Risk of Disputes

Sectional title rentals often lead to three-way disputes involving landlord, tenant, and body corporate. Unlike freehold rentals, landlords must manage not only tenant relations but also maintain compliance with body corporate requirements.

Restrictions on Tenant Selection

Some schemes impose conditions on who may rent units, such as age restrictions in retirement villages. This reduces a landlord’s freedom to choose tenants.

Practical Tips for Sectional Title Landlords

• Include Scheme Rules in Lease Agreements
• Landlords should attach the body corporate’s conduct rules to the lease agreement, ensuring tenants acknowledge and accept them.
• Communicate with the Body Corporate
• Before leasing a unit, landlords should notify the body corporate, provide the tenant’s details, and confirm compliance with the scheme’s requirements.
• Vet Tenants Carefully
• Because landlords remain responsible for tenant behaviour, thorough screening of prospective tenants is essential.
• Stay on Top of Levies and Contributions
• Late payments can damage relationships with the body corporate and affect tenant services, so landlords should keep accounts up to date.
• Use Professional Property Management
• For landlords who find compliance complex, using a managing agent familiar with sectional title schemes can reduce stress and ensure proper administration.

Why Sectional Title Rentals Require Extra Vigilance

The layered legal structure of sectional title rentals means landlords must balance their obligations under rental law with the rules of the body corporate. Unlike freehold properties, landlords cannot independently make all decisions about tenant use, property modifications, or letting arrangements.

This complexity often catches inexperienced landlords off guard. For example, a landlord may sign a lease allowing pets only to face objections from the body corporate, leading to disputes that strain both landlord–tenant and landlord–body corporate relationships.

FAQs on Sectional Title Rentals

What happens if my tenant breaks body corporate rules?

The body corporate can fine the landlord or take action through CSOS. The landlord must enforce tenant compliance or risk penalties.

Can I rent out my unit on Airbnb?

It depends on the scheme rules. Many sectional title complexes prohibit short-term letting, and landlords must obtain approval before hosting guests.

Who pays the levies – landlord or tenant?

Levies are the responsibility of the landlord, though some landlords include levy contributions in the rental price. The tenant has no direct obligation to the body corporate.

Do tenants automatically become members of the body corporate?

No. Only owners are members of the body corporate. However, tenants are bound by the scheme’s conduct rules.

Can the body corporate stop me from renting out my property?

Generally, landlords have the right to rent out their units; however, schemes may impose reasonable restrictions, such as short-term letting bans or tenant approval processes.

Conclusion

Sectional title rentals in South Africa bring a unique set of responsibilities for landlords. Unlike freehold rentals, landlords must comply not only with national rental laws but also with scheme-specific rules enforced by the body corporate.

Issues such as pets, short-term letting, noise, and parking require careful management to prevent disputes and maintain a harmonious community. For landlords, the key to success lies in proactive communication, tenant education, and strict adherence to body corporate rules and regulations. 

By embedding scheme rules into lease agreements and maintaining strong relationships with managing agents and the body corporate, landlords can reduce risks and safeguard their investments.

 Don’t go through it alone — South Africa’s landlords stand together.

When you join the Landlords Association of South Africa, you gain more than just membership; you gain a robust network of support. From expert legal advice and vital landlord resources to guidance on dealing with problem tenants, we stand with you every step of the way.

For just 2 rand a day, you can access professional advice, proven tools, and a community that understands the challenges of both commercial and residential property management.

Join today and experience the confidence of knowing you’re never facing it alone.

Our Top Read Blogs:

How to Sell a House in South Africa Fast

Complete Process of Tenant Eviction in South Africa

What Can I Do If A Tenant Is Neglecting My Property

Useful External Links

https://www.csos.org.za

https://www.gov.za/documents/sectional-titles-schemes-management-act-8-2011

https://www.gov.za/documents/rental-housing-act