If you’ve been keeping even half an eye on what’s happening in the short-term rental (STR) world lately—whether globally or here in Cape Town—you’ll know there’s a lot of talk. Some of it’s exciting, some of it’s speculative, and some of it... well, it needs a bit more real-world insight. Watch the interview below:
Last week, our Founder, Richard Marshall, sat down with Neale Petersen—the respected author, investor and Founder of Real Estate Investor Magazine. The two had a deep and wide-ranging chat about the state of the STR industry, and as someone who's right in the thick of it, Richard brought some valuable perspective to the table.
Emerging Micro-Seasons in Cape Town’s STR Market
We’ve always known Cape Town is a city with layers—summer, winter, and everything in between. But Richard touched on something that’s become more obvious to those of us in STR: emerging micro-seasons.
Think: little bursts of booking activity outside traditional high seasons, influenced by everything from international school holidays to local festivals and remote work trends. These micro-seasons are reshaping how we think about pricing and marketing.
In other words, it’s no longer just about December and January. The Cape Town calendar is getting more colourful, and for STR investors and managers, that opens up new opportunities.
The Airbnb Conversation: Policy, Perception & the Bigger Picture
Naturally, Airbnb came up — how could it not? Richard and Neale got into the thick of it, particularly around recent conversations in the Western Cape about potential levies and new regulations on short-term rentals.
Richard was quick to unpack the difference between the two key developments currently being discussed. First, there’s the national tourism white paper, which hints at regulating short-term rentals. And second, at a municipal level, there’s a more practical discussion around levelling the playing field — ensuring STRs contribute fairly, just like hotels do.
On the topic of levies, Richard was refreshingly pragmatic. He explained that the City of Cape Town is looking at rerating properties used exclusively for STR as commercial assets, which would come with higher rates. He considers this a fair move. Similarly, the idea of applying the 1% tourism levy (already applied to hotels) to STRs also seems reasonable to him — especially since that money is ring-fenced and goes directly toward promoting tourism in South Africa.
What’s more concerning, Richard noted, is the national-level talk of restrictions — the kind we’ve seen in cities like Barcelona, New York, or Athens, where governments implemented bans or strict caps on STRs. He explained that while these measures were intended to lower property prices and free up long-term rental stock, the evidence shows that those goals haven’t really been achieved. Instead, tourism in those cities took a hit, without delivering the expected housing relief.
Richard’s view is clear: short-term rentals are a vital part of South Africa’s tourism ecosystem. Airbnb’s own data from 2023 estimated that the platform contributed over 50,000 jobs and R26 billion to the local economy. And unlike big hotel chains, the STR sector is highly decentralised — made up of small operators like Nox, individual homeowners, and local service providers.
He also highlighted the wider impact: STRs distribute tourism spend more evenly across neighbourhoods and communities. From cleaners and maintenance teams to local cafés, restaurants, and corner shops, the ripple effect is broad and meaningful.
So yes, the industry should absolutely be taxed fairly, and Richard fully supports transparent, above-board operations. But he’s also hopeful that policymakers will take a balanced approach — one that recognises STR’s value, rather than scapegoating it. As he put it, severe restrictions might end up doing more harm than good, not just to businesses like Nox, but to South Africa’s tourism industry as a whole.
Tips for Managing and Investing in STR
For anyone thinking of investing in a short-term rental — or simply trying to make more sense of how to manage one — Richard shared some solid advice.
The key takeaway? This is not a set-and-forget game.
Successful STRs require professional management, regular maintenance, and a hospitality mindset. Guests expect a certain standard, and that comes down to everything from quality linen to prompt communication.
For investors, it’s important to choose the right property in the right location — and to partner with a team that understands the nuances of the market. Nox, for example, focuses on high-end homes in premium locations. But beyond that, it’s about long-term thinking: How can the asset perform over time, not just in the peak months?
If you’ve ever wondered what goes on behind the scenes at a top-tier STR agency in Cape Town — or you just want to hear from someone who’s been on the frontlines of the industry for over a decade — this interview is a great place to start.
Cover Image Teddy Jansen