The homeowners' association of Pretoria-based Blyde Riverwalk Estate turned to court to have its rules affirmed regarding short-term rentals.
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A number of apartment owners at Balwin Properties’ Blyde Riverwalk Estate claim the JSE-listed company acted in an “unlawful, unethical and anti-competitive” manner after short-term letting (STL) was barred from the development, but Balwin has disputed these claims.
Unit owners contended Monday in a statement that Balwin had employed “unlawful” tactics to restrict independent participation in the STL market. A Balwin spokesperson said that while STL had been occurring at The Blyde for some time, as volumes increased, the cumulative impact on facilities, security, and community stability became clear. What may have been manageable at low levels became unsustainable as more apartments operated on a high turnover basis.
“Concerns regarding short-term letting are not unique to this development and are widely recognised both locally and internationally. This is reflected in ongoing considerations by the government to introduce regulatory frameworks for short-term letting in South Africa. Several global cities, including New York and Barcelona, have already implemented regulations to manage this type of activity,” the Balwin spokesperson said.
“Residents raised ongoing concerns around overcrowding, wear and tear on common property, parking congestion, noise, and the impact of transient occupancy on a residential estate designed for long-term living,” the spokesperson said.
This follows a High Court order issued on September 12 last year and a recent reiteration by the Community Schemes Ombud Service (CSOS) issued on March 27, 2026. Balwin Properties has also filed an appeal to the High Court in this regard.
The apartment owners said the property developer had convened “a bogus AGM” on December 18, 2025, to “illegally amend” the rules under appeal at the High Court. Balwin said the meeting was legally constituted.
“The CSOS is on record informing Balwin Properties that no amendments of the rules will be effected and/or applicable up until the finalisation of the appeal case,” the owners said.
The Balwin spokesperson said, as far as The Blyde Homeowners Association was concerned, however, the prohibition of STL is a valid conduct rule and must be enforced by the trustees.
“Recent correspondence from the CSOS does not represent a final determination, and the legal process is continuing,” the spokesperson said.
Meanwhile, Balwin has also proceeded to develop and operate a hotel within the estate, “effectively participating in the STL market while simultaneously prohibiting homeowners from conducting similar activities,” the apartment owners said.
“This conduct raises serious concerns about anti-competitive behaviour,” and the homeowners have called on the Competition Commission to investigate Balwin’s alleged restriction of competition for its own commercial gain.
The Balwin spokesperson said, however, that the attempt to equate unregulated, high turnover short-term letting from multiple privately operated hotel units with a properly managed and regulated hotel operation was incorrect. “The two are not comparable in operational, financial, or social terms,” he said.
The homeowners said Balwin had appointed employees and agents, some of whom were not homeowners, as trustees in the Homeowners Association (HOA).
“The trustees/employees continually participate in unilateral decisions on matters currently before the High Court and CSOS, effectively deciding to prohibit homeowners from conducting STL but allowing the Balwin-operated and owned hotel to exist,” the homeowners said.
“In a sectional title scheme, levies are structured around residential use, yet high turnover short-term letting places materially greater demands on shared infrastructure and services without a corresponding adjustment in contribution,” Balwin said.
“The Blyde Homeowners Association, at a valid and quorate AGM, voted on the prohibition of short-term letting, and the resolution was passed. The Conduct Rules were subsequently approved by CSOS as required,” the spokespereson said.
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