The City of Cape Town announced various options to help alleviate financial stress for guest house and bed and breakfast (B&B) owners in Cape Town during the COVID-19 crisis.
Accommodation for essential services and isolation cases.
If you want to keep operating your business, you have the option of offering accommodation as an essential service.
According to the regulations underpinning the national state of disaster, “accommodation used for persons rendering services, quarantine, isolation and the lockdown” are defined as essential services.
The Western Cape Government (WCG) is looking for willing partners in the hospitality industry who would like to offer accommodation for front-line healthcare workers for isolation purposes.
Accommodation is required for the following:
In most cases these people will pay for these services, but it is also possible that the WCG, or a private sector partner, will pay up to the recommended daily rate of R500 per person.
Payment arrangement if classified as business.
You can continue to operate and be classified as a business property. If your account falls into arrears, you can apply for a payment arrangement.
Reclassification of property to residential.
To cut your rates bill, apply to change your property’s classification to a residential property and stop operating, or apply to be reclassified at reduced operations. Contact the City Valuation Office on 0860 103 089.
You can close your business and apply for the reclassification of the property as a residential property in which case, you will not be able to operate as a guest house or B&B but the property rates will be reduced and all service-related tariffs and charges will be amended accordingly.
Reduce the footprint:
You can reduce the footprint of your business operations to the extent that the property is predominantly used for residential purposes. You can then apply to reclassify the property to residential so that rates can be reduced.
Take note of the following:
If your application for reclassification is approved, the effective date, including the amendment of municipal rates and related tariffs will be from the date the signed application form is submitted by the property owner.
If your property is reclassified to residential during the crisis period, you must revert back to business classification if occupation reaches more than 40% of bedrooms utilised.
- Step 1: Complete the Rates Classification Form
- Step 2: To assist us in making sure that property valuations are as accurate as possible, complete the Data Collection Form
- Step 3: Submit both forms to email@example.com
- The outcome of the application and any further steps will be communicated by email within 14 working days.