Residents at Windsor Park Society in Ghaziabad protested against short-term rentals allegedly being offered to outsiders. (AI image)
What has the Gujarat high court said?
Because flats there are leasehold, he also noted that Noida and Greater Noida have a different position.
Some residents held posters that read, “This is a society, not a hotel” and “No Airbnb”. Residents also alleged that some people were staying without police verification and the required registration, according to a TOI report. Sahil Sethi, Partner at Saikrishna & Associates, said a homestay can be registered under the state’s new homestay policy when the owner lives at the property and rents out a room or two. Basudeb Biswas, advocate and real estate lawyer, said that if a property is used entirely or substantially as a bed and breakfast, its use may need to be treated as commercial. Kshitij Bishnoi, Partner at CMS IndusLaw, said the position depends on several factors. Kunal Sharma, managing partner at TARAksh Lawyers and Consultants, said the first distinction is between a genuine homestay and an Airbnb-style commercial accommodation business. Kshitij Bishnoi said that where society bye-laws or property documents prohibit commercial use or short-term letting, an owner may be restrained from continuing the activity. Kunal Sharma said the risk can be higher where: The state requires registration or a licence and the owner has not obtained it. Sahil Sethi said the first step should be a written notice to the owner. Sethi said they should not cut off water or electricity or stop guests at the gate. Kshitij Bishnoi said society members can also raise the issue with the association and seek action under the applicable bye-laws and governing documents. Sethi said the RWA’s main legal remedy is to seek an injunction through a civil court. Bishnoi said an RWA can act against an owner who breaches applicable bye-laws or other governing documents.
GHAZIABAD: A recent dispute at Windsor Park Society in Vaibhav Khand, Ghaziabad, has raised questions about the rules around Airbnb and homestays in residential flats. Residents of the society recently protested against flats allegedly being offered to outsiders for short stays. Residents were concerned about the regular movement of outsiders, particularly in studio apartments in Towers A and B. They claimed that several flats were being rented out on a daily or short-term basis. They submitted a joint complaint to the district magistrate, police commissioner, Ghaziabad Development Authority (GDA), Nagar Nigam and Tourism Department. The case raises an important question for homeowners: can a person legally run a homestay or Airbnb from a residential flat? The answer depends on several factors. However, the policy is meant for homeowners and does not cover commercial operators. This means that a person who lives elsewhere and rents out an entire flat every day would not fall within this arrangement. Residential properties are also subject to municipal rules on property use. Failure to comply with the applicable rules can lead to penalties, legal proceedings and, in some cases, demolition. These include the title documents, society bye-laws, state homestay rules, municipal and land-use regulations and tax requirements. Airbnb’s own guidance for India also advises hosts to check the permits, zoning rules, safety requirements and health requirements that apply to their property. A homestay usually operates under a state tourism framework. It may have rules on registration, the number of rooms and beds, the type of accommodation and, in some states, whether the owner must live at the property. By comparison, repeatedly renting out an entire flat to different guests for one or a few nights can be treated differently. Frequent check-ins and check-outs and hotel-like services may result in the activity being viewed as a lodging or commercial operation rather than ordinary residential letting. Sharma referred to the Gujarat high court case Kamaldeep Singh v. Shivam Satellite Cooperative Housing Society Ltd. The case involved a member who wanted to use a room in his flat for a homestay through Airbnb. The society’s general body had passed a resolution prohibiting homestays and other similar stays. The court held that, while those resolutions remained in force, they were binding on the member. The case shows why society bye-laws and resolutions can be important when a homeowner wants to use a flat for short-term accommodation. Owning a flat does not automatically give a homeowner the right to operate an Airbnb or homestay from it. There can also be legal risks if the required registrations or permissions have not been obtained. The flat is approved only for residential use. The apartment declaration, lease deed or society bye-laws restrict commercial use. The society has validly restricted paying guest accommodation. Local fire, municipal, police, tax or other requirements have not been met. The activity is effectively a guest-house business being run from a residential flat. However, this does not mean that every Airbnb listing is automatically illegal. The position depends on the rules that apply to the property and whether the required registrations and permissions have been obtained. Residents and the housing society can take several steps if they believe a flat is being used in breach of the applicable rules. The notice should identify the specific bye-law that is allegedly being breached and should be supported by evidence. If the owner does not stop the activity, the society’s legal remedy may include seeking an injunction from a civil court. Residents should not take matters into their own hands. Such actions could expose the Residents’ Welfare Association (RWA) to a legal claim. If there is a breach of municipal, zoning, tourism or other regulatory requirements, a complaint can also be made to the relevant authority. Where the applicable rules prohibit the activity, the association or affected residents may seek an injunction from a civil court. Residents who believe a flat is being used for short-term rentals can document the activity. This may include: Screenshots of online listings. Booking information. Evidence of repeated guest turnover. Advertisements. Other objectively verifiable information. Residents can then check the registered bye-laws and declaration of the property. These documents may contain restrictions on short-term letting, paying guests or commercial activity. The association can then be asked to issue a formal notice to the homeowner and seek an explanation about the activity and any required permissions. An RWA cannot simply evict an owner from their own flat or take away their ownership rights. In such cases, the relevant authority can take action under the lease conditions following a complaint by the RWA. However, its powers generally extend to enforcing those rules and do not include taking away the owner’s property rights. Depending on the applicable bye-laws, an RWA may: Issue notices. Levy penalties where the bye-laws permit them. Regulate guest and visitor access under applicable security rules. Approach the relevant authorities. Seek an injunction from a civil court where the rules prohibit the activity. It cannot simply evict or dispossess an owner or terminate their ownership rights by passing a resolution.
What should homeowners check before starting a homestay?
For example, the Uttar Pradesh B&B Policy 2025 contains requirements for applicable accommodation establishments. For homeowners, the key step is therefore to check these requirements before starting a short-term rental business. You Can Also Check: Gold Rate in Ghaziabad | Silver Rate in Ghaziabad | Bank Holidays in Ghaziabad | Public Holidays in Ghaziabad | Ghaziabad AQI | Weather in Ghaziabad | Petrol Price in Ghaziabad | Diesel Price in Ghaziabad | CNG Price in Ghaziabad | LPG Price in Ghaziabad Stay updated with the latest Ghaziabad news.
Homeowners who want to earn rental income from short-term accommodation should first check all the rules that apply to their property. These may include state or Union Territory tourism rules, apartment or society laws, municipal regulations, building-use restrictions, fire-safety requirements, tax rules and other local requirements. Other parts of India have their own laws and policies. The owner may also need approvals or no-objection certificates from the relevant local authorities. Importantly, registration under a state homestay scheme does not automatically override the rules of a housing society. At the same time, getting society approval does not remove the need to comply with government regulations. As Bishnoi explained, these requirements operate at different levels. A homeowner may need to comply with both. There is no nationwide blanket ban on using a residential property for short-term accommodation. At the same time, homeowners do not have a blanket right to operate an Airbnb or homestay from a residential flat. The position depends on the applicable state or Union Territory tourism rules, sanctioned land and building use, local regulations, title documents, apartment declarations, society bye-laws and other housing rules. For residents, the relevant bye-laws and government rules provide the basis for raising concerns where a flat is being used in a way that may breach them. Download the TOI App.