Can you open an Airbnb in a residential flat

…by respective municipal laws regarding usage as residential, commercial, etc., which depends on how such properties are held, used and taxed. Explaining this, Basudeb Biswas, Advocate & Real Estate Lawyer, stated that if the property is entirely/ substantially used as a B&B, the usage is to be reclassified as commercial. Failing this, demolition, substantial penalties and legal proceedings, etc. can be initiated against the owner. Kshitij Bishnoi, Partner at CMS Induslaw, also added that the permissibility would depend on the title…

…a homestay in breach of the society’s byelaws or other restrictions applicable to the property, Bishnoi explained. Similarly, compliance with the society’s byelaws does not exempt you from obtaining the registrations. “ Both the society’s byelaws and the State’s rules operate at different levels, and compliance with one does not override or cure a breach of the other ,” he said, adding that both sets of requirements need to be satisfied. Sharma underlined that the regulatory framework generally consists of the following layers: First, State and UT tourism law and policy: Homestays…

…State homestay framework, municipal and land-use regulations, and tax requirements. “Airbnb’s own India guidance also advises hosts to check applicable permits, zoning, safety and health requirements,” he said. " A homestay generally operates within a State-recognised tourism framework and is ordinarily subject to conditions concerning registration, the number of rooms and beds, the nature of accommodation and, in some States, the owner's residence at the property. ” By contrast, repeatedly giving an entire flat to different guests for one or a few nights, with continuous check-ins/outs and hotel-like services, can be treated as a lodging or commercial activity rather than…

…is not prohibited by the governing documents and the applicable regulatory requirements are duly complied with, the activity may be permissible. Sharma added that the legal risk becomes materially higher where: “ Residents must, however, not act on their own by cutting water or power, or stopping guests at the gate as it can expose the RWA itself to a claim ,” Sethi noted. Moreover, society members can raise the issue with the association and seek action against the homeowner in accordance with the applicable byelaws and governing documents, added Bishnoi. “Where the…