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India’s Rules for Turning Residential Flats Into Short-Term Rentals

India’s Rules for Turning Residential Flats Into Short-Term Rentals
Can you rent out a residential apartment as an b&b or service apartment? Check the rules · livemint.com

India does not have one nationwide law that automatically allows people to run short-term rentals in residential flats.

Owners must follow tourism, land-use and housing-society rules.

In Uttar Pradesh, eligible homestays need registration and approvals from local authorities.

The owner or the owner’s family must live in an urban homestay.

A service apartment must have a caretaker living in the unit.

Both types can have no more than eight rooms under the policy.

A vacant flat with constantly changing guests is not covered by these routes.

A protest alone does not stop an operation, but a housing society can use its bylaws and seek legal action.

Owners may also need municipal licences, fire-safety compliance, foreign-guest registration and tax compliance.

Key facts

Central law
India has no central law specifically governing short-term rentals.
Applicable rules
Operators must consider state tourism rules, planning or land-use law, and housing-society documents.
Uttar Pradesh registration
The state’s Homestay and Bed and Breakfast Policy, 2025 provides for Tourism Department registration after local-authority no-objection certificates.
Residence requirement
An urban homestay requires the owner or the owner’s family to physically live there; a service apartment requires a live-in caretaker.
Room limit
Both categories are capped at eight rooms under the policy.
Vacant flats
A flat in which nobody lives and which receives a changing stream of guests is not covered by the stated routes.
Additional compliance
Possible requirements include housing-society consent, municipal licensing, fire-safety compliance, FRRO registration, Form C filings for foreign guests and applicable GST obligations.

Quotes

Jai Dhanani

Counsel at SKV Law Offices who explained the applicable tourism-policy requirements.

“Both categories are capped at eight rooms, and hotels, motels and guest houses are excluded from the scheme altogether. Neither route covers a flat in which no one lives and which simply receives a changing stream of guests.”
livemint.com
“So the real question isn't whether the neighbors are upset, it is whether the society or RWA has the paperwork and the resolve to act on it.”
livemint.com

Sources

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