Is renting out or booking a flat on Airbnb for short stays legal in India?

Question

I want to list my flat on Airbnb for short-term guests, or I have booked a short stay through such a platform. What legal issues should I be aware of? I would rather settle this without going to court if the law allows it, but I need to know my rights before I sign anything. Please tell me what to do first and what document to keep.

MyVakeel Legal Desk · Accepted Answer

Under Indian law, Transfer of Property Act 1882, Section 105 is the starting point for this property law question. What follows is the position in substance, together with the steps that usually make the difference in practice.

Short-term guest stays booked through platforms like Airbnb are generally structured as a licence for temporary accommodation rather than a lease under Section 105 of the Transfer of Property Act, since there is no intention to create a tenancy or exclusive long-term possession.

Several states have introduced or are in the process of introducing short-stay or homestay registration rules requiring hosts to register with the state tourism department or local municipal authority before offering paid short-term accommodation.

Housing societies governed by the applicable state Cooperative Societies Act or Apartment Ownership Act can restrict or prohibit short-term commercial letting through their registered bye-laws if it disturbs other residents' peaceful use of common areas, and courts have upheld reasonable restrictions of this kind.

A flat owner who lets out a unit through such platforms without informing the society or without the society's permission where bye-laws require it can face action from the society, including fines or restrictions on common area access.

Guests booking short stays should verify the host's identification and rely on the platform's booking terms, since a mere booking confirmation does not create tenancy rights and the guest can be asked to vacate at the end of the booked period without a Section 106 notice.

What to do next: 1) Check your state's short-stay or homestay registration requirement before listing a flat; 2) Review your housing society's bye-laws for any restriction on short-term letting; 3) Inform the society and maintain a visitor or guest register as required; 4) Keep booking and identification records of guests for safety and compliance.

If you are unsure whether your facts fall inside Transfer of Property Act 1882, Section 105, that is worth checking with an advocate before you commit to a route, because switching later costs time. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in property law.