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 have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

Is renting out or booking a flat on Airbnb for short stays legal in India? is governed in India primarily by Transfer of Property Act 1882, Section 105, State Cooperative Societies Act / Apartment Ownership Act, society bye-law provisions and relevant State Tourism / Short-stay Accommodation registration rules. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

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 the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Transfer of Property Act 1882, Section 105 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. 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 this practice area.