Want to rent your place out short-term? Rules landlords need to know before the first renter arrives

By Bricksnwall | 2026-10-07

Noida and Ghaziabad residents are concerned about security and disruption as short-term rentals become more popular.

Short-term rentals in NCR have been under scrutiny over the past few weeks, with residents’ associations in Noida and Ghaziabad raising the alarm about security, disturbance, and the regular stream of short-stay guests entering residential complexes. There is no blanket legislation preventing homeowners from renting out flats for short-term stays, but legal experts say it is far from a free-for-all.

Most housing societies are governed by state apartment ownership acts or cooperative societies acts and their own bylaws, which may restrict or regulate transient occupancy. “The rules often come down to security issues, the use of common areas, and whether a lot of short-term rentals would take away from the residential nature of a housing complex," they say.

The residents’ organization has cautioned apartment owners and tenants against letting out homes for short stays on Airbnb and other short-term rental sites, and Supernova in Sector 94, Noida, has become the center of the issue. The move comes after an incident where a short-stay accommodation operator in Spira made it to the Supernova complex and reportedly tried to go in through the main gate, not the access allocated for such purposes.

Security officers reportedly stopped him and said he should use the tower's approved gate. He allegedly informed them that one of his guests was held up at the reception and he wanted to go into the building to check the guest in. The operator, who was apparently arguing with the guards when they refused to open the gate, drove his car over the boom barrier.

Separately, a software engineer killed himself by jumping from the balcony of an Airbnb in Supernova’s Spira Tower on October 3, according to allegations. Reports said the man had booked into the flat alone on Friday and had bought dinner online.

The Supernova Apartment Owners’ Association had put out a notice a few days previously, warning flat owners and tenants against giving their homes on short-term rent. The group stated those listing or renting out properties on such platforms could face legal action, and the obligation would be with the respective unit owners or tenants.

Naresh K. Nandwani of the Supernova Apartment Owners’ Association was quoted as saying the complex has three towers—Nova East, Nova West, and Spira Tower. Nova East and Nova West are 100% residential and collectively have 582 units, with Spira having a mixed-use component.

Nandwani added that some 200 flats between the 19th and 43rd floors of Spira Tower are being used for commercial purposes, including short-term housing. Residents have complained they are concerned about visitors coming and going at strange hours, he said, despite the three towers being on a shared site and gated.

“The general body meeting of the association passed a resolution through a voice vote on September 30 saying owners should not allow short-term rentals as they were creating problems and needed to be discouraged and stopped,” Nandwani told Hindustan Times Real Estate.

A similar problem has cropped up in Ghaziabad as well.

Last month, more than 30 residents of Windsor Park Society in Vaibhav Khand held a protest march against the suspected operation of short-term rentals in the residential complex and raised chants like “this is not a hotel” and “no Airbnb." Residents had complained that certain units were being rented out on an hourly basis and the constant movement of outsiders was raising security issues. The main criticism was about the studio flats in Towers A and B, which together include about 270 flats. Residents said more than 50 flats were being utilized as Airbnb-style housing.

What are the short-term renting restrictions in UP?

Uttar Pradesh has a particular regulatory regime for homestays and bed-and-breakfast establishments under its Bed & Breakfast and Homestay Policy, 2025. The policy enables tourists to stay on residential premises but only if they are registered and comply with the specified restrictions.

The homestay must be a house where the owner and family live and can offer a maximum of 6 rooms with a maximum of 12 beds. The B&B category does not require the owner to live on the premises but requires a caretaker to be on-site. The policy also restricts eligibility to lawful owners of property and requires registration with the Tourism Department.

However, registration under the state tourist policy does not immediately give a homeowner the right to run an Airbnb-type rental in a housing society. Apartment by-laws, the deed of the apartment, and resolutions approved by the residents’ association may place additional limits on short-term or commercial use.

Can landlords rent their apartments on a short-term basis?

There is no blanket central law that bans short-term rentals in a residential apartment. But it's not a free-for-all either, legal experts added.

Rajiva Singh, founder of Noida Federation of Apartment Owners Associations, an apex representative body of high-rise apartment owners and resident associations across Gautam Buddha Nagar, said, “The Administration has made it clear that leasing out a whole residential apartment on app-based Bed & Breakfast (BnB) platforms without the main owner residing there is illegal and is an unauthorized commercial activity.

Short-term commercial rentals that are not hosted can pose serious safety, security, and privacy hazards for residents, he told Hindustan Times Real Estate. Hence, RWAs and AOAs generally prohibit commercial activity in high-rise residential complexes to ensure community safety.

“There is no grand central law against this, but it’s not a free-for-all. “Most housing societies are registered under the Apartment Ownership Acts or Cooperative Societies Acts of the state, and their own bylaws often restrict or regulate short-term or transient occupancy, as it impacts security, usage of common areas, and the residential character of the building,” said Supreme Court advocate Amitraj Kaushal.

Therefore, the availability of a flat for Airbnb-style stays by a homeowner depends on the bye-laws of the society, the rules of the municipal or local authority concerned and, in some states, particular requirements for homestays or paying guest accommodation.

Do we need authorization from RWA?

In most circumstances, the homeowner should review the bylaws of the society and seek necessary authorization or give prior information to the RWA or managing committee before initiating short-term rental.

This may not be an absolute legal requirement in all cases under the parent legislation, but usually processes for letting out a unit are prescribed in society bye-laws. Some societies have also increased restrictions on short-term or Airbnb-type rentals due to security and liability issues.

“Non-compliance with these rules can lead to disputes with the RWA, show-cause notices, or restrictions on the use of common facilities depending on the society’s bylaws and enforcement mechanisms,” added Kaushal.

Will short-term rentals be considered commercial use?

This is still a gray area and may depend on the frequency and scale of the activity.

A short-term letting of a residential flat may be classified as residential usage for property-tax purposes, as long as it is an infrequent or one-off lease. But if it is rented out often, is run like a business, or is part of a bigger hosting operation, municipal authorities might consider it to be commercial or mixed-use, particularly if the activity resembles a hospitality business, he said.

The rental income has to be reported for income tax purposes. Depending on the nature, scale, and frequency of the activity, the revenue may have to be treated differently from conventional income from dwelling property.

What can landlords do before putting a home up for short-term stays?

1. Check the regulations of society: Please read the bye-laws of the apartment association and get the appropriate RWA notification or NOC before you start short-term rentals. This may assist in minimizing conflicts and potential limitations on amenities.

2. Keep Good Tax Records: Keep receipts of rental revenue and report the income on tax returns. Where activity is large or businesslike, get professional guidance as to whether it should be considered as income from residential property or business income.

3. Research local laws: Check local and state-specific requirements for short-term rentals, homestays, B&Bs, or paying guest lodging. The compliance criteria may differ from place to place, and infractions may result in action irrespective of any dispute with the housing society.

Source: Hindustan Times