Residents of Vaibhav Khand’s Windsor Park Society took to the streets last Sunday to protest against the alleged conversion of residential flats into Airbnb-style short-term rental units for visitors.
They said that the frequent movement of outsiders was affecting the residential environment and raising security concerns for families, Times of India reported.
The residents have now approached multiple authorities, including the District Magistrate, Police Commissioner, GDA, Nagar Nigam and Tourism Department, seeking an independent investigation into the alleged activity.
This incident brings into focus the rules governing the use of residential apartments as bed-and-breakfast or service apartments in India.
Can you legally turn a residential flat into a b&b?
India does not have any central law on short-term rentals. However, this does not mean that owning a flat gives you the right to run it as short-stay accommodation in a residential property, said Jai Dhanani, Counsel at SKV Law Offices.
According to him, whether a flat can be let to paying guests for short stays depends on three separate sets of rules, which include:
- The tourism framework of the state where the flat is located.
- The planning law that fixes the permitted use of the land and building.
- The set of documents that bind the flat within its housing society, such as the bye-laws, the deed of apartment and general body resolutions.
Each rule operates independently, so complying with just one does not cure a breach of another.
“Uttar Pradesh, where the Ghaziabad dispute has arisen, shows how the first layer works. The state’s Homestay and Bed and Breakfast Policy, 2025 provides for registration with the state Tourism Department, after no objection certificates are obtained from the local authorities concerned. The Tourism Minister announced amendments to the policy in June 2026. Under those amendments, an urban homestay must be a residential unit on owned land or on land leased from a development authority, and the owner or the owner’s family must physically live there,” Dhanani told Livemint.
He also explained that an Airbnb or service apartment unit may be run from a residential or leased residential building, but a caretaker must live in the unit.
“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,” he added.
Can you still operate a b&b if other residents protest?
Yes, a protest by itself has no legal force. However, the society or RWA can formally invoke its bylaws by passing a resolution, issuing a written notice and, if necessary, seeking an injunction through the courts, said Sahil Sethi, Partner at Saikrishna & Associates.
“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,” he added.
Hence, owners of short-term rental units should, at a minimum, obtain written consent from the housing society or RWA. Depending on the city, they may also need a trade or lodging licence from the municipal corporation, comply with fire-safety requirements, register with the FRRO and filing Form C for foreign guests. Tax implications like GST should also be kept in mind, Sethi advised.
Does running a b&b amount to a change in land use?
State governments do, from time to time, encourage and allows BNB or serviced apartments style letting. Therefore, owners must check the applicable rules before entering into any such arrangements, according to Hardeep Sachdeva, Senior Partner at AZB & Partners,
“An occasional short stay is not necessarily a change of land use, since end use remains residence only, but repeated, hotel-style bookings and services may be treated as a commercial hospitality operation,” he added.
