Short-term rentals in NCR have come under the scanner in recent weeks, with residents’ associations in Noida and Ghaziabad raising concerns over security, nuisance and the steady stream of short-stay guests entering residential complexes. While there is no blanket law prohibiting homeowners from offering flats for short-term stays, 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, along with their own bye-laws, which may restrict or regulate transient occupancy. The rules often turn on concerns over security, the use of common areas and whether frequent short-term stays undermine the residential character of a housing complex, they say.
The issue has come into focus at Supernova in Sector 94, Noida, where the residents’ association has warned flat owners and tenants against renting out homes for brief stays through Airbnb and other short-term rental platforms. This action reportedly followed after an operator of a short-stay accommodation in Spira reached the Supernova complex and allegedly attempted to enter through the main gate instead of the designated entrance.
Security guards reportedly stopped him and asked him to use the tower’s designated gate. He allegedly told them that one of his guests had been stopped at the reception and that he needed to enter the complex to check the guest in. When the guards did not open the gate, an argument reportedly broke out and the operator allegedly drove his car through the boom barrier.
In a separate incident, a software engineer died by suicide after allegedly jumping from the balcony of an Airbnb in Supernova’s Spira Tower on October 3. The man had reportedly checked into the apartment alone on Friday and ordered food online.
The Supernova Apartment Owners’ Association had issued a notice a few days ago, warning flat owners and tenants against renting out homes for short-term stays. The association said those listing or renting out flats on such platforms could face legal action and the responsibility would rest with the respective flat owners or tenants.
Naresh K Nandwani of the Supernova Apartment Owners’ Association was quoted as saying that the complex comprises three towers — Nova East, Nova West and Spira Tower. Nova East and Nova West are fully residential and together have 582 units, while Spira has a mixed-use component.
Around 200 flats between the 19th and 43rd floors of Spira Tower are being used commercially, including for short-term accommodation, Nandwani said. Although the three towers share a common campus and gates, residents have raised concerns over guests entering and leaving the premises at odd hours, he said.
Nandwani told Hindustan Times Real Estate that the association’s general body meeting passed a resolution through a voice vote on September 30, stating that owners should not allow short-term rentals as they were creating problems and needed to be discouraged and stopped.
A similar issue has also surfaced in Ghaziabad. Last month, more than 30 residents of the Windsor Park Society in Vaibhav Khand reportedly protested against alleged short-term rentals operating within the residential complex, raising slogans such as “this is not a hotel” and “no Airbnb”. Residents had alleged that some flats were being rented out on an hourly basis and that the frequent movement of outsiders was creating security concerns. The complaint primarily concerned studio apartments in Towers A and B, which together have around 270 flats. Residents alleged that more than 50 flats were being used as Airbnb-style accommodations.
What are the rules for short-term rentals in UP?
Uttar Pradesh has a specific regulatory framework for homestays and bed-and-breakfast establishments under its Bed & Breakfast and Homestay Policy, 2025. The policy allows residential properties to accommodate tourists, but subject to registration and prescribed conditions.
A homestay must be a residential property where the owner lives with the family and may offer up to 6 rooms, with a maximum of 12 beds. Under the B&B category, the owner need not reside on the premises, but a caretaker must be present. The policy also limits eligibility to legal property owners and requires registration with the Tourism Department.
However, registration under the state tourism policy does not automatically permit a homeowner to operate an Airbnb-style rental in a housing society. Apartment by-laws, the deed of apartment and resolutions passed by the residents’ association can impose additional restrictions on short-term or commercial use.
Can landlords rent out their apartments for short-term stays?
There is no blanket central law that prohibits every short-term rental in a residential apartment. However, it is not a free-for-all either, legal experts said.
“Administration has clarified that leasing an entire residential apartment on app-based Bed & Breakfast (BnB) platforms without the primary owner residing on the premises is illegal and constitutes unauthorised commercial activity,” said Rajiva Singh, founder, Noida Federation of Apartment Owners Associations, an apex representative body for high-rise apartment owners and resident associations across Gautam Buddha Nagar.
He told Hindustan Times Real Estate that non-hosted, short-term commercial rentals could create significant safety, security and privacy risks for residents. As a result, RWAs and AOAs often prohibit commercial activities in high-rise residential complexes to protect community safety.
“There is no blanket central law banning this, but it is not a free-for-all either. Most housing societies register under state Apartment Ownership Acts or Cooperative Societies Acts, and their own bye-laws often restrict or regulate short-term/transient occupancy, since it affects security, common area usage and the residential character of the building,” said Amitraj Kaushal, a Supreme Court advocate.
Therefore, whether a homeowner can offer an apartment for Airbnb-style stays depends on a combination of the society’s bye-laws, applicable municipal or local-body regulations and, in some states, specific rules governing homestays or paying guest accommodation.
Is RWA permission necessary?
In most cases, homeowners should check the society’s bye-laws and obtain the required permission, or provide prior intimation to the RWA or the managing committee, before starting short-term letting.
While this may not always be an absolute legal requirement under the parent legislation, society bye-laws commonly prescribe procedures for letting out a unit. Several societies have also tightened their rules specifically for short-term or Airbnb-style rentals because of security and liability concerns.
Failure to follow these rules may lead to disputes with the RWA, show-cause notices, or restrictions on the use of common facilities, depending on the society’s bye-laws and enforcement mechanisms, said Kaushal.
Will short-term rentals be treated as commercial use?
This remains a grey area and can depend on the activity's frequency and scale.
An occasional or one-off short-term letting of a residential apartment may continue to be treated as residential use for property-tax purposes. However, if the apartment is repeatedly rented out, operated in a business-like manner or forms part of a larger hosting operation, local authorities may treat it as commercial or mixed-use, particularly where the activity resembles a hospitality business, he said.
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From an income-tax perspective, rental income has to be disclosed. Depending on the nature, scale and frequency of the activity, the income may need to be assessed differently from ordinary income from house property.
What should landlords do before listing a home for short-term stays?
1. Check society rules: Read the apartment association’s bye-laws and obtain the required RWA intimation or NOC before starting short-term rentals. This can help avoid disputes and possible restrictions on amenities.
2. Maintain proper tax records: Keep documentation of rental receipts and disclose the income in tax filings. Where the activity is substantial or business-like, seek professional advice on whether it should be treated as income from house property or business income.
3. Check local regulations: Verify municipal and state-specific requirements for short-term rentals, homestays, B&Bs or paying guest accommodation. Compliance requirements can vary by location, and violations may result in action regardless of any dispute with the housing society.