News: Short-Stay Flat Rentals: Society Rules and UP Policy-06-10-2026

Short-term rentals in NCR are under scrutiny after residents’ associations in Noida and Ghaziabad objected to security risks, nuisance and the flow of short-stay guests through residential complexes. Legal experts say no blanket law bars owners from offering flats for short stays, but it is not a free-for-all.

The Supernova case

At Supernova in Sector 94, Noida, the Apartment Owners’ Association issued a notice a few days ago warning owners and tenants against letting homes through Airbnb and similar platforms, saying those who do could face legal action and would bear responsibility.

The notice reportedly followed an incident in which an operator of a short-stay unit in Spira tried to enter through the main gate instead of the designated one. Guards reportedly stopped him; he allegedly said a guest had been held at reception and, after an argument, allegedly drove through the boom barrier. Separately, a software engineer who had reportedly checked in alone to an Airbnb in Spira Tower died by suicide on October 3.

Naresh K Nandwani of the association was quoted as saying the complex has three towers. Nova East and Nova West are fully residential with 582 units together, while Spira is mixed-use, with around 200 flats between the 19th and 43rd floors used commercially, including for short stays. The towers share a campus and gates, and residents are worried about guests moving at odd hours. He told Hindustan Times Real Estate that the general body passed a resolution by voice vote on September 30 that owners should not allow short-term rentals.

In Ghaziabad last month, more than 30 residents of Windsor Park Society in Vaibhav Khand reportedly protested with slogans such as "this is not a hotel". They alleged some flats were let by the hour and that more than 50 of around 270 studio apartments in Towers A and B were run as Airbnb-style accommodation.

What UP’s policy says

Uttar Pradesh’s Bed & Breakfast and Homestay Policy, 2025 lets residential properties host tourists subject to registration with the Tourism Department. A homestay must be a home where the owner lives with family, offering up to 6 rooms and a maximum of 12 beds. Under the B&B category the owner need not live there but a caretaker must be present. Only legal owners are eligible.

Registration does not by itself permit such rentals in a housing society. Apartment by-laws, the deed of apartment and association resolutions can impose further limits.

What experts say

Rajiva Singh, founder, Noida Federation of Apartment Owners Associations, said the administration has clarified that leasing an entire apartment on app-based BnB platforms without the primary owner residing there is illegal and amounts to unauthorised commercial activity. He told Hindustan Times Real Estate that non-hosted rentals pose safety, security and privacy risks, which is why RWAs and AOAs often prohibit commercial activity.

Amitraj Kaushal, a Supreme Court advocate, said most societies are registered under state Apartment Ownership Acts or Cooperative Societies Acts, and their bye-laws often restrict transient occupancy because it affects security, common areas and the building’s residential character. Whether an owner can host therefore depends on the bye-laws, municipal regulations and, in some states, homestay or paying guest rules.

Owners should generally check the bye-laws and obtain permission from, or give prior intimation to, the RWA or managing committee. This may not always be an absolute requirement under the parent law, but ignoring it can bring disputes, show-cause notices or curbs on common facilities, Kaushal said.

Whether such letting counts as commercial use is a grey area that turns on frequency and scale. An occasional letting may still be treated as residential for property tax, he said, but repeated, business-like hosting may be classed as commercial or mixed-use. Rental income must be disclosed for income tax and, depending on scale, may be assessed differently from ordinary income from house property.

Before listing

Owners should read the association’s bye-laws and get the required intimation or NOC; keep records of rental receipts and take professional advice on whether income is house property or business income; and verify municipal and state rules for short-term rentals, homestays, B&Bs or paying guest accommodation, since violations can invite action regardless of any dispute with the society.