I purchased an apartment for Airbnb after clearly informing the builder about my plans. The builder had no objection, and at that time, the society was not formed.
However, just one month after registration, the society was formed. My Airbnb started doing well, but soon the society secretary began harassing us, demanding we shut it down. Despite meeting society members and assuring them we would only allow families and married couples, 28 members filed a police complaint against us.
Eventually, we had to shut down the Airbnb.
Now, I am stuck paying a Rs. 60,000 monthly EMI, making this a costly financial mistake.
Key Takeaways:
• If the society is formed, always get an NOC from the society before purchasing.
• If the society is not formed, clearly mention short-term rental rights in the sale deed.
Lesson: Always secure legal clarity before buying property for Airbnb or short-term rentals.
In India, starting an Airbnb is very challenging. One of my cousins from Spain, he wanted to run an Airbnb in Mumbai. But he knew well about our people. He didn’t look for any residential apartments instead of that he searched a good independent villa. He bought that villa and he is running now successfully. Since it is his home and his rule, nobody questions him.
Running a Airbnb in an independent villa also tricky business. It might avoid society politics, but remember you need to handle
• legal compliance which means you need to register the property as a “guesthouse” or “homestay” to stay compliant.
• Taxation - Income from Airbnb is taxable, if your annual turnover crosses threshold, it is mandatory for GST registration.
• Even in villa you’re the responsible for safety of guests and you should have good neighbourhood relationship.
Keep in mind you have to treat it like running a small hotel with proper registration, guest management and clear rules.
It is really sad to hear that from you, but in gated residential society mostly they never allow for Airbnb. None of them like the idea of, often stranger coming and going inside their residential complex. Nowadays people are more cautious. There are too many issues cropping up: many guests arrive only for parties, which leads to noise, security concerns, and disturbance for families living there.
That’s why societies often take a strict stand against short term rentals. For them, it’s about protecting safety, peace, and the community environment.
Yeah, shutting down the Airbnb sucks and it is absolutely a big financial mistake. However, you can resolve it, just give your flat for long-term monthly rental. With that income you will be able to pay your monthly EMI Rs 60000. This will definitely reduce your financial pressure.
Long term tenants are usually welcomed by the society, so you don’t need to get approval from anyone. Plus, it’s way less stressful than dealing with short term guests and constant complaints.
If you’re planning to run Airbnb in residential society, that ain’t gonna happen. I know few of my friend planned to run Airbnb like you in the gated society. I saw how many legal things and formal procedure they underwent. Finally they gave up their plan due to lot of formalities and permission from neighborhood people.
I’d recommend you to look at commercial buildings, that could be a great idea. You can run it like a small hotel. Just you have to get legal permission from the property owner and clearance from the local police. This won’t be that much headache for you.
Not only in India, even in abroad countries like Spain, Netherland, Italy and even in Australia. Basically, Airbnb has to be run under several restrictions. Many residential apartments are being tuned into tourist hotels, locals getting priced out of housing and neighbours fed up with the noise and strangers coming and going. So, it is no surprise that housing societies in India don’t allow Airbnb either.
Airbnb is the best and profitable business idea. In India places like Mumbai, Goa, Jaipur, Delhi, Kerala and Bangalore we can see the constant flow of travellers. Compared to long-term tenants, this short-term rental often give you more profit.
But you have to face many challenges like getting NOC from societies and legal hurdle will exhaust you. The smarter move is to avoid residential complexes instead of that find independent villa or commercial complex. With the right permissions, you can run your own Airbnb without the constant headaches.
It is my personal experience, Even I planned to start Airbnb with my friend. We enquired many people and did lot of research. Later we came to know that short-term rental is always bring trouble and many guest just drunk and damage our properties and also heard bout constant complaint from the neighbourhood in our home. So, we gave up the idea and currently running another business.
Before investing our money in something, we should be very careful. Jumping into a business without proper research and enquiry can lead to serious financial problems.
Five years ago, we bought our vacation home in Lonavala and initially decided to rented via Airbnb. Later we changed the plan, due to lot of problems such as Some tenants did not treat the property well and damaged our furniture. When leaving, they often left the home untidy and did not even throw the trash in the garbage bin.
Mostly boys came their friends, left all the empty liquor bottles, and created a huge mess. We also have a garden area, mostly tourists plucked the plants and damaged our garden. Really I fed up by these nonsense activities. Most of them don’t have basic civic sense. If you want to save your property, I strongly advise please don’t go for the short-term rental.
My son planned to rent our flat through Airbnb. While, it was under construction, he shared his plan with the builder. But the builder strongly opposed the idea of Airbnb. He said it would create lot of problems to him as well as for the residents in the society. Thank God, before investing we came to know about the complexity of this business.
You should Thank God for helping you to out from the business. More than pros, it has lot of cons. One pro is you can earn well but many cons are waiting there.
• Your property will get damage by the clients
• Heavy taxation
• After every guest room has to be clean, it will take minimum 3 hours depending upon the size of your flat.
• Some guest will cancel in last minute or leave early that disrupt your income flow.
• Negative comments will hurt future bookings.
• Frequent parties or loud gatherings can disturb neighbors and damage your reputation in the society.
Every business has upsides and downsides. It is entirely depends on our consistency and on working both hard and smart. Once you learn how to deal with the customer, you will be able to manage and run this business. But I’m sure, it will take some time.
One of the best parts of this business, you can meet people from diverse nations. What a wonderful thing it is, right? Not everyone is rude or drunk. There are still many lovely hearts in the world. Not only that, you can earn well than you imagine. If you give good hospitability, why would people give you negative comments? It is in your hand to offer all the amenities to your guests.
I live in the unit below an Airbnb rental. The owner of the upper unit changed the floor into Airbnb short-term rentals. Actually, it is residential society. People often come and stay there for few days. But we often hear the noise in untime. We complained multiple times to the owner, but he ignored us.
Our city requires rentals to be at least 30 days, yet the owner continues to host short-term stays. Every month, new guests arrive, and my husband and I have to ask them to walk quietly. We are woken up almost every night between 10 pm and 7 am. Today, the current renter started moving out at 6 am.
The HOA and police have already sent notices, but the owner refuses to fix the problem. No one is enforcing the rules, and our quality of life is suffering badly.
If you want to run the business, you can but it shouldn’t affect others quality of life. I don’t know why mostly people are so selfish and never care about the feeling of others.
Running a business should also respect community rules and laws, because ignoring them creates tension and legal trouble. In addition, every business must consider long-term harmony with neighbours, since disturbing society will eventually damage your own reputation and success.
Sensible people never allow their apartments turned into hotels, your society had made a good decision. You’re not going to stay there. Whatever the problems and troubles are caused by the guests, the residents will be the one going to suffer. Don’t be so business minded, think about other people too. If something terrible happens to the residents, will you take responsible for that?
Nowadays, we see so much horrible news in people’s life. If you want to run the business, find place according to that. It is not the society’s fault. It is entirely up to you. You must verify and enquire about everything related to your business. Think carefully before investing your money.
Using Residential complex for Airbnb is illegal. However, I hope you haven’t been hurt too much by this situation. A better solution for paying your EMI. It is better to give your flat for long-term rental to any family. It will give you monthly rent, using that you can pay your EMI. You don’t need to provide any furniture and some household things, which saves you extra cost.
Long term tenants are usually more responsible, and they help maintain peace in the society. It’s a safer, more stable option compared to short term rentals. Think carefully, verify all the details, and invest your money wisely.