The Myth of AIRBNB hosting!

MUMBAI: Owners are often confused about the legality of hosting their flats or bungalows with Airbnb or others for short stays.

There are hundreds of instances where societies or the neighborhood have denied owners from hosting their flats or bungalows with Airbnb or others. This act of the societies or the neighborhood is bad in law, opine legal experts. The owner cannot be denied the right of hosting his property with Airbnb or others.

However, the owner of the flat or bungalow must inform the local police station of his intention. Also, the owner must obtain a GST number in the event the revenue from the hosting is in excess of Rs. 40 lakhs per annum.

So, owners go ahead and host your premises with Airbnb or others for better revenues as compared to the conventional system of leasing or renting out your premises.

Co-operative Housing Societies in Mumbai have been very innovative about this new trend. Rather than merely charge the owner some extra outgoings when an apartment is given on lease, the housing society takes a piece of the cake from the owner by charging 3-5% of the listed price on the website brokering the hosting.

Apparently, there is this super luxury sea-facing 4 bedroom terrace flat at Napean Sea Road listed with Ama Stay & Trails which is a part of the Taj Group of Hotels and deals in hosting uber-luxury properties. This property is listed with Ama Stay & Trails at Rs. 1,10,000 per night. This property is sold out for over 20 nights a month and the housing society earns over Rs. 1 lakh every month in comparison to under Rs. 10,000 a month they would rake in as outgoings for a flat leased the conventional way. So these Co-operative Housing Societies too have joined the bandwagon!