Can housing societies block Airbnb or short-term rentals? Here's what Bombay Court said

Own an apartment in a housing society and dream of turning it into your next Airbnb listing? What sounds like an easy side hustle is not as simple as it sounds. From security concerns and late-night noise argument, short-term rentals rarely get a smooth ride. To make things trickier, many society bylaws clearly restrict owners from using their homes for commercial lodging or hospitality purposes, turning what looks like a simple idea into a recurring point of dispute in several complexes.According to a Bombay co-operative court, short-term rentals sought via platforms like Airbnb constitute commercial activity and hence, apartment owners require prior approval of their respective housing societies before hosting paying guests. The dispute was filed against the Bharatiya Friend’s Co-operative Housing Society Ltd. by a 65-year old church gate resident, Mahesh Khetshibai Mehta, after it imposed penalties on the elderly for hosting paying guests. He challenged resolutions passed between 2008 and 2015 that prohibited short-term paying guests, commercial use of flats and also, sought a refund of over Rs 1.5 lakh collected as transfer charges.The court dismissed the plea and upheld the society's bylaws, noting that such activities raise safety issues and disturb the residential character. However, the court made it clear that, as long as they adhere to social norms, members can still make money by renting out their properties for longer duration like 11 months or more.Airbnb also offers comprehensive guidelines to educate residential building owners planning to list their apartments on its platform. This includes laws in your city, county, state, province, territory and/or country dictating the terms and conditions of renting apartments for a short period. Here’s a list of standard considerations, comprehensive but not exhaustive, that you must read before you prepare your house for Airbnb:What Airbnb hosts need to know before listing a homeZoning laws set out the way you can use your home and you should consult these rules or regulations to see if your listing aligns with the current zoning requirements.As rules and local enforcement vary heavily depending on your specific location and local authorities, doing a bit of due diligence is necessary to avoid penalties, warnings, or getting shut down. Apart from state laws, it is important to check society bylaws and local housing regulations, as some societies are reluctant to allow paying guest or short-term rentals due to safety concerns, frequent tenant turnover, and potential rule violations.