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How to start an Airbnb business in India? Register your property in 7 easy steps

start an airbnb rental in india guide

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Listing your property on Airbnb in India presents exciting opportunities for property owners. This guide covers the legalities, earnings, how to register on Airbnb in India, taxes, and specific rules to ensure a smooth and profitable Airbnb business in India.

Register for Airbnb in India in 7 steps

To list your property on Airbnb in India, follow these steps, including the necessary legal procedures:

  1. Create an account: Create an account for your Airbnb business in India.
  2. Obtain necessary permits: Secure all required permissions, such as NOCs from societies and municipality permissions.
  3. Prepare your property: Ensure it offers comfort and safety, with amenities like appliances and clean linens.
  4. Set a competitive price: Factor in all costs and set a price that covers expenses while being attractive to guests.
  5. Create an honest listing: Provide accurate details about your property, including amenities and house rules.
  6. Consider hiring help: Staff or co-hosts can assist in managing the property, especially during peak seasons.
  7. Offer unique experiences: Hosting local experiences can differentiate your listing.

How to start an Airbnb business in India?

Starting an Airbnb business in India involves understanding the market, preparing your property to meet guest expectations, and complying with legal requirements. Focus on creating a welcoming, well-equipped space and use competitive pricing strategies to attract guests.

How much can I earn from Airbnb in India?

The earning potential from Airbnb in India varies widely depending on the city, location within the city, type of property, and the amenities offered. Here are some specific examples to give you an idea of what you might expect in different areas:

  1. Goa:
    • Beachfront properties: These can earn anywhere between Rs. 3,000 ($36) to Rs. 10,000 ($120) per night, depending on the season, exact location, and luxury level.
    • Inland villas: Typically, these fetch around Rs. 2,000 ($24) to Rs. 6,000 ($72) per night.
  2. Mumbai:
    • City center apartments: In areas like South Mumbai, a well-furnished apartment can earn Rs. 4,000 ($48) to Rs. 8,000 ($96) per night.
    • Suburban homes: In suburbs like Bandra or Andheri, you might expect Rs. 2,500 ($30) to Rs. 5,000 ($60) per night.
  3. Delhi:
    • Luxury properties in Central Delhi: These can command Rs. 5,000 ($60) to Rs. 12,000 ($144) per night.
    • Standard apartments in NCR region: Typically earn around Rs. 2,000 ($24) to Rs. 4,500 ($54) per night.
  4. Bengaluru:
    • Apartments in business districts: Properties in areas like Whitefield or Electronic City can earn Rs. 2,500 ($30) to Rs. 6,000 ($72) per night.
    • Homes in quieter neighborhoods: These might bring in Rs. 1,500 ($18) to Rs. 4,000 ($48) per night.
  5. Jaipur:
    • Heritage Havelis: These unique properties can earn Rs. 3,500 ($42) to Rs. 9,000 ($108) per night, especially during the tourist season.
    • Modern apartments: In newer areas, expect around Rs. 1,500 ($18) to Rs. 3,500 ($42) per night.
  6. Kolkata:
    • Colonial-era homes in Central Kolkata: Can fetch Rs. 3,000 ($36) to Rs. 7,000 ($84) per night.
    • Standard apartments in the New Town area: Typically, these earn Rs. 1,800 ($21.60) to Rs. 4,000 ($48) per night.
  7. Chennai:
    • Beachside villas: These properties can command Rs. 4,000 ($48) to Rs. 8,000 ($96) per night.
    • City apartments: Expect around Rs. 2,000 ($24) to Rs. 5,000 ($60) per night.

Factors influencing earnings

  • Seasonality: Tourist hotspots like Goa and Jaipur can significantly increase rates during peak seasons.
  • Events and conferences: Cities like Mumbai and Bengaluru may see a spike in demand during major events or business conferences.
  • Property type and amenities: Unique properties or those offering additional amenities like a pool, garden, or terrace can command higher prices.

How much commission does Airbnb charge in India?

Airbnb typically charges a flat 3% service fee on the reservation amount in India. This fee is relatively low compared to other platforms, making Airbnb an attractive option for hosts.

Is Airbnb legal in India?

Yes, operating an Airbnb in India is legal. However, hosts must comply with local regulations, obtain necessary permits, and adhere to taxation laws to ensure their business operates within the legal framework.

Airbnb rules in India

Navigating the Airbnb rules in India requires an understanding of both national guidelines and region-specific regulations. These rules ensure a safe, reliable, and enjoyable experience for hosts and guests.

National rules for Airbnb hosting in India

  1. Safety standards: Hosts must ensure their properties meet basic safety standards, including functional smoke detectors, first aid kits, and secure locks.
  2. Non-discrimination policy: Airbnb’s community commitment requires hosts to agree to treat all guests without bias, regardless of race, religion, nationality, or gender.
  3. Accurate listings: Hosts must provide truthful descriptions of their properties, including amenities and any potential limitations.
  4. Guest interaction: Hosts are expected to communicate clearly with guests, including house rules and check-in procedures.
  5. Cancellation policies: Hosts must choose and adhere to one of Airbnb’s set cancellation policies, ranging from flexible to strict.
  6. Payment and service fees: Transactions must be processed through Airbnb’s platform, with a standard service fee applied.

Regional rules for Airbnb hosting in India

The regional rules can vary significantly based on local laws and cultural norms. Here are some specifics for key regions:

  1. Delhi:
    • Tourist license: Required for properties rented out for short stays.
    • Noise restrictions: Adherence to local noise ordinances, especially in residential areas.
  2. Mumbai:
    • Cooperative Housing Society (CHS) rules: Hosts in CHS buildings must comply with society rules, which may include restrictions on short-term rentals.
    • Local police registration: Mandatory registration with the local police station for guest details.
  3. Goa:
    • Tourism Trade Act compliance: Properties must comply with the Goa Tourism Trade Act, including registration and adherence to tourism standards.
    • Beach safety regulations: Additional safety measures for properties near beaches.
  4. Bengaluru:
    • Residential zoning laws: Restrictions on commercial activities in certain residential zones.
    • Karnataka tourism policy: Compliance with state tourism policies and guidelines.
  5. Kolkata:
    • Heritage building regulations: Special rules for properties in heritage buildings or areas.
    • Fire safety compliance: Strict adherence to fire safety norms, especially in high-rise buildings.
  6. Jaipur:
    • Rajasthan Tourism Department regulations: Registration and compliance with local tourism department standards.
    • Cultural norms: Sensitivity to local customs and traditions, particularly in traditional neighborhoods.
  7. Chennai:
    • Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act: Adherence to state-specific tenancy laws.
    • Coastal Regulation Zone (CRZ) norms: For properties near the coast, compliance with CRZ norms is essential.

Frequently Asked Questions (FAQs)

How to become an Airbnb host in India?

To become an Airbnb host in India, sign up on the Airbnb website, create a listing by providing details about your property, set house rules, decide on pricing, and upload high-quality photos. Ensure compliance with local regulations, obtain necessary permits, and prepare your property to meet guest expectations.

Can foreigners start Airbnb hosting in India?

Yes, foreigners can start Airbnb hosting in India. However, they must adhere to local laws, including property ownership rules, tax regulations, and visa requirements. It’s advisable to consult legal experts for compliance with Indian regulations.

What are the best places to start an Airbnb business in India?

Popular locations for Airbnb businesses in India include tourist destinations like Goa, Jaipur, and Udaipur, metropolitan cities like Mumbai, Delhi, and Bengaluru, and culturally rich places like Varanasi and Kolkata. These areas attract a high volume of tourists and business travelers.

How to invest in Airbnb properties in India?

Investing in Airbnb properties in India involves researching high-demand areas, purchasing or leasing properties, furnishing them to suit guest preferences, and ensuring they are well-maintained. Focus on locations with high tourist footfall and business activity for better returns.

How to earn from Airbnb in India?

Earn from Airbnb in India by creating an attractive listing, setting competitive prices, offering exceptional guest experiences, and maintaining high standards of hospitality. Optimize your listing for seasonal demand and local events to maximize occupancy and revenue.

Is an Airbnb business in India profitable?

An Airbnb business in India can be profitable, especially in high-demand tourist and business areas. Success depends on factors like location, property quality, pricing strategy, and guest satisfaction. Proper market research and effective management are crucial to profitability.

How much does Airbnb charge hosts in India?

Airbnb typically charges hosts in India a flat 3% service fee on the booking amount. This fee is relatively lower compared to other platforms, making it an attractive option for hosts in India.

Written by Matt Timmermans

2 Responses

  1. Hi Matt,
    I am planning to offer my property on Airbnb in Ahmedabad, but I am facing lots of hurdle.
    1. I was told by Airbnb that, I must submit “Form C” each time guest from foreign country checks in to Foreigners Regional Registration Office (FRRO) located at Barrack No. 2, First Floor, Govt. Polytechnic Campus, Ambawadi, Ahmedabad, Gujarat 380015, India. But when I visited that office, no one knows anything about Airbnb or what is the standard procedure for Airbnb host. I contacted local tourism office and local lawyers, and none of them have any idea where to apply for permit and weather it is necessary to submit Form C or not? I vested 60 days in searching for answer but failed getting any. I contacted couple of Airbnb host in Ahmedabad, and they are not following any guideline as there is too much of a hassle to deal with these government officer who has no idea about Airbnb. Can you shed more light on this issue? Thank you.

    1. Hi Vasu, dealing with regulatory requirements for Airbnb in Ahmedabad can indeed be challenging. Form C is typically required for hosting foreign guests, as it helps in maintaining records with the FRRO. The lack of clarity and inconsistent enforcement you’ve encountered isn’t uncommon. My suggestion is to persist in seeking information from FRRO, possibly escalating the matter to higher authorities within the FRRO if regular staff are unfamiliar with Airbnb processes. Documenting your efforts to comply, and continuing to seek clarity from local authorities or more experienced Airbnb hosts in other cities might also provide direction. Hope this helps for you!

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List your house in India on Airbnb

Airbnb is a globally popular booking platform that allows property owners to list their properties for rent. Don’t miss out on the opportunity to earn a passive income. List your property on Airbnb today!

List your house in India on Airbnb

Airbnb is a globally popular booking platform that allows property owners to list their properties for rent. Don’t miss out on the opportunity to earn a passive income. List your property on Airbnb today!