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The short-term rental law that affects India nationally includes:
- Foreign guest registration (Form C) is mandatory under the Foreigners Act, 1946 and Bureau of Immigration rules.
- Platforms (Airbnb, Booking.com) must comply with Consumer Protection (E-commerce) Rules, 2020.
- Goods and Services Tax (GST) may apply if rental income exceeds ₹20 lakh annually.
- Please review the official homestay regulations in India to confirm the applicable taxes and understand other national laws that may apply. The local laws that applies to home stays are highlighted below;
Classification of Short-Term Rentals
In Andhra Pradesh, short-term rentals are not formally categorized in State legislation, but two practical types exist:
- Homestays / Bed and Breakfasts (B&Bs): These are private residence where the homeowner or family resides and offers accommodation to tourists. In a B&B, breakfast is typically included, and it follows a more commercial hospitality model, unlike homestay where breakfast is not served.
- Unregistered Vacation Rentals: Entire homes or apartments rented for under 30 days, usually without state tourism registration.
Municipal Regulations
Vijayawada Municipal Corporation (VMC) regulates business operations. You must:
- You may be required to obtain a Trade License from VMC or via the CDMA portal depending on the size of the STR, but STRs with less than 6 guest rooms are usually excluded from such registration. (https://cdma.ap.gov.in)
- You are also required to follow zoning rules based on land use permissions.
Foundational Knowledge about Home Stays in Vijayawada
Homestays (via Airbnb or direct bookings) are legal only if the property complies with licensing requirement, municipal fire, building, and sanitation regulations.
Length of Stay
There is no city-mandated minimum or maximum. However:
- Bookings over 30 days may fall under tenancy laws.
- Below 30 days = “short-term use” (hospitality category).
Zoning Requirement
Permissible in mixed-use, commercial, and residential zones with proper approval and no objection from housing society/association. Confirm zoning through VMC building division.
Host & Property Eligibility
- Must be a property owner or legally authorized tenant.
- Property must not violate building use norms or lease agreements.
For homestays:
- Property must be owned by an individual or family.
- The owner must reside on the premises.
- Between 1 and 6 rooms can be allocated for guests.
- The property must comply with local safety and hygiene standards.
Types of Eligible Property
- Standalone houses
- Apartments (if association/HOA allows)
- Farm stays or heritage homes
Building, Health & Safety Requirement
Properties must:
- be structurally safe
- have proper sanitation
- have ventilation, water, and drainage facilities
- must have fire safety equipment installed and a fire NOC (No Objection Certificate) may be required for larger units or commercial-scale properties.
- Comply with inspection requirements from Andhra Pradesh Tourism
- Meet hygiene standards in guest rooms and common areas
Interior Requirements
- Clean beds/linens
- First-aid kit
- Drinking water supply
- Functional kitchen (if advertised)
- Basic amenities like toiletries and breakfast if classified as a B&B
Exterior Requirements
- Waste bins and garbage disposal in line with Swachh Bharat norms
- Drainage must be connected to municipal lines
- Visible property signage if required under trade license terms
Licenses
Mandatory:
- Trade License (if operating above homestay scale)
- Homestay/B&B License from Andhra Pradesh Tourism
Licensing Documents, Procedures & Fees
Homestay/B&B Registration:
Step 1: Application Submission
- Visit Andhra Pradesh Tourism or contact their office.
- Fill in the application form with property, ownership, and amenity details.
Step 2: Document Submission
- Aadhaar/PAN
- Sale deed or lease agreement
- Utility bills
- NOC from local authority
- Fire safety certificate
- Layout plan and photos
Step 3: Inspection and Approval
- Tourism officials inspect the property.
- Approval is granted upon verification.
Step 4: License and Renewal
- License issued to operate as a homestay or B&B.
- Must be renewed annually with updated documentation.
Fees:
- Homestay license is generally low cost.
- Trade license (if needed): ₹2,000–₹5,000/year
Procedure to Obtain a Trade License in Vijayawada
- Visit https://cdma.ap.gov.in
- Select “Trade License”
- Choose Vijayawada Municipal Corporation
- Fill in property and business details
- Upload documents
- Pay fee online
- Inspection by officer (within 7–15 working days)
Ways to Obtain the License
- Online: https://cdma.ap.gov.in
- Offline: Local MeeSeva center or VMC ward office
Taxes & Fees
- GST (Goods & Services Tax) at 12–18% may apply to STR hosts if revenue exceeds ₹20 lakh/year.
- Property Tax must be current.
Host Requirement & Document Requirement
- Aadhaar/PAN
- Trade License (if required)
- GST number (if applicable)
- Society NOC (if in apartment)
- Homestay registration certificate (if applicable)
- Foreign guest registration (Form C) if hosting international visitors
Property Inspection Requirement
- VMC inspection (for trade license)
- Andhra Pradesh Tourism inspection (for homestay registration)
Occupancy Restriction
No stated cap, but recommended:
- 2 guests per room + 1 extra adult/child. For example, a 1-bedroom homestay can host 2 guests, plus 1 extra guest with an additional mattress, totaling 3 guests. A 3-bedroom villa can host 6 guests (2 per room), and with one extra bed per room, it can accommodate up to 9 guests.
- Homestays may operate up to 6 guest rooms
Listing Requirement
- Display homestay registration license on property if required
- Not yet mandatory to show license on OTAs but advisable
Guest Record Requirement
- Maintain a guest register (Form B)
- Submit Form C for foreign nationals via indianfrro.gov.in
Noise Regulations
Short-term rentals in Vijayawada must follow the Andhra Pradesh Noise Pollution Rules as outlined in G.O. No. 172 (2010), under the Noise Pollution (Regulation & Control) Rules, 2000. In residential areas, noise levels must not exceed 55 dB(A) during the day (6 AM to 10 PM) and 45 dB(A) at night (10 PM to 6 AM).
Loud music, parties, or outdoor sound systems should be strictly avoided after 10 PM, especially in residential zones. In Commercial areas, noise levels should not exceed 65 dB(A) by day / 55 dB(A) by night
STR hosts should remind guests to keep volumes low during late hours and ensure that activities do not disturb neighbors or violate local sound limits.
Reservation on Number of STRs Owned by a Person
Only one homestay is allowed to be owned by a person, but each STR must meet registration or licensing obligations individually.
Neighbor Notification
Not mandatory under law, but highly recommended. Some apartment communities may require prior approval.
Parking Restriction
- Park Only in Legal Areas
- Guests staying at homestays must park within the host’s designated parking area (e.g., driveway or garage). Parking on public roads, sidewalks, or footpaths outside residential properties is discouraged and may result in fines.
- No-Parking ZonesAvoid parking:
- Near traffic signals, intersections, or narrow lanes
- In front of neighboring driveways or gates
- In No Parking or Tow-Away zones
- Fines for Illegal Parking
- The Andhra Pradesh traffic police enforce a ₹1,000 fine for improper or obstructive parking under the Motor Vehicles Act, 2019.
- Visitor Reminders for HostsAs a homestay host, it’s advisable to:
- Clearly inform guests where to park before arrival
- Clearly inform guests if there is no parking space
- Add parking instructions in your listing
- Let guests know if off-site parking is required
Video Surveillance Rules
Surveillance inside bedrooms or bathrooms is strictly prohibited. Inform guests if exterior or common-area cameras are installed.
Emergency Contact Requirement
Include host/manager contact in listing and visibly within the property.
Advert Requirement
There is no rule regarding digital platform listings pr social media adverts in the city.
Prohibited ZIP/Exempted Jurisdiction
No zones in Vijayawada are specifically restricted. However, community or society rules may apply.
OTA Partnership & Tax Collection
- Airbnb, MakeMyTrip, etc. must comply with tax laws.
- GST and TCS (1%) may be deducted by platform and remitted to government.
STR Ordinance
There is currently no STR-specific ordinance in Vijayawada, but STRs must follow:
- AP Tourism Homestay Guidelines
- Foreigners Act (for guest registration)
- GST Act (for tax compliance)
Parent & Child Jurisdiction
Vijayawada falls under the jurisdiction of the Andhra Pradesh Urban Local Body system. No sub-municipalities exist under VMC.
Insurance Requirement
Not mandatory by law, but STR hosts are advised to carry:
- Homeowner/property insurance
- Fire and liability coverage
- Optional guest damage protection
Regulatory Authority
Andhra Pradesh Tourism Development Corporation (APTDC)
5th Floor, Stalin Corporate Office,
D. No. 55-17-2 to 4, Near C.G.O. Office,
Industrial Estate (Auto Nagar), Vijayawada
520007, Krishna District, Andhra Pradesh.
M.G Road Office
2nd Floor, Kevin Plaza, Opposite P.W.D. Grounds, M.G. Road, Vijayawada.
Phone:+91 866-2571393 or +91 98480 07025.
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